ESG HR Strategy to Win the Talent War

August 4, 2025

The old way of hiring—paying more than competitors—has become an expensive race that drains money without building loyalty. Today's market leaders use a different approach that creates a lasting advantage. They win the talent war by building workplace culture and reputation that money alone cannot buy, turning ESG principles into their strongest recruiting tool.

Your company’s reputation has become your most valuable recruiting asset. Recent research shows it’s the second most important factor when top talent decides to join your company. This shift changes how the talent market works, where sustainable business practices have moved from nice extras to essential drivers of business results, talent attraction, and long-term growth.

The new currency of trust: the deeper “why” of ESG

The insights and data presented in this analysis are drawn from the Vietnam Total Salary Remuneration Report Talentnet 2024, revealing critical trends that smart CEOs are already acting on. Smart CEOs understand that every dollar spent on ESG in human resources must deliver measurable business returns. The data proves this approach works—companies with strong ESG frameworks directly address their biggest operational vulnerabilities while building competitive moats that competitors cannot easily replicate.

Our people risk analysis reveals pay gaps between executives and workers as the third-highest people risk globally. 48% of companies worry about managing employee salary expectations during tough economic times. This creates a cascade of problems: higher turnover costs, productivity drops, and potential legal challenges that can destroy both finances and reputation.

Natural disasters now rank as the eighth most severe risk worldwide. The numbers tell the story:

38% of companies struggle to ensure healthcare coverage for climate-related health problems
37% worry about employees accessing essential services when community systems fail
Companies unprepared for these realities face complete operational shutdowns

The smart play? Companies with proactive ESG frameworks turn these challenges into advantages. They build resilient teams that stay productive during disruptions, grow employee loyalty that survives market changes, and develop reputations that attract top talent with sustainable wages.

The new currency of trust: the deeper "why" of ESG

S-AI-ling ahead – Where your ESG strategy meets the AI revolution

The most forward-thinking leaders are already combining artificial intelligence with their ESG talent war strategies, creating a new category of competitive advantage that goes far beyond traditional talent acquisition.

AI transforms ESG from a cost center into a profit driver. Smart companies use AI to personalize employee benefits and rewards programs, ensuring every dollar spent on people delivers maximum value. This matters when 43% of employees choose jobs based on sustainability efforts and over 10% accept lower pay for values alignment.

The real breakthrough comes in bias elimination. AI-powered analytics reveal hidden patterns of unfairness that human reviewers miss. When 40% of employees express strong concern about climate events and social justice issues, companies demonstrating transparent, data-driven fairness gain major credibility advantages.

But this integration demands careful governance. Using AI tools without clear ethical frameworks can undermine the very trust that ESG efforts build. Employees are increasingly sophisticated about technology’s potential for both positive impact and harmful bias.

S-AI-ling ahead - Where your ESG strategy meets the AI revolution

The strategic imperative is clear: winning today’s talent market requires mastering both ESG HR strategy and AI integration. Understanding what ESG in HR has become is essential—it’s the foundation for building competitive advantages that go beyond salary wars. This evolution from pay-based competition to values-driven talent acquisition strategies has become essential for sustainable growth and market leadership.

Ready to turn these insights into action? Talentnet helps organizations build people strategies that drive real business results. Our comprehensive approach combines HR’s role in effective ESG strategy with cutting-edge AI applications to create sustainable competitive advantages in talent acquisition and retention.Join us at THE MAKEOVER 2025 FOR TRS CLIENTS on October 15-16 in Ho Chi Minh City. This year’s theme, “S-AI-ling Ahead – Forward is the only way,” brings together over 20 global experts to explore how AI is reshaping total rewards in the digital age. Day 01 features visionary keynotes and interactive panels, while Day 02 unveils the latest Total Remuneration Survey insights alongside cutting-edge perspectives on navigating the AI era.