Ruby Maini President & CEO HR Strategies Consulting November

Why are organizations embracing sustainability initiatives? Heightened media attention Increasing consumer and shareholder awareness information transparency. consumers today are ‘green motivated’, and over 60 percent of shareholder proposals are sustainability related. Increased regulatory scrutiny Significant increase in the number of climate change bills proposed from five years ago in the US and Canada companies are evaluating their readiness to respond to the implications of sustainability on operations, brand image and compliance structures people programs now and in the future.

Key HR Priorities Talent Attraction and Retention Employee Engagement Workforce Productivity Cost Reduction/Containment Aligning with HR Priorities makes it easier to build case for TDM

HR Goals: Attract best candidates

Top Attributes That Attract a Candidate to a Company

What practices are considered ‘work-life’ balance Work Location Business travel nights away Remote work sites Telework/mobility technology Time spent commuting Family Childcare subsidies Eldercare subsidies Paid parental leave Emergency leave Development Education reimbursement EAP Sabbatical or education leave Volunteer work Services Cafeteria On-site parking Fitness Services Commuting Subsidies Carpool parking Bicycle parking Accessibility Health On-site nurse Paid sick leave Preventive health care Reproductive health program Work Time Appropriate workload Flexible schedule Job sharing Predictable hours

Sample Recruitment Offerings Flexible Hours, Telework, Commuter subsidies, bicycle parking Recruitment Benefits TDM Benefits Attracts best candidates Attracts out of city/province candidates Attracts fit employees Promotes off peak commuting Promotes mass transit Promotes alternate transportation

HR Goals: Retain talent Increase engagement Increase career satisfaction

Corporate Leadership Council Employee Engagement Survey Impact of Employee Engagement on the Probability of Departure Engaged employees are 87% less likely to leave an organization than employees with low levels of engagement Probability of Departure in Next 12 Months 9.2%

Top Drivers of Employee Engagement

Retention -Telework 66% of managers report telework as attractive retention tool 77% more satisfied with career after beginning telework program 67% giving up “telework environment" as a major factor in declining a competing job offer Fortune 1000 AT&T telework survey

Retention -Telework Retention Benefits Key TDM Benefits Increase employee job satisfaction Retain best employees Reduce turnover Reduces commuting Reduces traffic congestion during peak hours Reduced automotive pollution

HR Goals: Increase employee engagement Increase employee productivity Decrease absenteeism

SPEAK positively about the organization EXHIBIT A STRONG DESIRE to continue working for the organization EXERT EXTRA EFFORT to serve customers and contribute to the organization’s success How committed they are to the organization. How long they intend to stay How hard they are willing to work Defining Employee Engagement

The State of Workforce Engagement The “Disaffected” Poor performers putting in minimal effort and exhibiting strong noncommitment to their organizations, jobs, managers, and teams The “Agnostics” The “True Believers” These employees exhibit moderate commitment to their work, teams, managers, and organizations High performers with low retention risk, who exhibit very strong commitment to their jobs, teams, managers, and organizations 13% 20%29%27% Leaning Toward Disengagement Neutral Leaning Toward Engagement 11% The majority of employees are “up for grabs”—neither fully committed nor uncommitted. The opportunity is to sway “agnostic” employees towards the “true believer” level. Most employees are not highly committed to their organizations. Source: Corporate Leadership Council Employee Engagement Survey Most are Sitting on the Middle of the Fence

Telework - Increases Engagement and Productivity 60% telemanagers report an increase in worker productivity Fortune 1000 AT&T telework survey 23% productivity gain for off-site call center employees American Express 12-34% productivity increases California telecommuting program

Corporate Leadership Council 2005 Employee Engagement Survey Employee engagement drives performance Number of Employees 50 th Percentile 70 th Percentile Highly engaged employees perform up to 25 percentile points better Performance

Telework – Benefits to HR and TDM Engagement Benefits TDM Benefits Increase employee engagement, which increases productivity and performance Easier to promote TDM Initiatives like Telework when it directly ties into increased employee engagement and performance

