sustainable workplace-practices

SHRM Survey Findings: How Have Sustainable Workplace Practices Changed Over Time?

February 8, 2013

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How Have Sustainable Workplace Practices Changed Over Time?

In the last two years, SHRM released the Advancing Sustainability: HR's Role research report and Green Jobs—Are They Here Yet? poll. These studies examined, from the perspective of HR professionals, how U.S. organizations are balancing financial performance with contributions to the quality of life of their employees, the society at large and environmental initiatives.

Several of the survey questions from these studies were included in a recent 2012 study to determine how sustainability has changed over time.

When possible, analyses of the 2012 survey results by organizations’ staff size and sector are presented.

How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013

Introduction

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The study results reveal that the percentage of organizations engaging in sustainable workplace or business practices has remained stable over the last two years. However, there were slight declines in the percentage of organizations that participated in select socially responsible activities and environmentally responsible practices. There was also a small decline in the percentage of organizations that used select methods to demonstrate their commitment to sustainability, as well as those who reported select positive outcomes related to sustainability.

The study also found positive news: there was a slight increase in the percentage of organizations that calculated a positive return on investment of their sustainability efforts.

Key findings from the 2012 study include:

The percentage of organizations engaging in sustainable workplace practices has remained stable over the last two years.According to this survey, almost three-quarters (72%) of organizations reported engaging in sustainable workplace or business practices. Large and medium-staff-sized organizations and publicly owned for-profit organizations were more likely to engage in these practices.


Key Findings

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Sustainability is being used to attract, retain and develop employees.Fifty-one percent of organizations engaging in sustainable workplace or business practices reported their involvement in sustainability was very important in creating a positive employer brand that attracts top talent. In addition, 40% reported that involvement in sustainability was very important in improving employee retention and 36% indicated it was very important in developing the organization’s leaders.

Sustainability and the strategic planning process. Fifty percent of organizations engaging in sustainable workplace or business practices reported that they had a formal sustainability policy that included sustainable workplace goals and polices directly tied to the strategic planning process. Slightly more than four out of 10 (42%) reported having an informal policy that had no accountability through the organization’s strategic planning process. Only 8% of companies had no policy in place.

Drivers for the investment in sustainability.

The key drivers reported were 1) contribution to society (39%), 2) environmental considerations 14%, 3) health and safety considerations (10%), 4) saving money on operational costs (10%), and 5) local/federal regulations (7%)


Key Findings (continued)

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Return on investment for sustainability efforts.Even though determining the return on investment (ROI) for sustainability-related activities may be difficult, there is no reason for organizations to ignore outcome-based measurement tools. Nearly four out of 10 businesses (37%) reported calculating an ROI for their sustainability efforts. Among organizations calculating an ROI, 56% calculated a positive return on their investment, 39% reported it was still too early to determine their ROI, 5% calculated a break-even point and, most noteworthy, only 1% of organizations calculated a negative ROI.

Positive outcomes of sustainability initiatives.The top positive outcomes from organizational sustainability initiatives were 1) improved employee morale (53%), 2) stronger public image (51%) and 3) more efficient business processes (47%).


Key Findings (continued)

What does this mean to the human resource profession?

• Research shows HR is largely responsible for implementing a sustainability strategy in organizations. [1]

• Sustainability is a people issue and is important in shaping the organization’s behavior and culture.

• Sustainability plays a large part in creating a positive employer brand, improving employee retention and developing leaders.

• HR plays a large role in implementing sustainability strategies but not in developing these strategies.

• Research suggests sustainability will continue to be a large people issue for organizations, making HR’s role in implementing the best sustainability practices all the more vital.

[1] Society for Human Resource Management. (2011). Advancing Sustainability: HR’s Role. Retrieved from www.shrm.org/surveys

6How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013

http://www.shrm.org/surveys

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The word “sustainability” is difficult to define since sustainability is a dynamic and evolving concept. As a result, it can take on many different meanings and represents different things to different people. The definition also varies within different contexts and is sometimes confused with other concepts such as corporate social responsibility.

For the purpose of this study, sustainability is defined as the commitment by organizations to balance financial performance with contributions to the quality of life of their employees, the society at large and environmentally sensitive initiatives.

