It has long been recognised that employee volunteering results in a raft of business benefits, but for the first time an actual monetary value has been put on productivity. And in addition, there are other significant advantages that have come to light.

Recent analysis by Pro Bono Economics has put a price on the return in productivity from staff volunteering. It found that the annual gains made by those in professional or managerial positions is worth £4,551. This equates to £46bn added revenue to the wider economy.

Similarly, an investigation by Gallup found that the workplace engagement levels created by volunteering increases productivity by 18 per cent, and that this equates to an increase in profitability of 23 per cent.

However, there is a more impressive figure in terms of the potential to generate value. According to the Great Place to Work Institute, those companies that create a sense of purpose and clear direction at work, typically through employee volunteering, can achieve an added 6.9 per cent higher market return. Because a relevant public stock market listing applies to larger companies, the actual returns can be extraordinarily high. As a theoretical example towards the top of the scale, an FT 250 company is usually worth anything from between £2 to £3 billion. Taking £2 billion as the lowest figure, 6.9 per cent equates to £138 million. For public companies, this is a subject not to be overlooked.

Volunteering Discovered As The Best Wellbeing Tool

Volunteering has long been shown to reduce stress, combat depression, and promote overall mental wellbeing. When employees engage in meaningful work outside their job role, it builds a sense of purpose and fulfilment. This leads to more optimistic, motivated, and resilient employees. But when it comes to wellbeing, volunteering has a far more powerful effect than was previously realised.

The Wellbeing Research Centre at the University of Oxford, has found that many wellbeing interventions by employers fail to make improvement, but there is one very notable exception – volunteering. It is found that volunteering is the one intervention above all others that works.

The Oxford report, involving 46,000 UK employees, reveals that unlike traditional wellness programmes, volunteering is the only way to genuinely boosting employee wellbeing. The findings of this study should be more widely known so that greater focus is placed on staff volunteering, with perhaps less emphasis on what have become traditional options such as apps, yoga and relaxation spaces.

Developing New Skills

Volunteering nearly always places individuals in unfamiliar roles that require different skill sets. Whether it is leading a community project, organising an event, or mentoring. Employees can develop leadership, communication, project management and problem solving skills, or experience something as simple as learning from one to one engagement with customers when working in a charity shop.

There is no shortage of research to support the correlation between volunteering and developing new skills that are useful at work. A study by Accenture found that 76 per cent of individuals said that it developed essential work skills. However, there are two groups that this is particularly useful for. Younger employees still undergoing formative professional growth, and women making their way back into the workforce. In both cases, the benefits are disproportionately higher compared to the proven advantages that apply to all demographics.

Strengthening Team Cohesion

Volunteering can play a major role in optimising  teamwork. Recent research published in the Journal of Applied Behavioural Science, reveals that teams that volunteer together experienced stronger group dynamics, and improved collective performance. The act of joint working for a cause fosters a sense of unity that boosts collaboration and output. It also breaks down hierarchical barriers, improves employee relationships, and enhances team working, plus it improves communication between work colleagues.

Boosting Employee Retention

Post Covid and so many skilled employees and professionals left their jobs it triggered the phenomena that became known as the Great Resignation. A great number did not have new positions to go to. The primary reason for the mass exodus was the lack of sense of belonging to the companies they worked for, and their wider job purpose. After lockdown, they were not finding enough value from work beyond salary.

This is reflected in a detailed study by McKinsey, that finds that the more robust a company ESG programme, the more likelihood the best talent will be drawn to it. In younger demographics this is even more profound. A large scale survey by Randstad of 35,000 people of working age, reveals that nearly 50 per cent of Millennials and Gen Zs will not join a company unless it mirrors their social and environmental principles.

What this means is that organisations need to develop social value strategies that impress present and future employees, and there is nothing that has more of an impact than staff volunteering. There is now an abundance of anecdotal evidence and research that confirms this.

A study by the Points of Light Foundation reveals that 82 per cent of employees who volunteer through a company program report improved job satisfaction, and the Value of Volunteering study concludes that 79 per cent of employees report

improvements to their sense of mission, with 68 per cent saying that have greater motivation in the workplace.

As mentioned above, when individuals seek new positions, particularly those in skilled or professional roles, it has been found that salary and job title are no longer the be all factors, and perks such as gym membership and staff discounts do not have the draw they once had. Instead, they look for social and environmental credentials. Though this sentiment is highest in younger demographics, it also applies to a significant degree among those who are older.

New Found Benefits of Reputation

There is also another overtly commercial benefit to volunteering, and it still goes largely unnoticed. Today’s shoppers and business to business buyers, are increasingly using social value a determinant when making purchasing decisions.

The trend towards socially positive buying changed dramatically during the pandemic lockdown. Using Brandwatch analytics software, social media analysts tracked tens of millions of consumer comments and discussions, and found that the key buying triggers of self gratification and self image were being replaced by questions about what purchases would do for family, friends and the wider community. As an extensive study by business intelligence firm Mintel concluded, ‘Modern consumers are looking to brands to be moral and ethical on their behalf.’

At the same time, many large and medium sized companies now build evidence of social value into procurement pitches in order to win contracts. What this means is that whether B2B or consumer facing, companies increasingly need social impact collateral for sales and marketing purposes, and there is little more effective than stories and images of employee voluntary activity. Volunteering lends itself so well to social value reporting, that it could almost have been designed for the purpose.

There really is no downside to employee volunteering. It generates increased productivity, creativity, motivation and team bonding, imbues positive values, improves employee communication and interaction, retains and attracts talent, creates a culturally inclusive and empathetic environment, and now is known to be perhaps the most powerful wellbeing tool. As they say, what ‘s not to like.