Eco-friendly employee benefits provide advantages for both employers and staff. Businesses reduce emissions, strengthen corporate social responsibility (CSR), attract top talent, and boost their employer brand.
Employees gain perks aligning with their values, opportunities to support causes, and incentives for sustainable behaviours. The eco-benefits movement empowers organizations to have a positive climate impact through employee benefits packages.
This article will examine the rising prominence of eco-friendly employee benefits, benefits for companies offering green perks, types of sustainable benefits, implementation of best practices.
What is Eco-friendly Employee Benefits in Canada
Eco-friendly employee benefits refer to compensation, perks, and programs offered by employers that promote environmental sustainability and reduce carbon footprints.
Interest in environmental sustainability has been rising steadily among populations worldwide.
Consumers increasingly make buying decisions based on company values and eco-friendliness. Employees, especially younger generations, prefer working for organizations that reflect their principles.
As a result, demand has increased for eco-friendly employee benefits that support staff in reducing their environmental footprints.
Benefits of Offering Eco-friendly Perks
Implementing green employee benefits provides advantages for companies beyond recruiting talent.
Environmentally sustainable perks demonstrate social responsibility, foster employee engagement, and improve brand reputation. They enable organizations to have a positive climate impact through their compensation packages.
Reduced Environmental Impact of Business
Eco-friendly employee benefits decrease the carbon footprint of a company’s operations.
Offering incentives for staff to commute sustainably, work remotely, and take public transit reduces emissions from driving. Green office programs minimize waste and energy consumption on-site.
Strengthened Corporate Social Responsibility
Companies offering eco-friendly employee benefits showcase a solid commitment to CSR and ethical practices.
With eco-benefits like paid volunteer days and donations to environmental groups, businesses support sustainability causes along with their own green initiatives. The eco-benefits movement is an opportunity to integrate CSR values broadly across compensation policies.
Improved Employer Brand and Reputation
Green benefits boost public perception of an organization’s brand, values, and reputation.
Companies with eco-friendly employee benefits position themselves as leaders in sustainability. They differentiate their employer brand through compelling benefits that attract like-minded candidates.
Engaged Employees Around Shared Values
Eco-friendly employee benefits reinforce an organization’s cultural values and empower employees to act on their own principles.
Staff feel engaged and motivated when employers allow them to support environmental causes. Green benefits also foster team building as employees work towards sustainability, enhancing retention.
Types of Eco-friendly Employee Benefits
Here are some of the most common eco-friendly employee benefits companies offer today:
Transportation Programs
- Public transit stipends, discounts or full reimbursement
- Pre-tax payroll deductions for transit costs
- Company shuttles from transit hubs to office
- Subsidized ridesharing for carpools or vanpools
- Reduced parking fees for carpools
- Secure bike storage and repair at the office
- On-site showers and lockers for bikers
- “Bike to work” reimbursement programs
- Discounted sales on e-bikes through payroll
- EV charging stations at the office
- EV company fleet vehicles
- EV subsidies and stipends for staff
Green Office Programs
- Recycling collections, composting, hydration stations
- Energy retrofits like HVAC upgrades, bright lighting
- Building LEED sustainability certification
- Renewable energy through solar panels, renewable energy credits
- Eco-friendly equipment like Energy Star appliances
- Paper reduction programs emphasizing digital communication
Remote Work and Telecommuting
- Work-from-home flexibility
- Co-working spaces closer to employee homes
- Telecommuting policies for some/all workdays per week
Relocation Assistance
- Living stipends for relocating closer to the office
- Commuter benefits packages
- Subsidized public transit passes
Paid Time Off
- Paid volunteer days for environmental charities
- Sponsoring eco-friendly team volunteering events
Wellness Incentives
- Rewards programs for biking/walking daily commutes
- Free access to local parks, beaches, recreational areas
- Discounts on environmental/outdoor activities like camping trips
- Free/subsidized gym memberships to promote exercise
Charitable Contributions
- Donation matching programs supporting green nonprofits
- Grants for employees’ environmental causes of choice
- Workplace-giving campaigns focused on eco-initiatives
Insurance, Health, Retirement
- Green investment fund options in 401(k) plans
- Health insurance covering alternative medicine like acupuncture
- Discounts on renewable energy programs and electric vehicles
Case Studies of Companies Offering Green Benefits
Forward-looking companies across various industries have implemented eco-friendly employee benefits for their workforces. Here are some noteworthy examples:
Patagonia
The outdoor apparel maker offers phenomenally eco-friendly employee benefits supporting its brand values. Patagonia provides:
- Free healthy organic lunches.
