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The Hidden Culture Benefits of Volunteer Time Off

The Hidden Culture Benefits of Volunteer Time Off

Employees at organizations offering volunteer time off (VTO) are 1.2x as likely to stay, increasing to 5.3x for those who actively use it. Currently, only 36% report having VTO policies, with 16% unsure if they exist. Organizational giving shows similar effects: 68% of employees say their company gives back, and these employees are 1.2x as likely to stay. VTO usage correlates with higher work and community embeddedness, suggesting volunteer programs create deeper organizational ties.

As organizations look for ways to strengthen retention and reinforce connection, one area may be overlooked: giving back. In May 2025, the Center for Workforce Transformation surveyed 3,075 U.S. employees to explore the link between volunteer time off (VTO), community involvement, and workforce stability.

The results are clear. Employees at organizations that offer VTO are more likely to report an intent to stay. That likelihood increases notably when employees actually use the time provided. These programs do more than support social good. They help build a more embedded, engaged workforce.

This blog highlights how volunteer time off and organizational giving can create a sense of purpose, foster pride, and reduce turnover. For leaders looking to retain top talent and reinforce their company’s values, investing in social impact may be part of the solution.

Why Is Volunteer Time Off More Than Just a Perk?

It might not seem obvious that a policy like VTO would influence retention. But the data tells a clear story:

  • Employees at organizations that offer VTO are 1.2x as likely to report intent to stay.
  • Those who actively use their VTO are 5.3x as likely to report intent to stay compared to those who have the option but don’t use it.

Why does usage matter so much? It comes down to connection. Our research explored the concept of embeddedness — how tied employees feel to their job, their workplace, and their community. Employees who use VTO report higher levels of both work and community embeddedness. When employees feel their work is tied to something larger than themselves, they become more connected and committed.

How Does Volunteering Fuel Growth, Belonging, and Purpose?

Beyond connection, VTO helps employees build and transfer skills. Volunteering often includes opportunities for:

  • Leadership and team collaboration
  • Communication across new audiences
  • Problem-solving and adaptability in unfamiliar contexts

These experiences enrich employees’ capabilities, boosting both confidence and contribution in their day-to-day roles.

Perhaps most importantly, volunteering reinforces a sense of purpose. When organizations provide space for employees to act on their values, they strengthen the bonds between individual identity and organizational mission. This doesn’t just benefit culture, it actively improves performance, engagement, and retention.

How Does Organizational Giving Build Pride and Loyalty?

Giving back isn’t only powerful at the individual level. When employees observe that their organization as a whole is committed to giving back through charitable efforts, community partnerships, or other social initiatives, they are 1.2x as likely to report intent to stay. They’re also far less likely to express disagreement with staying long-term.

Conversely, employees at organizations that do not engage in giving back are 1.5x as likely to say they don’t intend to stay.

Despite the potential, a meaningful portion of the workforce reports that their organizations aren’t currently engaged in giving efforts. While 68% of employees say their organization gives back to the community in some form, nearly one-third (32%) do not. This represents a significant opportunity for many organizations to strengthen connection and retention through visible, values-driven action.

At the heart of this connection is pride. Employees who see their organization doing good in the world are more likely to feel proud to be part of it. And pride matters: employees who report feeling proud to work at their organization are 2.5x more likely to report intent to stay.

In other words, values matter. When organizations live their values out loud, employees feel it. Over time, this can build lasting commitment.

How Does Giving Back Build Stronger Teams and a Stronger Culture?

VTO and social impact programs do more than meet corporate social responsibility goals. They cultivate trust, deepen purpose, and create a sense of pride that strengthens employee commitment. Whether through structured time off or broader community efforts, when organizations empower people to give back, they help employees feel more connected to their work, their teams, and the mission at large.

To move from intention to impact, organizations should:

  • Audit current offerings. Do employees know about existing VTO policies or giving programs? Awareness gaps can limit effectiveness.

  • Encourage participation. Highlight stories of impact, share opportunities, and actively support employees in using VTO time.

  • Lead by example. Senior leaders who participate in giving efforts set a visible tone for a purpose-driven culture.

  • Measure impact. Track participation rates, gather feedback, and connect these programs to key outcomes like retention, engagement, and pride.

Making social impact a strategic focus doesn’t just benefit communities, it helps build the kind of culture people want to stay part of.

Ready to strengthen your organization's culture through strategic social impact? Perceptyx can help you measure the effectiveness of your giving programs and connect them to critical outcomes like retention and engagement. Schedule a demo with our team to learn how the Perceptyx platform can help you build a more purpose-driven, committed workforce. For more insights on employee experience and retention strategies, subscribe to our blog.

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