The State of Employee Engagement in Sustainability and CSR. Trends in engaging employees for better business results,

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1 The State of Employee Engagement in Sustainability and CSR Trends in engaging employees for better business results, 2009 WeSpire original research - June

2 About WeSpire WeSpire is a technology company that helps companies engage people in sustainability and responsibility initiatives, using persuasive technology that builds awareness, drives behavior change, and measures business results. The award-winning engagement platform, used by leading global corporations, pairs expert content with proven social and game mechanics to make embracing new habits simpler, faster, and more fun. WeSpire was founded in 2010 and is headquartered in Boston, Massachusetts. About the Research This research is the third iteration in a series conducted to assess how organizations engage employees in sustainability efforts. Brighter Planet, a leader in sustainability technology and research that disbanded in 2013, conducted the two previous surveys in 2009 and WeSpire continues the research, which provides 5-year trending data. We are very grateful for this opportunity and collaboration with the former Brighter Planet team. Susan Hunt Stevens CEO & Founder Susan@WeSpire.com To stay consistent with the prior research, we closely replicated Brighter Planet s survey design and outreach. Survey responses were collected using a web-based questionnaire consisting of 22 sustainability engagement questions and 8 demographic questions. We gathered a total of 402 responses between April 23rd and May 17th,, and were able to use 393 of them for analysis. Our respondent population includes a diverse range of geographies, ages, industry sectors, and job roles (see Appendix). However, there are a few notable differences in demographics between our respondent pool and those of Brighter Planet. In terms of the respondents work sector, the population has many fewer respondents from not-for-profits, and many more from the manufacturing sector. Additionally, in terms of job function, many more respondents were in managerial positions. Consequently, there were many fewer CEO s and executives. Finally, when asked to identify themselves on a range from light green to dark green, to reflect their level of environmental awareness and involvement, there are overwhelmingly fewer self-described dark greens in. Combined, these differences in the makeup of the respondent pool may describe some of the variation in responses from yearto-year. 1

3 Executive Summary Organizations are increasingly recognizing the importance of employee engagement for successful sustainability and corporate social responsibility (CSR) initiatives. This third survey in the series tracks changes in sustainability engagement practices since 2009 and identifies the most effective program elements. Our key findings include: A consistent increase of employers with an official employee engagement policy on sustainability. Despite this increasing trend, over 5 of employees would like to see their employer s stance change on employee sustainability efforts, with Millennials leading all age groups. Green Teams, competitions, awards and bonuses are becoming more popular as promotion incentives for sustainable actions. The relationship between HR and sustainability engagement is growing. Respondents increasingly view HR personnel as the main sustainability advocate inside a company. Employee recruitment and retention grew as the main purpose for sharing organizational sustainability efforts and results; the only category that increased. A majority of employees (65%) want to learn more about what coworkers and employers are doing relating to conservation. To drive behavior change, the effectiveness of engagement programs is correlated with more frequent communication. A large majority (8) of employees would try a sustainability tactic at home that was introduced at work, reinforcing the importance of the workplace to drive behavior change. 2

4 Introduction There is a growing body of research on Millennials, which we define as under the age of 30, showing they value purpose in their work and seek employers engaged sustainability and Corporate Social Responsibility (CSR) activities. An influential generation, this millennial mentality has the opportunity to spill over to other generations of workers. In response to this shift we see three major trends emerge in our research: 1. Employers are adopting official employee sustainability engagement policies 2. Human Resources (HR) is increasingly taking on sustainability and CSR initiatives to attract and retain top talent 3. Sustainability is social, and frequent communication leads to more effective programs As the third iteration of this survey, this report is unique in that it captures five years of trending data showing the progression towards these three evolving themes. It also amplifies what other studies have already found: more effective employee engagement leads to better business results. Understanding the data presented by this research will inform a roadmap for leaders and employers, better equipping them to drive meaningful, impactful, and ultimately successful business outcomes. 3

