| Employee Benefits Planner, Fall, 2004
Four out of the five top reasons employees gave for staying with an employer had nothing to do with salary, according to a recent survey conducted by Development Dimensions, International (DDI). These finding are completely consistent with an earlier survey by the HR consulting firm Drake Beam Morin (DBM). According to DBM, only forty-eight percent of employees perceive that pay dissatisfaction is a reason to quit. The reasons they don’t quit often have to do with corporate citizenship and how it translates into the company’s culture.
Work/Life Balance
Work/life balance issues is the area where there is the greatest gap in perception of reasons for resignation in the DBM survey. Forty-two percent of employees cite this as reason enough to leave a job; but only fifteen percent of employers think that their employees quit for this reason.
What goes on “at home” is not just family. For married and unmarried employees, “home” often means community activities.
In growing industries such as healthcare, there is a continuing labor shortage that makes high demands on the time of employees at all levels. Those seeking best practices should look for ways to allow employees to exercise their full potential within the company framework. Employees are looking for ways and opportunities to pursue interests and use talents that are not necessarily used within their job descriptions.
How should the HR department provide an outlet for this important need of their employees within the company’s structure?
Developing a Corporate Citizenship Program
Corporate citizenship programs can take on a variety of forms. Some are simple and strictly monetary: In a matching gift program, the company matches donations made by the employee to approved charities. Employees are involved at this level by deciding where company donations should be directed.
The simplest way to start a program, of course, is to participate with the United Way or another federation of charities. The organization provides you with a template of activities and other support. It is HR’s responsibility to coordinate the donations with your payroll department or accounts payable.
This “one size fits all” philanthropy often doesn’t fit all, and in that case you may seek the advice of a business philanthropy consultant to custom-tailor a plan for your company.
Opportunities for Personal Development and Positive Employee Interactions
Both surveys mentioned above cite opportunities for personal development as a strong retention incentive. This can be addressed by building volunteer activities into a citizenship program.
Volunteerism is where frustrated talents can be unleashed. It is how employees with different job responsibilities, or who work in different locations can cooperate in creative and meaningful efforts.
The company can create a project where the accountant who is a weekend woodworker can labor alongside a production assembler to rebuild a home for an immigrant family. That techie who is a frustrated musician can entertain the hospital pediatrics ward! They all find the opportunity to stretch their wings thanks to the corporate citizenship program.
Be sure to recognize employees who do outstanding volunteer work as part of the company program and those who do it on their own.
Caring Culture
When a company’s HR office includes a corporate citizenship program in its business plan, it makes a statement about the kind of culture it wants to create, encourage and nurture among its employees and its community. This is another of the most important points in employee retention.
No hidden costs
If your company is paying taxes on profits, then a corporate citizenship program will cost you nothing. The donations you will make can be deducted from those taxes.
If you are concerned about lost time on the job, consider the loss of time and money in replacing valued employees who leave your company because they feel unfulfilled and frustrated due to the gap between their work and personal lives.
Good corporate citizenship can increase the effectiveness of the HR budget. The Council on Foundations reports that visible and rational corporate citizenship programs improve business performance as measured by bottom-line returns, increased competitiveness in recruiting, and expanding cross-functional integration. Few things can motivate employees to remain at a company like the strong possibility of a company-sponsored college scholarship for their child.
Companies with strong corporate citizenship programs have multiple opportunities to build caring cultures. The CEO and delivery driver can work side by side productively, positively and cooperatively when they are serving food at a homeless shelter. If the company is being honored by a charity, send a line employee along with the CEO to the ceremony; this shows that all in the company have a share in the charity’s success.
Doing what your employees expect
The results of a study the America’s Charities coalition should be no surprise to quality program professionals: nearly two-thirds of employees interviewed believe that their companies should sponsor a corporate citizenship program. What’s more, the employees want to have a choice in what that program should be, beyond the United Way. They consider employee involvement in corporate citizenship as what should be part and parcel of their benefits plan. This benefit for your employees will prove to be a financial benefit to your company’s profit margin and all your stakeholders.
Impacting the bottom line and the ripple effect for HR
It’s more than money that is good for retention. Good corporate citizenship goes far beyond the bailiwick of the Human Resources Department. It is also good for the bottom line.
Oxford University looked at American companies to see what British companies could learn about the benefits of good corporate citizenship. The 2001 report focused on the “America’s Most Admired Companies” list published in Fortune magazine. The researchers found that a good corporate reputation increases the length of time that a company spends earning above-average financial returns. Similarly, the amount of time spent earning below-average financial returns decreased when their citizenship activities were strong and strategic. The study took into consideration not only philanthropic and volunteer activities, but environmental friendliness and regulation compliance.
The Human Resources Director for a 3-location restaurant chain may think, “This is great for “Fortune 500” companies, but it really doesn’t apply to me.” Wrong! The April, 2002, issue of Restaurants USA magazine carried an article with the headline “Corporate Citizenship Pays.” It quoted a survey that showed that nearly seven out of ten consumers say that a company’s reputation as a good corporate citizen has had at least some impact on their buying decisions. Those decisions about where to eat can translate into several new wait staff and dishwashers, not to mention cooks and cashiers – all of whom need your attention.
In summary
Every company wants to become an employer of choice. When you consider the menu of benefits to offer your employees, including a variety of choices for participation in company citizenship activities and/or offering ways to support the employee’s charitable interest may be an enticing way to recruit and retain happy, productive workers.
Bio: Doris Rubenstein is Principal Consultant with PDP Services in Minneapolis, specializing in private philanthropy planning and corporate citizenship program development and administration. Her book, The Good Corporate Citizen: A Practical Guide was released in March by John Wiley & Sons. She can be reached at www.pdpservices.com
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