Ruby Maini
President & CEO
HR Strategies Consulting
November 7 2012
Why are organizations embracing sustainability
initiatives?




Heightened media attention
Increasing consumer and shareholder awareness
information transparency.
consumers today are ‘green motivated’, and over 60 percent
of shareholder proposals are sustainability related.
 Increased regulatory scrutiny
 Significant increase in the number of climate change bills
proposed from five years ago in the US and Canada
 companies are evaluating their readiness to respond to the
implications of sustainability on operations, brand image
and compliance structures people programs now and in the
future.
Key HR Priorities
 Talent Attraction and Retention
 Employee Engagement
 Workforce Productivity
 Cost Reduction/Containment
Aligning with HR Priorities makes it
easier to build case for TDM
HR Goals:
Attract best candidates
Top Attributes That Attract a
Candidate to a Company
60%
55%
50%
42%
40%
40%
35%
30%
21%
21%
20%
17%
10%
0%
Compensation
Work-life
Balance
Future Career
Opportunities
Development
Opportunities
Organization
Stability
Job Interest
Alignment
Respect
What practices are considered
‘work-life’ balance
•Work Time
•Appropriate workload
•Flexible schedule
•Job sharing
•Predictable hours
Health
On-site nurse
Paid sick leave
Preventive health care
Reproductive health
program
Services
Cafeteria
On-site parking
Fitness Services
Commuting
Subsidies
Carpool parking
Bicycle parking
Accessibility
Development
Education
reimbursement
EAP
Sabbatical or
education leave
Volunteer
work
Work Location
Business travel
nights away
Remote work sites
Telework/mobility
technology
Time spent commuting
Family
Childcare subsidies
Eldercare subsidies
Paid parental leave
Emergency leave
Sample Recruitment Offerings
Flexible Hours , Telework, Commuter subsidies,
bicycle parking
Recruitment Benefits
TDM Benefits
• Attracts best candidates
• Attracts out of city/province
• Promotes off peak
•
candidates
Attracts fit employees
•
•
commuting
Promotes mass transit
Promotes alternate
transportation
HR Goals:
Retain talent
Increase engagement
Increase career satisfaction
Impact of Employee Engagement
on the Probability of Departure
Probability of Departure in Next 12 Months
9.2%
Engaged employees are
87% less likely to leave
an organization than employees
with low levels of engagement
9.2%
Corporate Leadership Council Employee Engagement Survey
Top Drivers of
Employee Engagement
60%
51%
50%
42%
39%
40%
37%
30%
30%
26%
23%
20%
10%
0%
Job Interest
Alignment
Respect
Future Career
Opportunities
Development Work-life Balance Compensation
Opportunities
Organization
Stability
Retention -Telework
 66% of managers report telework as attractive
retention tool
 77% more satisfied with career after beginning
telework program
 67% giving up “telework environment" as a major
factor in declining a competing job offer
Fortune 1000 AT&T telework survey
Retention -Telework
Retention Benefits
Key TDM Benefits
• Increase employee job
• Reduces commuting
• Reduces traffic congestion
•
•
satisfaction
Retain best employees
Reduce turnover
•
during peak hours
Reduced automotive
pollution
HR Goals:
Increase employee engagement
Increase employee productivity
Decrease absenteeism
Defining Employee Engagement
SPEAK
positively about
the organization
EXHIBIT A
STRONG DESIRE
to continue
working for the
organization
EXERT EXTRA
EFFORT
to serve customers
and contribute to the
organization’s
success
• How committed they are to the organization.
• How long they intend to stay
• How hard they are willing to work
Most are Sitting on the Middle of the Fence
The State of Workforce Engagement
Most employees
are not highly
committed to their
organizations.
These employees exhibit
moderate commitment to
their work, teams,
managers, and
organizations
Poor performers putting in
minimal effort and
exhibiting strong
noncommitment to their
organizations, jobs,
High performers with
low retention risk, who
exhibit very strong
commitment to their
jobs, teams, managers,
managers, and teams
and organizations
13%
20%
29%
27%
Leaning Toward
Disengagement
Neutral
Leaning Toward
Engagement
The
“Disaffected”
The
“Agnostics”
11%
The “True
Believers”
The majority of employees are “up for grabs”—neither fully committed nor uncommitted.
The opportunity is to sway “agnostic” employees towards the “true believer” level.
