A new study by PwC has revealed a significant gap between the emphasis Middle Eastern companies place on environmental, social and governance (ESG) initiatives and the priorities of their employees. While businesses in the region are increasingly focused on sustainability, workers are more concerned with personal benefits such as fair pay and career advancement.

The survey found that 92% of respondents would be likely to stay with their employers if total compensation was improved, compared to 77% who would remain if ESG practices were enhanced. This disparity highlights the challenge organisations face in balancing sustainability goals with employee needs.

Despite this apparent disconnect, the report also indicates that bolstering ESG policies can positively impact employee retention. When ESG measures are strengthened, the proportion of employees likely or very likely to stay increases to 82% from 77%, while those unlikely or very unlikely to stay drop to 3% from 6%.

This finding underscores the importance of integrating ESG considerations into the employee experience. While competitive pay and equitable practices are crucial for attracting and retaining talent, the study suggests that embedding ESG elements into company culture can create a more engaged and motivated workforce.

Khaled Bin Braik, Consulting Partner and Emiratisation Leader, PwC Middle East, said: “ESG is an emotive topic and employees respond to it differently. Understanding these sentiments and tailoring approaches can help employees feel included and invested in sustainability goals. This goes beyond compliance; it’s about fostering a workplace where employees feel valued and connected to the company’s mission.”

To effectively engage employees in ESG initiatives, the study recommends adopting personalised approaches and creating targeted strategies based on employee profiles. PwC has identified four distinct ESG employee personas to help organisations tailor their efforts.

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