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ESG in HR Management: Benefits, Training and Talent Retention

HR is where the “S” in ESG shows most clearly. From turnover rates to training hours, HR metrics both reflect the quality of management and directly affect productivity and appeal to candidates.

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VietESG Editorial Team
·2 min read
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ESG in HR Management: Benefits, Training and Talent Retention
Contents

ESG in human resource management means measuring and improving how a company recruits, pays, cares for, trains and listens to its workers. The human resources (HR) department holds most of the data for the Social pillar, which makes it an indispensable partner in every ESG reporting project.⁠‌‌​‌‌‌​‌‌‌‌‌​‌‌​​​‌​‌​​​​​‌‌​‌‌‌⁠

Key takeaways

  • Core metrics: new hires, turnover rate, benefits, parental leave (GRI 401), training hours and performance reviews (GRI 404).
  • Collective bargaining, workplace dialogue and feedback channels are evidence of the quality of labour relations.⁠‌‌​‌‌‌​‌‌‌‌‌​‌‌​​​‌​‌​​​​​‌‌​‌‌‌⁠
  • Good HR data helps companies attract young candidates — a group increasingly concerned with sustainability values.

HR metrics in ESG reporting

MetricWhat it shows
Turnover rate by age group, gender and regionStability and engagement
Benefits for full-time and part-time employeesFairness between groups of workers
Average training hours per person per yearInvestment in capabilities
Share of employees receiving regular performance reviewsTransparency in career development
Share covered by collective bargaining agreementsQuality of labour relations

Turning data into action

  • Analyse reasons for leaving through exit interviews and engagement surveys.
  • Design career pathways and succession plans for key positions.⁠‌‌​‌‌‌​‌‌‌‌‌​‌‌​​​‌​‌​​​​​‌‌​‌‌‌⁠
  • Review benefits for seasonal and outsourced workers.
  • Hold regular workplace dialogue as required by the Labour Code 2019.

The cost of replacing a talented employee is always greater than the cost of keeping them.⁠‌‌​‌‌‌​‌‌‌‌‌​‌‌​​​‌​‌​​​​​‌‌​‌‌‌⁠

HR and the other pillars

HR is also linked to gender equality, occupational safety and the team's ESG capabilities — the factor that determines whether a business can actually deliver its sustainability strategy.

Frequently asked questions

What data does HR need to prepare for an ESG report?

Workforce data by gender, age, grade and contract type; new hires and leavers; training hours; benefits; workplace accidents; collective agreements and grievances.

What is a good turnover rate?

There is no universal figure; compare it with the sector and regional average and with the company's own trend over the years.⁠‌‌​‌‌‌​‌‌‌‌‌​‌‌​​​‌​‌​​​​​‌‌​‌‌‌⁠

Does ESG help with recruitment?

Yes. Transparent information about the working environment, benefits and sustainability values is something candidates increasingly consider when choosing an employer.

VietESG — Independent ESG rating organisation. Ratings based on disclosed data, supporting evidence and a public methodology aligned with GRI and the SDGs.

Apply for an ESG rating · See the methodology

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