How Companies are Incorporating Climate Change into Employee Pay and Benefits

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Climate Change,Employee Pay,Benefits

Companies are exploring the option of aligning employee pay and benefits with environmental concerns, including 'green perks' such as commuting benefits and employer support for home upgrades and EV purchases.

Though still on the margins of the labor market, the concept of "green perks" is being added to compensation packages and employee benefits.

But for most rank-and-file employees, benefit packages in recent decades have had essentially two main categories — health and retirement. Now there are indications that green benefit packages may become more common.

Early adopters among employers could benefit. "From our more direct experience in the benefits space, the lack of widespread implementation suggests a significant opportunity for companies to innovate and lead in this space," Schneider said. "By aligning employee benefits with environmental sustainability, companies not only address a talent demand but also more holistically support that talent," she said.

 

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