Companies reduce employee turnover with their giving and volunteering programs
Are you interested in boosting up your company’s corporate giving and volunteering efforts? Do you feel like Purpose should be your company’s main motivator for doing business, but are you struggling to find hard data to back up your argument? Then we have some good news! A recent study among 2 million employees from 118 companies that have corporate giving and volunteering programs, found that they attribute to a reduction in employee turnover up to 57%!
The employees were segmented based on activity in the preceding 365 days. The study found the following turnover rates for each category, with the giving and volunteering cohort showing far greater retention than the cohort that did not participate in good-related activities:
– Employees that neither donated or volunteered: 28% turnover
– Employees that only donated money: 18% turnover
– Employees that only volunteered time: 17% turnover
– Employees that both donated money and volunteered time: 12% turnover
These numbers on their own are very encouraging, and quantify the positive effect that a well set up corporate giving and volunteering program can have on a business and her employees.
So let’s talk about money
There is more good news. This positive effect directly translates into cost savings. It is well known that employee turnover can be costly: a study from the public policy research group Center for American Progress shows replacing an employee can cost anywhere from 21% of their annual salary for workers earning $50.000 or less, up to 213% for high-skilled workers and senior level positions.
And these numbers are not just staggering on their own. Things become even more interesting when you consider how high total employee turnover is annually. According to the Dutch Centraal Bureau voor Statistiek, in 2017 937.000 people changed jobs in the Netherlands! Even when we remove the temp-jobs and focus just on people between 25 and 75 years old, that is 13% of the total workforce.
That means that if your company employs 1.000 people, the annual retention costs are at a minimum over 800.000 euros a year. Suddenly Purpose isn’t just a moral imperative or benefit to the company culture, but increasingly, a financial necessity.
Would you like to know how to improve your employee retention and save money through a solid corporate giving and volunteering program? Contact us today!