15 April 2010
Corporate volunteering in education offers significant
financial benefits for business, says City of London
At an event hosted by Nomura, the City of London Corporation
today released a report detailing the skills and competencies
developed by employees involved in corporate volunteering schemes
as well as the financial value accrued by businesses running such
schemes.
Commissioned by the City of London Corporation and produced by
Corporate Citizenship, the report – ‘Volunteering: the Business
Case’ – tracks the learning and development of 546 employees from
16 major City firms volunteering in schools and colleges across the
UK.
Speaking alongside the Lord Mayor of the City of London, Nick
Anstee, at the launch event was the report author and director of
Corporate Citizenship, Andrew Wilson; non–executive Director of
Nomura, Kieran Poynter; Director of the Education and Employers
Taskforce, Nick Chambers and Director of Research and Policy at the
Chartered Institute of Management, Petra Wilson.
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
with their local organisations and when they encourage their
employees to devote time and energy to volunteering. This can
provide 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.”
The Chairman of the Policy and Resources Committee at the City
of London Corporation, Stuart Fraser, added:
“In the midst of the longest and deepest recession since the
war, companies may begin to question the value of committing to
what, at first glance, can appear to be costly and time consuming
volunteering projects in their local communities.
“The City of London Corporation commissioned this report to show
the importance of maintaining such commitments.
“Relating specifically to the education sector, but with
findings applicable across a whole range of CR programmes, this
report provides quantifiable evidence that well-run volunteering
programmes provide tangible benefits for firms in terms of the
skills and competencies developed by their employees and that they
offer a viable, cost effective alternative to more traditional
training programmes.
“In light of these findings, it is apparent that firms should
view community involvement not as a corporate add-on but as a
corporate necessity, particularly in the present economic
climate.”
The report found that the majority of respondents felt they had
developed skills and competencies across a broad range of business
relevant areas as a direct result of their voluntary work. This
evidence was corroborated by the overwhelming majority of line
managers who confirmed that staff who volunteered had acquired
useful skills from their experiences.
As an alternative to more traditional training methods, the
report found that the full annual cost of supporting each volunteer
involved in an education based activity was £381 per annum. The
companies taking part in the research disclosed that they typically
spend at least £400 per person per annum developing similar skills
and competencies through other training programmes.
--ENDS--
Additional comments
Bob Wigley, Chairman of Yell Group plc and the Education and
Employers Taskforce, commented:
"This is a first class report and it is going to be of great
influence.
“We all know that employees who volunteer can make a huge
difference to the lives of young people. Employers realise that
their people derive a great deal of personal satisfaction and
develop their own skills through volunteering, but until now no one
has undertaken a detailed study to quantify these benefits and to
consider the potential cost savings of skills development through
volunteering as opposed to the more traditional training
courses.
“As a result of this report, which will demonstrate the business
benefits to employers and their employees of volunteering, I hope
that more employers will encourage their people to volunteer to
help provide young people with the inspiration, motivation,
knowledge, skills and opportunities they need to help them
achieve their potential."
Andrew Wilson, Director of Corporate Citizenship
commented:
The research found that employee volunteers were 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 the learning process experienced by
the volunteers 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 perhaps
have a very different world view from their own. Respondents 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, 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.
Kieran Poynter, non-executive director at Nomura, commented:
“Nomura is committed to supporting its local community
partners through volunteer schemes and we recognise the benefits
these activities bring to our business. Nomura’s volunteer
programmes have significantly contributed to the development of our
people, with over 1100 employees currently involved. We are
delighted to participate in this research and look forward to
working with the City of London Corporation in the future.”
Ruth Spellman, chief executive of the Chartered Management
Institute commented:
“The benefits of volunteering, both for employers and employees,
are enormous. Particularly when training budgets are tight,
volunteering is a cost effective alternative that pays dividends
for staff and organisations alike. With this in mind, CMI has
always actively encouraged UK managers to consider volunteering as
a way to boost and develop essential skills.
“We know that there is a profound skills gap at management level
within UK plc and unless action is taken, this has the potential to
undermine the competitive future of UK plc. In part this is the
result of too many people entering management roles without the
necessary practical experience. By increasing the opportunities for
people to get hands-on experience and bring their newly acquired
skills back into the workplace, organisations will be much better
equipped to tackle the gap.”
Kate Cavelle, Director of Corporate Responsibility at Deutsche
Bank, commented:
“Deutsche Bank is committed to utilising both its financial and
human resources to make a positive impact to the communities in
which we live and work. We were particularly keen to participate in
this research to enable us to fully understand the benefits that
employee volunteering brings to the bank as well as the
community."
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.”
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.'’
Notes to editors
Download 'Volunteering - the business case' (655kb)
The 16 firms that participated in the research were as follows:
Aviva
Financial Services Authority
Bank of America Merrill Lynch
Freshfields Bruckhaus Deringer
BDO LLP
HSBC
BNY Mellon
Investec
CMS Cameron McKenna
Nomura
Credit Suisse
Rothschild
Deutsche Bank
Santander
Ernst & Young
Société Générale
About the City of London Corporation
The City of London Corporation is a uniquely diverse organisation.
It supports and promotes the City as the world leader in
international finance and business services and provides local
services and policing for those working in, living in and visiting
the Square Mile. It also provides valued services to London and the
nation. These include the Barbican Centre and the Guildhall School
of Music & Drama; the Guildhall Library and Art Gallery and
London Metropolitan Archive; a range of education provision
(including three City Academies); five Thames bridges (including
Tower Bridge and the Millennium Bridge); the Central Criminal Court
at Old Bailey; over 10,000 acres of open spaces (including
Hampstead Heath and Epping Forest), and three wholesale food
markets. It is also London’s Port Health Authority and runs the
Animal Reception Centre at Heathrow. It works in partnership with
neighbouring boroughs on the regeneration of surrounding areas and
the City Bridge Trust, which it oversees, donates more than £15m to
charity annually.
Press contact
James Abbott
Tel: 020 7332 1754
Mob: 07831 543188
Email:
james.abbott@cityoflondon.gov.uk