Impact of Volunteering on Employee Satisfaction and Engagement: A Guide for NZ Companies

As more companies recognise the value of corporate social responsibility (CSR), volunteering has become a cornerstone of their efforts. Beyond the positive impact on communities, volunteering initiatives offer significant benefits for employees and the company itself.

Companies that facilitate employee volunteering often see improvements in job satisfaction, engagement, and overall morale. However, to truly understand and maximise these benefits, it is crucial for companies to measure the impact of their volunteering programmes.

This article explores how companies can measure the impact of their volunteering initiatives on employee satisfaction and engagement, with examples from New Zealand.

Why Measuring Impact Matters

Understanding the impact of volunteering on employee satisfaction and engagement is essential for several reasons:

• Maximizing Benefits: By measuring impact, companies can identify what aspects of their volunteering programmes are most effective in boosting satisfaction and engagement. This allows them to refine and enhance their programmes for maximum benefit.

• Justifying Investment: Measuring impact provides data that can be used to justify the investment of time and resources into volunteering programmes. This is particularly important when seeking buy-in from senior leadership or when reporting to stakeholders.

• Alignment with Business Goals: Companies can ensure that their volunteering programmes align with their broader business objectives by understanding their impact. This alignment helps integrate volunteering more seamlessly into the company culture.

Methods for Measuring Impact

There are various methods that companies can use to measure the impact of their volunteering programmes on employee satisfaction and engagement:

• Surveys and Feedback: Employee surveys are one of the most straightforward and effective ways to measure the impact of volunteering. Surveys can include questions about employees’ volunteering experiences, how these experiences have affected their job satisfaction, and their overall engagement with the company. Regular feedback sessions and focus groups can also provide valuable qualitative data.

• Participation Rates: Monitoring the number of employees participating in volunteering activities and the frequency of participation can give insights into the programme's appeal and effectiveness. High participation rates often correlate with high levels of satisfaction and engagement.

• Employee Retention and Turnover Rates: Companies can track the retention and turnover rates of employees who participate in volunteering compared to those who do not. Lower turnover rates among volunteers can indicate that these employees are more satisfied and engaged.

• Net Promoter Score (NPS): NPS is a measure of employee loyalty and satisfaction. Companies can calculate the NPS of employees who participate in volunteering to see if there is a difference in loyalty and satisfaction levels compared to non-volunteers.

• Social Return on Investment (SROI): SROI is a method that evaluates the social, environmental, and economic value generated by volunteering activities. For companies, SROI can help measure the broader impact of volunteering on employee well-being, community relationships, and overall corporate culture.

New Zealand Examples

Several New Zealand companies have successfully implemented methods to measure the impact of their volunteering programmes on employee satisfaction and engagement. Here are some examples:

1. Air New Zealand: Air New Zealand has a robust corporate volunteering programme that focuses on environmental sustainability and community support. The company regularly surveys its employees to understand how volunteering affects their job satisfaction and engagement. These surveys have shown that employees who participate in volunteering activities report higher levels of job satisfaction and are more likely to recommend Air New Zealand as a great place to work. For example, in 2023 they launched the Cabin Crew Sustainability Activators which is made up of cabin crew from across their various fleets, who initiate and deliver sustainability activities.

2. Fonterra: Fonterra’s “Good Together” volunteering programme focuses on community support, education, and environmental sustainability. The company uses a combination of participation rates, employee surveys, and SROI to measure the impact of its volunteering initiatives. Fonterra has found that employees who participate in volunteering activities are more engaged and have a stronger sense of pride in the company. The SROI analysis has shown that the programme not only benefits the communities but also enhances employee skills, which contributes to the company’s success.

3. BNZ (Bank of New Zealand): BNZ has a dedicated volunteer programme that allows employees to take one paid day off per year to volunteer for a charity of their choice. To measure the impact, BNZ tracks employee participation rates and collects feedback through post-volunteering surveys. These surveys assess the impact of volunteering on job satisfaction, teamwork, and the overall sense of belonging to the company. BNZ has reported that employees who participate in the volunteering programme are more likely to stay with the company long-term, indicating higher levels of satisfaction and engagement.

Implementing Measurement in Your Company

For companies looking to measure the impact of their volunteering programmes, here are some steps to consider:

• Set Clear Objectives: Define what you want to achieve with your volunteering programme. This could be improving employee satisfaction, building a stronger connection with the community, or enhancing specific skills among employees.

• Develop a Measurement Framework: Decide which methods you will use to measure impact. This could include surveys, participation rates, retention data, NPS, or SROI. Develop a consistent framework to ensure that data is collected and analysed systematically.

• Collect and Analyse Data: Use the chosen methods to collect data regularly. Analyse the data to identify trends, strengths, and areas for improvement. Look for correlations between volunteering participation and key metrics like job satisfaction, engagement, and retention.

• Communicate Findings: Share the results of the impact measurement with employees, leadership, and other stakeholders. Highlight the positive outcomes and use the data to demonstrate the value of the volunteering programme.

• Refine and Improve: Use the insights gained from measurement to refine and improve your volunteering programme. This could involve offering more diverse volunteering opportunities, providing additional support and resources, or increasing recognition for volunteers.

Conclusion

Measuring the impact of volunteering programmes on employee satisfaction and engagement is crucial for companies that want to maximise the benefits of their CSR initiatives. By using a combination of surveys, participation rates, retention data, and other metrics, companies can gain valuable insights into how volunteering impacts their workforce. As demonstrated by leading New Zealand companies like Air New Zealand, Fonterra, and BNZ, effective measurement not only enhances the success of volunteering programmes but also contributes to a more motivated, committed, and satisfied workforce.