Sustainability Definition


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Organizations Engaging in Sustainable Workplace or Business Practices

No, not engaging in sustainable workplace or business practices

Yes, engaging in sustainable workplace or business practices

28%

72%

28%

72%

2012 (n = 550) 2010 (n = 583)

Note: Respondents who answered “not sure” were excluded from this analysis.


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Organizations Engaging in Sustainable Workplace or Business Practices

Note: Only statistically significant differences are shown.

Comparisons by organization sector

• Publicly owned for-profit organizations are more likely than privately owned for-profit organizations to engage in sustainable workplace or business practices.


Publicly owned for-profit (83%) > Privately owned for-profit (67%)


Comparisons by organization staff size

• Organizations with 100 or more employees are more likely than organizations with 1 to 99 employees to engage in sustainable workplace or business practices.


100 to 499 employees (72%)500 to 2,499 employees (70%)

2,500 to 24,999 employees (86%)25,000 or more employees (86%)

> 1 to 99 employees (49%)

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Drivers for the Investment in Sustainability

Employee activism

Competitive financial advantage

Public/media relations strategy

Local/federal regulations

Saving money on operational costs

Health and safety considerations

Environmental considerations

Contribution to society (e.g., good corporate citizenship)

4%

13%

4%

2%

10%

8%

12%

39%

4%

4%

5%

7%

10%

10%

14%

39%

2012 (n = 392) 2010 (n = 411)

Note: Excludes respondents whose organizations were not engaging in sustainable workplace or business practices. How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013

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Methods Organization Use to Demonstrate Commitment to Sustainability

Methods2012

(n = 279)2010

(n =290)

Sustainability is part of the organizational goals 58% 57%

Information about sustainability efforts is included on the organization’s website 51% 51%

Information about sustainability efforts is included on the organization’s intranet 48% 52%Sustainability commitment is included in the organization’s mission 34% 35%Sustainability efforts are covered in the organization’s annual report 25% 31%The organization issues a report dedicated exclusively to sustainability 12% 15%Sustainability is linked to individual performance goals 8% 16%Sustainability seminars/training is mandatory 6% 9%

Note: Percentages do not total 100% due to multiple response options. Excludes respondents whose organizations were not engaging in sustainable workplace or business practices.


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Types of Workplace Sustainability Policies

No policy

Informal policy

Formal policy

9%

39%

52%

8%

42%

50%

2012 (n = 396) 2010 (n - 426)Note: Respondents who answered “not sure” and those whose organizations were not engaging in sustainable workplace or business practices were excluded from this analysis.


Importance of Sustainability to Create a Positive Employer Brand that Attracts Top Talent

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2010 (n = 381)

2012 (n = 370)

49%

51%

40%

39%

10%

11%

Very important ImportantUnimportant or very unimportant

Note: Respondents who answered “not sure” and those whose organizations were not engaging in sustainable workplace or business practices were excluded from this analysis.

Sustainable Workplace Practices: How Has Sustainability Changed Over Time? ©SHRM 2013

Importance of Sustainability to Improve Employee Retention

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2010 (n = 381)

2012 (n = 366)

40%

40%

45%

46%

15%

14%




Importance of Sustainability to Develop the Organization’s Leaders

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2010 (n = 375)

2012 (n = 361)

33%

36%

48%

47%

19%

18%




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Top 5 Methods of Involving or Engaging Employees in Volunteer Community Outreach Initiatives Related to Sustainability

Methods

2012 (n = 323)

2010 (n = 330)

1. Recognize employee participation in volunteer programs 62% 67%

2. Provide company-sponsored volunteer events during work hours 51% 45%

3. Provide company-sponsored volunteer events after work hours (e.g., on weekends) 48% 48%

4. Encourage senior management to participate in volunteer programs 48% 46%

5. Encourage employees to spearhead volunteer programs 43% 44%

Note: Percentages do not total 100% due to multiple response options. Excludes organizations not engaging in sustainable workplace or business practices. How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013

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Participation in Socially Responsible Activities Related to Sustainability

Activities2012

(n = 385)2010

(n = 410)

Donate/collect money for local charities 74% 77%Support the community through company-sponsored volunteer projects 61% 58%

Donate/collect money for natural disasters 54% 58%

Consider the overall social impact of business decisions 44% 47%Partner with environmentally friendly suppliers/companies 43% 47%Monitor the impact of business on the environment 30% 46%Partner with women or minority-owned suppliers/companies 29% 35%

Cause marketing/branding 21% 29%Monitor global fair labor standards/practices 14% 17%Track sources of global raw materials/suppliers 10% 11%

Note: Percentages do not total 100% due to multiple response options. Excludes organizations not engaging in sustainable workplace or business practices.


