Professional Documents
Culture Documents
CSR – an effective means to attract, engage and
retain talent
The most valuable asset of an organization is its human capital. To have an edge over
competition as well as to achieve growth, organizations are focusing on attracting and
retaining top quality talent. There are various steps taken by companies to attract skilled
employees as well as retain star performers. Corporate Social Responsibility is one such tool.
CSR not only helps increase brand loyalty among customers and raise credibility among
shareholders but also encourages teamwork among employees.
Employees wish to work for companies that they can be proud of. A good remuneration is
not the only factor that motivates an employee to stick to an organization. There are various
other factors such as a safe and healthy work environment, corporate image and a socially
responsible employer which can attract as well as retain employees.
Investing back into the community through CSR practices can turn into a recruiting tool for
companies. Research indicates that organizations with rigorous CSR standards manage to
strengthen their employer brand. Thus they attract employees easily and can retain
employees, reducing employee turnover rates and recruitment costs.
A survey carried out by the Times Foundation and TNS India revealed that 90% of all Indian
companies surveyed were involved in CSR initiatives. Compared to the public and
government sectors, the private sector was more actively involved in CSR activities the study
indicated. Some of the main areas that these companies were involved in included
education, health, environment and women’s empowerment.
CSR to attract the best talent
According to a survey conducted by Price Waterhouse Coopers in 2004, the top ten
companies that best demonstrate their commitment to CSR included Microsoft, BP, General
Electric, Toyota, IBM, Royal Dutch/ Shell, Johnson and Johnson, Mc Donalds and Walmart.
Five of these companies were also found to be among the top ten in the World’s most
respected companies.
This is a clear indication that good CSR practices can help build a strong employer brand.
An organization can brand itself as a great place to work via its Corporate Social
Responsibility by:
• Engaging employees in developing the organization’s CSR strategy, have CSR
Councils, Committees, subgroups, etc.
• Telling one good story of one example of how your employees have harnessed the
power of your business to make the world a better place
• By letting the employees act as brand ambassadors so that they can spread the word
as to why the company is a great place to work
CSR to engage employees:
Towers Perrin, a leading Human Capital and Risk Management company conducted a Global
Workforce Study in July 2008. Nearly 90,000 employees from 18 countries were surveyed on
what drives attraction, retention and engagement of talent for organizations. The findings of
this survey revealed that CSR extends to the bottom line i.e CSR is linked to the performance
of the employees. According to this study CSR was found to be the third most important
driver of employee engagement. Higher employee engagement translates into better
business performances.
To engage employees via their CSR initiatives companies can:
• Gather inputs from the employees while designing the CSR programs and ask them
as to how they can contribute to these programs. The organization can conduct a
survey to determine the focus areas of the company’s volunteer efforts
• Collect feedback on the employees once the CSR program is launched
• Involve not only junior employees but employees at all levels in CSR activities
• Reward employees who complete a certain number of hours of volunteering
• Encourage employees to develop new skills to help in the CSR initiatives which can
later be used in business
CSR to retain star performers:
Retaining high performers is crucial to the growth of a company. In many cases these star
performers are the first to be poached by competitors. Research indicates that CSR has
proved to be a motivating factor for employees to stick to their organizations.
A Gallup report published in 2003 shows the link between employee engagement and
performance. The report mentions that a high turnover and low retention rates can be
observed in companies with low employee engagement. Engagement is high in firms that
communicate effectively with their employees, involve them in decision‐making, are ethical
and actively pursue social policies. This report indicates that having strong CSR policies can
help organizations engage and therefore retain talent, and that talent can cost a company
less in direct pay terms.
About Clark and Kent
Clark and Kent Management Consulting Pvt Ltd helps organizations fulfill their business goals
by offering unique and effective business solutions – all centered on organizational
development and excellence. We are the only Consulting firm in India that offers these
services specifically to Small & Medium Enterprises (SMEs). We are totally committed to the
development of this sector.
Some of the services that my company offers include:
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