The Crucial Role of Sustainability for Employer Branding and Long-Term Success With a Competitive Edge in European Industries
A recent European Investment Bank survey found that 76% of potential employees under 30 consider prospective employers based on their employer branding efforts to reduce and combat climate change. Current and prospective employees care more about climate change than potential employers believe.
Meanwhile, a recent Kroll study confirmed that companies with better environmental, social, and governance (ESG) ratings had higher returns on investment for 2023, revealing how a competitive edge in the industry also results from sustainable efforts. Sustainability can improve employee retention rates and give businesses a competitive market edge.
Explore how adopting sustainable practices can strengthen your organization's success, boost its reputation, drive long-term growth, and improve the employee experience in today’s competitive job market. These efforts can make a real difference in how your brand is perceived and enhance employee satisfaction.
How EU Companies Become an Employer of Choice
A strong employer with a high employee value proposition (EVP) follows the latest sustainability trends, implements change, and empowers potential or current employees with the tools, skills, and processes necessary to leverage sustainability practices daily.
Business leaders can boost employee engagement by focusing on their current team. One effective way to do this is by conducting a survey to uncover their personal values, beliefs, and commitment to sustainability. When it comes to employer branding, a solid strategy starts with in-depth research.
For example, a Deloitte survey found that 86% of Gen Z and 89% of millennials need a sense of purpose to improve their job satisfaction. Implementing sustainability practices will significantly enhance the employee experience, creating a more engaged and motivated workforce. When tech and business leaders take decisive action, they foster an environment where everyone feels valued and inspired.
Still, employees need a sense of purpose to excel in every role. Maslow's Hierarchy of Needs prioritizes self-actualization, the need to find meaning in everything employees do in the workplace. Talented individuals become motivated employees when they discover their purpose—the key driver of their passion and success.
Reimagine the sustainability strategy as a means to empower employees to work toward and in environments that fit their personal values and beliefs. For example, align business goals with sustainable practices, such as embracing digital transformation.
Current employees and potential candidates will engage better with a business, reducing its waste by using paperless CRMs and internal processes to reduce the environmental impact of outdated printers, ink, and paper.
More ways to implement sustainable practices and improve employee satisfaction are evident. For example, sustainability actions among EU SMEs reveal that 66% of enterprises actively aim to improve work environments for employees.
An additional 49% of enterprises engage employees in the sustainability strategy, even laying the foundation for employee advocacy on social media platforms.
Meanwhile, 24% of SMEs measure their impact on society and the environment.
A key sustainable practice for 52% of EU SMEs is promoting workplace diversity and equality. A sustainable workplace includes more than just environmental efforts and recycling. It also values employee well-being, which helps create a strong employer reputation.
A new survey by the European Trade Union Institute reveals that 38% of employees have a high risk of developing poor mental health. Focus on employee well-being with corporate wellness programs to improve the chance of onboarding potential employees with the right skills.
Business success and engaged employees result from an effective employer branding strategy. Meanwhile, an effective employer brand strategy requires sustainability practices and opportunities for potential candidates to excel mentally and upskill for personal growth.
Beyond the sustainable practices outlined through surveys and employer branding trends, it provides opportunities for growth to further enhance the business as an employer of choice in the EU. Empowering employees also enhances the company’s employee value proposition.
Redefine the company’s employer branding strategy by improving the employee value proposition to boost business performance and reduce employee turnover rates. Be a strong employer leveraging sustainability to empower a positive company culture and business.
Contact us to discuss how a business can engage employees and transform into a strong employer with an excellent reputation. Our experts also provide workshops for vocational training at Contextual Solutions to ensure business and employee success.
How to Prioritize Environmental Sustainability and Increase the ESG Rating in the EU
Embrace sustainable practices in the workplace to gain a competitive edge and drive your business towards long-term success. A 2024 sustainability study found that 42% of consumers believe sustainability measures are important in the financial services sector.
Overall, 71% of consumers worldwide believe sustainability matters. Customer loyalty and financial performance depend on a genuine commitment to sustainability. Focus on improving the experience for potential customers with green branding.
Restructure corporate branding to lean into the compelling statistics that show how many consumers will use products and services if a business is green. The sustainability study also reveals that consumer behavior is motivated by employer responsibility.
