The secret (and not so secret) benefits of corporate volunteering

Some years ago, while facilitating an award ceremony that recognized employees for their outstanding contribution to the firm’s commercial success and for collaborating effectively across divisions, I was astounded to see that more than half of the awardees were also very engaged in the corporate volunteering program (far above the firm-wide participation rate of 14% at the time). This article provides some explanation for this phenomenon and argues that volunteers don’t just do good for the community and themselves—done well, corporate volunteering also has a positive impact on the company.

The purpose of volunteering, including corporate volunteering, is to contribute to addressing societal challenges. In addition to donating time, volunteers utilize their competencies and experience; for example, by teaching financial skills to students or supporting migrants find a job that matches their skills.

An often-underestimated aspect of corporate volunteering is that it raises employee awareness regarding charitable organizations and provides insights into the realities and challenges that may be very different from their own. Doing good for others and the community creates a sense of accomplishment. Empirical studies have found that volunteering has psychosocial effects, as it can contribute to maintaining health and well-being, as well as improve work-life balance.¹

In addition, the ensuing social engagement has shown to provide a plethora of opportunities for personal growth and professional development. The study The Value of Volunteering published by Education & Employers describes “mirror benefits” for volunteers in the areas of communication, influencing and relationship skills, as well as leadership.² Two-thirds of participants reported greater motivation at work, and more than one-third said volunteering helped them apply for different or more senior roles. From a UBS internal employee survey in 2019, we also know that highly engaged volunteers achieve better performance ratings at work and show below-average attrition.

Moreover, while volunteering as a team, employees can experience colleagues outside corporate hierarchies and job descriptions. Team assignments provide networking opportunities, which may contribute to better collaboration and higher performance, especially in an increasingly hybrid or remote work environment. A study published by Benevity highlights that “corporate volunteering has a renewed purpose in a hybrid work environment as a way to deepen employee connection, strengthen company culture, and create a sense of community.”³

The “win-win” for charitable organizations and volunteers is well understood, but how does employee volunteering contribute to corporate objectives?

In Switzerland—a country with traditionally low unemployment rates and a substantial shortage of skilled employees—employer attractiveness is important for recruiting and retaining talent. The 2022 Credit Suisse Youth Barometer found that roughly two-thirds of the 16–25-year-old participants said they considered their employer’s social or charitable engagement to be fairly or very important.⁴ Habitat for Humanity also notes that “employees who feel supported by their employers in volunteering activities are more likely to stay loyal to the company. Furthermore, when potential candidates see that a corporation encourages and values volunteering, they may be more inclined to choose that company as their employer.”⁵

One of UBS’s core principles is “to drive long-term positive value creation by contributing to a better world for our stakeholders, society, environment, and future generations.” Corporate volunteering is one aspect of this principle. When we asked our employees in 2007, 2013, and 2018 about their motivation to participate in the corporate volunteering program, the three reasons with the largest percentage point increase over the years were related to helping others, contributing to society, and supporting the bank’s social engagement efforts (Figure 1).

Answers by UBS employees in 2007, 2013, and 2018 when asked about their motivation to participate in the corporate volunteering program. The three reasons with the largest percentage point increase over the years were related to helping others, contributing to society, and supporting the bank’s social engagement efforts

Furthermore, in the context of diversity, equity, and inclusion (DE&I), corporate volunteering can be a way for an organization to tap into a wider range of skills, experience, and knowledge, beyond an employee’s job description.

If a corporate volunteering program fails to be impact-driven and inclusive, or is perceived as disingenuous, it will likely not generate the desired positive results for society, employees, and the organization, and might even backfire.

Therefore, companies need to be mindful of three considerations while designing their volunteering programs to achieve their intended outcomes.

First, the volunteer program should reflect the geographic distribution and work routines of a company’s employees. For example, a company with a large proportion of employees who travel for work, like consultants, will need to offer volunteering opportunities that are compatible with that reality. If opportunities are or appear to be only accessible to certain pockets of the workforce, some employees may feel resentful and unappreciated. The same is true if a volunteering offering does not reflect the skills and competencies of employees in the causes supported with the program.

Second, there is a fine line between encouragement and pressure to participate. We know from a survey among UBS employees that employees are almost three times more likely to volunteer if their line manager is also an active volunteer. Forced volunteering, however, may lead to a volunteer developing poor attitudes toward the charitable partner organizations and their beneficiaries, as well as toward the company’s social engagement program overall. Externally, it may result in the offering being perceived as insincere, which can damage the reputation and brand image of the company and/or its leadership.

Finally, a corporate volunteering program that fails to excite and engage employees and management will likely suffer from low participation and/or poor attitudes over time. From an internal perspective, the cost of offering a volunteering program will then be hard to justify, but more importantly, it will fail to have a meaningful and positive impact on the community and its beneficiaries.

In addition to the benefits for society, there are many touchpoints for corporate volunteering within an organization. From recruiting and retention to an employee’s personal and professional development, connections with DE&I and sustainability programs, corporate culture, health, and well-being, as well as branding and reputation, a thoughtfully designed corporate volunteering strategy can offer benefits for companies, employees, and the community. 

1. Güntert, S.T., Wehner, T., and Mieg, H.A., 2022, Organizational, Motivational, and Cultural Contexts of Volunteering – The European View, Springer Briefs on Psychology.
2. https://www.educationandemployers.org/research/the-value-of-        volunteering/#:~:text=It%20shows%20that%20employers%20who,better%20sense%20of%20well%2Dbeing.&text=Volunteers%20are%20playing%20a%20vital,young%20people%20during%20the%20pandemic
3. https://benevity.com/talent-retention-study?hsCtaTracking=54e26572-e66c-414b-ad0d-15e384ad55f7%7C91b33eec-e80d-48c4-bc47-4579df850b40
4. https://www.credit-suisse.com/about-us/de/research-berichte/studien-publikationen/jugendbarometer/download-center.html
5. https://hfhwm.org/2023/07/the-benefits-of-corporate-volunteering/

The author thanks the following people for their valuable input: Jackie Bauer, Alodie Dupraz, Susanne Erdt, Mike Ryan.

For further information, please visit www.ubs.com/institute-disclaimer