PwC Middle East survey highlights gap between companies’ ESG initiatives and employee priorities

The Middle East findings of PwC’s first global workforce ESG preferences study 2024 reveal a significant disconnect between companies’ focus on Environmental, Social, and Governance (ESG) initiatives and the actual priorities of employees in the region. The study shows that while businesses are prioritising sustainability, employees are more focused on personal benefits, such as fair pay and career advancement.

The survey indicates that 92% of respondents would likely remain with their employers if total rewards were enhanced, compared to 77% who would stay if overall ESG practices were improved. This gap underscores the challenge for organisations in aligning their sustainability goals with employee priorities, potentially impacting their long-term business viability and growth.

Despite this apparent disconnect, the report also indicates that enhancing current ESG policies and practices can significantly improve employee retention. According to the study, the proportion of employees "likely" and "very likely" to stay increases to 82% from 77%, while those "unlikely" and "very unlikely" drops to 3% from 6% when ESG policies are enhanced.

This finding is crucial as it suggests that even though competitive pay and equitable practices are essential for retaining top talent, integrating ESG elements throughout the employee lifecycle and into organisational culture can create a more conscious and engaged and motivated workforce. This, in turn, can lead to better ESG outcomes for the organisation and society at large.

Khaled Bin Braik, Consulting Partner and Emiratisation Leader, PwC Middle East said: “ESG is an emotive topic and employees respond to it differently and engage at varying levels. Understanding these sentiments and designing personalised approaches can ensure that employees feel included and play an active role in achieving sustainability goals. This goes beyond just ticking boxes; it's about creating a work environment where employees feel valued and connected to the organisation's mission. It's about embedding ESG into the company culture so employees see themselves as integral to the sustainability agenda and feel empowered to contribute meaningfully."

Furthermore, the study recommends that employers adapt personalised approaches to effectively engage their workforce and make ESG a shared priority. It also introduces four ESG employee personas, providing insights into how organisations can tailor their ESG strategies to engage each persona effectively.