- Flexible work times.
- Generous paid leave.
- Free childcare.
- Subsidies for hybrid/electric cars.
Employees also get grants and paid sabbaticals for environmental work with nonprofits. These progressive benefits attract passionate, activist-minded staff devoted to Patagonia’s mission.
Salesforce
The cloud software giant offers employees subsidies for purchasing solar panels and reimburses home EV charging station costs.
Salesforce also rewards staff with “Dreamforce Forest” grants when they volunteer on sustainability projects. Employees praised Salesforce’s sustainability focus in surveys, and its green benefits help attract skilled tech talent.
Burton Snowboards
The leading snowboard maker gives employees $1,500 subsidies towards buying bikes to commute to its Vermont headquarters.
Burton also has an on-site garden providing organic produce for its cafeterias. Through these and other eco-benefits, the company leverages its brand to engage employees in sustainability.
IKEA
The furniture icon provides ample incentives for green commuting through public transit stipends, EV charging stations, and priority parking for carpools.
IKEA also offers eco-friendly retirement plans, with 401(k) options to invest in funds with companies complying with its strict sustainability metrics. These benefits help reduce IKEA’s immense footprint while attracting green talent.
How to Implement Eco-Friendly Employee Benefit Programs
Developing an effective eco-friendly employee benefits program requires research, planning and communication. Critical steps for implementation include:
Choosing Perks That Match Company Values
Review your organization’s environmental policies, carbon footprint metrics, CSR mission and sustainability goals.
Then, assess which green benefits best fit those objectives. Seek input from sustainability teams on where employee packages can provide the most eco-impact. Try to maximize synergies between existing programs and new offerings.
Designing Programs with Flexibility and Choice
Provide a menu of options to appeal to diverse interests and needs. Some staff may prioritize EV rebates, while others may value volunteer days more.
Consider benefits as “eco-credits” that employees can apply toward the most meaningful programs. Like 401(k)s, offer online platforms to select preferences and track balances.
Measuring and Tracking Sustainability Metrics
Determine metrics for gauging the environmental impact of benefits, like carbon emissions, waste diversion, renewable energy usage and green commuting rates.
Conduct surveys to understand how benefits influence sustainable behaviours. Use data to refine offerings and ensure positive outcomes from investments.
Promoting Offerings to Attract Eco-Talent
Talent will only notice eco-friendly employee benefits to influence recruitment and retention—spotlight green incentives prominently in job postings, interviews and new hire onboarding.
Train recruiters to communicate sustainability values—profile eco-benefits in employer branding content and external communications about company culture.
Partnering with Environmental Organizations
Collaborate with nonprofits on eco-friendly employee benefits like paid volunteer days, donations programs and environmental education.
Partnerships with experts bring credibility while providing turnkey programs. Encourage staff to suggest potential partner groups for green initiatives they care about.
The Future of Green Employee Benefits
The eco-benefits movement remains relatively nascent today, but awareness is rising rapidly. As climate change impacts intensify, environmental programs will become standard across industries.
Continued Growth in Employee Demand
Demand for green benefits will continue growing as millennials and Gen Z increasingly dominate workforces.
With environmentalism central to their identities, they will expect employers’ sustainability values to be reflected in compensation.
Already, topics like climate change and environmental justice are front-of-mind for Gen Z. Companies must meet their desire for purpose-driven jobs with eco-impact.
Learn more about what each generation looks for in workplace benefits in our guides on Employee Benefits for Gen Z and Employee Benefits for Millennials.
Connections to Broader ESG Practices
Expect closer integration between eco-benefits and broader ESG (environmental, social, governance) programs.
As stakeholders pressure companies on ESG issues, they will align benefits with supply chain transparency, ethical sourcing, diversity initiatives and governance reforms. Compensation packages will need to demonstrate comprehensive ESG commitments.
Supporting Long-Term Climate Mitigation
Ultimately, eco-friendly employee benefits aim to engage employees in long-term climate change mitigation. Programs focused on commuting today build lifelong public transit habits reducing emissions. Volunteering inspires ongoing environmental advocacy careers.
Younger staff exposed to eco-benefits expect them throughout their working lives. Green benefits adopted quickly can have an enduring positive planetary impact.
The bottom line
Eco-friendly employee benefits are becoming imperative for attracting talent, demonstrating sustainability values, and addressing environmental challenges.
Companies can no longer default to conventional, ecologically neutral benefits packages. By implementing creative, eco-minded benefits, organizations can reduce their climate footprints while keeping employees satisfied and engaged.
