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Candidates are more likely than ever to reject job offers and leave companies if they feel their employer is not taking a strong enough stance on environmental issues.
Various studies point to this trend, including a survey from the Net Positive Employee Barometer, which finds that 51% of US workers would contemplate leaving their jobs if their company's environmental actions did not align with their values, and 35% have already done so.
This trend, known as ‘climate quitting,’ extends beyond employees to include candidates, with the stance particularly strong from younger generations. A 2023 KPMG study, for example, finds one in three 18- to 24-year-olds had rejected job offers based on a company's environmental, social, and governance (ESG) record.
The issue stems from many employees being unclear on their employer’s commitment to addressing climate change. A McKinsey report, for example, finds that only 19% of companies across seven industries were addressing ESG concerns to retain, attract, or motivate employees.
Whilst this includes business-level objectives and strategies, such as net zero and decarbonization objectives, it increasingly includes the need for employers to offer benefits packages that reflect the company’s commitment: Enter the role of ‘green perks.’
What are 'green perks'?
Green perks can take various forms, but perhaps the most popular format to this point has been commuter benefits, such as subsidized eco-friendly transport. A recent CNBC report on green perks highlights Walmart’s 2019 commitment to "multi-modal and alternative transportation” as a “big part of the future of commuting.”
The retailer has invested in chargers for e-bikes and e-scooters and installed showers for those who bike to work. Bank of America has similarly committed to more than double the number of EV-charging stations at its financial centers and offers eligible employees a $4,000 reimbursement for the purchase of an all-electric passenger car or truck.
Beyond cycle-to-work schemes and electric vehicle subsidies, green perks can also include carbon savings accounts (CSA). CSAs allow employees to save funds in an account with an employer match. The savings can then be used to invest in energy-efficient home technologies that could help employees lower their carbon footprint.
Employers should also consider benefits for those already affected by climate change.
Emily Rose McRae, Senior Director Analyst in the Gartner HR practice, has previously recommended a balance of “proactive plans to offer shelter, energy, and provisions when natural disasters arrive” such as corporate real estate that could be used for evacuations; “monetary benefits or designated PTO to those who experience hardship during a climate-related event,” such as relocation assistance or disaster-related leave; and “mental health support tools such as employee assistance programs and access to therapy apps” that can help address the burden of climate stress or climate anxiety among workers.
Why do you need green perks in your benefits package?
Well, as noted above, candidates in the labor market are increasingly willing to refuse job offers from companies that do not have a comprehensive ESG strategy.
Instead, the research consistently shows us that the labor market, spurred on by younger generations, will favor employers who invest in green perks.
And whilst companies have historically neglected this aspect of employee benefits, the tides are beginning to shift. Annual WTW surveys reveal that whilst half of employers had considered climate benefits a low priority over the past three years, this proportion has dropped to a third.
As more companies prioritize implementing green perks, the choice widens for candidates and employees, meaning those who do not consider climate benefits will increasingly struggle to attract and retain talent.
