How do ESG initiatives affect the motivation of employees in financial companies?

Details

Supervisors

De Rongé, Yves

Faculty

Louvain School of Management

Degree label

Master [120] en sciences de gestion, à finalité spécialisée

Abstract

Our study explored the impact of ESG initiatives on employee motivation within three companies in the financial sector. Using a mixed methodology combining an exhaustive questionnaire and a qualitative analysis, we gathered rich and varied data on employee motivation about ESG practices. The findings of our study underscore the significant impact of ESG initiatives implemented by companies in the financial sector on the motivation of their employees. Specifically, three distinct types of motivation emerge as predominant among respondents: identified regulation, introjected regulation approach, and intrinsic motivation. These results suggest that employees are sensitive to ESG initiatives and are motivated by personal values and interests, and a positive self-image. In addition, our study reveals that the 22-30 age group is particularly affected by ESG actions in their work. This finding highlights the importance of considering the concerns and values of young employees in the design and implementation of ESG initiatives. Moreover, our analysis reveals a stronger commitment among the employees from companies with higher level of ESG actions taken. This observation underscores the idea that when a company implements more concrete and diligent ESG initiatives, it has the potential to significantly enhance employee motivation. To summarize, our results provide valuable insights for companies in the financial sector seeking to improve employee motivation through sustainable practices. By understanding the underlying mechanisms of motivation linked to ESG initiatives, companies can better respond to the needs and expectations of their employees, while strengthening their overall performance and positive impact on society.