Roadmap to a sustainable HR policy
Three steps towards a sustainable HR policy
We have seen above that implementing a sustainable HR policy is an important step to promote a forward-looking work environment while being in line with broader social and environmental goals. However, simply making changes to the present HR policies is unwise. You want to think carefully about the reasons behind the changes, what exactly you want to change (and again: why) and also devote enough time into rolling them out. For that, you can use this roadmap. The roadmap defines three essential steps for a successful implementation of a sustainable HR policy.
Why?
Perhaps most importantly, setting a clear strategy and vision for HR policy. This fundamental step serves as a compass, provides the framework for adjustments and initiatives in the future, and ensures consistency within the organisation.
What does your organisation stand for?
By defining a clear strategy and vision for sustainable HR, your company demonstrates the organisation's commitment to ethical and responsible business practices. In an age where corporate social responsibility is under increasing scrutiny, having a robust framework demonstrates your organisation's responsibility and integrity. By formulating a vision that integrates environmental, social and governance (ESG) principles into HR policies, your organisation can proactively respond to pressing issues such as diversity, inclusion, employee well-being and environmental sustainability.
It forms a framework within which to navigate
Moreover, a well-defined strategy provides a roadmap for prioritising initiatives and allocating resources effectively. It enables HR professionals to identify key focus areas based on stakeholders' unique values, goals and expectations. Whether it is reducing carbon emissions, improving employee engagement or promoting diversity, a strategic approach ensures that efforts aimed at these initiatives make a good impression.
It encourages staff engagement
Also, and this is certainly not insignificant, establishing a clear strategy promotes engagement within your organisation. By involving people at all levels - from senior management to employees on the shop floor - in strategic planning, your organisation can cultivate a shared sense of purpose and ownership. This is one of the most powerful steps to take. By doing so, you actually achieve a change in the DNA of the organisation. The ESG vision (reflected in this case in the HR policy) is actually perceived as such and supported by staff.
It makes external parties notice your organisation
Of course, this also works outwards, where it can lead to tangible business benefits for the organisation. Organisations with strong sustainability practices often perform well in terms of financial results, innovation and employee satisfaction. By attracting top talent and improving brand reputation, a sustainable HR practice can drive long-term value creation and competitiveness.
On a practical note
Of course, when defining the vision, you can concentrate on all three ESG pillars, so formulate a 'why' that touches on environmental, social and governance aspects. We recommend staying close to your own feelings and real motivations, which may well have to do with just one of these pillars. So the reason for wishing to pursue a sustainable HR policy has to do with, for example, aiming to be a more attractive employer for future generations, wanting to contribute to staff vitality and health because of personal ideals, or getting employees to go on holiday by car or train instead of by plane.
What?
Once you are clear as to why you want to make the current HR policy more sustainable, it is time to get specific, by identifying which elements within the HR policy you then want to make sustainable. Not all issues lend themselves to this, and perhaps some elements of the HR policy are the result of years of work (and you are glad they are there). You will soon find that when working out this step, you continuously refer back to the previous step where you defined your goals and reasons. Often, employers rush headlong into converting certain terms of employment to a greener version of themselves, with the idea of getting it done quickly. But it is important to always refer back to the reasons or 'why' behind the changes, and also always look ahead to the practical effect of the proposed change. Let us suppose for example that your company has given environment-related goals a prominent place on its agenda and therefore you have decided you want to focus on reducing carbon emissions (the 'E' of ESG). Then you want to assess the current HR policy on that point. So you have a look at the company's mobility policy. Of course, this is an example. A company will always have to examine not only its terms of employment, but also its recruitment and selection processes, performance appraisals, training and development, and employee engagement initiatives. By identifying the strengths and weaknesses of current HR policies, and then superimposing the intended sustainable changes on them as a kind of transparent blueprint, you can see the opportunities, bottlenecks and, above all, what adjustments are needed.
The role of the employee
Employees can play a vital role in defining green terms and conditions of employment and making HR policies more sustainable. Their daily experiences and insights are valuable for identifying areas for improvement and developing effective green initiatives. By actively involving employees as a sounding board, you create an inclusive process that results in HR policies that better meet the needs of all stakeholders and which will subsequently be supported more widely. For example, organise brainstorming sessions, surveys or working groups to gather ideas and feedback from employees.
The role of the consultant
In terms of “greenifying” working conditions, there are an awful lot of possibilities. It is therefore always useful to involve a consultant in this step, who also provides insight into the practicalities. Let us go back to the example from the previous paragraph of the company that values environment-related goals, and for that reason decided to provide an annual budget for its employees to make their own homes more sustainable. A great initiative, but as an entrepreneur, you also want to know what tax implications this will have for you, for example. The tax adviser can support you further on this.
