Talent Retention Study
Connecting purpose and employee retention

A Benevity Impact Labs ReportKey insights:

TABLE OF CONTENTS• Our research shows that engaging your people in purpose is linked

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Uncovering the link between purpose and retention

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Purpose ascends the priority list in 2021

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Purpose is strongly linked to employee retention

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Newer employees participate less than those with longer tenures

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7 ways to engage your employees with purpose on day 1 (and beyond)to employee retention.

• Companies see a 52% lower turnover among newer employees when
they participate in purpose programs.

• 40% of employees are new to their company and/or their corporate
purpose program.

• CSR and HR leaders should leverage corporate purpose to drive

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The future of work starts with purpose

employee retention, especially with newer employees.

Benevity Impact Labs Talent Retention Study | Published on Nov. 17, 20222

Uncovering the link
between purpose and retention

RESEARCH METHODOLOGYWork as we know it has changed. In the past few years, people

Understandably, many companies have been focused on

have grappled with various — often intersecting — challenges

the employees who are leaving. Where there has been lessprecipitated by the pandemic. It’s been trying, for bothfocus is on the many new people being onboarded. With

employees and businesses, especially during times ofcompanies seeing such a large influx of new hires, it’s critical

economic uncertainty.

to consider why those people left their previous jobs and•Benevity analyzed data from over
10.6 million users at over 400 companies
who have had accounts on the Benevity
platform for a minimum of 14 months,
allowing for a full one-year cycle for eachuser to participate in giving, volunteering
and/or micro-actions (also called Missions),
as some users participate on a moreseasonal basis.

•

We looked at employees with varying
levels of tenure.

•Analysis was completed in August 2022.

what companies can do differently to get — and keep —Much of the focus has been on the skyrocketing number

new employees engaged.

of employees who have left or changed jobs over the past
few years. Then there’s “quiet quitting,” another indication

To understand the trend, we analyzed data from 10.6 million

employees are less engaged and reevaluating what they want —users at more than 400 companies on the Benevity platform,and expect — out of work.

with a focus on people who had been with their company for
2.5 years or less — employees with a higher likelihood of

To avoid repeating the same cycles of turnover, we need tostart by asking why people are quitting, whether literally or
quietly. There are a few reasons, including a need for flexibility
and autonomy. But one critical factor, often overlooked, is they
are searching for more purpose, meaning and impact at work.

being part of the Great Resignation or falling within thegrowing millennial and Gen Z workforce. Collectively, those twogenerations make up 46% of the full-time workforce in the U.S.,2
with the average tenure for millennials and Gen Zers at just twoto three years.3

According to McKinsey, 31% of employees quit their previous
jobs due to a lack of meaningful work.1

The data revealed a strong association between employees
engaged in a company’s corporate purpose program —including charitable giving, volunteering and other positive
actions — and heightened retention.

Benevity Impact Labs Talent Retention Study | Published on Nov. 17, 2022

1
The Great Attrition Is Making Hiring Harder. Are You Searching the Right Talent Pools?, McKinsey Quarterly, July 13, 2022. 24 Things Gen Z and Millennials Expect
From Their Workplace, Gallup Workplace Insights, March 30, 2021. 3Employee Tenure in 2022, Bureau of Labor Statistics, U.S. Department of Labor, Sept. 22, 2022.

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Purpose ascends
the priority list in 2021

Purpose is strongly
linked to employee retention

In the fall of 2021, there was a new peak in voluntary
employee turnover.4 However, this trend has been building
for the past 10 years, in part because millennials and Gen Zers

FINDING:care more about purpose than other demographics do5 —There is a clear link between an employee’s participation in a corporate purpose program

and they are quick to move on when they don’t find it in theirand how long they stay at a company — especially during their first 2.5 years.

workplace. In fact, over half of Gen Zers say it’s very important
for their work to have meaning,5 and 71% would take a pay cut

For employees, corporate purpose programs have ato do more meaningful work. Even as trends like the Great

Purpose is not only formative for people in those earlystrong relationship with their tenure. Even more so if

Resignation move into the rear view, it’s clear that people stilldays with a company — it is a critical factor in engaging andthey’ve been with the company for 2.5 years or less.

have different priorities when it comes to work, and purpose isretaining employees over time.

