5 Philanthropic Activities That Engage Employees and Improve Retention

Across multiple sectors, corporate philanthropy has proven that it’s no longer a trend—it’s a nonnegotiable. It’s no secret that a strong commitment to corporate philanthropy will improve a company’s image both internally (with its employees) and externally (with its customers and prospects), but in recent years, the lesson has been more clear than ever.

According to a 2023 study by Fidelity, survey data points firmly toward the positive impact of a corporate philanthropy program on employee recruitment and retention. 

Consider the following:

• 86% of employees surveyed indicated it was important that they work for a company whose values align with their own.
• 81% of employees surveyed indicated they wanted to work for a company that maintained socially responsible business practices.
• 35% of younger (Generation Z and Millennial) employees indicated that their current employer’s giving programs matter in their decision to stay with a company or search for a new job elsewhere.

If you’ve been thinking of kick-starting your corporate philanthropy initiative, the statistics are on your side. In this post, we’ll discuss how you can boost retention through employee engagement activities directly tied to your organization’s own corporate philanthropy. 

Here are five ideas especially suitable for small to mid-sized businesses:

1. Volunteer Days as a Benefit

Paid volunteer days are a growing trend, with 47% of U.S. companies offering these programs in 2022. Offering paid time off for volunteering not only boosts morale and enhances company culture but also allows employees to contribute to causes they care about. This benefit helps foster a sense of purpose and connection with the community, driving employee engagement.

Tips: 

• Start Small

For smaller companies, offering even one paid day for volunteering can be a significant perk. You don’t need to match what larger companies offer; the key is to provide opportunities for employees to engage in causes they’re passionate about.

• Employee Choice

Consider allowing employees to vote on local charities they’d like to support through volunteer work. This adds an element of choice, empowering employees to shape your corporate giving in a way that feels personal and meaningful.

• Team-Building

Encourage group volunteering activities to strengthen bonds outside of the workplace. This fosters team unity and a collective sense of accomplishment.

2. Encourage Employee Giving with Donation Matching

Offering to match employee donations, even at modest amounts, is a powerful way to align your company with employees’ values. This practice enhances employees’ sense of pride in their workplace and their overall satisfaction. What’s more, corporate donation-matching gifts are generally tax deductible!

While donation matching is more common in large companies, small businesses can still implement it on a smaller scale and still see a big impact. According to the America’s Charities Organization, “65% of large companies match [donations], while only 28% of small to mid-size companies match.” Offering a donation-matching benefit is one of many ways a small to mid-sized business ca compete with larger employers on the benefits playing field. 

Tips: 

• Set a Modest Matching Limit

You don’t need to match every donation dollar-for-dollar—matching up to a certain amount, like $100 per employee annually, can still have a huge impact without breaking the bank. 

• Tie it to Key Moments

Highlight this initiative during the holiday season, or tie it into company milestones to build excitement and engagement. Employees feel proud when they see their company supporting causes that matter to them. Plus, a well-promoted donation matching program can lead to increased employee participation in charitable activities and help build a giving culture that aligns with your company’s mission.

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3. Boost Team Spirit with Charity Drives

For smaller companies, large-scale corporate philanthropy initiatives may not be feasible, but that doesn’t mean employees can’t get involved. Organizing charity drives, such as food, coat, or school supply drives, brings the team together for a common cause. These activities can be done with minimal resources and still create a significant impact on both your employees and the local community.

Tips: 

• Create Friendly Competition

One effective way to maximize participation is to create a friendly competition between departments or teams to see who can collect the most items for a charitable cause. This boosts employee engagement by adding a fun, competitive element while contributing to a larger mission. 

• Make it Seasonal

Another idea is to make these drives seasonal—organize a toy drive during the holidays, a school supply drive in the fall or a food drive around Thanksgiving. Seasonal themes help generate excitement and give employees a shared sense of purpose. 

• Partner with Local Charities

Reach out to local charities to form partnerships. A more hands-on approach, such as delivering donations or working directly with the nonprofit, can deepen employee engagement and connect your business to the local community.

4. Build Community Connections Through Nonprofit Partnerships

Building relationships with local nonprofits is a cost-effective way for small to mid-sized businesses to give back. By organizing events or contributing to local charitable initiatives, you can offer employees a hands-on way to get involved. These partnerships allow employees to see firsthand how their efforts contribute to the community, increasing engagement and fostering pride in their workplace.

Tips: 

• Give Employees a Voice

When partnering with local nonprofits, consider allowing employees to nominate organizations they’d like to support, or vote on causes they care about. This gives employees more ownership over the company’s philanthropic efforts and ensures the partnerships resonate with your team. 

• Adopt a Cause Programs

Consider creating an “adopt-a-cause” initiative where your business partners with a specific nonprofit for an entire year. This long-term commitment allows for ongoing volunteer and donation opportunities, helping employees form deeper connections with the cause and increasing the impact on both the nonprofit and your team’s engagement.

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5. Create Impact with a Company-Wide Day of Giving

A “Day of Giving” is an opportunity for the entire company to come together to support a cause. Small businesses can partner with a local charity to host an event, whether it’s cleaning up a park, volunteering at a food bank, or building homes for those in need. It’s a one-day commitment that can make a lasting impact, and employees often appreciate the chance to do something meaningful together.

Tips: 

• Promote Team Building

Position your “Day of Giving” as a team-building event where employees can connect outside of the workplace while working together for a cause. This adds a social, bonding element that enhances participation and engagement.

• Make it an Annual Tradition

Establish the “Day of Giving” as an annual tradition. Employees will look forward to it, and it can become a key part of your company culture. Planning this event year after year allows your team to anticipate and prepare for the event, increasing both participation and impact.

• Boost Participation with Incentives

Encourage greater involvement by providing small incentives such as branded T-shirts, lunch, or gift cards. These simple rewards can boost morale while also reinforcing your company’s presence in the local community. The event will not only help those in need but also strengthen relationships with local organizations.

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Meet Axcet HR Solutions: Your Partner in Corporate Philanthropy, Employee Engagement and All Things HR

At Axcet HR Solutions, we understand the importance of community involvement and strive to give back to the local Kansas City community. While we handle a full suite of HR tasks for our clients, one of our favorite tasks is assisting small to mid-sized businesses with corporate philanthropy strategy design.

We believe that a strong corporate philanthropy mission (paired with related employee engagement activities) can boost retention for your organization and increase the goodwill of your brand—both internally and externally.

Ready to learn more? Schedule a conversation with our experienced consultants today.