Environmentally Responsible Practices that Support Organization’s Sustainable Workplace Initiatives

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Environmentally Responsible Practices 2012 (n = 396)

2010 (n = 364-

395)Offering recycling program for office products 86% 86%

Using virtual tools conduct meetings 80% 81%Using energy-efficient lighting systems and equipment 69% 69%Donating/discounting used office furniture 63% 71%Installing automatic shutoff for equipment 63% 58%Partnering with environmentally friendly suppliers/companies 54% 61%Minimizing water consumption by using water-conserving plumbing fixtures 49% 53%Using supplies and materials more efficiently 49% 55%Buying or leasing refurbished goods 48% 59%Encouraging employees to power down computers after few minutes of inactivity 47% 58%Promoting walking, biking, taking public transit instead of driving a vehicle 47% 45%Encouraging/promoting/providing car pooling for employees 41% 49%



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Environmentally Responsible Practices that Support Organization’s Sustainable Workplace Initiatives (cont.)

Environmentally Responsible Practices (cont.)2012 (n = 396)

2010 (n = 364-

395)Offering employees telecommuting to reduce environmental impact of commuting 38% 36%Selected a location with public transit access 35% 32%Minimizing pollution 32% 46%Salvaging or reusing construction materials 31% 39%Offering incentives to employees for the use of mass transit 26% 29%Using recycled materials in the construction or remodeling of the building 24% 26%Buying hybrid vehicles for organization’s fleet 15% 15%Buying alternative energy 10% 11%Installing solar panels on roof 8% 9%Using a green or living roof 8% 4%Buying carbon offsets 6% 7%Establishing a community garden where employees can grow their own produce 7% 4%Offering incentives to employees for the purchase of hybrid vehicles 2% 4%Note: Percentages do not total 100% due to multiple response options. Excludes organizations not engaging in sustainable workplace or business practices.


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Organizations that Calculate a Return on Investment for Their Sustainability Efforts

No

Yes

61%

39%

63%

37%

2012 (n = 237) 2010 (n = 238)Note: Respondents who answered “not sure” and those whose organizations were not engaging in sustainable workplace or business practices were excluded from this analysis.


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Return on Investment for Sustainability Efforts

Still too early to determine the ROI

Calculated a negative ROI

Calculated a break-even point

Calculated a positive ROI

46%

0%

6%

47%

39%

1%

5%

56%

2012 (n = 88) 2010 (n = 93)Note: Excludes respondents whose organizations did not calculate a return on investment for their sustainability efforts and whose organizations were not engaging in sustainable workplace or business practices. Percentages do not total 100% due to rounding.


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Positive Outcomes of Sustainability Initiatives

Positive outcomes2012

(n = 352) 2010

(n = 343)Improved employee morale 53% 55%Stronger public image 51% 43%More efficient business processes 47% 43%Increased employee loyalty 32% 38%Position as an employer of choice 29% 27%Positive financial bottom line 27% 25%Increased brand recognition 26% 34%Increased consumer/customer confidence 25% 34%Increased employee retention 24% 33%Increased workforce productivity 16% 21%Increased recruitment of top employees 14% 17%Improved product portfolio 6% 13%



Green Jobs Definition

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For the purpose of this research, green jobs are defined as jobs that involve:

Reducing pollution or waste. Reducing energy usage. Reducing use of limited natural resources. Protecting wildlife or ecosystems. Lowering carbon emissions and developing alternative energy.

These jobs primarily meet the need for more environmentally responsible production/work processes and the development of green goods and services.


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Is your organization currently focusing on creating green jobs or adding duties within existing or newly created jobs that can be considered green?

Plan to within the next 12 months

No

Yes

6%

74%

20%

Note: n = 595. Respondents who answered “not applicable” were excluded from this analysis.