Participating in these programs plays a role in shaping

high on that list.

their early experiences with the company, as they assess

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whether the employer meets their promise aroundpurpose, value and impact broadcast through brandmessaging and recruitment — similar to how consumers
evaluate the brands they purchase from.

53%

As an employee integrates into the culture and has aof Gen Zers say it isimportant for their work
to have meaning.5

broader set of experiences, purpose still seems to play
an important role in their engagement — even six years
out. That’s powerful when you consider the cost savingsof engaging and retaining people who are longer tenured
and have institutional knowledge and know-how.

There’s also reason to believe these retention rates willchange as Gen Z workers, whose sense of purpose is provento be key to their engagement and retention, will make up a
greater proportion of the workforce.6

Companies see a52%lower turnover among
the newer* employees
who participate in theircorporate purpose
programs.

*E mployees who have been with a company for 2.5 years or less.

Benevity Impact Labs Talent Retention Study | Published on Nov. 17, 2022

4Interactive Chart: How Historic Has the Great Resignation Been?, Society for Human Resource Management (SHRM), March 9, 2022. 5Generation Z vs. the Workplace (2021Study), Zety, updated Sept. 14, 2022. 6Gen Z Workers Will Be 30% of the Workforce by 2030 — Here’s What They Want From Their Employers, Yahoo! Finance, May 27, 2022.

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Purpose is strongly linked to employee retention

Reduction in turnover by employee cohort

Employee cohort

Reduction in turnoverwhen employees participate

18 months or less45%

2 years or less50%

2.5 years or less52%

3 years or less46%

4 years or less39%

5 years or less30%

6 years or less29%

All cohorts

Benevity Impact Labs Talent Retention Study | Published on Nov. 17, 2022

This data reveals a significant opportunity for corporate social
responsibility and human resources leaders. Engaging theirpeople in their programs contributes to them having a positive
impact at work and in the world. With 53% of Gen Zers saying
it’s very important for their work to have meaning,7 and 80% of
Gen Zers and 59% of millennials saying that better alignment
with their values and interests is a priority for their place of
employment,8 companies who don’t prioritize engaging theirpeople in purpose could find themselves in the same cycle ofhigh turnover again and again.
In 2020, we saw heightened activity on our platform in supportof prevalent societal causes like racial justice and vaccine equity,reflecting a collective desire to create positive change. However,
our analysis shows that in 2021, 65% of companies experienced
a lower rate of employee participation in their corporate
purpose programs than in the previous year, in part because
these programs were feeling the effects of increased employee
turnover.
With the influx of new people joining companies, rates ofparticipation in giving and volunteering decreased, partiallybecause it takes time for new employees to ramp up and fully
engage with their companies’ corporate purpose programs. At
the same time, reduced participation is correlated to increased
turnover, which leads to more churn.
This all underlines how important it is to engage new
employees early on.

24%

7
Generation Z vs. the Workplace (2021 Study), Zety, updated Sept. 14, 2022.
Is Gen Z the Boldest Generation? Its Job-Hunt Priorities Are off the Charts, LinkedIn News, Feb. 9, 2022.

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Purpose is strongly linked to employee retention

FINDING:
The impact of purpose programs on retention is

Reduction in turnover by region

consistent across regions.

To further analyze the trend, we looked at how the impactof purpose programs on retention differs by region. We

Regionfound very little difference, with the link between employee

Reduction in turnover among
participating employees withtenure of 2.5 years or lessparticipation and the reduction in turnover being consistent,
regardless of region. Perhaps this points to the universal
human need to feel a sense of impact and purpose in our

All

52%

North America

51%

Europe, Middle East, Africa

51%

lives, of which work is a big part.

50%

Benevity Impact Labs Talent Retention Study | Published on Nov. 17, 2022

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Purpose is strongly linked to employee retention

FINDING:

Reduction in turnover by industry*

The impact of purpose programs on retention
varies by industry.

*R eduction in turnover among participating
employees with tenure of 2.5 years or less.