HR Goals: Reduce Real Estate Costs Reduce Office Expense Reduce Relocation Costs Reduce Recruitment Costs

Telework - Reduce Overhead Costs Saved $50 million annually IBM's telework plan reduced U.S. real estate holdings by 22 million square feet Saved $5,000 to $6,000/office/year Merrill Lynch telework reduced office space costs $80,000 per employee relocation savings long-distance employment relationships avoid the costs of relocation

Recruitment is Expensive - Costs Average recruiting costs – per person Executive - $47,000 Management/Professional - $21,000 Technical - $15,200 Clerical/Support - $5,700 Conference Board of Canada

Recruitment is Expensive - Time to Hire Average time to hire – per person Executive – 20 weeks Management/Professional – 12 weeks Technical – 8 weeks Clerical/Support – 4 weeks Conference Board of Canada

Telework – Cost Reduction Cost Reduction Additional TDM Benefits Decreases costs to organization Real Estate Office Costs Relocation Recruitment Decreases costs to community and Government

Bottom line: TDM helps HR achieve objectives Telework Commuter Subsidy + recruitment + retention + engagement + productivity - costs

Differences in Key Work-life Drivers of Candidate Attraction across Nations... and where TDM drivers fit GlobalCanadaChinaFranceGermanyIndiaSouth AfricaSpainUKUS Flexible work scheduleAppropriate workload Flexible work schedule Appropriate workload Flexible work schedule Appropriate workloadFlexible work schedule Appropriate workload Flexible work schedule Personal InsuranceAppropriate workload Flexible work schedule Appropriate workload Flexible work schedule Appropriate workload Predictable work hours Flexible work schedulePredictable work hours Personal InsurancePaid sick leavePredictable work hours Personal InsurancePaid sick leave Education reimbursement Personal InsurancePaid sick leavePersonal Insurance Education reimbursement Paid sick leave Predictable work hours Telework technology Paid sick leave Education reimbursement Predictable work hours On-site parking Education reimbursement EAPPaid sick leaveEAPOn-site parkingPersonal Insurance Education reimbursement Personal Insurance Sabbatical and Education Leave Forced Vacation Time Preventive health care Personal InsuranceTelework technology Paid sick leave Telework technologyOn-site parkingPaid sick leaveTelework technologyRemote Work SitesFitness ServiceJob SharingPreventive health careEmergency LOA Education reimbursement Preventive health careTelework technology Employee Support Groups Cafeteria Forced Vacation Time On-site parking Personal InsurancePreventive health care On-site parkingFitness ServicePreventive health careEmergency LOATelework technology Employee Support Groups EAP Predictable work hours Preventive health care Business travel Nights Away Forced vacation time Preventive health care Personal Time interruptions Remote Work SitesPersonal InsurancePaid sick leaveTelework technology Personal Time interruptions Business travel Nights Away Fitness Service

Companies are adopting sustainable practices in light of both increasing pressure from external stakeholders and opportunities to profit from potential efficiency and revenue gains 2 Investor Pressures Institutional investors are ranking companies on sustainability initiatives. Socially responsible investing is gaining popularity among the investor community. Consumer Pressures A “green consumer” segment is growing and demanding that companies show commitment to sustainability through both green products and green production methods. Consumers are increasingly growing skeptical of companies’ environmental claims that cannot be verified. Peer Pressures Sixty percent of executives find it very or somewhat important to consider climate change issues in overall corporate strategy. Financial Opportunities Companies that have a well-established sustainability strategy outperform those that do not by an annualized rate of return of 3.06%. Efficiency Opportunities Companies can easily save 29% of utility costs at no net added cost by integrating sustainability practices into their operations. Reputational Opportunities Companies can create a stronger brand and increase employee satisfaction levels by developing a comprehensive sustainability strategy and reporting it. Sustainability PressuresSustainability Opportunities Turning Pressure into Opportunity