Volunteering soared to new heights
Volunteerism was a bright light in 2022 for employees, companies and the communities they care about. It bounced back with remarkable buoyancy after a period of decline as a result of COVID-19.
Eighty-six percent of companies now have active volunteering programs — an almost 10% increase year over year, demonstrating the continued belief in volunteering as a way to drive social, team and business impact. New companies who joined Benevity, many with robust volunteering programs, brought in committed volunteers — with some companies logging upward of 380,000 hours in their first year. Existing companies in our community also saw a massive spike in total volunteering hours recorded, resulting in a staggering 61% increase.
A deeper look at the 14.3 million volunteer hours recorded in 2022 reveals themes of “return to normal.”
As the world opened up, volunteers returned to their previous commitments that were largely shuttered during the pandemic — boys and girls clubs, youth athletics associations, education-related volunteering and a myriad of other service organizations and activities.
Notably, and unsurprisingly, there was plenty of volunteerism directed at organizations focused on resettling refugees from Ukraine — providing financial, food and shelter supports for those displaced. People rose together to support the wave of people fleeing conflict to safety, but instability in a new country required countless hands and hours to manage logistics, deliver comfort and support the transition of families and individuals on the move.
Over the past two years, we’ve also seen growth in volunteer acts of kindness♥ — a term for prosocial acts, like picking up groceries for an elderly neighbor or cleaning up a local park, that are in support of groups or individuals where the beneficiary is not a registered organization. These positive actions have taken hold in corporate purpose programs because they acknowledge the small acts that can improve individuals’ circumstances outside of formal volunteering and provide an entry point for employees to get involved in giving time. These types of volunteer opportunities enable people to learn, take action or help others, and in many cases participants receive reward funds that can then be donated to a nonprofit of their choice. Eighty-one percent of companies with volunteering include volunteer acts of kindness in their programs.
Virtual volunteering remains a way to connect employees across geographies and remote and hybrid work contexts, and it engages more people individually in skills-based opportunities. In 2022, 30% of volunteering opportunities were virtual compared to 44% in 2021. While the return to in-person volunteering contributed to this 14-point drop, the virtual volunteering rate remains well above the pre-pandemic benchmark of 12% — indicating there’s a continued need for these kinds of inclusive activities that help to create community for distributed employees.
Companies are investing close to home
Companies will be leaning in to support those closest to them, namely employees who are experiencing personal challenges related to the economy — increased costs of living, decreased well-being, plunging productivity, according to the U.S. Bureau of Labor Statistics, and difficulty maintaining a sense of connection to their colleagues, communities and company.
This new inward focus will manifest through different types of social investments than in years past. In 2023, companies are forecasting the largest increase in investment in employee climate action programs, followed by employee learning and social action programs; diversity, equity and inclusion (DEI) initiatives; employee resource groups (ERGs) and volunteering.
Volunteering, which was a bright spot for corporate purpose programs in 2022, will move further into the limelight in 2023 because it offers an answer to many of the challenges facing employees, communities and companies right now. Company-led volunteering initiatives provide an opportunity for employees to meaningfully connect with each other and make an impact in local communities that sorely need support. Doubling down on employee volunteering programs can help to address the labor shortage nonprofits are currently experiencing.
And research in the Journal of Happiness Studies has shown that spending time in service to others can improve well-being, which can come as a restorative reprieve for many during difficult times.
Companies are becoming communities
The future of work is here and it contains multitudes. Digital transformation, shifts to remote and hybrid work and the growing adoption of artificial intelligence are all reshaping work as we know it. Plus, recent viral trends like conscious quitting and rage applying have been popularized by Gen Zers and millennials, who make up nearly 50% of the workforce this year, according to Gallup.
They’re showing that work still leaves much to be desired as Gallup says employee engagement continues to decline. Forty-four percent of U.S. Gen Z and millennial employees report they have previously resigned from a job, according to the 2023 Net Positive Employee Barometer by Paul Polman, because the values of that company did not align with their own. Clearly, they’re looking for more than just a paycheck.
Forward-thinking brands already know the future of work is one of purpose-driven communities where employees come together to learn, grow, take action and make a difference together. But while many companies know that connection through community building is paramount, it’s become harder to foster over the past few years amidst the compounding realities of remote and hybrid work, high employee turnover and economic uncertainty resulting in workforce reductions. Companies remain split on how they solve for this. Some are employing sweeping return-to-office mandates while others are striving to get at the heart of the connection issue by viewing it as an opportunity. One thing is clear: Companies who focus on community building will be the talent magnets of the future.
Community building through volunteering
Where does community begin and thrive? In a hybrid world where more companies have more people in more places than ever, companies need proven ways to connect everyone across remote and in-person contexts. In 2023, more companies will use their corporate purpose programs to bring their people together and strengthen culture, with volunteering acting as a key lever in achieving this.