5 Detailed Findings 1. Shifting employee sustainability engagement landscape Employers increasingly have an official employee engagement policy on sustainability. This upward trend is especially pronounced from 2011 to, where the prevalence of an official employee sustainability engagement policy nearly doubled: from 17% in 2011 to 3 in % 58% 27% Figure 1 - Does your employer have an official % 55% 27% 3 46% 24% employee engagement policy on sustainability? Yes No Not Sure Following this upward trend in employee sustainability engagement, the percentage of respondents who want their employer to change its stance on employee sustainability efforts dropped 16 percentage points, from a high of 67% in 2011 (see Figure 2). This suggests that employees are positively responding to employers increasingly adopting more structured and formal employee sustainability engagement programs. Conversely, it is also noteworthy that 46% of respondents stated that their employer does not have an official policy, which corresponds to the finding that 51% of respondents would like to see a change in their employer s stance on employee sustainability efforts moving forward. This observation is even more pronounced within the under 30 population, cited as Millennials, where 55% of respondents would like to see such a change. This reinforces the current trend that Millennials look for purpose in their work and expect more from their employers. 1,2 I d love for my company to be more focused on sustainability and to provide initiatives for employees. 1. Net Impact. (2012). Talent Report: What Workers Want in netimpact.org/learning-resources/research/what-workers-want 2. Deloitte. (). Big Demands and Higher Expectations, The Deloitte Millennial Survey. www2.deloitte.com/global/en/pages/ about-deloitte/articles/-millennial-survey-positive-impact.html. 4

6 Incentives are an important aspect of an employer s official employee sustainability engagement policy. From 2011 to, employer incentives with the highest growth were in areas of formal processes to incorporate sustainability, including competitions (rising +1), awards (rising +1), and bonuses (rising +) (see Figure 3). The growth in green teams is most noteworthy, climbing from 2 in 2011 to 31% in. This rapid increase also suggests an emphasis on formal, cross-functional collaboration in the workplace as a mechanism to achieve sustainability engagement. The trick is to have great programs that are supported by the company s top levels, and that are exciting and cool enough to be wildly popular with everyone. Yes No 21% 18% 51% 67% 67% Figure 2 - Would you like to see your employer change their stance on employee sustainability efforts moving forward? 1 Not Sure 15% 24% under % 1 26% 5 21% 26% 46% % 28% 31% 41% Figure 2a - survey respondents, stratified by age Yes No Not Sure 2. Human Resources takes on sustainability The link between the Human Resource (HR) function and sustainability continues to expand and strengthen, as HR increasingly uses sustainability as a tool to engage employees and address new challenges. From 2011 to, the percentage of employees who view HR as the main sustainability advocate doubled, from 5% to 1. 5

7 Bonuses Competitions Awards 5% 5% 15% 7% 17% Figure 3 - In the workplace, what incentives does your employer use to promote sustainable actions? Note: This question was not asked in 2009 Green teams 2 31% Sponsored events 24% Informal recognition 21% 3 35% Promotes reusable dishware 27% 44% 2011 Provides recycling bins 77% 8 One reason for HR s greater involvement in sustainability is that in an increasingly competitive talent market, employee engagement is one mechanism HR can utilize to retain and attract high-performing employees. 3 In terms of the primary purpose for sharing sustainability efforts, all reasons declined from 2011 to, except for employee recruitment and retention, which increased to and is nearly tied with marketing and sales as the number one reason. Human Resources Board of Directors 5% 4% 6% 1 Figure 4 - Who in your organization is the main advocate for employee sustainability? Sustainability Director 8% 8% 14% Management Team 15% 18% 17% 2009 Employees % Gallup. (2013). The State of the American Workplace. gallup.com/strategicconsulting/163007/state-american-workplace.aspx 6

