Ruby MainiPresident & CEOHR Strategies Consulting November 7 2012

Why are organizations embracing sustainability initiatives?Heightened media attentionIncreasing consumer and shareholder awarenessinformation transparency. consumers today are ‘green motivated’, and over 60

percent of shareholder proposals are sustainability related.

Increased regulatory scrutinySignificant 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 EngagementWorkforce ProductivityCost Reduction/Containment

Aligning with HR Priorities makes it easier to build case for TDM

HR Goals:Attract best candidates

Work LocationBusiness travel nights awayRemote work sitesTelework/mobilitytechnologyTime spent commuting

FamilyChildcare subsidiesEldercare subsidiesPaid parental leaveEmergency leave

DevelopmentEducationreimbursementEAPSabbatical or education leaveVolunteer work

ServicesCafeteriaOn-site parkingFitness ServicesCommutingSubsidiesCarpool parkingBicycle parking Accessibility

HealthOn-site nurse Paid sick leavePreventive health careReproductive 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 talentIncrease engagementIncrease career satisfaction

Corporate Leadership Council Employee Engagement Survey

Probability of Departure in Next 12 Months

9.2%

9.2%

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 engagementIncrease employee productivityDecrease absenteeism

SPEAKSPEAKpositively about positively about the organizationthe organization

SPEAKSPEAKpositively about positively about the organizationthe organization

EXHIBIT A EXHIBIT A STRONG DESIRESTRONG DESIRE

to continueto continueworking for theworking for the

organizationorganization

EXHIBIT A EXHIBIT A STRONG DESIRESTRONG DESIRE

to continueto continueworking for theworking for the

organizationorganization

EXERT EXTRAEXERT EXTRAEFFORTEFFORT

to serve customersto serve customersand contribute to theand contribute to the

organization’sorganization’ssuccesssuccess

EXERT EXTRAEXERT EXTRAEFFORTEFFORT

to serve customersto serve customersand contribute to theand contribute to the

organization’sorganization’ssuccesssuccess

• How committed they are to the organization.

• How long they intend to stay

• How hard they are willing to work

The State of Workforce EngagementThe 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.

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

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

Numberof

Employees

50th

Percentile70th

Percentile

Highly engaged employees perform up to 25 percentile points better

Performance

Telework – Benefits to HR and TDMEngagement 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 CostsReduce Office ExpenseReduce Relocation CostsReduce Recruitment Costs

Telework - Reduce Overhead CostsSaved $50 million annually

IBM's telework plan reduced U.S. real estateholdings by 22 million square feet

Saved $5,000 to $6,000/office/yearMerrill Lynch telework reduced office space costs

$80,000 per employee relocation savings long-distance employment relationships avoid the costs of relocation

Average recruiting costs – per person

• Executive - $47,000

• Management/Professional - $21,000

• Technical - $15,200

• Clerical/Support - $5,700

Conference Board of Canada

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

Global Canada China France Germany India South Africa Spain UK US

Flexible work schedule Appropriate workload Appropriate workload Flexible work schedule Flexible work schedule

Appropriate workload Flexible work schedule Flexible work schedule Appropriate workload Flexible work schedule

Appropriate workload Flexible work schedule Personal Insurance Appropriate workload Appropriate workload Flexible work

schedule Appropriate workload Appropriate workload Flexible work schedule Appropriate workload

Predictable work hours Predictable work hours Flexible work schedule Predictable work hours Predictable work

hoursPredictable work

hours Predictable work hours Personal Insurance Paid sick leave Predictable work hours

Personal Insurance Paid sick leave Education reimbursement Personal Insurance Paid sick leave Personal Insurance Education

reimbursement Paid sick leave Predictable work hours Telework technology

Paid sick leave Education reimbursement Predictable work hours On-site parking Education

reimbursement EAP Paid sick leave EAP On-site parking Personal Insurance

Education reimbursement Personal Insurance Sabbatical and

Education Leave Forced Vacation Time Forced Vacation Time Preventive health care Personal Insurance Telework technology Telework technology Paid sick leave

Telework technology On-site parking Paid sick leave Telework technology Remote Work Sites Fitness Service Job Sharing Preventive health care Emergency LOA Education reimbursement

Preventive health care Telework technology Employee Support Groups Cafeteria Cafeteria Forced Vacation

Time On-site parking On-site parking Personal Insurance Preventive health care

On-site parking Fitness Service Preventive health care Emergency LOA Telework 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 Sites Personal Insurance Paid sick leave Telework technology Personal Time

interruptionsBusiness 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 Pressures Sustainability Opportunities

Turning Pressure into Opportunity