The City of London Corporation last week released a report which shows that corporate volunteering offers significant financial benefits for business. Volunteering has been shown to be a highly cost effective and motivating way to develop the skills and competencies of employees. It has the potential to save as much as £1000 per person when compared to the costs of traditional training methods.
Produced by Corporate Citizenship (part of Bell Pottinger), the report – ‘Volunteering: the Business Case’ – tracks the learning and development of almost 550 employees from 16 major City firms volunteering in schools and colleges across the UK.
The report was launched by the Lord Mayor of the City of London, Nick Anstee at an event that attracted over 150 business leaders.
Andrew Wilson, Director of Corporate Citizenship and the report’s main author outlined the key findings:
The research shows that employee volunteers are able to develop a wide range of skills and competencies related to their personal effectiveness, including:
• Communication skills
• Their ability to coach others
• Their adaptability and ability to be effective in different surroundings
• Influencing and negotiating skills.
The experiential nature of volunteering makes it hugely valuable in the skills development process and sets it apart from more traditional approaches to training. Volunteering requires employees to step outside their normal working role and build relations with people who have a very different world view from their own. Employees report that moving outside their “comfort zone” in this way is extremely useful in both developing their skills and transferring these skills back into the workplace.
In addition, the skills development observed by volunteers is not simply a self-reported gain. The evidence was corroborated by the overwhelming majority of their line managers who feel that volunteers acquire useful skills from their volunteering experience. Many of these skills feature in the mainstream competency frameworks used by companies to monitor and guide staff development.
Most importantly, developing skills through volunteering is more cost effective that traditional training programmes. Overall, the average annual cost to support each volunteer is £381 per person per annum. This figure includes the full costs including direct management costs and all additional costs involved in running an effective volunteering programme. In contrast, data from a UK survey on training costs shows that the typical training spend per employee can be as much as £1,400 per person per annum.
Alan Tapnack, Executive Director and board member of Investec commented:
‘'After many years of philanthropic giving we launched our formal Social Investment programme in 2008, with education as a major focus. We didn't set out with the intention of developing the skills of our employees through Social Investment, but many of our volunteers have said that they have learned and gained much through being involved in our education initiatives. We are pleased to be involved in this research project as it will encourage more businesses to invest in their local communities, whilst also delivering valuable benefits to their employees.'’
Michael Collins, Head of Corporate Responsibility at Société Générale, commented:
‘Business heads quite rightly demand a solid business case to justify investment. The City of London report will add substantially to our ability to build the business case for volunteering.’
The Lord Mayor of the City of London, Nick Anstee, commented:
“Having worked in the City for the entirety of my professional career, I am well aware of the mutual benefits a well run corporate volunteering programme can bring to business and to local communities.
“Communities clearly benefit when businesses choose to partner local organisations and when they encourage their employees to devote time and energy providing opportunities for people living in difficult circumstances, often in seriously deprived areas.
“The reciprocal benefits for businesses are equally apparent – a commitment to Corporate Responsibility (CR) can boost a firm’s reputation whilst also helping to create a highly-skilled, well motivated workforce. All of this provides a distinct advantage when it comes to the recruitment and retention of top talent.
“It is for these reasons that the City of London Corporation has a long-standing commitment to community involvement.
“Not only does the City run a structured volunteering programme for its own employees but it also runs the Lord Mayor’s Dragon Awards to celebrate the most innovative and successful corporate community involvement programmes run by London based organisations each year.”
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The full report can be downloaded from:
For more information please contact Andrew Wilson at Corporate Citizenship on 020 7861 1619.
More about Corporate Citizenship:
Corporate Citizenship is a specialist global corporate responsibility and sustainability consultancy. The company provides a unique combination of business insight, tailored strategic thinking and creativity to enable clients to operate successful sustainable businesses. Key services include: strategic consulting, benchmarking, reporting, assurance and research.
Corporate Citizenship has an experienced team of over 30 people, drawn from a wide range of backgrounds, based at offices in London and New York. The team has considerable experience gained from working within major companies, the public and the not-for-profit sectors.
More about The City of London Corporation:
The City of London is exceptional in many ways, not least in that it has a dedicated local authority committed to enhancing its status on the world stage. The smooth running of the City’s business relies on the web of high quality services that the City of London Corporation provides.
Older than Parliament itself, the City of London Corporation has centuries of proven success in protecting the City’s interests, whether it be policing and cleaning its streets or in identifying international opportunities for economic growth. It is also able to promote the City in a unique and powerful way through the Lord Mayor of London, a respected ambassador for financial services who takes the City’s credentials to a remarkably wide and influential audience.
Alongside its promotion of the business community, the City of London Corporation has a host of responsibilities which extend far beyond the City boundaries. It runs the internationally renowned Barbican Arts Centre; it is the port health authority for the whole of the Thames estuary; it manages a portfolio of property throughout the capital, and it owns and protects 10,000 acres of open space in and around it.
The City of London Corporation, however, never loses sight of its primary role – the sustained and expert promotion of the ‘City’, a byword for strength and stability, innovation and flexibility – and it seeks to perpetuate the City’s position as a global business leader.