Benevity Impact Labs Talent Retention Study | Published on Nov. 17, 2022

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Purpose is strongly linked to employee retention

INSIGHT:Engaging employees in purpose early on
positively impacts the bottom line.
It’s no secret that the cost of replacing talent can be high.
Especially when looking for specific qualifications or skill sets.
The impact a purpose program can have on improving acompany’s bottom line, by reducing employee churn, cannot

Newer employees
participate less thanthose with longer
tenures

Employee participation by tenure
20%

5%

FINDING:be underestimated.
The cost of replacing an entry-level employee is estimatedto be around 30% to 50% of their annual salary. Go up a few
levels, and you’re looking at 150% for mid-level employees and400% for seasoned and specialized team members. And the9value loss goes beyond the hard numbers. When people leave,team cohesion, morale and productivity are all impacted as
teammates and adjacent workers try to fill the gaps.

14%

15%

10%

20%

6%

0%

Up to 1 year

New employees participate in corporate purpose programs
at a third of the rate of their longer tenured peers.

1 to 2 years

Any tenure > 2 years

INSIGHT:The reasons why new employees participate

Our analysis shows that employees who have been with aless vary widely.

company for under one year are less likely to participate in a
corporate purpose program than their longer tenured peers. On

Here are four common reasons new employees are less inclined

average, these employees have a participation rate of just 6%,

to take part in social impact programs:compared to 20% for employees who have been with a company
for more than two years.

40%

1. They likely have fewer social connections at the company
compared to their longer tenured peers, so they may not haveheard about the program or could be less inclined to support
employee-driven initiatives.

With Benevity data showing that 40% of employees in our clientof employees are
new to their company
and/or their corporate
purpose program.** Based on the addition of new users to the Benevity platform in the lastyear. Includes clients who have been with Benevity for one year or less.

community have been at their company for one year or less, orthey’re newly enrolled in their corporate purpose program, it’s

2. New employees typically have less awareness of various company
programs and initiatives, perhaps due to poor or inconsistent
program promotion and communications.

clear companies must shift their approach to these programs todeliver on what new employees are looking for. Simply having a
program isn’t enough.

3. Many companies have transitioned to remote or hybrid work but
have not adapted their programs and onboarding to account for
this.

New employees will likely be more motivated to participate if
they are aware of the programs, feel connected to the company

4. Remote work, fewer in-person bonding opportunities and limited
volunteer events — paired with an influx of new employees who
have never met in person — all contribute to weaker social ties.

and their peers, and are able to engage easily in ways that
personally resonate with them.

Benevity Impact Labs Talent Retention Study | Published on Nov. 17, 2022

Employee Retention — What Is the True Cost of Losing an Employee?, SimplyBenefits Blog, July 25, 2020.

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7 ways

to engage youremployees withpurpose on day 1(and beyond)1

Infuse purpose into onboarding.
Make sure you’re doing more than mentioning your program to new employees. To intentionally engage them,
you could provide them with donation currency they can use in your program, or you could bring new cohorts
together to volunteer online or in person. This is not only rewarding, but it gives new people a taste of how
your program works, and they’ll see the difference it makes by trying it out for themselves. If you offer donation
currency, follow up with reminders to donate — people don’t like to see goodness go to waste, but it can be easy
to forget to use rewards. Also, keep in mind that your remote people may need more tailored and organizedactivities during onboarding and for their first 12 months on the job.

Engaging your people in your programs, early andoften, is key to more participation and longer tenure.
Here are seven proven tactics you can implement to
involve your employees in purpose from the get-go
and keep them engaged over time.

Microsoft engages their people in their “Give” program during their first week on the job.10 The Give program
leader walks new employees through the perks — such as how Microsoft matches each employee’s donationsof money, products and time to nonprofits, up to $15,000 a year — and makes it easy for them to support
nonprofits they love or discover new ones on Benevity’s platform.
The result of engaging people early in their journey? Microsoft’s employee giving program has generated bestin-class participation rates.

Benevity Impact Labs Talent Retention Study | Published on Nov. 17, 2022

The Great Giving Machine: Driven To Make an Impact, Employees Turn Giving Into a Way of Life, Microsoft Life, April 18, 2018, updated February 2020.

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7 ways to engage your employees with purpose on day 1 (and beyond)2Communicate your company’s contributions andcommitment.

