According To Research, Incorporating Purpose Into Organizational Culture Helps Lower Turnover Rates.

Sona Khosla, chief impact officer for software company Benevity, argues that the past 18 months have “exposed just how easy individuals are leaving companies and jumping to other employment.”

When newer employees take part in corporate purpose initiatives like workplace volunteering or philanthropy, employers see a 52% decrease in turnover.

Sona Khosla, chief impact officer for software company Benevity, argues that the past 18 months have “exposed just how easy individuals are leaving companies and jumping to other employment.” There are many causes for this, but we do know that having meaning and purpose in the workplace is becoming more and more important to workers, especially those just entering the profession. Businesses that encourage their staff to do good work attract and retain top talent while enhancing their corporate culture.

Globally, disengaged or actively disengaged employees cost $7.8 trillion in lost productivity, according to Gallup. By encouraging involvement in corporate purpose initiatives, businesses can more successfully engage all levels of employees, especially millennials and Gen Zers, who make up 46% of the American workforce and have an average tenure of just two to three years.

More than 10.6 million users of Benevity’s platform at more than 400 businesses worldwide provided data for analysis. The study demonstrates how corporate social responsibility and HR experts can get employees involved in these programs during onboarding and keep them interested throughout their employment. Additionally, it identifies effective practices that businesses can use to increase employee participation in purpose initiatives right away and over time.

Important conclusions from the study include:

• Newer employees have a 52% lower turnover rate for companies— those who take part in a company’s corporate purpose programs and have worked there for no more than 2.5 years.
• Compared to employees with more seniority, new hires take part in purpose programs at a lower rate. The participation rate for recent hires (those who have worked for the company for less than a year) is only 6%, as opposed to 20% for those who have worked there for more than two years.
• Programs for corporate social responsibility also affect how long-tenured employees are retained. Participants in the firm’s purpose program are 29% less likely to leave the organization after six years or less of employment.
• Across all regions, purpose programs have a consistent effect on retention. In North America, Europe, the Middle East, and Africa, participating employees with two and a half years or less of experience showed a 51% drop in turnover, but participating employees with the same tenure in the Asia-Pacific area saw a 50% reduction.

Source: https://www.benefitspro.com/2022/11/24/integrating-purpose-into-company-culture-can-reduce-turnover-rates-research-finds/