NBTN Members’ Meeting 13 June 2008

1. NBTN Members’ Meeting13 June 2008 Employee Recruitment and Retention: The Business Case David Hurdle Transport Planning Consultant

2. HR benefits of Travel Plans Advice to HR and CSR managers Recruitment Productivity Absence Company image Policy links Key findings Outcomes Recommendations Further information Content

3. HR Benefits of Travel Plans • Impacts of TPs on staff recruitment, retention, turnover; productivity; stress; absenteeism, company image • Anecdotal • Research, case studies, good practice, survey

4. HR benefits to your company and the links between them

5. Benefits to identify when making a business case for a Travel Plan Finance  Cost savings, e.g. less business mileage  Greater profitability, e.g. additional income  Greater efficiency  Reducing the need for expansion  Increased productivity of staff  Increased staff retention  Potential for higher share price by demonstrating environmental sustainability Facilities  Better use of space, e.g. from hot-desking and less car parking  Reduced congestion in and around site  Improved health and safety

6. Human Resources Improved staff retention More attractive recruitment package Lower sickness due to healthier staff Less stressed staff Improved staff motivation and morale Greater opportunities to win employer awardsEnvironmental/Corporate Social Responsibility Making positive contributions to targets, e.g. less CO₂ Greater staff awareness of environmental issues Helping accreditation of Environmental Management Systems and Quality Assurance Increasing transport sustainability Benefiting the local community Demonstrating commitment to environmental improvement Increasing stakeholder engagement

7. Advice to HR and CSR managers • Assistance for Business Plans and the business case for TPs • National debates – obesity and climate change • Energy Saving Trust found – • 56% of private sector HR Directors could not prepare a Travel Plan • 29% admitted to no knowledge at all of Travel Planning

8. Recruitment • 1 in 5 employees left their job in 2006 • Travel Plans = attractive recruitment package • Flexible working reduces turnover

9. Computershare, Bristol –“Existing public transport was inadequate and staff retention was a big issue because the expense of public transport was consuming a significant proportion of the wages of our call centre staff”. A free staff bus is now full every day and carries 14% of staff.

10. City Sightseeing Glasgow – flexible working dramatically expanded the recruitment market. It no longer needs to advertise jobs, absenteeism is low and retention rates 90-95%. Computer Associates, Berkshire – turnover reduced from 15% to 7.5% as a result of their Travel Plan.

11. Productivity • Flexible and home working produce a happier, more motivated workforce • Improved by physical activity – active staff take less sick leave, and work more years as they grow older • Cost of inactive staff can be absenteeism, long term sick pay, temp. staff, lost production, high staff turnover, early retirements • Flexible and home working, also cycling and walking, reduce stress of peak commuting

12. BT – flexible working and teleconferencing Staff turnover 2.8% a year 98% of women return from maternity leave Sick leave is 20% below national average Home-workers have achieved productivity gains of 15% - 31% Reduction in office space has saved £220m in ten years Each conference call that replaces a face- to-face meeting saves 88 lbs of travel- related CO2

13. Focus Consultants (UK), Nottingham – staff motivation has increased due to healthy travel options and greater work flexibility. 9% less business car mileage has saved £219 per employee p.a.

14. Absence • Most sick leave is short term and 30 minutes of physical activity a day can reduce it significantly • ‘Active commuting’ – cycling or walking – can reduce cardiovascular risk by 11% • Regular cycling can reduce risk of breast cancer • Car drivers walk 8 minutes a day less than ‘car-free’ adults; this leads to a weight gain of 3 lbs a year

15. Scottish Legal Aid Board – work-life balance, and other policies, reduced, over two years: Overtime costs from £231,756 pa to £87,023 Self-certificated sickness from 4.4 days per FTE to 3.3 Recruitment advertising and agency costs from £124,970 to £28,727 Staff turnover from 16% to 10%

16. Sandwell Community Caring Trust – flexible working has reduced sickness absence to 0.6 days per employee p.a., well below the residential care sector’s average. Turnover is 4% compared with 20% across the sector.

17. Company image • Employees and public increasingly question organisations’ ethics • TPs widen travel choice and catchment area for staff • TPs promote ‘good neighbour’, ‘employer of choice’ and ‘low carbon’ messages • Cycling and walking are ‘carbon-free’, and healthy • Teleconferencing reduces business travel

18. Transport Scotland – ◊ 17% of staff commuted by car but accounted for 44% of CO2 emissionsA study of graduates found –◊ 99% were aware of CSR◊ Over one-third claimed that working for a caring and responsible employer was more important than salary

19. CSR Work-life balance Environmental management Occupational health Equal opportunities ‘Investors in People’ Health and safety Policy linksMaking links between the Travel Plan and these will embed it in corporate policies and business objectives, and raise its status and commitment to it

20. Key findings • As well as reducing car use and extending travel choice TPs can reduce CO2 and improve health • As well as benefiting staff TPs can directly benefit employers • Knowledge of TPs by HR Directors is limited • Strong links between TPs and other corporate policies • It is better to pursue TPs as a whole than specific ingredients, such as flexible and home working, separately

21. Key findings • TPs can save companies money through less business mileage, less car parking, less car parking maintenance and releasing land for other uses or letting • Cycling and walking are carbon-free, good for health and can be built into commuting • Flexible and home working improve recruitment, retention and productivity, and reduce absence • TPs enhance environmental credentials

22. Outcomes • Better understanding of TP benefits to employers • Linking HR and CSR with Travel Plans • Incorporating flexible working and active travel in Travel Plans rather than doing separately • Contributing to major national debates on obesity and CO2 • Creating a healthier, more productive workforce • Improving the company’s image

23. Recommendations • TPs to cover better health and CO2 reduction • TPs to feature in CSR policies • Employers should assess the HR benefits of TPs and measure the effects on recruitment, retention, turnover, absenteeism and image

24. Recommendations • Employers should use a TP to support ‘physical activity interventions’ • Flexible/home working should be part of a comprehensive TP rather than done separately • Employers should adopt a low carbon strategy

25. Further information • New NBTN Guide and Research Report – ‘Travel Plan Benefits for Employers: Making the Human Resources Links’ • New NBTN Advice Note (summary of above) • NICE guidance on how employers can improve employees’ health www.nice.org.uk

26. Further information • Carbon footprint tool for Travel Plans www.smarterchoices.co.uk • For smarter driving tips and calculators www.dft.gov.uk/ActOnCO2/ David Hurdle www.davidhurdle.co.uk