- 80% of Middle East business leaders have formal sustainability strategies; yet, employees prioritize fair pay and career growth over ESG.
- Fair and equitable pay is the top factor in employee retention, with 94% likely to stay if salary increases are implemented.
- Embedding ESG principles into organizational culture enhances employee retention and engagement.
Corporate Sustainability vs. Employee Priorities
In the Middle East, while companies focus heavily on ESG and sustainability, employees are more concerned with personal benefits such as fair pay and career development. Bridging this gap is crucial for meaningful organizational change.
The Sustainability Commitment
ESG and sustainability are now critical for long-term business success, affecting policy, investment, operations, and employee engagement. As the Middle East transitions from fossil fuels, companies must adopt sustainable practices and improve transparency to meet investor expectations.
Survey Insights
PwC’s survey, “Breaking through barriers: Sustainability in the Middle East 2024,” shows that 80% of business leaders have formal sustainability strategies, with over half integrating them into operations. Regional CEOs also see climate change as a key driver for change.
“ESG initiatives are now linked to corporate reputation, employee value, customer engagement, investment access, and operational efficiency,” PwC’s report highlights. With ESG-mandated assets expected to reach $53 trillion by 2025, the role of sustainability in global investment is undeniable.
Employee Priorities
Despite the organizational focus on ESG, a critical question remains: Do these efforts resonate with employees? PwC’s data shows that employees prioritize their financial and personal well-being over sustainability practices.
Fair Pay Matters Most
The survey indicates that 94% of respondents are likely to stay with their employers if fair and equitable salary increases are implemented. However, only 83% and 75% would stay if societal or environmental practices were enhanced. The PwC Middle East Workforce Hopes and Fears Survey 2024 reiterates this, with 71% of respondents planning to ask for a pay raise in the next 12 months.
Engaging Through ESG
Despite the disconnect, enhancing ESG policies can improve employee retention. “Enhancing ESG policies increases employee retention, with 82% more likely to stay,” the survey reveals. Embedding ESG principles into organizational culture also ranks highly among retention factors, following career development and financial rewards.
Building an ESG Culture
Creating an ESG-focused culture is challenging. PwC’s earlier publication, ‘Creating an institution fit for your ESG aspirations,’ suggests that it requires top-down leadership, effective communication, and peer interactions.
Related Article: India’s Global Capability Centres Surge to Over 1,600, Poised for 1,900 by 2025 with $60B Market Growth: PWC
Personalizing ESG Engagement
Understanding ESG employee personas is crucial. Integrating sustainability throughout the employee lifecycle—from onboarding to performance management—can foster a more engaged workforce. PwC’s research identifies four distinct ESG employee personas, which help design targeted ESG strategies.
Aligning ESG initiatives with employee priorities through personalized approaches can transform them into dynamic elements of corporate culture, driving both environmental and social improvements and enhancing employee engagement.
“People are at the centre of the ESG agenda. The engagement of the employees is critical to progress on the sustainability roadmap. ESG is an emotive topic and employees respond differently to it and engage at varying levels. Being perceptive of the employee sentiments and astutely designing personalised approaches to engage diverse employee groups can ensure that employees feel included and play their part in achieving the sustainability goals. It is in the interest of everyone that corporate leaders foster a culture where ESG is a core component of ways of working, and all employees feel enabled to make a positive contribution.” Khaled Bin Braik, Consulting Partner and Emiratisation Leader
View full survey report,