Study: Corporate Philanthropy Increases Employee Productivity

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Study: Corporate Philanthropy Increases Employee Productivity

A new study by the University of Southampton indicates that an employee becomes considerably more productive when offered a social incentive like the opportunity to donate money to charity.

The study asked participants to complete four sessions of data entry, each offering different financial and philanthropic incentives. When offered social incentives, productivity (number of data points entered) increased by an average of 13%. Among workers who were initially least productive, productivity increased by 30% after social incentives were offered.

“We can see that social incentives have a positive impact in the number of entries made, without compromising accuracy,” said Dr. Michael Vlassopoulous, who co-authored the study. “The motivational impact of social incentives, coupled with sufficient tax breaks or additional advantages coming from customers, regulators or investors, would make them as effective for employers as offering financial incentives.”

This study is only the latest addition to the growing body of evidence that corporate giving programs have tremendous benefits for companies — not just in public image, but also in the engagement and retention of customers and employees.

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