John Boer
Senior Tax Manager at Grant Thornton Specialised in the WKR
Can tax authorities help make working conditions more sustainable?
"The work-related expenses scheme (WKR) is a scheme that is still insufficiently known to employers and DGAs (directeur-grootaandeelhouders, directors/major shareholders). The WKR offers opportunities for giving untaxed benefits, both in salary and in nature (such as a company party or a Christmas package). That leeway afforded to companies is a certain percentage of the company's gross wage bill.
Furthermore, it is important that the tax man helps you in “greenifying” terms of employment. Employers and employees are fiscally free to tailor terms of employment, in particular remuneration, to best suit the legal possibilities. This allows the employer to give untaxed compensation to the employee for solar panels, a home battery or an (electric) bicycle, for example. This can even be done in a way that is cost-neutral for the employer, by the employee giving up gross pay (components). The employee then enjoys the tax benefit.
There are more possibilities, though. For instance, trading gross pay for extra leave days without tax consequences, or granting an untaxed bonus (if sufficient room is available for this within the WKR).
Which costs are covered by the WKR? And how do you make use of the WKR's options? We answer these questions and provide tips on how to set up green(er) employee benefits in a fiscally attractive way."
How?
You have in mind which elements you want to adjust within the current HR policy in order to achieve your sustainability objectives. The next step - and we are still at the drawing board - is to determine how these adjustments can be implemented. This is where we enter the domain of employment law.
When implementing proposed changes in HR policies, it is important to assess whether individual or collective consent is required from employees. This step is important to ensure that the proposed changes are implemented in a lawful and fair manner, so the rights and interests of all stakeholders are respected.
Individual consent
Individual consent means that employees must individually agree to the proposed changes in HR policy. This may be the case, for example, when there are changes in terms of employment, such as salary changes, working hours or job descriptions. It is important to check whether individual consent is required in accordance with any internal company policies.
Collective consent
Then again, certain changes may require collective consent from employees or their representatives, such as a works council or union. This can come into play, for example, when you want to make the current holiday or sick leave scheme more sustainable (and thus adapt it). It is important to follow proper procedures and carefully consider any requirements for collective consent.
Check the collective labour agreement (CLA)
Enterprises covered by a CLA must take an extra step. For these companies, it is important to check whether there are specific provisions in the applicable CLA that may affect the proposed changes in HR policy. Some CLAs are standard CLAs, meaning that no deviation (positive or negative) from the collective labour agreement is allowed. It is important to (continue to) comply with these CLA provisions, even if you want to make certain employment conditions sustainable (and improve them). Both in terms of consent (individual and collective) and an applicable CLA, the sensible thing to do is to seek advice from an employment lawyer. In any case, it makes sense to involve a lawyer in this step, so they can closely follow the correct and complete recording of the new HR policy and any amended terms and conditions of employment.
Loveli, a company with its roots in Haarlem, the Netherlands, has been a client of Grant Thornton’s for several years and sells innovative, natural and junk-free skin and hair care products. With its passion for natural ingredients and sustainability, Loveli offers products that are both effective and safe for people and the environment. We talk to Willemijn de Moor, People & Culture Lead in this organisation.
What role does sustainable HR play within Loveli?
"In every choice we make, and that goes for everything really, we always go for sustainability. So it plays a very big and important role. We believe that if our HR policy is sustainable, the outcome will also be more sustainable. For example, our handbook starts with the following sentence "At Loveli, we believe that the team is everything". After all, how else could we make products and help our Lovelees (our customers)?"
Why is dealing with staff in a sustainable way so important to Loveli?
"We want to be the nicest and best employer in the Netherlands. So that was and still is the starting point. We make our own choices because we don't have an investor. So we choose not to allow macho behaviour and we place a lot of confidence in our team. Employees can also develop within Loveli. Work should be and remain fun.
We believe that this increases our team's happiness and that it makes employees stay with us longer, which ultimately results in a (more) stable company! You have to invest in a team, both financially but even more so in non-financial ways. That is truly sustainable HR policy, in my view. So not just a bicycle subscription for employees (which is quite nice by the way, don't get me wrong), but it really goes beyond that."
Do you have any plans/dreams in terms of sustainable HR?
"There are always dreams! But this year is all about 'strengthening your base' so at the moment we are focusing on our current HR policy and beefing it up. Because that too is sustainable HR policy. What do we have and why do we do it in the first place? Does that still suit Loveli or do we need to adjust something? For instance, we are currently engaged in a number of culture sessions to reassess our culture. No big changes, but perhaps a small change in direction. We also want to have an absenteeism review done this year, what are we actually doing well in terms of absenteeism, what could be better and what are we missing? Then, hopefully, we can make even more sustainable HR choices!"