Corporate Philanthropy- How It Benefits Employee Engagement?
Supporting social work and noble causes is a major way for businesses to give back to the community. But, aside from the feel-good factor, corporate philanthropy does something equally amazing. It has the ability to increase your employees' loyalty, happiness, and satisfaction.
What Is Corporate Philanthropy?
A certain amount of corporate philanthropy is simply good business and works for the long-term benefit of the investors. - John Mackey.
Corporate philanthropy involves a corporation or organization supporting the wellbeing of others, typically through charitable contributions or donations.
It involves investments and actions which a company voluntarily undertakes. These actions are to manage and account for their effect on society appropriately.
However, corporate giving programs need to move beyond a basic annual donation to a favorite charity. It is becoming a crucial way to engage workers and further integrates values into the culture.
Why Do Employees Want More Corporate Philanthropy?
Nowadays, employees want to feel like they are a part of something bigger. They want to be proud of their company and believe that their work impacts and enriches society.
Of course, financial benefits are important. But, people are more likely to stay with a company if they are glad to work for it and share its objective.
Corporate philanthropy is a great way to make this connection. It positions your company as a place where people desire to work. It demonstrates to employees that their company cares and shares its social values.
Now that we have understood the simple relationship, let's jump to the next section of this blog.
What Role Does Corporate Philanthropy Play In Assisting Non-Profits?
Corporate giving benefits non-profits in a variety of ways. Some companies include matching donations, volunteer grants, community grants, and business sponsorships. With the support of these corporate programs, donations and volunteerism for non-profits can be greatly amplified.
What Are The Benefits Of Corporate Giving For Businesses?
- It's a fantastic idea to give back to your community. It improves a company's brand value and reputation, boosts employee engagement, and promotes a healthy work environment.
- Philanthropic activities can boost a company's sales.
- Customers may develop a stronger attachment to the company's products.
- Company culture can be improved by connecting with communities.
- Philanthropic companies can bring in and retain the best talents easily.
What's The Difference Between Corporate Social Responsibility And Corporate Philanthropy?
The act of donating a portion of one's profits to society is known as corporate philanthropy. CSR, or Corporate Social Responsibility, on the other hand, is described as fulfilling one's social responsibility while conducting business. It is carried out ethically and without jeopardizing society's interests.
Related blog: Foster Your Business With Corporate Social Responsibility
6 Simple Steps To Create A Corporate Philanthropy Program
- Determine which colleagues or team members will be in charge of the program.
- Choose a philanthropic strategy that is in line with your organization's objective.
- Identify and reserve funding for the program.
- Create a detailed execution strategy.
- Make a marketing strategy to promote your philanthropy.
- To maximize the impact of your program, keep track of the metrics and assess them frequently.
Top 7 Tips On Corporate Philanthropy To Boost Employee Engagement
Here are seven new and amazing corporate philanthropy ideas for making a societal impact while increasing employee engagement.
1. Back them with corporate matching gift programs.
Many of us already have the best employee rewards and recognition programs in place. But you can make them even more effective by incorporating a corporate matching gift program.
In 1954, the General Electric Foundation introduced the concept of corporate matching gift program. Employees at all levels, as well as retirees, are eligible for matching gifts. Each year, participants are eligible for a match of up to $5,000 (maximum).
Matching gifts is a corporate giving program set up by businesses and corporations to benefit their staff. A worker can submit a matching gift request to their employer after donating to a non-profit. Successively, the corporation will make a second payment to that non-profit.
According to DoubleTheDonation.com, 84% of contributors claimed they are more likely to donate if a match is offered. Additionally, one-third of workers stated they would donate more if their employer matched their donation.
A well-designed corporate matching gift plan shows staff that their employers care about them and share their values.
2. Offer paid time off to volunteer.
When volunteerism is a part of a company's philanthropy, employee engagement can surge. It is further enhanced by offering paid time off to employees who volunteer to participate in charity events. It is also called VTO, which is short for 'volunteer time-off." Businesses all over the world have realized that VTO is a great employee motivation strategy.
