Engaging employees in corporate philanthropy increases productivity

When a company engages its employees in corporate philanthropy, the overall productivity of the organization. This works as well as offering them a financial incentive for their importance. This was found in a study conducted by two professors at the University of Southampton in the UK.

Professors Mirco Tonin and Michael Vlassopoulos performed the study titled “Corporate Philanthropy and Productivity: Evidence from an Online Real Effort Experiment”. It involved the employees of 261 American companies, some of which were Fortune 500 companies.

The researchers divided the staff in each workplace in two groups for the study. They offered one group a fixed monetary bonus to complete a work in a specified time. They offered the other group a donation on behalf of the worker to a charity of his choosing. This donation amount for some of them was not fixed but was dependent on the worker’s output.

Obviously, the productivity of the workers first group of workers went up drastically. However, they also observed a boost in the performance of the other group. Specifically, there was an increase of 13% in the performance of the second group.

The most significant finding of the study was that there was a very sharp (30%) increase in the performance of workers that were the least productive in either group. Researchers believe that even non-cash incentives can be a more meaningful way of engaging the employees than personal financial gains.

“For companies, ‘doing good’ may actually be a viable way to do well in terms of their bottom line. The evidence that workers were willing to donate part of their bonus to charity means there may be an opportunity to raise charitable donations and boost productivity at the same time. We might encourage employers to introduce payroll giving schemes in their workplace, for example,” said the authors in the paper describing their study.

Want to test this theory? Come over to Crowdera and let us be a part of your corporate philanthropy strategy.