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Has your organization’s focus on creating green jobs or adding duties within existing or newly created jobs that can be considered green increased, stayed the same or decreased in the last 12 months?

Decreased

Stayed the same

Increased

1%

50%

49%

Note: n = 106. Respondents who answered “not applicable” were excluded from this analysis. It also excludes respondents whose organizations were not focusing on creating green jobs or adding green duties within existing or newly created jobs.


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Has your organization’s focus on creating green jobs or adding duties within existing or newly created jobs that can be considered green increased, stayed the same or decreased in the last 2 years?

Decreased

Stayed the same

Increased

2%

24%

74%

Note: n = 95. Respondents who answered “not applicable” were excluded from this analysis. It also excludes respondents whose organizations were not focusing on creating green jobs or adding green duties within existing or newly created jobs.


In the past 12 months, which of the following have taken place at your organization to meet the demands for more environmentally responsible production/ work processes or the development of “greener” ways of working?

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Created completely new green positions OR added green duties within newly created jobs

Increased staff levels (added more staff ) of existing jobs that already had green duties as part of the overall position

New green duties have been added to existing positions at my organization

6%

6%

15%

94%

94%

85%

Yes NoNote: n = 690. Respondents who answered “not sure” were excluded from this analysis.


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Organization Demographics

1 to 99 employees

100 to 499 employees

500 to 2,499 employees

2,500 to 24,999 employees

25,000 or more employees

18%

28%

20%

21%

13%

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Demographics: Organization Staff Size

n = 713


Privately owned for-profit

Nonprofit organization

Publicly owned for-profit

Government agency

42%

29%

16%

14%

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Demographics: Organization Profit Status

n = 685. Percentages do not total 100% due to rounding.


PercentageHealth care and social assistance 21%Professional, scientific, and technical services 19%Educational services 13%Government agencies 13%Manufacturing 13%Finance and insurance 10%Religious, grantmaking, civic, professional and similar organizations 6%Administrative and support and waste management and remediation services 5%Information 5%Transportation and warehousing 5%Accommodation and food services 4%Arts, entertainment, and recreation 4%Retail trade 4%Construction 3%Real estate and rental and leasing 3%Repair and maintenance 3%Agriculture, forestry, fishing and hunting 2%Utilities 2%Whole trade 2%Mining 1%Personal and laundry services 1%

Demographics: Organization Industry

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Note: n = 683. Percentages do not equal 100% due to multiple response options.


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Demographics: Other

U.S.-based operations only 76%

Multinational operations 24%

Single-unit organization: An organization in which the location and the organization are one and the same.

30%

Multi-unit organization: An organization that has more than one location.

70%

Multi-unit headquarters determines HR policies and practices

47%

Each work location determines HR policies and practices

3%

A combination of both the work location and the multi-unit headquarters determine HR policies and practices

50%

Is your organization a single-unit organization or a multi-unit organization?

For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work location or both?

Does your organization have U.S.-based operations (business units) only or does it operate multinationally?

n = 713 n = 713

Note: n = 505

Corporate (companywide) 68%

Business unit/division 17%

Facility/location 15%

n = 505

What is the HR department/function for which you responded throughout this survey?


SHRM Survey Findings: How Have Sustainable Workplace Practices Changed Over Time?

• Response rate = 18%

• 713 HR professional respondents from a randomly selected sample of SHRM’s membership participated in this survey

• Margin of error +/- 3%

• Survey fielded July 7-August 7, 2012

2012 Survey Methodology

33Sustainable Workplace Practices: How Has Sustainability Changed Over Time? ©SHRM 2013

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• For more survey/poll findings, visit www.shrm.org/surveys

• For more information about SHRM’s Customized Research Services, visit www.shrm.org/customizedresearch

• Follow us on Twitter @SHRM_Research


About SHRM Research

Project leader:Shawn Fegley, SPHR, survey research analyst, SHRM Research

Project contributors:Mark Schmit, Ph.D., SPHR, vice president, SHRM FoundationAlexander Alonso Ph.D., SPHR, vice president, SHRM ResearchEvren Esen, manager, Survey Research Center, SHRM Research

Copy editor:Katya Scanlan, SHRM Knowledge Center

http://www.shrm.org/surveys

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