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




                                      February 8, 2013
Introduction



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   2
Key Findings



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.


                                        How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013   3
Key Findings (continued)



 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%)


                                       How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013   4
Key Findings (continued)



 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%).




                                        How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013   5
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

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




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.




                                       How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013   7
Organizations Engaging in Sustainable Workplace or Business
                      Practices




                                                                                                                  72%
   Yes, engaging in sustainable workplace or
              business practices
                                                                                                                  72%




                                                                                   28%
 No, not engaging in sustainable workplace
            or business practices
                                                                                   28%




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

Note: Respondents who answered “not sure” were excluded from this analysis.
                                                  How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013   8
Organizations Engaging in Sustainable Workplace or Business
                          Practices



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.

                                                  Comparisons by organization sector


               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.


                                                  Comparisons by organization sector

                100 to 499 employees (72%)
               500 to 2,499 employees (70%)
                                                                     >                      1 to 99 employees (49%)
              2,500 to 24,999 employees (86%)
              25,000 or more employees (86%)



Note: Only statistically significant differences are shown.

                                                         How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013   9
Drivers for the Investment in Sustainability




 Contribution to society (e.g., good                                                                    39%
       corporate citizenship)                                                                           39%

        Environmental considerations                                  14%
                                                                    12%

   Health and safety considerations                              10%
                                                               8%

Saving money on operational costs                                  10%
                                                                   10%

              Local/federal regulations                       7%
                                                       2%

      Public/media relations strategy                     5%
                                                         4%

  Competitive financial advantage                        4%
                                                                     13%

                       Employee activism                 4%
                                                         4%

                                       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   10
Methods Organization Use to Demonstrate Commitment to
                            Sustainability



                                                                                                     2012               2010
                                         Methods                                                   (n = 279)          (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.
                                                         How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013  11
Types of Workplace Sustainability Policies




                                                                                                      50%
   Formal policy
                                                                                                         52%



                                                                                          42%
 Informal policy
                                                                                     39%



                                     8%
        No policy
                                       9%


                                       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.
                                            How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013      12
Importance of Sustainability to Create a Positive Employer Brand
                      that Attracts Top Talent




 2012 (n = 370)                                                                   39%                    11%
                                         51%




 2010 (n = 381)                         49%                                      40%                    10%




               Very important            Important             Unimportant 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   13
Importance of Sustainability to Improve Employee Retention




 2012 (n = 366)                                                         46%                      14%
                                    40%




 2010 (n = 381)                     40%                                 45%                      15%




               Very important             Important          Unimportant 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.
                                             How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013   14
Importance of Sustainability to Develop the Organization’s
                      Leaders




 2012 (n = 361)                                                         47%                           18%
                                   36%




 2010 (n = 375)                  33%                                  48%                            19%




               Very important            Important             Unimportant 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   15
Top 5 Methods of Involving or Engaging Employees in Volunteer
                             Community Outreach Initiatives Related to Sustainability



                                                                                                    2012              2010
                                           Methods                                                (n = 323)         (n = 330)
    1. Recognize employee participation in volunteer programs                                         62%              67%
    2. Provide company-sponsored volunteer events during work
                                                                                                      51%              45%
    hours
    3. Provide company-sponsored volunteer events after work
                                                                                                      48%              48%
    hours (e.g., on weekends)
    4. Encourage senior management to participate in volunteer
                                                                                                      48%              46%
    programs

    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    16
Participation in Socially Responsible Activities
                             Related to Sustainability



                                                                                                   2012                 2010
                                        Activities                                               (n = 385)            (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.
                                                         How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013    17
Environmentally Responsible Practices that Support Organization’s
                             Sustainable Workplace Initiatives



                                                                                                    2012                 2010
             Environmentally Responsible Practices                                                (n = 396)         (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%


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    18
Environmentally Responsible Practices that Support Organization’s
                             Sustainable Workplace Initiatives (cont.)



