Rethinking the “S” in ESG: A Pyramid Model for Fair Labor and Employee Well-being
Meta Description:
The “S” in ESG is often the least defined. This practical Employee Engagement Pyramid repositions social responsibility as a measurable, workplace-driven strategy for fair labor and well-being.
When ESG discussions arise, the "S"—social responsibility—often remains ambiguous. While environmental metrics are quantifiable, social aspects like employee engagement are less tangible. Yet, neglecting this component can lead to significant organizational challenges.
To address this, we've developed the Employee Engagement Pyramid, a model inspired by Maslow’s Hierarchy of Needs. This framework outlines the progression from basic employee requirements to the pinnacle of engagement, providing a roadmap for organizations aiming to enhance their social responsibility.
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The Employee Engagement Pyramid: From Basic Needs to Purpose
1. Basic Needs: Compensation & Safety
At the foundation, employees require:
Fair Compensation: Wages that meet or exceed industry standards.
Safe Working Conditions: Environments free from hazards
Job Security: Protection against arbitrary dismissal.
2. Psychological Needs: Belonging & Inclusion
Once basic needs are met, employees seek:
Inclusive Culture: Diverse and accepting workplace environments.
Team Collaboration: Opportunities to work cohesively with peers.
Recognition: Acknowledgment of individual contributions.
A sense of belonging can significantly impact engagement levels. Research indicates that inclusive teams outperform their peers by 80% in team-based assessments.
3. Esteem Needs: Growth & Development
Employees desire:
Professional Development: Access to training and skill enhancement.
Career Advancement: Clear pathways for promotion.
Autonomy: Empowerment to make decisions.
Organizations that invest in employee development see a 24% higher profit margin than those that don't.
4. Self-Actualization: Purpose & Fulfillment
At the pyramid's peak, employees seek:
Meaningful Work: Tasks that align with personal values.
Purpose Alignment: Understanding how their role contributes to the organization's mission.
Personal Growth: Opportunities to achieve personal goals.
Employees who find purpose in their work are more engaged, with studies showing a 42% higher retention rate in purpose-driven companies.
Implementing the Pyramid: Steps for Organizations
Assess Current Engagement Levels: Conduct surveys to understand employee needs.
Address Foundational Needs: Ensure fair compensation and safe working conditions.
Foster Inclusion: Promote diversity and recognize individual contributions.
Invest in Development: Provide training and clear career paths.
Align Roles with Purpose: Help employees see the impact of their work
By systematically addressing each level of the Employee Engagement Pyramid, organizations can enhance employee satisfaction, reduce turnover, and fulfill the social component of ESG.
The Conversation Continues...
This post is part of our ongoing exploration into how Liveable helps mission-driven organizations turn frameworks like the Pyramid Model into actionable strategies—embedding social sustainability into everyday labor practices, workplace culture, and organizational design. As problem-solvers, we believe the best insights emerge when diverse perspectives meet. Have you encountered similar challenges or discovered different approaches? Share your story.
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We acknowledge that social sustainability is always a work in progress. These insights represent our current understanding, shaped by our partners, communities, and continuous learning.