Fidelity Charitable study: Amid a tight labor market, 86% of employees say it’s important for an employer’s values to align with their own

Workplace giving programs can play a large role in attracting and retaining employees, particularly for Millennials and Gen Z

BOSTON, January 24, 2023 – Demonstrating a commitment to good corporate citizenship could be key to attracting and retaining top talent, according to a new study by Fidelity Charitable, an independent public charity and the nation’s largest grantmaker. In an ongoing tight labor market, with unemployment at a low 3.5%, 86% of employees say it’s important to work for a company whose values align with their own. And 81% want to work for a company that has socially responsible business practices.

“Employees are seeking more than a paycheck—they want to feel good about where that paycheck is coming from,” Fidelity Charitable President Jacob Pruitt said. “Investing in thoughtfully designed programs that connect employees to their community, their coworkers, and their company is one way for employers to retain talent in a tight market—and appeal to job seekers.”

Nearly 48 million people in the U.S. quit their jobs in 2021, and workers are still on the move. Half of all employees—and 6 in 10 Millennial and Gen Z workers—say they’re considering changing employers in the next year. Among those considering a switch, the desire for more meaningful work is in the top three reasons they are seeking a new job. 

Providing employees with opportunities to give back is quickly becoming nonnegotiable—especially for younger workers

One way companies are connecting with employees and applicants is through workplace giving programs—defined as any benefit that supports and encourages employees to volunteer or make donations to charities. Employees who have a workplace giving program are more likely to say that their company’s values align with their personal values.

In addition to making employees feel more connected to their employer, workplace giving programs can have bearing on employee retention, particularly for younger employees. Thirty-five percent of Millennial and Gen Z workers say their workplace giving programs factor into staying at their current job, and half of these younger employees wish their companies were doing even more when it comes to workplace giving.

Robust, authentic programs hold the most value

There are many types of programs that fall under the umbrella of workplace giving—group volunteering, company matches of employee donations, holiday giving drives, and more. Of employees with access to a workplace giving program, 63% say the program helps them connect with their coworkers, and 60% say that being a part of the program gives them a greater sense of purpose at work. However, 37% of workers with a giving program—and nearly half of Millennials with a giving program—wish they had more of a say in how it’s run. 

Maeve Miccio, head of Fidelity Philanthropic Consulting, said that many companies are taking this message to heart and taking steps in 2023 to examine their approach to corporate citizenship. Fidelity Philanthropic Consulting is a division of Fidelity Investments that provides strategic guidance and customized solutions to individuals and institutions in areas related to philanthropic strategy, planning, and administrative support. "The past few years have been eye opening for both employees and employers,” Miccio said. “Many companies have recently overhauled their approaches to workplace giving. This trend will continue through 2023 as they pursue engaged employees and customers.”

The study was conducted in September and October 2022 and examined workplace giving programs and charitable giving among 1,579 Americans employed at private sector companies with five or more employees. Within the sample, 25% of respondents indicated that their current employer is a small company (defined as having 5-49 employees), 21% a mid-size company (defined as having 50-499 employees), 23% a large company (defined as having 500-4,999 employees), and 27% a very large company (defined as 5,000+ employees).  Four percent of respondents indicated that they did not know the size of their employer.

For more findings from the research, view the full report.

About Fidelity Charitable

Fidelity Charitable is an independent public charity that has helped donors support more than 357,000 nonprofit organizations with over $61 billion in grants. Established in 1991, Fidelity Charitable launched the first national donor-advised fund program. The mission of the organization is to grow the American tradition of philanthropy by providing programs that make charitable giving accessible, simple, and effective. For more information about Fidelity Charitable, visit https://www.fidelitycharitable.org.