A failure by most firms to donate to charities sees them risk losing the loyalty of their workforce, especially among their younger employees, research has found.
Just over half of all workers say working for a firm that supports charities increases their loyalty to their employer and their pride in working there.
This increases to more than three in five generation Z (16–24-year-olds) workers.
However, the research by Charities Aid Foundation (CAF) found that only one in four employers donate to charities.
This means most firms do not give anything to charity, either as cash donations, payroll giving, in-kind donations or through staff volunteering schemes.
The research also found that just under half of employees say charity involvement by their bosses “increases their willingness to go the extra mile for their employer”.
Workers’ interest in their firms’ philanthropy differs across generations, CAF found.
More than half of millennials (aged 25 to 34) join their generation Z colleagues in valuing charity work by their employer.
But this proportion drops to just below half among 45–54-year-olds. Among over 55s just a third saw charity link ups and donation by firms positively.
“Giving to charities is good for business, said CAF head of corporate clients Philippa Cornish.
“It offers businesses the opportunity to demonstrate their commitment to their communities as well as their staff.
“To attract and retain new generations of workers, corporate giving is not just a nice to have.
“It’s become an important consideration about whether you want to work for somebody or not, and businesses should remember this, particularly when competition for talent is high.”
Firms that commitment to giving to good causes include financial services firm The Skipton Group, which commits 1% of its pre-tax profits to charity.
“Our charitable giving aims to help our members and wider society overcome barriers preventing people from having a home, accessing financial advice and education, and increasing awareness and action to support making our homes warmer and more energy efficient,” said the Group’s head of sustainability Michaela Wright.
Corporate giving advice
Firms wanting to engage their staff in corporate giving are being urged by CAF to:
• Commit to matched giving such as doubling regular giving by staff through a payroll giving programme.
• Ensure staff are involved in corporate giving strategies, such as choosing charities to support.
• Regularly communicate with staff about what the company’s charitable activities.
• Enable employees to volunteer
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