Another motivator is the fear of environmental damage and accountability for the impact on future generations. Initiate green branding by taking responsibility. However, a commitment begins with a new business strategy for long-term success and growth.
A business owner can also make a genuine commitment to sustainability with EU-compliant circular business models. The European Environment Agency's circular business models provide a framework for SMEs to reduce their environmental impact.
The ultimate goals of the circular business model are to reuse, recycle, and repair, which also applies to FinTech, AdTech, LegalTech, and BaaS industries. For example, social innovations meeting the circular economy goals include new ways to connect businesses.
Additionally, Statista reveals that 66% of EU SMEs recycle and reuse materials, while another 52% focus on reducing energy usage and adopting clean energy.
Furthermore, 52% of SMEs manage their impact on and consumption of natural resources as sustainable practices.
Most of Europe is gray, dark, and cloudy, making solar one of the last choices for renewable energy. Instead, the European Environment Agency revealed the share of energy consumption for renewable energy sources SMEs can consider in an EU sustainable strategy.
The report revealed that solid biomass held 40% of the 2022 EU market for renewable energy, while wind power held 15% and hydropower sustained 10% of the market. Germany was already using 20% of the renewable energy consumption in the EU in 2022.
Various key industries in Europe also implement sustainable HR practices to align green branding with positive company culture and strong employee retention rates. Additionally, employee development enhances employee satisfaction and business performance.
Statistics on continuing vocational training in enterprises show that nearly 80% of German companies focus on employee development. A strong employee in a continuous learning program experiences personal growth while delivering improved performance at work.
Meanwhile, an interesting bit of information is that any business can compete in an ESG-motivated industry, including startups and mid-market businesses. The Digital Markets Act provides a level playing field for multiple SMEs and industries in the EU.
Is Green Branding an Affordable and Compliant Holistic Approach for the European FinTech Industry?
Green branding and a genuine commitment to a sustainable employer brand strategy can make any business owner meet financial goals. The Kroll study revealed that SMEs with higher ESG ratings outperformed lower-rate competitors.
Meanwhile, Statista reveals that 89.5% of EU businesses strongly believe that sustainability efforts in marketing campaigns are worth the investment and expect high ROIs.
The Institute of Sustainability Studies describes sustainable ROIs as social and economic gains.
The Simon Kutcher study emphasizes how consumers support sustainability efforts in a corporate strategy, revealing how businesses could gain new customers and increase the brand's reach by implementing green branding employer reputation.
Meanwhile, the Ellen McArthur Foundation indicates that the circular economy approach could save businesses €910 billion worldwide by 2025. A sustainable corporate strategy delivers positive experiences and ROI opportunities for stakeholders, consumers, and employees.
Additionally, the investments into the sustainability transition publication shows that private finance institutions will lead the green branding transformation due to EU government and budget constraints. However, compliance will be a determining factor for German institutes.
Discuss your business requirements in fiscal industries with our expert FinTech consultancy consultant to ensure compliance during corporate branding efforts. Alternatively, our business consultancy service can advise you on employer brand loyalty strategies.
At Contextual, we understand the German FinTech market to ensure compliance in every step of your green initiatives to save money and do it right the first time. Sustainable digital transformation is also possible following the LegalTech Book to tick every successful box.
The alleged EU banks' ESG report score greenwashing has made governments tighten the reigns on the financial sector in Europe. Consulting with FinTech Acquisitions and Investments specialists in Europe ensures ESG compliance to meet genuine business goals.
Conclusion
A strong employer branding strategy with responsible and sustainable practices can improve employee satisfaction, financial performance, and customer loyalty, ultimately giving a business and employer reputation a competitive edge.
Environmental stewardship, organizational success, and happier employee testimonials are interconnected, waiting for the right leader to oil the engine. Our go-to-market strategy consulting at Contextual Solutions will engage the fullest potential of employer brand loyalty and competitiveness.
Speak to our go-to-market strategy and expansion experts today to leverage sustainability for a competitive edge in any industry, whether finance, banking, crypto, blockchain, legal, or technology.
Get in touch with us to elevate your employer brand and implement EU-compliant green initiatives that propel your business forward.
