Quick: What projects have the highest returns in companies when it comes to employee retention? Flexibility? Compensation packages? It is those and green perks. Employees want to take action on climate change in some way as part of their jobs. So, if the return is so high, why isn’t every company doubling down on climate change benefits?

Until now, businesses’ sustainability commitments in the Middle East have focused mainly on recycling, operational efficiency targets, carbon reduction in transportation use, and energy efficiency. 

A MARGINAL TREND

Though still a marginal trend in the job market, organizations are beginning to see the value of green efforts beyond recycling bins and bike racks in an era characterized by growing demand for sustainability. 

These initiatives play a crucial role in employee engagement and workplace culture. Going green positively impacts employee satisfaction in surprising ways. 

“Today’s young workforce is highly conscious about environmental issues; according to recent studies, more than 70% of millennial and GenZ workers consider prospective employers’ environmental policies when job hunting and actively seek workplaces that prioritize sustainability,” says Amel Chadli, President for Gulf Cluster, Schneider Electric.

“Sustainability is something more people are asking about in the recruitment process,” says Omar Akar, Regional VP, CEE & META at Pure Storage. “Potential candidates are asking about the company’s carbon footprint, their sustainability goals and the roadmap to meet them.”

Although a nascent movement, there are indications that green benefit packages, such as biking stipends and EV discounts, may become more common, particularly benefits that facilitate healthier, eco-friendly modes of transportation.

This allows employers to facilitate and promote lifestyles that appeal to an increasingly environmentally conscious workforce while lowering the company’s net carbon footprint.

Companies are encouraging their workforce to bike to work or use EVs, though weather and infrastructure in the region play a significant role in getting employees on bikes.

Recent data from benefits consultant Mercer indicates that facilitating green and healthy commutes remains a benefits priority. According to its 2023 Mercer Transportation Trends report, nearly one-third of companies aim to promote and facilitate eco-friendly modes of commuting for their employees.

In the region, the green commuter benefits might be the first sign of a broader adoption trend.

“In our Dubai office, we champion sustainable initiatives towards the reduction of CO2 emissions through the introduction of a green allowance policy, designed to promote the adoption of EVs amongst our employees across the Gulf,” says Chadli.

Some companies in Dubai and Abu Dhabi are doubling the EV-charging stations at their parking lots and providing eligible employees with loans to purchase an all-electric passenger car.

Kamel Al-Tawil, Managing Director MENA at Equinix, says green initiatives “help us to draw in top talent as in a climate-conscious world, professionals are increasingly taking the sustainability of their potential employer into account when vetting jobs.”

“Although the high standards we set for the sustainability of our operations may not be directly related yet, we believe our purpose and priorities play a role in attracting and retaining talent we want and need to achieve our goals,” he adds.

One could start small with easy green adjustments, and all agree that a company’s commitment to eco-consciousness can create a thriving workplace.

Emirati retail conglomerate Majid Al Futtaim, which achieved 92% of its company-wide sustainability targets in 2023, launched the second phase of its Dare Today, Change Tomorrow sustainability strategy. This strategy has led to advancements in sustainable finance, securing green building certifications, eliminating single-use plastics, and promoting diversity and inclusion in the workplace.

“Through our ambitious sustainability strategy, we can foster a sense of pride and loyalty amongst our 43,000 employees and act as a regional ‘green’ lighthouse for future talent,” says Viviana Alberu, Chief Human Capital Officer, Majid Al Futtaim Holding.

Will green perks become a “must” for every company committed to sustainability and responsibility?

Many corporations believe the answer to that question is a resounding “yes!” Their early results are enough to convince the value of investing in employee engagement.

“We have seen first-hand how a shared commitment to green stewardship helps inspire greater engagement, inclusion, and collaboration,” adds Alberu. “We build and maintain a culture of ownership and accountability, supporting MAFers to develop a keen understanding of wider social and environmental challenges and how we contribute to a more sustainable and prosperous future for the region.”

“Being a sustainable company is an important component of employee value proposition and our recruiting pitch,” says Akar. “Becoming part of a company that actively works to reduce its environmental impact is important for candidates when making their career choices as it resonates with their values, especially for the young generation.”

INNOVATIVE BENEFITS

Like a health savings account, some global companies offer a carbon savings account as a method for distributing green perks to employees, which could be emulated by the companies in the region for home technology and personal transportation upgrades that drive corporate ESG efforts. 

Workers from the Gen Z demographic are front and center when it comes to including environmental consciousness in corporate benefit programs. The trend is wider than the use of bikes for commuting to work. “We want innovative benefits such as reimbursements specifically deemed for sustainable home upgrades, providing leave for weather-related events and work-from-home expenses,” says Ahmed Saleh, a 24-year-old banker in Dubai. 

In addition to the health and well-being benefits that eco-friendly office spaces and business practices bring, Al-Tawil says, “there’s opportunity for employees to come together around a cause — something which has been shown to foster meaningful relationships and enhance happiness.”

This demand stems from growing individual interest in sustainability and the priorities within the companies that have already made formal climate commitments in the region.

The lack of widespread implementation suggests a significant opportunity for companies to innovate and lead in this space. By aligning employee benefits with environmental sustainability, companies address a talent demand and more holistically support that talent.

“A company’s commitment towards eco-consciousness is crucial to a thriving workplace,” says Chadli. “It is imperative that companies create a positive and purpose-driven work environment where employees are motivated to contribute towards a greater good.”

Green perks involve smaller commitments than companies’ operational and supply chain commitments, and their impact has not been studied sufficiently yet. However, there is an opportunity to integrate this concept into a new work-life balance.

Being environmentally conscious and having happy, thriving employees shouldn’t be separated, says Akar. “They should go hand in hand as sustainability has become a corporate and personal prerogative for many.” 

“A company’s commitment to eco-consciousness can foster a thriving workplace by improving employee satisfaction, attracting talent, encouraging innovation, promoting health, strengthening community relations, and enhancing corporate reputation. This comprehensive approach benefits the environment and creates a dynamic and fulfilling workplace,” he adds.

In the next few years, will the standard benefits no longer only include healthcare and retirement but also green benefits?