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The Green Premium for Green Offices

By: Michael Richmond

Most of us remember the "Orange Era." It was a time when citric-based cleaning products were initially introduced to the market and it left a very stubborn belief that these products were overly expensive and did not work as well as conventional cleaning products. The "Green Era" has brought a new generation of very effective products that can replace conventional products. Better yet, the cost of "Going Green" with these products is estimated at about 2-4%. This can be offset by other realized benefits.

It is a slow process, but companies are starting to realize that there are other financial considerations to "Going Green." These benefits are referred to as Green Premiums referring to other factors that offer more than a clean building. While we can still enjoy a clean building, the Green Premium refers to the health impact and costs that also hit the company's expense list.

Instead of slowly aggravating the health of the employees, the Green program is designed to avoid harmful practices and introduce healthier alternatives. This new practice will alleviate acute and chronic illnesses, and that has a financial reward that can be a financial asset.

Employee absenteeism is a negative cost factor to your company. Your employees are the source of business and revenue for your company. You may think these costs are a problem for the insurance company, but the costs for these employees contribute to the premium increases paid by the company. While some costs are paid by the employee, the health insurance costs are a significant part of company expenses. Obviously, healthier employees will help reduce health insurance premiums.

While thinking about Green Premiums, consider the value of a more alert and productive workforce. We have all found ourselves in a situation where something triggers a headache, depressed feeling, or aggravation of a condition. It make by a powerful smell, second-hand smoke, or diesel exhaust. Your office can be filled with small detractors from worker productivity.

When considering the larger picture, the health and vitality of any company's workers has an even larger impact in the world. The chronically sick people ad to the societal burden and will certainly affect our taxes. The trash and waste from our companies must be handled by the government, and that will lead to more taxes. We are paying many times over for sick people who might have lived better lives.

The Green Premium is, therefore, found in health costs, productive benefits, insurance costs, and taxes. When you consider that the actual cost of "Going Green" is about 2-4%, it seems that the other benefits will easily offset the extra expenses and produce a realized profit.

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