The role of ESG signals in attracting and retaining employees: evidence from top-tier Russian companies

This article examines the role of Environmental, Social, and Governance (ESG) signals in attracting and retaining employees within top-tier Russian companies. As ESG compliance becomes increasingly essential for businesses, this study employs signaling theory to analyze how organizations communicate their commitment to sustainable practices. Existing theory suggests that effective ESG communication enhances organizational reputation and attractiveness to job seekers, ultimately influencing their intention to apply. To analyze, what is the current situation with ESG compliance communication to employees in leaders of their respective industries in Russia, we employ thematic and content analysis. By exploring the communication of various ESG practices in companies’ ESG reports and on their career websites, we map the structure of ESG signaling by top employers and presence of these signals in direct communications with potential employees. Through this process, we gain insights on which ESG practices are signaled to the potential employees most often, and develop recommendations for organizations aiming to enhance their competitive edge in the labor market while promoting sustainable business practices.