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Reward Your Employees for Going Green

The benefits of linking sustainability goals to compensation packages

Reward Your Employees for Going Green

Sustainability is good business for the global cleaning industry. Sustainability initiatives can help your business reduce costs, improve efficiency, increase profits, and meet client
demands for high-performing products and services from sustainability-focused companies.

By aligning employee pay with specific, quantifiable sustainability targets, organizations can turn broad commitments into tangible results that drive environmental and business success.

Setting baselines for comparison

Academic research highlights the value of tying employee compensation to organizational goals, showing that it enhances motivation, satisfaction, and performance. A review of several studies on
the topic, published in Performance Improvement Quarterly by researchers at the University of Central Florida and the University of Southern California, revealed that incentive programs
can improve productivity while merit-based pay strengthens commitment to company objectives.

Linking compensation to sustainability goals ensures leadership integrates these priorities into strategies, fostering accountability and collaboration. Measurable metrics, such as increased green product sales or reduced energy use, create clear expectations and actions.

The first step in aligning compensation to sustainability goals is to establish baselines to provide a starting point to measure progress objectively. Accurate data is equally critical. Tools like ISSA’s Sustainability Reporting Platform, which will be available online at issa.com/sustainability, provide the reliable data needed to monitor progress and ensure transparency.

Driving sales and marketing

Each team in your organization makes a vital contribution toward your sustainability goals. Sales and marketing teams are critical to positioning sustainability as a value proposition, driving client loyalty and revenue.

Measurable goals for these teams include:

  • Sales growth: Increase the sales of eco-certified products by 25% annually, based on a documented baseline of current sales. This increase could include products certified by recognized standards such as Green Seal.
  • Customer reporting: Ensure sustainability metrics provided to clients meet requirements for Leadership in Energy and Environmental Design (LEED) certification or Carbon Disclosure Project (CDP) reporting to help improve client scores by 15% from their current baseline.
  • Engagement: Launch three sustainability-focused campaigns per year, resulting in a 10% increase in client inquiries or new customer leads, tracked against a baseline. These goals, tied to incentives, ensure sustainability is embedded into client relationships and branding strategies.

Operating sustainably

Operations leaders oversee processes that significantly impact environmental footprints. Establishing baselines for energy use, waste output, and compliance metrics ensures clarity and objectivity in measuring progress.

Measurable goals include:

  • Energy efficiency: Reduce facility energy consumption by 15% over 18 months from a documented baseline, using energy audits to identify inefficiencies in lighting, HVAC systems, and manufacturing equipment.
  • Waste management: Decrease nonrecyclable waste by 50% annually, based on a baseline of landfill contributions. Strategies could involve waste segregation and recycling.
  • Regulatory compliance: Achieve 100% compliance with California Senate Bills 253 and 261 or the European Union’s Corporate Sustainability Reporting Directive (CSRD), as
    evidenced by regulatory submissions.

Purchasing sustainably

Procurement plays a critical role in advancing sustainability by influencing supply chains and materials selection. Establishing baselines for sustainable purchasing practices provides a
foundation for measurable improvements.

Goals for purchasing managers include:

  • Sustainable sourcing: Increase procurement of eco-certified or sustainably sourced products by 25% annually, tracked against a baseline of spending on certified goods.
  • Vendor standards: Ensure 90% of suppliers meet defined environmental and social responsibility criteria, such as adherence to fair labor certifications.
  • Waste reduction: Transition to 100% recyclable or reusable packaging for all purchased goods within two years, tracked through supplier audits and packaging data.

Reducing distribution impacts

Distribution managers handle the logistics of transportation. Accurate baseline data on fleet fuel efficiency and emissions is essential for setting achievable sustainability goals.

Targets for distribution managers include:

  • Fuel efficiency: Improve fleet fuel efficiency by 20% within two years, based on historical miles-per-gallon (MPG) data. Strategies can involve driver training and investment in telematics systems for real-time monitoring.
  • Fleet transition: Replace 20% of the fleet with hybrid or electric vehicles, reducing emissions by a documented baseline of average fleet emissions per mile.
  • Route optimization: Reduce annual miles driven by 15% through logistics planning and route optimization software.

Aligning costs and sustainability

Finance leaders balance the costs and benefits of sustainability, ensuring that initiatives align with a company’s financial goals. Reliable data provides the foundation for setting realistic
financial sustainability targets.

Measurable targets for finance leaders include:

  • Cost reductions: Lower energy and water costs by 10% annually, calculated against current utility spending and efficiency audits.
  • Green investments: Allocate 20% of the capital budget to renewable energy projects or energy-efficient upgrades, with progress tracked through financial reporting tools.
  • Transparency: Publish verified sustainability disclosures aligned with the CSRD.

Tying compensation to these metrics ensures finance leaders drive impactful outcomes while maintaining fiscal responsibility.

Building a sustainable culture

Human resources (HR) leaders create the workforce engagement needed to achieve sustainability goals through employee training and other strategies.

Measurable objectives for HR leaders include:

  • Training participation: Ensure 90% of employees complete sustainability training annually, tracking against past training participation rates.
  • Diversity and inclusion: Increase the inclusion of underrepresented groups in sustainability leadership by 15%, measured through regular diversity audits.
  • Employee retention: Improve retention rates in sustainability-focused roles by 10%, tracked against historical turnover data.

Incentives tied to these goals embed sustainability into workforce development, fostering equitable workplaces and aligning with social equity principles.

Learn more by watching cmmonline.com/sustainability-paychecks

Stephen P. Ashkin

President, The Ashkin Group

Stephen P. Ashkin is president of The Ashkin Group, a consulting firm specializing in green cleaning and sustainability. He can be reached at [email protected].

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