From HR to ESG: becoming an employer of choice

Interview & podcast by paperjam.lu from 14.07.2026

At a time when attracting top talent is increasingly difficult, projecting a strong and attractive employer brand is no longer optional. Compensation alone is no longer enough — companies now need to introduce new values, at the intersection of Human Resources and ESG criteria.
 

From brand image to employer brand


For decades, employer branding was largely reduced to a brand image — a handbook of company values, a promise made to current and future employees. With digitalization and now AI, and after events like the Covid-19 pandemic, the world has changed, and the world of work has changed with it. Candidates no longer look solely at compensation and a company's presumed reputation. This is especially true for younger generations, who want their work to be meaningful and who question employers about values such as inclusion, workplace wellbeing, and sustainability.

"Attention often focuses on the E in ESG, but really it's the S that matters most, since it embodies human relationships in all their forms," says Fani Xylouri. Moreover, this corporate commitment can't stop at words and processes — it needs to translate into concrete, measurable actions and continuously improving objectives.


Define, Analyse, and Measure


Companies need to move from intention to actual measurement. They must be able to measure and clearly report on things like the gender balance, turnover, training hours, or internal mobility.

Initiatives such as the National Pact on Human Rights at Work or the Diversity Charter, as well as regulatory frameworks, also come into play.

Ultimately, two aspects remain essential. First is the concrete, practical nature of these indicators — monitoring shouldn't turn into an abstract, incomprehensible bureaucratic machine. Second, these initiatives need to be guided by a clear answer to the question "what does being an attractive employer mean to me?" — in other words, "what does my company want to be known for?" Its flexibility? Its ability to train people? Its compensation levels? "Once the ambitions and objectives are set and clearly defined, it becomes much easier to implement the actions needed to achieve them effectively," confirms Karine Pontet.


The cost of risk


While putting these processes in place comes at a cost, the cost of inaction on this front will be far higher for the company. Human capital is arguably a company's most important asset. Losing and replacing employees not only triggers costly processes but also damages the company's reputation and how candidates perceive it in the market over the long run. As the People Services Partner puts it, "investing in a company's human capital — through training, corporate culture, or compensation — is never wasted effort, and it creates value."

The same goes for ESG compliance, which may seem costly but is in fact what guarantees the company's resilience, in the eyes of shareholders, clients, and employees alike.


The Need for Proper Support


BDO's experts work daily with clients on these HR and ESG-related questions, but above all help them turn these questions into concrete, measurable actions. "We help organizations understand their obligations, define practical actions, and most importantly, feed relevant insights into their decision-making," says Fani Xylouri, before her colleague Karine Pontet continues: "the real value comes from the right combination of HR policy and ESG commitment. Each feeds into the other, and together they form a solid, integrated whole."

Listen to the episode to hear the complete discussion.