                                                                                                        2012               2010
              Environmentally Responsible Practices (cont.)                                           (n = 396)       (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.
                                                                                                                                   19
                                                        How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013
Organizations that Calculate a Return on Investment for Their
                      Sustainability Efforts




                                                                  37%
 Yes

                                                                     39%




                                                                                                          63%
  No

                                                                                                       61%




                                       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.
                                                How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013  20
Return on Investment for Sustainability Efforts




                                                                                                                        56%
             Calculated a positive ROI
                                                                                                             47%


                                                            5%
     Calculated a break-even point
                                                             6%


                                                       1%
           Calculated a negative ROI
                                                      0%


                                                                                                   39%
  Still too early to determine the ROI
                                                                                                            46%


                                           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.
                                                   How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013        21
Positive Outcomes of Sustainability Initiatives




                                                                                               2012                    2010
                    Positive outcomes                                                        (n = 352)               (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%




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    22
Green Jobs Definition



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.




                                      How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013   23
Is your organization currently focusing on creating green jobs or
                      adding duties within existing or newly created jobs that can be
                      considered green?




                                         Yes                       20%




                                          No                                                                      74%




 Plan to within the next 12 months                     6%




Note: n = 595. Respondents who answered “not applicable” were excluded from this analysis.
                                                  How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013   24
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?




           Increased                                                                                   49%




 Stayed the same                                                                                        50%




         Decreased            1%



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.
                                                  How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013
                                                                                                                           25
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?




           Increased                                                                                             74%




 Stayed the same                                        24%




         Decreased             2%



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.
                                                    How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013  26
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?




     New green duties have been added to
                                                                 15%                              85%
      existing positions at my organization




 Increased staff levels (added more staff ) of
existing jobs that already had green duties as                                                 94%
                                               6%
           part of the overall position




Created completely new green positions OR
 added green duties within newly created  6%                                                   94%
                  jobs



                                                           Yes       No
   Note: n = 690. Respondents who answered “not sure” were excluded from this analysis.

                                           Sustainable Workplace Practices: How Has Sustainability Changed Over Time? ©SHRM 2013   27
Organization Demographics




                            28
Demographics: Organization Staff Size




 1 to 99
                           18%
employees


100 to 499
employees                         28%


500 to 2,499                20%
employees

 2,500 to
  24,999                    21%
employees

 25,000 or
   more              13%
employees

   n = 713

                                  How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013   29
Demographics: Organization Profit Status




  Privately
 owned for-                                                      42%
    profit


 Nonprofit
organization                                        29%



  Publicly
 owned for-                          16%
   profit


Government
 agency                             14%



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

                                                    How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013   30
Demographics: Organization Industry



                                                                                                             Percentage
Health 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%
Note: n = 683. Percentages do not equal 100% due to multiple response options.
                                                   How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013   31
Demographics: Other




Does your organization have U.S.-                  Is your organization a single-unit organization or a multi-
based operations (business units) only             unit organization?
or does it operate multinationally?                 Single-unit organization: An organization in
                                                    which the location and the organization are                   30%
 U.S.-based operations only      76%                one and the same.
                                                    Multi-unit organization: An organization that
 Multinational operations        24%                                                                              70%
                                                    has more than one location.
 n = 713                                           n = 713


                                                   For multi-unit organizations, are HR policies and practices
                                                   determined by the multi-unit headquarters, by each work
What is the HR department/function for which       location or both?
you responded throughout this survey?
                                                    Multi-unit headquarters determines HR
                                                                                                                  47%
                                                    policies and practices
 Corporate (companywide)          68%
                                                    Each work location determines HR policies
 Business unit/division           17%                                                                             3%
                                                    and practices

 Facility/location                15%               A combination of both the work location
                                                    and the multi-unit headquarters determine                     50%
  n = 505
                                                    HR policies and practices

                                                    Note: n = 505


                                         How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013         32
SHRM Survey Findings: How Have Sustainable
         Workplace Practices Changed Over Time?




