How sustainable HR boosts employee wellbeing
By 2024, sustainable HR is no longer a choice but a strategic necessity. Companies that embrace sustainability strengthen their competitiveness, increase their attractiveness to talent and meet growing social and legal demands. Here’s why sustainable HR practices in 2024 are essential for future success and growth.
Growing employee expectations
Employees anno 2024 want more than just a salary. They look for employers who take responsibility for their impact on the world. This means a focus on fair wages, Diversity and inclusiveness, and a healthy work-life balanc Companies that invest in sustainable HR not only attract but also retain talent.
Increased laws and regulations: European CSRD legislation
By 2024, the European Corporate Sustainability Reporting Directive (CSRD) legislation will be a game-changer for companies within the European Union. This legislation requires companies to report extensively on their sustainability policies and performance. CSRD legislation calls for environmental, social responsibility and governance (ESG) transparency.
What does the CSRD legislation mean for businesses?
Comprehensive reporting requirements: Companies must produce detailed reports on their environmental and social impact, including information on working conditions, diversity, and inclusion.
Transparency and accountability: Companies are held responsible for their sustainability claims. This means greenwashing is discouraged and only companies with genuine sustainable HR practices can meet the requirements.
Strategic adjustments: Companies will have to adapt their strategies to comply with the new regulations, which means that sustainable HR practices will have to become an integral part of their operations.
Want to know when your organisation should report on sustainability?
Examples of sustainable HR
In Belgium, several companies are already taking the lead in sustainable HR.
AB InBev
AB InBev, a global leader in the beer industry, has sustainable HR high on its agenda. The company invests in the health and well-being of their employees through work-life balance programmes, workplace health and continuous professional development. These initiatives have led to higher satisfaction and productivity among their staff.
Kinnarps
Kinnarps, a leading office design company, places a strong emphasis on the social pillar of ESG and well-being in their HR practices. Kinnarps is strongly committed to challenging roles with the necessary independence, flexibility, well-being and sustainability. Work-life balance and team spirit are also at the heart of this organisation, as is an inspiring sustainable working environment, their core business.
Cronos Group
Cronos Group, a major player in the IT sector, has a strong focus on sustainable HR. They offer flexible working options, including working from home, to improve their employees’ work-life balance. They also invest in continuous professional development and well-being in the workplace, resulting in a loyal and productive workplace.
Focusing on the ‘S’ pillar of ESG
The ‘S’ pillar of ESG stands for social responsibility and focuses on the impact companies have on their employees, customers, and wider society. By 2024, the social pillar will become increasingly important, with a growing emphasis on working conditions, diversity, and inclusion.
Working conditions
A key focus within the social pillar is improving working conditions. This means ensuring safe and healthy workplaces, fair wages, and respecting labour rights. Companies that pay attention to sustainable HR not only improve the well-being of their employees, but also their productivity and loyalty.
Diversity and inclusion
Diversity and inclusion are crucial aspects of sustainable HR. Companies that invest in diverse and inclusive work environments benefit from a wide range of perspectives and ideas, driving innovation. Moreover, inclusive work environments create a sense of belonging and respect, leading to higher employee satisfaction.
Social commitment
Social engagement is another important aspect of the ‘S’ pillar. This includes supporting local communities, investing in social programmes and promoting social causes. Companies that are socially engaged build strong relationships with their communities and improve their reputation.
Competitive advantage and reputation
A strong reputation is worth its weight in gold. Companies with sustainable HR practices enjoy a better reputation with customers, investors and partners. This competitive advantage makes them more attractive to talent and helps build trust with key stakeholders. CSRD compliance far Individual reporting and personal advice Individual reporting and personal advice
