12-21-2023 09:00 AM - edited 07-14-2024 03:37 PM
At Pledge 1%, we believe businesses have a tremendous ability to tackle some of today’s biggest social challenges. At the same time, shifting stakeholder expectations are compelling companies to be deliberate in the ways they contribute to a more just, inclusive, sustainable, and equitable world.
Time, product, profit, or equity pledges can help address social issues while creating a culture that unites employees, shareholders, customers, and partners around shared values. In the last ten years, we’ve seen again and again how creating a culture of giving back is not just good for the world, but also good for business.
In fact, making a commitment to social impact fosters positive brand reputation, attracts and retains talent, mitigates risk, and contributes to long-term sustainability. Additionally, it meets stakeholder demands and enhances access to capital by appealing to socially responsible investors and funds. Ultimately, supporting social impact is both a moral imperative and a strategic business move that supports a company's growth and success in an ever-evolving world.
But don’t take our word for it.
The Right Thing to Do |
The Smart Thing to Do |
Meet Employee Expectations for Wielding Trust and Influence
of respondents said they expect CEOs to lead on societal issues (2023 Edelman Trust Barometer).
The cascading health, economic, and social justice issues of the last few years have proven companies have an important and essential role in tackling the most critical challenges of our time. In fact, at this moment in history, in many countries businesses are more trusted than the government to help solve social challenges. |
Deepen Employee Engagement and Productivity
of millennials said their job was more fulfilling when given opportunities to help address social issues (2016 Cone Millennial Employee Engagement Study).
77% of workers say company-sponsored volunteer activities are essential to their well-being (2017 Deloitte Volunteerism Survey).
Keeping employees engaged fosters a sense of connection, maintains productivity, and ensures a cohesive work culture despite physical distances. |
Support Employee Well-Being and Mental Health
Individuals who engage in volunteering regularly report lower levels of depression, greater life satisfaction and a heightened sense of purpose (PN Purpose Tracker: Employee Perspectives on Responsible Leadership During Crisis 2020).
Volunteering supports employee well-being by fostering a sense of purpose, reducing stress, enhancing social connections, promoting skill development, and contributing to a better work-life balance. It boosts mental health, self-esteem, and overall happiness while potentially improving physical health outcomes. |
Improved Employee Recruitment and Retention
69% of workers say having societal impact is a strong expectation or deal breaker when considering a job (2023 Edelman Trust Barometer.)
In a competitive job market, engaged employees are more likely to stay committed to their roles, reducing turnover and retaining top talent, which is crucial for a company's growth. |
Secure the Economic Future
of investors think public companies are urgently obligated to address one or more societal issues to ensure the global business environment remains healthy and robust (2023 Edelman Trust Barometer).
By leveraging the time and talent of your employees (and customers, partners, ecosystem), you can be a powerful force in addressing needs both local and global. In fact, companies must play an active role in solving our biggest shared challenges to ensure their future success. As Paul Polman and Andrew Winston wrote in The Net Positive Manifesto, “The economy won’t thrive unless people and the planet are thriving.” |
Increased Innovation and Problem-Solving
of employees who work at companies with a strong sense of purpose say they’re more inspired, motivated, and loyal (PN Purpose Tracker: Employee Perspectives on Responsible Leadership During Crisis 2020). Engaged employees are often more creative and motivated, contributing fresh ideas and innovative solutions that drive a company forward. |
In essence, employee engagement is not just about satisfaction at work; it's about creating an environment where individuals feel valued, motivated, and connected to the company's purpose, which significantly impacts organizational success and growth.
At New Relic we want to be good community stewards and give back to the communities where we live and work. At the same time, volunteering is a great team and morale building tool for our company at large. It’s been an incredible benefit that potential employees look for in their job applications."
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Manager Social Impact |
"Pledging 1% time" is a commitment to allocate 1% of working hours toward volunteering or supporting charitable or civic causes. While we recommend “1%” as a starting point, time pledges, as defined by a volunteering program or policy, can look different from company to company. Some common employee volunteering frameworks include:
Flexible VTO Policy |
Structured Volunteer Time |
1% of employee time equates roughly to 3-5 days a year (about 1% of employee billable hours). Companies with a flexible VTO policy enable employees to request time off to volunteer for causes they care about, much in the way employees would request paid time off (PTO). This can be a good option for companies with staff scattered across many locations or organizations who lack the resources to organize company-wide events. |
Other companies leverage volunteer time in a more structured way to encourage team bonding and connection to core values. This could mean all-staff volunteer excursions or virtual engagements, global volunteer days or weeks, team events/meetings, new hire onboarding, and so forth.
