[UK] Government to prioritise youth hiring over ESG standards

In the UK, the Cabinet Office has announced that the government will require companies bidding for public contracts to demonstrate their commitment to helping young people into work, rather than demonstrate how they meet environmental targets, HR Magazine reports.

Central government departments currently give a 10 per cent weighting to the social good created by organisations through initiatives such as those that improve equality and diversity, contribute to the net zero agenda and bolster post-pandemic recovery.

However, the government has announced that from January 1, 2027, firms seeking government contracts over £1m must instead demonstrate how they are creating local jobs for young people which pay above the minimum wage, and whether they offer training, work experience or plug local skills gaps.

Companies seeking contracts worth more than £5m will reportedly see a 20 per cent weighting on supporting job creation for young people.

Speaking to HR magazine, Sandhya Sabapathy - founder of advisory practice Kaleidoscope - stated that talent and ESG are not separate agendas.

Ms Sabapathy said, "Organisations that handle this well will treat job creation in the same way that the strongest ESG functions already treat sustainability: built into compensation, governance and progression, not just a new line in next year's report."

Louise Haigh - First Secretary of State - said, "Every pound of taxpayer money should be spent in a way that benefits local communities, creating good jobs and giving young people the skills they need for the future.

"For too long, securing government contracts has been a tick-box exercise that fails to deliver the positive change that people feel in their pocket and see in the places they live."

Ms Sabapathy added that the change isn't a retreat from social value but a rebrand of it.

She said, "Swapping green and progressive language for job creation targets does exactly what 15 years of ESG evolution has done: changes the vocabulary while leaving the harder question unanswered: Does the incentive structure reward the behaviour you say you want?"

Source: HR Magazine

(Links and quotes via original reporting)

In the UK, the Cabinet Office has announced that the government will require companies bidding for public contracts to demonstrate their commitment to helping young people into work, rather than demonstrate how they meet environmental targets, HR Magazine reports.

Central government departments currently give a 10 per cent weighting to the social good created by organisations through initiatives such as those that improve equality and diversity, contribute to the net zero agenda and bolster post-pandemic recovery.

However, the government has announced that from January 1, 2027, firms seeking government contracts over £1m must instead demonstrate how they are creating local jobs for young people which pay above the minimum wage, and whether they offer training, work experience or plug local skills gaps.

Companies seeking contracts worth more than £5m will reportedly see a 20 per cent weighting on supporting job creation for young people.

Speaking to HR magazine, Sandhya Sabapathy - founder of advisory practice Kaleidoscope - stated that talent and ESG are not separate agendas.

Ms Sabapathy said, "Organisations that handle this well will treat job creation in the same way that the strongest ESG functions already treat sustainability: built into compensation, governance and progression, not just a new line in next year's report."

Louise Haigh - First Secretary of State - said, "Every pound of taxpayer money should be spent in a way that benefits local communities, creating good jobs and giving young people the skills they need for the future.

"For too long, securing government contracts has been a tick-box exercise that fails to deliver the positive change that people feel in their pocket and see in the places they live."

Ms Sabapathy added that the change isn't a retreat from social value but a rebrand of it.

She said, "Swapping green and progressive language for job creation targets does exactly what 15 years of ESG evolution has done: changes the vocabulary while leaving the harder question unanswered: Does the incentive structure reward the behaviour you say you want?"

Source: HR Magazine

(Links and quotes via original reporting)