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.



There are, however, other factors that should be added into the cost analysis for any facility, and I refer to them as the Green Premium because these are the other factors that go beyond the standard expectation of a clean building. When we are dealing with the Green issue, the primary emphasis is on health, and health costs are a subtle financial issues for any company.

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.

Another related Green Premium is the alertness and productivity of the students or workers in the facility. Most of us know the feeling of a smell that triggers a headache or irritation. When I would go bowling in the smoke-laden bowling ally, I would inevitably get a headache. Fumes from diesel will cause other to react badly. Keeping your people on the top of their game is a big part of a profitable company.

Consider the tax implications for sick people that exceed what you see in your company's costs. The cost of caring for the sick and chronically ill person is also a burden to society. Even after these people are off our payroll, they continue to need medical care, and someone has top pay for that. There is also the concern for all the trash and waste we produce which must be handled by local, state, or federal governments. The invisible cost of all these things are seen in constantly increased taxes.

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.