13 March 2008

Charity and private sectors are magnets to Generation Y

Over 70% of workers value corporate responsibility programs.

Private companies are witnessing a damaging brain drain to the public and charity sectors, according to Worthwhile Work, a new study from workplace communications consultancy CHA.

How do you benefit the world?
According to the survey findings, employers are failing to communicate the beneficial purpose of their organization and the role of individual employees in helping them to achieve that purpose. Almost half of the survey respondents say they hanker after a job that's more worthwhile than the one they have at the moment.

The study’s main findings are:
• In choosing a career, the priorities for employees under 35 are twofold – contributing to society and a job they can do well. For 26-35 year olds a third important ingredient is a job they can be proud of for their own sake. For their younger colleagues salary comes third.
• Over 70% of respondents say that private companies’ efforts on climate change and social responsibility help strengthen their reputation. Top of the corporate responsibility list come local community support followed by reducing impact on climate change. Corporate donations to charity trail a poor third.
• Overall, a third of employees working in the private sector are contemplating a move into the public or charity sectors – half of those intending to do so in the next 5 years.

It also seems that the younger the worker, the more likely they are to consider crossing over, spurred on by what they see as socially or environmentally more valuable work.

A nation of do-gooders
Over 40% of 18-25 year olds who took part in the study (in the UK), say they're considering a move into the "more worthwhile" public or charity sectors, as do 38% of 26 to 35 year olds.

“Today’s employees are strongly motivated by the conviction that their work is valuable and that it contributes to the greater good," says Collette Hill, chief executive of CHA.

"Poor understanding of the private sector's contribution to wider society may explain why for many 'worthwhile work' appears easier to find in the public and charity sectors," she says.

Spread the CSR message
"The private sector is a massive contributor to that greater good but is not getting the message across clearly enough. It needs to win back the high ground, especially among younger workers who are very strongly motivated by environmental and CR concerns,” says Hill.

The CHA study calls on private sector employers to be clearer about profitable business’s wider benefit to society in delivering goods and services as well as in contributing to the exchequer.

What have you done today to make you feel proud?
"It is time for the private sector to communicate its purpose loudly and clearly. Organizations that... have genuine corporate responsibility policies... have a great deal to be proud of," says Hill.

While companies clearly have a lot of work to do in communicating their CSR activities, the ones that do are by no means unique, however. Starbucks coffee chain, which publishes its annual CSR report on its public website, says "We believe in communicating openly and honestly with our stakeholders about our business practices and our social and environmental initiatives."

CHA also cites a few examples of companies that communicate overtly about the positive impact that their goods and services have on society, or about their economic contribution:

• Microsoft: "Connects people to build prosperity"
• E.On: "Develops the energy solutions of the future"
• AstraZeneca: "Saves patients' lives"
• Yahoo!: "Harnesses the global thirst for knowledge"

Communicate the ultimate purpose
There are 2 main factors that employees suggest would make a job in a private company more worthwhile:

1. understanding its ultimate purpose (that a drug company protects our health, that a food business feeds us, that a telephone company keeps us all in touch); and
2. knowing that it does a lot of good work for the community.

Commenting on the report, Dilys Robinson, principal research fellow, Institute for Employment Studies, said: “CHA's research shows that many employees, especially at the younger end of the workforce, want to make a noticeable impact on the big things in society – such as climate change and community improvement. Giving employees the autonomy to get actively involved in worthwhile activities will pay dividends in terms of motivation, enthusiasm, team building, pride and positive employee advocacy.”

The Worthwhile Work online survey was carried out by OnePoll.com, an independent market research company, in January 2008 with a representative sample of 1,538 employees in organizations with 500 or more staff. The split of respondents was: private 43%, public 42%, charity 15%.

Have your say
So, corporate social responsibility is a motivating factor for younger, generation X and Y workers, but what other issues engage and drive them to work more productively? Do you have any advice for successfully getting the message about your CSR activities across to existing and potential employees?

Discuss these issues with your communications peers by joining the Internal Comms Hub members' group on the Communicators' Network.

Find out more:
Melcrum's Engaging Employees in Corporate Responsibility report details how the world's leading companies embed CR in employee decision making.

Other recommendations:
A communicator's guide to Generation Y

PODCAST: Engaging a four-generation workforce

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