CSR as a strategy to win talent war

Hiring and retaining a pool of top talent is directly connected to the ethos of a firm

As the war for talent gets more competitive, companies are trying every strategy to attract and retain talent for longer tenures. This is where the corporate social responsibility (CSR) initiatives of an organisation make a big difference as they reflect its ethos - not just "what" the company intends to achieve, but also "how". While CSR may help retain talent, the objective of such initiatives is to support the community and isn't directed to attract or retain talent. Nevertheless, CSR does have an impact on the employee in this day and age when employee volunteerism is a key motivator.

Increasingly, especially where millennials are concerned, offering the right salary may not be enough as the current generation seeks to work in companies with a responsible social outlook and initiatives aligned with issues that impact society at large. This is where an organisation's CSR initiatives are a major draw in attracting and retaining the best talent. Especially so, when provisions for engaging employee volunteers in the CSR programme are well defined and communicated.

A global survey of 1,122 corporate executives suggests CEOs perceived that businesses benefit from CSR because it increases attractiveness to potential and existing employees (The Economist, 2008: 13).

Apart from social good, CSR is a vehicle for stakeholder relationship building and management. Therefore, it is this focus that explains why employees constitute an important stakeholder group and like other stakeholders (consumers, suppliers, etc.) influence the CSR policy and practices of any company. Employees act as agents for social change; determining, volunteering, and influencing the organisational approach to CSR. Once on board, such employees identify themselves with the organisation's socially responsible identity and take pride as contributors. When CSR is an integral part of the organisational culture, efforts made by employees towards CSR are recognised and appreciated. In turn, this helps to raise their self-esteem and builds self-actualisation.

For instance, all companies could implement green programmes that help curb waste at the office and conserve energy. These projects would impact local communities and improve their lives. None of these would require immense outlays or investments but merely call for voluntary action. Each could contribute in reducing carbon footprints.

It is no surprise then that a company such as Google, whose data centres consume 50 per cent less energy than typical businesses, is looked upon favourably by prospective candidates and employees. There are other entities, in India and worldwide, which are known for their socially beneficial programmes. But this does not mean such initiatives could only be undertaken by biggies or that they need to be part of the mandatory two per cent CSR allocation norms.

CSR initiatives can be implemented even by smaller companies without much concern about the bottom line and expenditure. In the current context of social responsibility, the initiatives are more important than the returns. It is critical for a company to communicate its efforts to all employees - past, present and prospective. Recognition and rewards are equally important.

If socially responsible efforts become part of a company's overall value system, the chances are high that socially inclined employees would prefer to have long tenures, instead of moving on to organisations that do not offer similar opportunities. HR teams should, therefore, have a strategy to attract and retain the talent pool based upon the culture of the organisation and business necessity. The success of hiring and retaining would largely depend on the growth and development prospects of the employees at the organisation.

Ranu Kulshrestha, associate vice-president & group head, CSR, Hindustan Power