The Why, What and How of Purpose Led Corporate Giving This is part 1 in a three part series distilling our research and what we’ve heard around three key questions 1. WHY should corporates adopt a purpose led approach to giving? 2. WHAT does best practice, purpose led corporate giving look like? 3. HOW can corporates embed social purpose within their organisations?
BUILDING A TANGIBLE BUSINESS CASE 2. Becoming an employer of choice ‘Presenteeism’ costs the Australian economy $34 billion anually through lost productivity Only 13% of employees are engaged at work 11 , and ‘presenteeism’ costs the Australian economy $34 billion annually through lost productivity 12 . An effective way to counteract the costs of lost productivity is by helping employees discover and pursue their social purpose. A recent study concluded that companies with strong community involvement see increases in employee productivity by as much as 13%, and reductions in turnover by as much as 50% 13 . A further study found that employees who volunteered, “worked harder, were more willing to help their colleagues, talked positively about their companies, and were less likely to waste time at work” 14 . Fostering employee engagement is one of the key drivers of contemporary corporate giving programs, and for good reason. Our relationship with work has changed drastically over the past decade due to globalisation and automation. Increased digital connectivity has heightened the value of face-to-face volunteering opportunities that allow people to find a sense of belonging and community. If corporates want to attract and retain top talent, their value proposition needs to be more than just money, and must include opportunities to find a sense of meaning and personal connection within the workplace. Why is this important? Because Millennials will make up 75% of the workforce by 2025, and are a generation that prioritise social purpose in their personal and professional lives 15 . So much so that 44% of millennials state that they would leave their current employer within the next two years to gain more meaning and fulfilment 4 . 10
If this statement alone isn’t alarming enough, let’s look at the numbers. Research has found that the average fully loaded cost of employee turnover, including vacancy, recruitment and onboarding costs, is $43,000 5 . Yet, for every employee who participates in volunteering through their workplace $2,400 of value is generated through increased productivity, greater discretionary effort and fewer sick days 5 . To position yourself as an employer of choice you need to have a strong social purpose at the heart of your business, and must empower each individual employee to understand the unique role they can play in making a difference. Why should you care? MILLENNIALS ARE LEAVING FOR MEANING AVG. COST OF TURNOVER VOLUNTEERING PROVIDES MEANING AND GENERATES PRODUCTIVITY 44% $43,000 $2,400 of millennials would leave their current employer within the next two years to gain more meaning and fulfilment 4 Fully loaded cost of employee turnover is $43,000 5 Every employee who volunteers through their workplace generates an additional $2,400 of of organisational value 5 11