2012 Survey Methodology
• 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




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




•   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


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

Project contributors:
    Mark Schmit, Ph.D., SPHR, vice president, SHRM Foundation
    Alexander Alonso Ph.D., SPHR, vice president, SHRM Research
    Evren Esen, manager, Survey Research Center, SHRM Research

Copy editor:
    Katya Scanlan, SHRM Knowledge Center

                          Sustainable Workplace Practices: How Has Sustainability Changed Over Time? ©SHRM 2013   34

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Sustainable workplace-practices

  • 1. SHRM Survey Findings: How Have Sustainable Workplace Practices Changed Over Time? February 8, 2013
  • 2. Introduction 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 2
  • 3. Key Findings 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. How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013 3
  • 4. Key Findings (continued)  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%) How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013 4
  • 5. Key Findings (continued)  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%). How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013 5
  • 6. 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 How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013 6
  • 7. Sustainability Definition 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. How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013 7
  • 8. Organizations Engaging in Sustainable Workplace or Business Practices 72% Yes, engaging in sustainable workplace or business practices 72% 28% No, not engaging in sustainable workplace or business practices 28% 2012 (n = 550) 2010 (n = 583) Note: Respondents who answered “not sure” were excluded from this analysis. How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013 8
  • 9. Organizations Engaging in Sustainable Workplace or Business Practices 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. Comparisons by organization sector 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. Comparisons by organization sector 100 to 499 employees (72%) 500 to 2,499 employees (70%) > 1 to 99 employees (49%) 2,500 to 24,999 employees (86%) 25,000 or more employees (86%) Note: Only statistically significant differences are shown. How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013 9
  • 10. Drivers for the Investment in Sustainability Contribution to society (e.g., good 39% corporate citizenship) 39% Environmental considerations 14% 12% Health and safety considerations 10% 8% Saving money on operational costs 10% 10% Local/federal regulations 7% 2% Public/media relations strategy 5% 4% Competitive financial advantage 4% 13% Employee activism 4% 4% 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 10
  • 11. Methods Organization Use to Demonstrate Commitment to Sustainability 2012 2010 Methods (n = 279) (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. How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013 11
  • 12. Types of Workplace Sustainability Policies 50% Formal policy 52% 42% Informal policy 39% 8% No policy 9% 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. How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013 12
  • 13. Importance of Sustainability to Create a Positive Employer Brand that Attracts Top Talent 2012 (n = 370) 39% 11% 51% 2010 (n = 381) 49% 40% 10% Very important Important Unimportant 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 13
  • 14. Importance of Sustainability to Improve Employee Retention 2012 (n = 366) 46% 14% 40% 2010 (n = 381) 40% 45% 15% Very important Important Unimportant 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. How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013 14
  • 15. Importance of Sustainability to Develop the Organization’s Leaders 2012 (n = 361) 47% 18% 36% 2010 (n = 375) 33% 48% 19% Very important Important Unimportant 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 15
  • 16. Top 5 Methods of Involving or Engaging Employees in Volunteer Community Outreach Initiatives Related to Sustainability 2012 2010 Methods (n = 323) (n = 330) 1. Recognize employee participation in volunteer programs 62% 67% 2. Provide company-sponsored volunteer events during work 51% 45% hours 3. Provide company-sponsored volunteer events after work 48% 48% hours (e.g., on weekends) 4. Encourage senior management to participate in volunteer 48% 46% programs 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 16
  • 17. Participation in Socially Responsible Activities Related to Sustainability 2012 2010 Activities (n = 385) (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. How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013 17
  • 18. Environmentally Responsible Practices that Support Organization’s Sustainable Workplace Initiatives 2012 2010 Environmentally Responsible Practices (n = 396) (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% 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 18
