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Companies Engaged in CSR Can Reduce Staff Turnover Rates by 50%
March 14, 2018
Corporate Social Responsibility (CSR) is quickly becoming a crucial part of any company’s long-term strategy – especially in the war for talent. An effective CSR initiative enriches the community and contributes to improving the company’s culture, boosting staff engagement and helping to retain the best people.
Success in creating a business that really makes a difference can be the difference between holding on to your key staff or losing them to competitors.
A 2015 study done by The Lewis Institute for Social Innovation at Babson College and About IO Sustainability indicates that businesses with a commitment to CSR could see productivity increases by 13% and turnover reductions by up to 50%.
“Companies engaged in CSR are perceived as more attractive employers than those lower in CSR. Prospective applicants’ job pursuit, the probability to interview, and probability to accept a job offer are positively associated with a company’s CSR,” was one of the findings from the report.
A 7.5% increase in employee engagement was another finding.
The report stated that “Workers, who were informed about a CSR program, were willing to accept a lower wage (up to 5% pay cut) and were more likely to go ‘above and beyond’ for the employer by doing extra work not required for payment.”
More studies show that today’s talent is choosing purpose over perks.
A study from the Stanford Graduate School of Business revealed that 90 percent of MBAs from business schools in Europe and North America prefer to work for organizations committed to Corporate Social Responsibility.
Findings from the 2015 Cone Communications Millennial CSR Study point out that millennials are prepared to make personal sacrifices to create an impact on issues they care about. This can be by paying more for a product, sharing products rather than buying, or taking a pay cut to work for a responsible company.
CSR attracts talent and enhances reputation.
Offering a strong and well-communicated CSR program is helping transform businesses into magnets for the best talent.
According to The Deloitte Millennial Survey 2017, 59% of millennials believe businesses solve the challenges that concern them and are not fully realizing their potential to alleviate societal concerns.
This highlights how new generation employees pay considerable attention to the social impact that businesses have on the wider community. They are becoming more ethically-minded. It is, therefore, important for millennials to find a business that aligns with their views and provides a platform for them to make a difference.
CSR creates a culture of engagement.
Everyone wants to feel proud of the company they work for. If people have a positive outlook towards the way the company operates and they align with its methods, they are far more likely to be engaged in their work and dedicated to helping the business achieve its goals.
Kenexa Research Institute performed a study on CSR program perceptions and discovered that 86% of those satisfied with their employer’s CSR commitment had high levels of engagement, which is a vital component for any successful organization.
These studies show that companies with a strong CSR commitment will create a workforce that is proud, motivated and engaged. This will help the company generate profits by recruiting and retaining top talent and increased productivity.
The Satell Institute is Training Young People of High Potential to Become Educated about a Career in Corporate Social Responsibility.
And Perhaps Bring Their Talent to Your Organization.
Young people today are making Corporate Social Responsibility (CSR) an integral part of their career aspirations. They want to actively participate in building a culture focused on giving back to the community.
To support them in this pursuit, the Satell Institute is offering competitive summer internships to six high potential college juniors and seniors and graduate students from May to September.
Our internship program is designed to give these high performing students first-hand CSR experience. During the 13-week internship, students work on defined projects under the guidance of a mentor and deliver meaningful results that contribute to the mission and vision of a nonprofit Think and Do Tank.
Competitively chosen Interns will have opportunities to network with our business, academic and nonprofit partners. This connection to top CSR practitioners and thought leaders will help create knowledgeable business, nonprofit and CSR professionals for the future.