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Offering great employee benefits can differentiate your business from the competition and help you avoid salary bidding wars that inflate your payroll.

In recent years, brands have gotten creative regarding employee compensation, adding all sorts of non-traditional perks to their benefits model. One type of employee compensation that’s gaining ground is philanthropy paid time off (PTO).

Admittedly, adding philanthropy PTO isn’t the right move for every business. However, it’s certainly worth exploring if you want to expand employee benefits and differentiate your company from other brands.

What Is Philanthropy PTO?

As the name suggests, philanthropy PTO allows employees to take paid time off to engage in volunteer work or participate in community service projects. Unlike traditional PTO, which covers vacation, sickness, or personal time, this unique type of employee compensation is specifically designed for employees to contribute to causes they care about without sacrificing their pay.

Adding philanthropy PTO to your employee benefits package demonstrates your company’s commitment to social responsibility and community engagement. This perk also helps align your values with individual actions.

Making a Case for Philanthropy PTO

Not sure if giving people time off to contribute to social causes is a good idea? Here are some benefits to consider:

Enhanced Company Reputation

Incorporating philanthropy PTO into your benefits package can significantly boost your company’s reputation. It demonstrates a genuine commitment to giving back to the community, which can enhance your brand image and appeal to customers who prioritize social responsibility.

Today’s consumers care about what your brand stands for, not just what products it sells. Enabling your team to support important causes positions you as an ally to important social issues and differentiates you from your competitors.

Improved Talent Retention

For many employees, especially millennials and Gen Z, the opportunity to work for a company that shares their values is as important as the paycheck. Philanthropy PTO can be a compelling benefit that attracts these individuals who are looking for more than just a job.

Furthermore, employees who feel their work provides meaning are more likely to stay with a company. By tapping into this desire, you can retain more staff and discourage attrition.

Increased Engagement and Satisfaction

Engaging in volunteer work can boost employee morale and job satisfaction. Team members will no longer feel as though they have to sacrifice time off with their loved ones to support the causes they believe in. Instead, they can contribute to missions they’re passionate about on company time.

Ultimately, giving your staff the opportunity to do good in the world can translate to increased engagement and productivity at work. Employees who feel their company supports their philanthropic endeavors are more likely to feel positive about their employer and motivated in their roles.

Team Building

Organizing company-wide volunteer days or team-based community service projects can be a great way to build camaraderie and strengthen team dynamics. Philanthropy PTO offers a unique chance for employees to collaborate outside of their usual work environment.

Getting employees away from the traditional worker-manager structure also promotes vertical collaboration and chemistry building.

Implementing a Philanthropy PTO Program

If a philanthropy PTO program seems like a good fit for your organization, you’ll need to:

Set Clear Policies

Create clear policies regarding how much PTO you will allocate for volunteer activities, what types of events are eligible, and the approval process. Make sure that your policies comply with anti-discrimination laws so you can avoid any civil liability.

Encourage Participation

Once your program is up and running, encourage employees to get more involved. Highlight volunteer opportunities, share success stories, and recognize employees’ contributions to foster a culture of giving back. Leadership involvement is also crucial; when company leaders actively participate in volunteer activities, team members take notice.

Measure the Impact

Finally, assess the impacts of your program on both the community and the organization. Collect feedback from staff and community partners, track participation rates, and make changes to enhance the efficacy of your program.

Need to Revamp Your Benefits Package? We Can Help

At Benefits Advisory Group, we help businesses build competitive benefits packages that attract top talent, improve retention, and promote a stronger workplace culture. If you would like to learn more about our services, contact our team to book a consultation.