In 2022, volunteering came back in a big way with a full-fledged return to in-person, team volunteering — especially in cities where companies are intentionally trying to create community by bringing hybrid workers together at offices or at nonprofits to be of service. Seventy-four percent of CSR leaders will be increasing their use of in-person volunteering around office locations to improve employee connection.
While volunteering offers a valuable opportunity to bring employees together and help them make a positive impact, meeting their expectations in this way can also have a material impact on a company’s bottom line by aiding in attracting and retaining top talent. Data from Benevity’s Talent Retention Study revealed a reduction in turnover among all employee cohorts that participated in their company’s corporate purpose program. The association between purpose and retention is even more pronounced for newer employees, who see a 52% lower turnover when they participate — whether that’s through volunteering, charitable giving or other positive actions.
ERGs are now a must-have strategy in DEI
A through line across 2023 is the resounding belief in diversity, equity and inclusion (DEI) investments as a value to society, individuals and business.
Ninety percent of CSR leaders believe it is up to companies to help every employee become more aware of bias and develop more inclusive behaviors that can create more diverse cultures.
But ask corporate purpose leaders about DEI and there’s one thing they’ll all agree on: Their companies are not leaders at it yet. Despite years of anti-bias training, setting targets and being vocal about commitments, goals and achievements, companies still struggle to make the progress that employees and DEI leaders expect, even though the business and societal benefits are well understood.
It’s clear companies recognize there is more to be done to move the dial, and they’re embracing their integral role in advancing DEI:
As such, nearly six in 10 companies are planning to respond with increased spending on DEI initiatives — despite the recession.
DEI is evolving
The events of 2020 led to a radical shift in the way corporate DEI gets activated. What was primarily a top-down initiative led by chief diversity officers and other diversity-focused executives was suddenly met with a grassroots, bottom-up movement powered by passionate employees.
These tenacious people mobilized into employee resource groups (ERGs), coming together based on shared characteristics or lived experiences, and affinity groups — formed around mutual interests or goals. Employees from historically excluded groups brought their lived experiences to work, heightened awareness of bias, built empathy through learning and storytelling, and drove real cultural change and allyship. 
As employees increasingly see their companies as communities and environments for social change, employee-led groups are continuing to grow in prominence. In Benevity’s The State of Workplace DEI report, 71% of employees reported they have worked for a company offering ERGs or similar affinity groups at some point in their career. And among those who have worked at companies with these groups, 62% have participated — indicating strong interest.
ERGs are a mainstay of DEI-focused companies
Now that we’ve passed the early groundswell of employee-led action on DEI, we’re entering a new phase where affinity and employee resource groups are a must-have — and possibly a more effective — component of a corporate DEI and culture strategy.
Eighty-eight percent of CSR leaders agree that DEI is being democratized and employees have increased levels of interest in ERGs and other peer-led initiatives. This was further affirmed when employees ranked ERGs as more beneficial than personal commitments to DEI from the CEO and other leaders by a wide margin — indicating employees believe in the power of ERGs and the passion of their peers more than the typical corporate approaches.
Ninety-four percent of CSR leaders say the demand for impact reporting is increasing, and 93% say they need to be able to confidently communicate their impact. This has led many to report that there needs to be a shift in priorities when considering ESG and impact.
From financial and impact materiality to generating positive outcomes
Today’s ESG ratings measure and mitigate financial risk for investors — but a new approach to reporting is emerging that shifts the focus from disclosures to positive outcomes. Why? Because a new generation of investors, employees and consumers is interested in another dimension beyond risk and compliance — they care about impact.
In 2023, employees, consumers and corporate purpose leaders all wish to make more informed decisions that will help them generate the most positive impact possible with their available resources — and they want to feel that sense of efficacy most of us look for when we give. So, it’s not surprising that individual and workplace donors are increasingly focused on whether their contributions are leading to concrete outcomes.
The biggest impact opportunity is on the human level — it’s about fulfilling the ultimate promise of philanthropy. When people give, they want to know their dollars are making a measurable difference to the causes or issues they care about. With the ability to choose from millions of nonprofits around the globe, donors need help understanding which organizations they can trust and what outcomes they can expect from their support. Research from the University of Pennsylvania tells us that with this kind of data, donors are more likely to increase their frequency of support over time, while increasing their own sense of happiness and well-being.
As a result, CSR leaders are looking for standardized data and reporting tools. For example, those offered by Impact Genome enable companies to understand the outcomes they are achieving, like providing people with regular access to affordable food, permanent housing or healthcare treatment services. And then they can benchmark their progress and impact over time and improve their investment decisions without burdening nonprofits with greater administrative work.
Achieving this level of impact and outcome transparency requires standardized data and guidance on giving based on an assessment of the impact generated by organizations — and it enables individuals to make choices that give them confidence.
If it is to realize its true potential, ESG will need to evolve to include a focus on positive impact. It will need to shift from measuring inputs and become a tool to drive increased positive internal and external impact — for companies and their people. Companies who measure and independently verify their impact will be ahead of the game when ESG reporting finally catches up to this.