  • 19. Environmentally Responsible Practices that Support Organization’s Sustainable Workplace Initiatives (cont.) 2012 2010 Environmentally Responsible Practices (cont.) (n = 396) (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. 19 How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013
  • 20. Organizations that Calculate a Return on Investment for Their Sustainability Efforts 37% Yes 39% 63% No 61% 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. How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013 20
  • 21. Return on Investment for Sustainability Efforts 56% Calculated a positive ROI 47% 5% Calculated a break-even point 6% 1% Calculated a negative ROI 0% 39% Still too early to determine the ROI 46% 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. How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013 21
  • 22. Positive Outcomes of Sustainability Initiatives 2012 2010 Positive outcomes (n = 352) (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% 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 22
  • 23. Green Jobs Definition 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. How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013 23
  • 24. Is your organization currently focusing on creating green jobs or adding duties within existing or newly created jobs that can be considered green? Yes 20% No 74% Plan to within the next 12 months 6% Note: n = 595. Respondents who answered “not applicable” were excluded from this analysis. How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013 24
  • 25. 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? Increased 49% Stayed the same 50% Decreased 1% 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. How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013 25
  • 26. 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? Increased 74% Stayed the same 24% Decreased 2% 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. How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013 26
  • 27. 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? New green duties have been added to 15% 85% existing positions at my organization Increased staff levels (added more staff ) of existing jobs that already had green duties as 94% 6% part of the overall position Created completely new green positions OR added green duties within newly created 6% 94% jobs Yes No Note: n = 690. Respondents who answered “not sure” were excluded from this analysis. Sustainable Workplace Practices: How Has Sustainability Changed Over Time? ©SHRM 2013 27
  • 29. Demographics: Organization Staff Size 1 to 99 18% employees 100 to 499 employees 28% 500 to 2,499 20% employees 2,500 to 24,999 21% employees 25,000 or more 13% employees n = 713 How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013 29
  • 30. Demographics: Organization Profit Status Privately owned for- 42% profit Nonprofit organization 29% Publicly owned for- 16% profit Government agency 14% n = 685. Percentages do not total 100% due to rounding. How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013 30
  • 31. Demographics: Organization Industry Percentage Health 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% Note: n = 683. Percentages do not equal 100% due to multiple response options. How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013 31
  • 32. Demographics: Other Does your organization have U.S.- Is your organization a single-unit organization or a multi- based operations (business units) only unit organization? or does it operate multinationally? Single-unit organization: An organization in which the location and the organization are 30% U.S.-based operations only 76% one and the same. Multi-unit organization: An organization that Multinational operations 24% 70% has more than one location. n = 713 n = 713 For multi-unit organizations, are HR policies and practices determined by the multi-unit headquarters, by each work What is the HR department/function for which location or both? you responded throughout this survey? Multi-unit headquarters determines HR 47% policies and practices Corporate (companywide) 68% Each work location determines HR policies Business unit/division 17% 3% and practices Facility/location 15% A combination of both the work location and the multi-unit headquarters determine 50% n = 505 HR policies and practices Note: n = 505 How Have Sustainable Workplace Practices Changed Over Time? ©SHRM 2013 32
  • 33. SHRM Survey Findings: How Have Sustainable Workplace Practices Changed Over Time? 2012 Survey Methodology • 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 Sustainable Workplace Practices: How Has Sustainability Changed Over Time? ©SHRM 2013 33
  • 34. About SHRM Research • 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 Project leader: Shawn Fegley, SPHR, survey research analyst, SHRM Research Project contributors: Mark Schmit, Ph.D., SPHR, vice president, SHRM Foundation Alexander Alonso Ph.D., SPHR, vice president, SHRM Research Evren Esen, manager, Survey Research Center, SHRM Research Copy editor: Katya Scanlan, SHRM Knowledge Center Sustainable Workplace Practices: How Has Sustainability Changed Over Time? ©SHRM 2013 34