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14 Mar 2023
by Dawn Lewis

Why sustainability is increasingly fundamental to reward strategy

Sustainability is increasingly fundamental to reward strategy. As part of our latest technical guide – Creating a sustainable rewards strategy – REBA’s Dawn Lewis outlines the need to develop this approach

The need to create a sustainable, equitable and wellbeing-focused approach.jpg

 

Sustainability is a business issue, and is increasingly an HR, reward and benefits issue too. Businesses are not just considering how to make their products and services more sustainable, but also exploring how this approach filters down to the benefits they offer and how to support individual employees to lead more sustainable lives both at work and home. 

Our 2022 Benefits Design Research found that green benefits are in the future thinking of 70% of employers, while 58% plan to increase spend on benefits supporting the environmental agenda. 

More broadly, employers are beginning to consider how sustainable their benefits providers are, how to link pay incentives with sustainability targets and to consider sustainability when making reward and benefits decisions. Perhaps most importantly, employers are now considering how their Employee Value Proposition (EVP) aligns with and demonstrates their organisation’s sustainability credentials. 

Our Sustainability is Driving Business Change research (2022) found that 81% of respondent employers already align their benefits strategy with sustainability goals or plan to do so within the next two years. Wellbeing, community and diversity, equity & inclusion were also found to be areas that employers are considering as part of their sustainability strategy, highlighting the dramatic shift in EVP that is currently underway. 

The research also showed that in the next two years employers plan to: ensure that benefits support under-represented groups (56%); plan to offer benefits that allow employees to live more sustainable lives (63%); plan to make more buying decisions based on results of sustainability audits (50%); and plan to purchase technology that meets sustainability criteria (48%). 

The direction of travel is clear. With the environmental, social and governance (ESG) agenda permeating all areas of business, reward and HR professionals must take a more sustainable approach to their reward strategy and provide an EVP that takes into account wellbeing, equity and community. But where to start? 

Read our latest technical guide on how to get started with making reward and benefits practices and strategies more sustainable. There are tips and recommendations that will prove a great starting point for any organisation. You’ll also find insights from Simplyhealth – which has recently achieved B-Corp accreditation – to help ensure your EVP is aligned to your organisation’s ESG aims and provides a sustainable, equitable and wellbeing-focused approach for employees of today and tomorrow.

 

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