Integrating purpose into company culture can reduce turnover rates, research finds

Employers experience a 52% lower turnover rate among newer employees who participate in corporate purpose programs such as workplace giving or volunteering.

“This past year and a half revealed just how easily employees are leaving companies and jumping to other jobs,” says Sona Khosla, chief impact officer for software provider Benevity. “There are a number of reasons for that, but we know that workers, especially ones entering the workforce for the first time, are increasingly prioritizing finding meaning and purpose in their workplace. Businesses that engage their employees in doing good are retaining and attracting top talent while strengthening their company culture.”

Employees who are not engaged or who are actively disengaged cost $7.8 trillion in lost productivity globally, according to Gallup. Companies can more effectively engage employees at all levels, especially millennials and Gen Zers, who make up 46% of the workforce in the United States and average just two to three years of tenure, by boosting participation in corporate purpose programs.

Benevity analyzed data from more than 10.6 million of its platform users at more than 400 companies around the world. The study highlights how corporate social responsibility and HR professionals can involve employees in doing well during their onboarding and keep them engaged in these programs during their tenure. It also uncovers best practices for companies to follow to boost employee involvement in purpose programs from the beginning and grow engagement over time.

Key findings from the report include:

• Companies see a 52% lower turnover among newer employees— those who have been with a company for two-and-a-half years or fewer — who participate in their corporate purpose programs.
• New hires participate less in purpose programs than longer-tenured employees. New employees (less than one year at a company) have a participation rate of 6%, compared to 20% for employees who have been with a company for more than two years.
• Corporate social responsibility programs also influence longer-tenured employees’ retention. Employees who have been at a company six years or fewer are 29% less likely to leave if they participate in their company’s purpose program.
• The impact of purpose programs on retention is consistent across regions. Participating employees with two-and-a-half years or fewer of tenure saw a 51% reduction in turnover in North America, Europe, the Middle East and Africa, while participating employees of the same tenure in the Asia-Pacific region saw a 50% reduction.