Employers, do you want to improve your turnover rate? Be socially involved! According to a study by Imagine Canada, companies with a strong commitment to their community create a feeling of loyalty among their employees and reduce the number of resignations.
This report, published in 2019 and entitled Profits, Objectives and Qualified Employees: Trends and Motivations Relating to Corporate Donations and Volunteering, looked at the conclusions of a survey of 1,500 private sector employees in some 65 companies. Together, they invested $592 million in the community last year alone. The conclusion of the study is clear, finding that these investments are worthwhile, if only because they cement employee loyalty and motivation and reduce the turnover rate.
84% of employees who think their business is strongly involved in the community say they are extremely or very satisfied with their job, compared to 46% of other employees. Moreover, 59% say it is very likely that they will recommend their business, compared to 23% for others. Just over one in four employees (28%) say they would accept a cut in pay to work for a company more dedicated to community service.
Authenticity central to the challenges
Although the conclusion is clear, there remains a major caveat: authenticity is central to the challenges. Employees are therefore concerned about the sincerity of the commitment, and quickly lose interest in community initiatives carried out for purely strategic ends. Also, sporadic donations, which do not commit to a real long-term vision and the deep values of the company, will not have the same effects.
This authenticity, in addition to generating a return in terms of employee well-being, will of course have the effect of generating a return to society. For example, among employees working for a company that offers source deduction programs in particular, 79% of employees say they donate to charities, compared to 47% in companies that do not offer any donation program in the workplace. In addition, 76% of employees surveyed report that they now donate regularly to a charity they first learned about at the office.
This finding is particularly positive at a time when private donations are declining, and social needs are increasing. In fact, it is estimated that within a few years, non-profits will need $25 billion more than today to meet increased demand. Being a good corporate citizen pays off at every level.