Embedding purpose into company culture can reduce turnover rates, research shows

Employers experience a 52% lower turnover rate among new hires who participate in corporate goal programs such as giving or workplace volunteering.

“The past year and a half has revealed how easily employees leave companies and move on to other jobs,” says Sona Khosla, impact manager for software provider Benevity. “There are a number of reasons for this, but we know that workers, especially those entering the workforce for the first time, are increasingly prioritizing the search for meaning and purpose. a purpose in their workplace. Companies that engage their employees in doing good retain and attract top talent while strengthening their corporate culture. »

Employees who are unengaged or actively disengaged cost $7.8 trillion in lost productivity worldwide, according to Gallup. Businesses can more effectively engage employees at all levels, especially millennials and Gen Z, who make up 46% of the U.S. workforce and are on average only two to three years old. seniority, by stimulating participation in corporate objective programs.

Benevity analyzed data from more than 10.6 million users of its platform at more than 400 companies around the world. The study highlights how corporate social responsibility and HR professionals can engage employees in their onboarding success and keep them engaged in these programs during their tenure. It also reveals best practices companies should follow to drive employee engagement in goal programs early on and increase engagement over time.

Key findings of the report include:

  • Companies are seeing a 52% drop in new employee turnover– those who have been with a company for two and a half years or less – who participate in their social purpose programs.
  • New employees participate less in goal programs than longer-serving employees. New employees (less than one year in a company) have a participation rate of 6%, against 20% for employees who have been in a company for more than two years.
  • Corporate social responsibility programs also influence the retention of long-time employees. Employees who have been with a company for six years or less are 29% less likely to leave if they participate in their company’s goal program.
  • The impact of target programs on retention is consistent across regions. Participating employees with two and a half years of seniority or less saw their revenue decline by 51% in North America, Europe, the Middle East and Africa, while participating employees with the same seniority in the Asia-Pacific region saw their turnover decrease by 50%. % reduction.