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Tap into — and support — your affinity groups.
Affinity groups, or employee resource groups (ERGs), are a powerful driver for connection, as many people who

When people see that leaders value purpose, they do too.

join a new workplace want to find “their people” and get involved. By showcasing and amplifying the work of yourIn fact, leadership involvement and communication about

ERGs and helping employees feel they belong at work, you can build a sense of community and impact early.

programs are two of the biggest predictors of participation

Make it even easier by providing an online hub for all of your groups.

and program success. This means it’s important tocommunicate the purpose investments your company ismaking — like the grants or social impact projects you’refunding — at company-wide or large events to demonstrate

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Use a mobile app or create a mobile computer station to reach remote workers.

commitment from all levels within the business. It’s also

Make your program as inclusive as possible by ensuring equal access for your desk- or device-less employees.

important, from a culture perspective, to use company-

You’ll see participation grow while showing your people that an inclusive and equitable culture is important towide communication channels to highlight your company’s

your company.

investment in impact.

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Activate middle managers.
These key employees can champion social impact activities
while driving awareness on their teams. Some Benevity
clients, like Starbucks, have their managers walk all new
employees through their purpose program and systems
so they understand the program right away. Managers canalso thank and reward team members with charitable giftcards they can use to donate to causes they care about.

Gibson Energy is a leading oil-focused infrastructure company, delivering energy in an environmentally andsocially responsible manner. When the Gibson team identified a significant opportunity to engage their field
employees through their program data and feedback, they sprung into action to create a volunteer opportunitythat was more suitable for remote shift workers. They worked with their charitable partner, STARS, an air
ambulance service, to provide a custom volunteer activity that remote employees could do on their own time with
their families. The partnership was applicable to all remote team members, as STARS operates in the same rural
areas that Gibson does … in fact, the activity was so meaningful to them that they achieved 100% participation!

Benevity Impact Labs Talent Retention Study | Published on Nov. 17, 202210

7 ways to engage your employees with purpose on day 1 (and beyond)6

Don’t wait for your annual campaign.

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Engage your people in corporate granting

Engage your people all year round, and use

Our research on stakeholder philanthropy shows thatawareness dates like Black History Month andwhen it comes to how your company directs corporate

International Women’s Day, as well as real-timefunds and grants, your employees want to have a say.11

events or crises, to let them know they have a way

Get them involved by forming employee selection

to act on the issues that matter to them. Then,committees where they can help choose grantees, or

empower your people by enabling them to post

even have them nominate grantees themselves. They

their own giving and volunteering opportunities tocould also help organizations complete their applications.

garner support from their peers. They could evenEngaging your people this way helps them build skills anduse your program to send charitable gift cards tocross-functional relationships, which is good for themcustomers, prospects, vendors and other teamand your business. And, because many employees lovemembers as a thank you.

learning and development opportunities, especially as it

Our research on stakeholder philanthropy shows that85%of employees agree that the more a business engages
its employees in its charitable giving decisions, themore trust employees have in that business.11

relates to the social impact space, this is a great way to
get them involved without changing their day jobs.

Benevity Impact Labs Talent Retention Study | Published on Nov. 17, 2022

The Future of Corporate Giving: Stakeholder Philanthropy, Benevity, May 2022.

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The future of work starts with purpose
The new engagement challenges thrown at companies over the past few years are not to be underestimated.
The good news is that if you already have a purpose program, you are well on your way to meeting thesechallenges head-on.
With more and more people searching for meaning at work — especially younger generations, who will continue
to make up a larger portion of the workforce — the importance of purpose will only grow in relevance. Engaging
all your people in your corporate purpose program early, in ways that are meaningful to them, is a significant
opportunity to keep retention high while strengthening your company culture for everyone, everywhere.

Benevity Impact Labs Talent Retention Study | Published on Nov. 17, 202212

Benevity, a certified B Corporation, is the leader in global corporate purpose software, providing the only
integrated suite of community investment and employee, customer and nonprofit engagement solutions. Recognized
as one of Fortune’s Impact 20, Benevity offers cloud solutions that power purpose for many iconic brands in ways that better
attract, retain and engage today’s diverse workforce, embed social action into their customer experiences and positively impact
their communities. With software that is available in 22 languages, Benevity has processed more than $10 billion in donations
and 46 million hours of volunteering time to support 326,000 nonprofits worldwide. The company’s solutions have also
facilitated 770,000 positive actions and awarded 1.2 million grants worth $12 billion.
For more information, visit benevity.com.