For example: bringing your team together for a half-day of packing backpacks for children in under-resourced schools, or hosting a virtual skills-based opportunity for employees to engage with a short term nonprofit project, like building a webpage. These activities often help meet internal goals, while also addressing identified community needs. |
Many Pledge 1% members choose to do a hybrid approach, providing employees with a clear allocation of time (# of days) for whatever they want to do, as well as organizing opportunities to take action together.
You will often hear the terms “employee engagement” and “employee volunteering” used together but keep in mind that they are related but distinct concepts.
Employee engagement refers to the emotional commitment and dedication employees have toward their work, their organization's goals, and its values. It involves their enthusiasm, motivation, and satisfaction within their roles.
On the other hand, employee volunteering involves employees dedicating their time, skills, or resources to participate in activities that benefit the community or support charitable causes. It's about their involvement in external initiatives beyond their regular job responsibilities.
While engagement focuses on the internal relationship between employees and the organization, volunteering extends that engagement externally, emphasizing contributions to society or specific causes. Both are important for fostering a positive workplace culture, but they differ in their areas of focus and impact. We often talk about how a time pledge can deepen employee engagement and it is often an important part of a greater employee engagement program.
“It’s important to acknowledge the many purposes your volunteer program is serving. You want to have a mix of opportunities that allow you to be strategic and intentional in meeting community needs and achieving real outcomes. Ideally, this includes some skills-based volunteering and direct service opportunities, while also ensuring employees feel empowered to pursue causes that matter to them. In the process, a great outcome is the relationships that are built and the camaraderie created. Volunteering brings employees together that might not otherwise meet, strengthens workplace culture, and studies show it can boost employee morale among other benefits.”
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Lauren Coberly Director & Head of Social Impact |
As you think about how you might structure your volunteering programs, you want to be sure to think about the types of volunteer opportunities you might support.
Type |
Definition |
individual |
Activities for employees to do on their own; this can often be more flexible in terms of scheduling |
family |
Activities inclusive of children, spouses, partners, or multiple generations; work with nonprofit partners to determine the appropriate ages based on the nature of the activity and sensitivity of the client population. |
team |
Activities designed for groups of employees to do together. |
company wide |
Opportunities to leverage incentives or gamification across departments and/or regions to help employees feel part of something bigger. |
virtual |
In a post-pandemic world, more and more nonprofits are offering virtual volunteering experiences. Online engagements break down geographic, social, and other barriers between beneficiaries and/or program participants. For more information on virtual volunteering, please visit our Pledge 1% Virtual Volunteering Playbook. |
in-person direct service |
Face-to-face, hands-on engagements take place at a set time and location. |
learning sessions |
Opportunities like Lunch & Learns couple information (50-70% learning time) with action related to that issue (20-50% active time). |
one-time engagements |
Discrete engagements respond to immediate needs. |
recurring engagements |
Recurring commitments or campaigns create depth of relationship and impact. |
pro-bono or skills based |
Projects where job or trade-specific skills apply to a community or individual need |
Many of the most established employee volunteering programs view employee time as an untapped asset that can help nonprofits on three levels:
Each type can expand the capacity of how your organization can serve a greater good.
In the last few years, many companies have experienced shifts in values related to growing awareness of systemic racism, income inequality and the climate crisis. And beyond the traditional in-person hours with nonprofits, many Pledge 1% members are including hyper-local and other types of civic engagement activities as part of their volunteer time-off policies. These include:
Many companies have also experienced shifts in values related to growing awareness of systemic racism, income inequality and the climate crisis.
“New Relic employees can take 16 hours of volunteer time off (VTO) each calendar year. VTO is meant to be used to serve the greater community and to support causes Relics are passionate about. In 2020 we updated our policy to allow VTO in support of activities affiliated with nonprofit organizations or to support unaffiliated community-building activities (e.g., engaging in voter registration drives, helping unrelated house-bound seniors with errands, dropping supplies off to medical staff, participating in peaceful protests, etc).”
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Manager Social Impact |
While it’s important to create a vision and strategy for your program, you don’t need to have all of the answers upfront. In fact, it’s best to work with your colleagues to learn, adjust, and customize your program for your team. Simply start with the basic principles and let your experience inform your next steps.
Every company grows their volunteer program at different speeds and with different objectives. While 1% of employee time is the Pledge 1% framework, keep in mind that this can be an aspirational goal and should not feel intimidating as you are first getting up and running.
As we’ll explore, volunteer programs don’t have to be for employees only. Many companies engage customers, partners, and vendors in their social impact programs. Be on the lookout for opportunities to be inclusive and broaden your sphere of influence.
Our members have told us that even with unlimited time off, establishing a clear volunteer policy, reinforcing this behavior, providing incentives, and tracking hours often motivates employees to participate and leverage this time. In fact, 68% of employees surveyed say that it is imperative or very important that their employers provide them with paid time off to volunteer.
You are not alone! Resist the temptation to build a program in isolation. Remember to involve: