January 2015
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Giving Improves Employee Performance

Friday, January 9, 2015

A new study found that employees were more motivated to perform when their employers made philanthropic donations on their behalf. The study recruited 200 university students and offered compensation of a fixed wage and a bonus based on their output. A subset of these workers was included in a form of corporate philanthropy, with donation types and amounts varying from a fixed amount, a dollar amount related to performance, and an option to split the performance bonus with a charity. The study found that regardless of whether the donation was fixed or linked to productivity, workers who participated in some form of philanthropy were more productive than the control group that gave nothing. These results are in line with similar studies that tie social responsibility to employee productivity in the corporate world. A 2013 study, Snapshot: Trends and Strategies to Engage Employees in Greater Giving, found that more and more, employees expect time off for volunteer work, donation-matching programs, and robust corporate-giving policies. Data suggest many leading U.S. companies are heeding this call.

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