The Benefits of Green

Employers and benefits providers have been slow to react to employee demand for eco-friendly perks.

But at last there seems to be positive change. Whether it is for the altruistic good of the planet, or to reinforce CSR credentials, it seems no business can afford to ignore the importance of being ‘green’.

This is especially the case now that green credentials have become one of the most popular criteria that determine an employee’s perception of their employer. This topic was discussed in some detail in November’s HR magazine which picked up on the results of our recent study which showed that more than half of UK office workers believe their employer does not take environmental issues seriously enough.

According to a Ceridian survey, 14% of UK workers would even go so far as to change jobs for greener benefits. This increases to a third when looking specifically at 16-24 year-olds.
Benefit providers have not been the fastest off the blocks to respond to this, although more worryingly perhaps, is the fact that many employers are not seriously looking into this slowly growing area either.
According to Lisa Fortune, business development director at benefits provider P&MM, eco-friendly perks are still not on everybody’s radar. But she believes their heyday could be around the corner. ‘Reaction so far to some of the green initiatives we have launched has been positive, so I think they will pick up momentum.’

More than half of UK office workers believe their employer does not take environmental issues seriously enough

Their latest initiative – GreenTravel2Work – offers cheap public transport to commuting employees, thus reducing the number of cars on the road and consequently reducing CO2 emissions. Employees pay for a monthly bus pass through their gross wage, as part of a salary-sacrifice scheme. This means that employees save up to 41% on their travel costs while employers save 12.8% on National Insurance contributions. ‘The take-up numbers will far exceed that of any childcare voucher or Cycle2Work scheme because, statistically, more people will travel to work on a bus than will ever get on a bike,’ predicts Fortune. Nottingham City Council has already taken up the scheme, with more than 10% of its employees signing up in the opening few weeks.

Another organisation taking a lead in this growing area is BSkyB. Its Choose the Bigger Picture barrage of benefits are designed to educate staff to becoming more environmentally-aware. It has devised the Carbon Credit Card, where workers can register online and accrue points for all the eco-friendly exercises they perform, such as commuting via public transport instead of using a car. Their website has a personalised reef that reflects the green ‘health’ of the employee. When the reef has a plentiful supply of fish, it shows the employee is eco-aware. Employees with the most points win prizes, such as the chance to become involved in an environmental project. But it doesn’t confine itself to the workplace. Sky offers discounts on environmentally-friendly nappies, hybrid cars, online gifts at an eco-friendly shop, Fairtrade clothing and recycling bins.

Bring on the green agenda

Employee benefits provider Grass Roots supplies Sky with all its green salary-sacrifice benefits. It is seeing a change in the market. ‘Companies are having to have a CSR message about environmental issues. One way for them to do this is to ensure their benefits package has green items in it,’ says Paul Bartlett, business development director at Grass Roots. ‘A year ago companies were only talking about bike schemes. Now, in every meeting they are discussing their green agenda and the employee benefits relating to it.’ And Grass Roots itself is no exception. It is offering its employees incentives to car-share on their way to work. If an employee car-shares for 15 days, they are given a cash allowance. Grass Roots benefits because it lowers the company’s carbon footprint, and employees save on petrol and parking costs.”

But who is really driving this interest – employer or employee? Fortune has noticed that with many of P&MM’s clients, there is an impetus from both sides. ‘There is a genuine desire to offer green benefits. Some firms bring along ethically-aware staff to their meetings and get them involved in the selection process,’ says Fortune. Sky particularly pays heed to its employees. ‘Good ideas are generated from our employee forums,’ says its group head of reward, Dev Raval. ‘They help prompt us and act as a good check on what we do.’

Good ideas are generated from our employee forums

Cynics may wonder just how much of an impact green benefits have on the environment, regardless of whether companies are in it for the long-term or not. ‘We strongly recommend that businesses think about climate change. But cycling and carbon-offsetting are probably not going to be that big in reducing overall emissions,’ says Harry Morrison, senior strategy manager at the Carbon Trust.

The knock-on effect is valuable

While Morrison commends employers that offer green perks, he believes firms should do so in a wider context, ensuring they first concentrate on the bigger issues at hand. These might include schemes to make large carbon- emitting pieces of equipment eco-friendly. But he does believe employee benefits have a part to play. ‘Done correctly, they can have a catalytic affect on what employees do as a whole. If engaged employees take things seriously, it can have a knock-on affect in the workplace and the home.’

Although there are potential minefields when it comes to implementing green benefits, they are finally growing in popularity, and will play an increasingly important role in employment offerings. ‘There is a definite upside for companies positioning themselves as a conscientious organisation in the recruitment market,’ says Morrison. ‘Greener benefits will become more and more common.’ And what is more, the topic of climate change itself is showing no signs of running out of steam. As Bartlett says, ‘Green benefits will be a discussion point as long as global warming is a consideration. And that is one consideration that certainly looks here to stay.’

If your place of work is doing anything exciting in this area, we’d love to hear about it.