How Corporate Volunteer Grants Increase Employee Engagement

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Employee engagement is generally defined as the emotional and functional commitment an employee has to achieving the mission of the organization. But it’s important to remember that it’s more than just a buzzword—it’s a crucial factor in a company’s success.

Still, many businesses struggle to create a workplace culture that fosters genuine engagement. If you’re looking for new ways to do this, you’ve come to the right place.

One powerful yet often overlooked strategy centers on corporate volunteerism. More specifically, volunteer grants increase employee engagement as programs where companies financially support nonprofit organizations based on their employees’ volunteer hours.

In this article, we’ll outline the basics of employee engagement and volunteer grants⁠—and where they come together. Specifically, our guide will cover:

By offering volunteer grants, businesses not only encourage employees to give back to their communities but also create a deeper sense of purpose and connection within the workplace. When employees feel that their company shares their values and actively supports causes they care about, their engagement naturally increases.

Let’s get started!

Basic Facts About Employee Engagement

Employee engagement goes a long way in terms of a healthy and thriving workplace, yet many organizations struggle to keep their workforce motivated and committed. In order to demonstrate this importance, research by Dale Carnegie Training and other industry leaders highlights the impact of engagement on performance, retention, and overall workplace satisfaction.

  • 71% of employees are not fully engaged, indicating a widespread challenge in the workplace.
  • Companies with engaged employees outperform competitors by 202%, proving that engagement directly impacts business success.
  • Disengaged employees are more likely to seek employment elsewhere, increasing turnover rates.
  • A survey of 1,500 employees found that 54% of employees who took pride in their company’s societal contributions were engaged.
  • A Lloyd Morgan study showed that increasing engagement levels could lead to an 87% reduction in the likelihood of employee departure.
  • A Deloitte survey found that even among millennials who rarely volunteer, 61% still consider a company’s commitment to social responsibility when evaluating job opportunities.

These findings emphasize a crucial point: When employees feel a strong connection to their organization’s values and mission, they are more engaged, productive, and loyal. Conversely, disengaged employees often see their jobs as nothing more than a paycheck, leading to lower morale and higher turnover.

Four Key Traits of Engaged Employees

Engaged employees generally exhibit distinct characteristics that contribute to a positive workplace:

  1. Inspiration – They feel motivated by their work and the company’s mission.
  2. Confidence – They believe in their abilities and the support of their leadership.
  3. Enthusiasm – They show excitement and passion for their role.
  4. Empowerment – They feel trusted to make decisions and take initiative.

By fostering these traits, companies can create a culture where employees feel valued, motivated, and deeply connected to their work.

But how can organizations actively boost engagement? One effective strategy is with corporate volunteer grants, which not only support meaningful causes but also reinforce employees’ sense of purpose and belonging within the company.

Our Top Employee Engagement Idea: Volunteer Grants

Corporate volunteer grants are a type of corporate giving program that encourages employees to volunteer in the communities in which they live and work. When they do, their employers provide monetary grants to eligible nonprofits whenever an employee takes time to volunteer.

How Volunteer Grants Increase Employee Engagement Overview

These grants are generally paid out in one of two ways:

  1. An established amount per volunteer hour (e.g., $25 per hour, with a minimum of 10 hours)
  2. A lump sum once a minimum threshold has been reached (e.g., $250 once an employee has volunteered for 20 hours)

Of course, it’s important to remember that these payment structures and grant opportunities vary from company to company. However, when employees understand their company’s guidelines and are actively encouraged to participate in their volunteer grant programs, it can become a significant revenue stream for the nonprofits they support.

How Volunteer Grants Increase Employee Engagement

Corporate volunteer grants play a significant role in enhancing employee engagement by fostering a sense of purpose, connection, and fulfillment in the workplace. When companies support their employees’ volunteer efforts through financial contributions to nonprofit organizations, they create a culture that values giving back. This, in turn, leads to higher levels of motivation, job satisfaction, and company loyalty.

Here’s how volunteer grants contribute to employee engagement:

1. Strengthening Employees’ Sense of Purpose

Employees who feel that their work aligns with their personal values are more likely to be engaged. Volunteer grants encourage employees to dedicate time to causes they care about, reinforcing their sense of purpose.

When employees see that their company supports these efforts, they feel a stronger connection to the organization and its mission.

2. Enhancing Workplace Morale and Job Satisfaction

Giving back to the community fosters a sense of accomplishment and fulfillment. Studies show that employees who participate in corporate volunteer programs report higher job satisfaction and overall well-being. Knowing that their efforts are making a tangible difference, supported by their employer, helps employees feel more positive about their workplace.

