In a down economy, companies are even more concerned about their bottom lines. Unfortunately, some businesses respond to economic pressures by reducing or eliminating their philanthropic programs. Many companies scale back their programs, and others without programs completely shelve the idea until profits improve.
What these companies have in common is they have not considered the positive impacts of corporate philanthropy and volunteer programs on employees and their reputation with the public. While on the surface it seems like reducing philanthropic efforts saves money, the reality is that smart philanthropy—whether it’s volunteering time or giving money—can drive tremendous value for a company over the long-term.
First, in order to understand how corporate philanthropy can positively impact the bottom line, it’s important to understand the cost of turnover and the importance of positive employee morale. In fact, after recruiting, training, loss of work productivity, and various other factors, a study found that turnover can cost one-fifth of that employee’s salary. And those are just the outset costs. High turnover also negatively affects overall company morale, which can lead to reduced productivity and continued turnover.
An easy way to try to prevent costly turnover is to focus on employee morale, health, and overall well-being. Employees who are content and feel valued by their employers are less likely to leave a company, and generally produce higher quality work; up to 77 per cent of employees responded that health and wellness programs at their workplaces had a positive impact on the overall work culture.