8 Product Development 11% 1 11% Figure 5 - For what purpose does your employer share its sustainability efforts? Investor Relations / Accountability Employee Recruitment / Retention % 2 21% Marketing and Sales 26% Our workforce is getting younger and younger. Sustainable thinking is natural for many of these younger, newer folks. Our workplace is open and collaborative and their initiatives and enthusiasm are welcome and supported. HR can utilize sustainability to attract and retain top talent by providing opportunities for employees to share their sustainability efforts and accomplishments. Employees see sustainability as social. Survey results show a high incidence of employees curious to know about their colleagues actions: 65% of respondents want to learn more about what their co-workers and employer are doing around conservation (see Figure 6). This finding persists throughout nearly all age groups: from Millennials to Baby Boomers, an overwhelming majority as high as 75% for Millennials are interested in sustainability efforts of their coworkers and employer. This points to an opportunity for intergenerational connection and collaboration on sustainability. Figure 6 - Would you be interested to learn more about the conservation efforts of your coworkers and employer? Yes No 35% 65% Figure 6a: Stratified by age group under 30 75% % 46% % 37% 26% % 56% 7

9 3. Frequency and effectiveness in ability to drive behavior change To drive behavior change, the effectiveness of employee engagement programs is correlated with more frequent communication: 91% of respondents with Very Frequent communication found their sustainability engagement program Very Effective or Somewhat Effective. This is consistent with the prior surveys and provides evidence that consistent and frequent promotion of sustainability efforts will lead to higher program engagement and effectiveness. Figure 7 - Frequency of sustainability promotion and engagement effectiveness Very Frequent Frequent 3 5 6% 3 64% 1 17% Infrequent 17% 51% 3 Very Infrequent 7% 3 6 Very Effective Somewhat Effective Not Effective Unsure To create habits, which ultimately lead to behavior change, it is important that employees adopt behaviors not only in the workplace but also at home. Respondents overwhelmingly stated (8) that they would try a sustainability tactic at home that was introduced at work, indicating the importance of the workplace in driving behavior change. Employees will likely not change their habits from work to home. This finding is particularly relevant regarding successful efforts to drive lasting and meaningful behavior change. Figure 8 - If you adopted a sustainability tactic introduced to you at work, would you try it at home? Yes 8 No 11% 8

10 Conclusion The data over the last five years show a clear trend that employee engagement in sustainability and CSR has become more widespread and more supported. Almost twice as many organizations have a policy in place compared to those in In addition, programs such as Green Teams and competitive-based incentives saw a significant spike, suggesting employees respond well to structured engagement systems. Despite these advances, employees want to see more. Fully half of those surveyed would like to see additional changes within their workplace, and the largest percentage is Millennials. That may be one of the reasons for the increased involvement by HR in engagement and sustainability activities. Of all the reasons given for sharing a company s sustainability work, employee recruitment and retention is the only category that saw an uptick. Coupled with 65% of employees wanting to learn more about what their coworkers and employer are doing relative to conservation, and it follows that HR is increasingly seen as sustainability s main advocate. We need to create a shift in perspective so that more people can adapt sustainability. Consistent with past survey results, the greater the frequency of communication, the more effective the employee engagement programs. Employees want even more interaction and communication, which suggests an opportunity for organizations to improve the impact of their programs effectiveness. Further, if driving behavior change is an objective of a sustainability and CSR engagement program, the most significant correlation 8 in the affirmative came in response to whether a sustainability tactic tried at the office would be replicated at home. Forming habits leads to behavior change. Therefore, creating the environment and providing the tools for habits to develop would help ensure success. 9

11 Appendix - Demographics A. Geographic Location US - Northeast 28% 34% 34% US - South 2 24% US - Midwest 1 11% 15% US - West Other Americas Europe 4% 4% 4% Asia and Middle East 4% Africa 1% Oceania 1%

12 11 1% 6% 7% 16% 1 1 4% 2 5% 5% Construction Energy/Utility 7% 7% Environmental 4% Financial Services 1 6% Government 6% IT / Internet Manufacturing 1 2 Not-For-Profit 8% Professional Services 6% Retail 1% 1% Wholesale Distribution 31% 3 Other B. Sector

13 C. Employer Size by Number of Employees Fewer than 50 18% 38% 36% 50 to % More than % 37% 58% Executive/Owner D. Job Role 6% 17% 18% Management 1 2 Sustainability/CSR 7% Operations 7% 1 Sales and Marketing 7% 14% Technology Customer Service 6% 8% 11% 8% Other 1 34%

14 E. Greenness Dark Green 14% 41% 41% Medium Green % Light Green 3 Snow White F. Age % % % % Under