Enabling employees and teams to help the community increases their commitment and makes them feel selflessly supported by the company.
However, every employer must ensure that the time-off program is well-defined. That means, to stay on top of it, HR should create a concrete and scalable framework for the time-off program.
3. Encourage group volunteer activities.
Volunteering as a group is a wonderful way to engage employees, boost cooperation, and bring everyone together. It can also help your team connect with the community and make a meaningful impact on people's lives.
Some companies offer their staff extra time off to volunteer. Likewise, once you've decided how and where your team will volunteer, you can set aside a few work hours to volunteer as a team.
Employees are more likely to bond through such activities, making your efforts worthwhile and successful.
- For animal-loving groups, an activity to gather and distribute pet food for a month might be a fun way to give back.
- Organizing a public area cleanup in your community is a fantastic way for teams who care about the environment.
- Or you can host a creative and unique workplace fundraiser or organize some other charity team-building activities. It can be a charity bikeathon or supporting a local youth sports team.
- You can also organize a blood donation camp in your organization. Incentivizing the same is a great way to give back.
4. Offer volunteer grants.
When a person takes time to volunteer, you can give monetary grants to an eligible non-profit organization. These corporate philanthropy grants are usually distributed in one of two ways:
A fixed amount per hour of volunteer service (for example, $10 per hour with a minimum of 10 hours.)
Once an employee has volunteered for a given period; they are paid at a defined rate. Like, say, $250 after 24 hours.
Employers who offer volunteer grants as philanthropy are more likely to have employees who share a common sense of philanthropy.
Such philanthropic grants are usually very beneficial for non-profit groups.
Employees also feel satisfied to work for a company that gives back to the community. These aspects work together to provide the company with a good brand identity, happy employees, and a better society.
5. Invite employees to participate in the planning of the committee.
Your corporate philanthropy program supports your corporate social responsibility mission and values. But to be a hit, it must also support causes that are meaningful to your employees. It is only then that they are more likely to participate.
Invite your employees to participate in the corporate giving planning process. Ask them for suggestions on programs, funds, or charitable events to support, and collect data on employees' giving activities and interests.
If you show that you support their causes, you will see many employees actively participate in the program throughout the year. It will strengthen not only your relationship with your employees but also your overall influence on society.
6. Maintain transparency by using the right PhilanTech platform.
Employee loyalty improved by 30% when employers were perceived as transparent by their employees.
Nowadays, employees demand openness and transparency in all aspects of their workplace environment, and social initiatives are no exception.
To maintain complete transparency into the programs, use the correct tools and technology. Here comes the use of a FinTech platform (or PhilanTech platform in this case.) It allows you and your team to track where donations go and how they're spent. It also ensures that all donations are directed to the intended recipient.
Also read: Why Transparency In The Workplace Can Help Your Business Grow
Do you know more than 30% of a donation goes to administrative efforts? You can avoid the high administrative costs by using a fee-free donating system. It directs 100% of contributed money to charity.
7. Celebrate its results.
Some employees may be unaware of their company's charitable giving program, community involvement, or relevant aspects. It results in a lack of participation.
To enliven the engagement of all your employees, make use of your company's communication channels.
Increase the visibility of your program, celebrate its accomplishments, and see an increase in participation as a result. Don't forget to recognize and reward that employee who makes a difference in your corporate philanthropy efforts.
Leading Corporate Philanthropy Examples
Source: Donation the Donation
Research on corporate philanthropy has been growing rapidly. And, we still don't have a full grasp of why and how corporate philanthropy influences employee engagement.
But as we can see, there are various ways to urge your employees to be a part of corporate philanthropy. Remember, as the employer, it all begins with you! You must participate in the drive, be visible, and promote the program to make it a win-win situation for everyone involved.