3. Driving Teamwork and Collaboration

Volunteer grant programs often include opportunities for employees to work together on community projects, strengthening relationships and teamwork. Employees who engage in volunteer activities as a team build trust, improve communication, and develop stronger connections with their colleagues, leading to a more collaborative and engaged workforce.

4. Boosting Employee Loyalty and Retention

When employees feel valued and supported by their employer, they are more likely to stay with the company. Volunteer grant programs demonstrate that the organization is invested in its employees’ passions beyond the workplace. Research has shown that companies that prioritize employee engagement through initiatives like volunteer grants experience lower turnover rates and higher retention levels.

5. Attracting Purpose-Driven Talent

Today’s workforce, particularly millennials and Gen Z, seeks employers that align with their values. Many job seekers consider a company’s social responsibility initiatives when evaluating potential employers. By offering volunteer grants, companies position themselves as organizations that care about their employees and the broader community, making them more attractive to top talent.

By implementing and promoting volunteer grant programs, companies can create a workplace culture that fosters engagement, strengthens team dynamics, and enhances employee satisfaction.

When employees feel empowered to contribute to meaningful causes with the support of their employer, their connection to their work deepens—ultimately benefiting both the individual and the organization.

Other Giving Programs That Grow Employee Engagement

While corporate volunteer grants are a powerful way to boost employee engagement, they are just one of many corporate giving programs that can foster a deeper connection between employees and their workplace. Companies that invest in a variety of giving initiatives create a culture of generosity, social responsibility, and shared purpose—key drivers of employee satisfaction and retention.

Here are some additional giving programs that help grow employee engagement:

Group Volunteer Activities

Another suitable method of increasing employee engagement involves encouraging group volunteerism. After all, group volunteer opportunities increase camaraderie amongst employees who may not usually interact with each other. It also increases employee engagement by producing a shared sense of purpose among coworkers.

Some companies take it a step further by providing team volunteer grants when groups of employees volunteer together. It’s a great way for companies to support the organizations that employees are passionate about.

Volunteer Time Off

Next, VTO (or volunteer time off) programs are an excellent way to inspire engagement among employees. Providing team members with paid time off to volunteer for causes they care about shows that the company prioritizes community involvement. Meanwhile, VTO hours allow employees to participate in volunteer activities without sacrificing their earnings, making it easier for them to give back.

This initiative leads to increased job satisfaction, stronger employee-employer relationships, and a more engaged workforce overall.

Employee Matching Gifts

Finally, matching gift programs allows companies to match their employees’ charitable donations to nonprofit organizations, effectively doubling (or sometimes tripling) the impact of their contributions. When employees see their employer actively supporting their charitable giving, they feel more valued and motivated, strengthening their sense of belonging and commitment to the organization.

By incorporating these additional giving programs into their corporate social responsibility strategies, companies can cultivate a culture of generosity and engagement. As a result, employees who feel supported in their philanthropic efforts are more likely to develop a strong emotional connection to their workplace, leading to higher morale, increased productivity, and long-term retention.

How Employee Engagement Software Can Help

While corporate volunteerism means finding opportunities for your team to give back, it can be challenging to track all of the volunteer hours and grant requests that come through as a result. If you’re looking for a way to streamline your company’s volunteer opportunities, consider investing in employee engagement software.

This type of software helps bring your team together and promotes an engaged company culture. For example, employee engagement software can help manage a volunteer program by:

  • Creating custom volunteer events.
  • Finding local opportunities for which employees can engage.
  • Tracking and managing volunteer hours.
  • Reviewing and approving volunteer grant requests.
  • Dispersing funds to the nonprofits employees support.

All in all, when you streamline your process for tracking volunteer opportunities and grant requests, you’ll make it easier for your employees to participate in these activities. Additionally, you can easily track your progress and have a better picture of the impact you’re making. It’s a win-win!

Even better, we’ve reviewed several of the top platforms here, so you can get a better understanding of your options.

Additional Volunteering & Employee Engagement Resources

Corporate volunteer grants are more than just a corporate social responsibility initiative—they are a strategic tool for enhancing employee engagement. When employees have the opportunity to contribute to meaningful causes with the support of their company, they develop a stronger sense of pride, motivation, and loyalty. This not only leads to a more positive work environment but also helps businesses attract and retain top talent.

If your company is looking for a way to boost engagement while making a meaningful impact, investing in corporate volunteer grants is a step in the right direction.

Interested in learning more about corporate giving and volunteerism? Check out these additional resources to get started:

Get started driving employee engagement with volunteer grants using our recommended partners.