Source: Corporate Leadership Council Employee Engagement Survey
Telework - Increases Engagement and Productivity
 60% telemanagers report an increase in worker
productivity Fortune 1000 AT&T telework survey
 23% productivity gain for off-site call center
employees American Express
 12-34% productivity increases California telecommuting program
Employee engagement drives performance
50th
Percentile
70th
Percentile
Highly engaged employees
perform up to
25 percentile points
better
Number
of
Employees
Performance
Corporate Leadership Council 2005 Employee Engagement Survey
Telework – Benefits to HR and TDM
Engagement Benefits
TDM Benefits
• Increase employee
• Easier to promote TDM
engagement, which increases
productivity and performance
Initiatives like Telework when
it directly ties into increased
employee engagement and
performance
HR Goals:
Reduce Real Estate Costs
Reduce Office Expense
Reduce Relocation Costs
Reduce Recruitment Costs
Telework - Reduce Overhead Costs
 Saved $50 million annually
IBM's telework plan reduced U.S. real estate
holdings by 22 million square feet
 Saved $5,000 to $6,000/office/year
Merrill Lynch telework reduced office space costs
 $80,000 per employee relocation savings
long-distance employment relationships avoid the
costs of relocation
Recruitment is Expensive - Costs
Average recruiting costs – per person
• Executive - $47,000
• Management/Professional - $21,000
• Technical - $15,200
• Clerical/Support - $5,700
Conference Board of Canada
Recruitment is Expensive - Time to Hire
Average time to hire – per person
• Executive – 20 weeks
• Management/Professional – 12 weeks
• Technical – 8 weeks
• Clerical/Support – 4 weeks
Conference Board of Canada
Telework – Cost Reduction
Cost Reduction
Additional TDM Benefits
• Decreases costs to
• Decreases costs to
organization
•
•
•
•
Real Estate
Office Costs
Relocation
Recruitment
community and Government
Bottom line: TDM helps HR achieve objectives
Telework
+ recruitment
+ retention
+ engagement
+ productivity
- costs
Commuter
Subsidy
Differences in Key Work-life Drivers of Candidate
Attraction across Nations ... and where TDM drivers fit
Global
Canada
China
France
Flexible work schedule Appropriate workload Appropriate workload Flexible work schedule
Appropriate workload
Flexible work
schedule
Predictable work
hours
Predictable work
hours
Personal Insurance
Paid sick leave
Education
reimbursement
Paid sick leave
Education
reimbursement
Predictable work
hours
Education
reimbursement
Personal Insurance
Sabbatical and
Education Leave
Telework technology
On-site parking
Paid sick leave
Telework technology
Employee Support
Groups
Preventive health care Telework technology
Personal Insurance
Germany
India
Flexible work
schedule
Appropriate
workload
Flexible work schedule Flexible work schedule Appropriate workload Flexible work schedule
Flexible work
schedule
Appropriate workload Appropriate workload
Flexible work
schedule
Appropriate workload
Appropriate workload Appropriate workload
South Africa
Spain
UK
US
Predictable work
hours
Predictable work
hours
Predictable work hours
Personal Insurance
Paid sick leave
Predictable work hours
Personal Insurance
Paid sick leave
Personal Insurance
Education
reimbursement
Paid sick leave
Predictable work
hours
Telework technology
On-site parking
Education
reimbursement
EAP
Paid sick leave
EAP
On-site parking
Personal Insurance
Preventive health
care
Personal Insurance
Remote Work Sites
Fitness Service
Job Sharing
Preventive health care
Emergency LOA
Education
reimbursement
Cafeteria
Cafeteria
Forced Vacation
Time
On-site parking
On-site parking
Personal Insurance
Preventive health care
Flexible work schedule Predictable work hours
Forced Vacation Time Forced Vacation Time
Telework technology Telework technology
Paid sick leave
On-site parking
Fitness Service
Preventive health care
Emergency LOA
Telework technology
Employee Support
Groups
EAP
Predictable work
hours
Preventive health
care
Business travel Nights
Away
Forced vacation time
Preventive health
care
Personal Time
interruptions
Remote Work Sites
Personal Insurance
Paid sick leave
Telework technology
Personal Time
interruptions
Business travel Nights
Away
Fitness Service
Turning Pressure into Opportunity
Companies are adopting sustainable practices in light of both increasing pressure
from external stakeholders and opportunities to profit from potential efficiency and revenue gains
Sustainability Pressures
Sustainability Opportunities
Investor Pressures
Financial Opportunities
•Institutional investors are ranking companies on
sustainability initiatives.
•Companies that have a well-established sustainability
strategy outperform those that do not by an annualized rate
of return of 3.06%.
•Socially responsible investing is gaining popularity among
the investor community.
Consumer Pressures
•A “green consumer” segment is growing and demanding
that companies show commitment to sustainability through
both green products and green production methods.
•Consumers are increasingly growing skeptical of companies’
environmental claims that cannot be verified.
Efficiency Opportunities
•Companies can easily save 29% of utility costs at no net
added cost by integrating sustainability practices into their
operations.
Reputational Opportunities
•Companies can create a stronger brand and increase
employee satisfaction levels by developing a comprehensive
sustainability strategy and reporting it.
Peer Pressures
•Sixty percent of executives find it very or somewhat
important to consider climate change issues in overall
corporate strategy.
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