Workplace volunteering could benefit UK economy by £33 billion

New analysis estimates employee volunteering could unlock £32.5 billion in productivity gains for the UK economy annually. The majority of firms which adequately engage in volunteering schemes report that their workforce is more motivated, healthier and better engaged in their usual work too.

Corporate social responsibility (CSR) is a form of international private business self-regulation. By undertaking CSR projects, private companies look to make themselves socially accountable to their staff, stakeholders, and the public – contributing to the goals of a philanthropic, activist, or charitable nature by engaging in pro bono programs, community development, raising funds, or administering monetary grants to non-profit organisations for the society or the planet’s benefit.

Since 2010, CSR has also been something the state has increasingly leant on, as it seeks to withdraw from aspects of social care and community support that it has long been invested in. At a time when the UK government is also unfurling fresh austerity plans, ‘Big Society’ talk has re-emerged, with some suggesting private corporations could fill the holes left by the state, with charitable activities and volunteering.

Ahead of Volunteers Week – which kicks off at the start of June – the charity Royal Voluntary Service has released a report, encouraging private enterprises to step up in this way. And, with the support of the Centre for Economics and Business Research (Cebr), the organisation has also explained how the benefits of such work could stretch well beyond simply improving a company’s reputation.

Chris Breen, head of economic insight at Cebr, explained, “Business leaders and employees alike may wonder what’s in it for them when it comes to volunteering. Our research shows the answer is quite a lot. If every employee in a professional or managerial role offered volunteer days actually used them, it would have resulted in a £32.5 billion boost to UK productivity in 2024 alone.”

According to analysis by Cebr, the economic consultancy commissioned to undertake the research, those productivity gains could break down to £5,239 per employee working in professional and managerial occupations – if workplace volunteering days were fully utilised. At a time when staff expect their employers to provide a means to realise ‘purpose’ in their work, a 53% majority of firms who maximised their use of CSR found employees had improved motivation.

Purpose and wellbeing

At the same time, those volunteer leaders said in 52% cases they saw boosted wellbeing and engagement among their staff. Meanwhile, in a labour market where many firms complain of being unable to fill positions or maximise their skill sets, 37% said volunteering boosted the skills of staff, and 33% said it helped to attract fresh hires.

The majority of UK companies seem to be aware of these benefits, because a surge of CSR interest has seen 62% of firms polled by Cebr say they have volunteering programmes of some kind. Of those, a quarter introduced said programmes in the last year alone. A 34% chunk said they recognised volunteering as a means to tackle burnout among staff, while 25% said it could boost performance – and 87% agreed volunteering would help their company purpose and ESG goals.

But some firms are engaging more effectively than others. Firms with underutilised volunteering programmes see a lower boost to their staff – with only 42% seeing improvement in staff motivation, for example. So, what can they learn from the leaders?

According to the researchers, employers offer an average of 2.3 days for volunteering annually, but the study showed more than 140 million hours of gifted time went unused last year. Additionally, not all employees are being given equal access to volunteering opportunities, with just 19% of firms with programmes offering it to all their employees. On average, just half of employees receive the benefit.

Catherine Johnstone, chief executive of the Royal Voluntary Service, commented, “Employee volunteering programmes are fast becoming one of the smartest investments a business can make. As our research shows, those who do it well are seeing the greatest results – from improved staff wellbeing and motivation to increased productivity. If just some of those 140 million lost volunteering hours were used it could be transformational in its effect.”

A marketplace

To help address that, the Royal Voluntary Service has unveiled a new Volunteering Marketplace – a suite of services designed to help businesses build, embed and optimise their volunteering and social impact activities. The offer will include bespoke programme design, measurement and reporting, expert consultancy and digital badges to recognise success.

Clara Govier, managing director at People’s Postcode Lottery, added, “Volunteers are the lifeblood of Britain and are fundamental to so many of the nation’s charities and good causes. Royal Voluntary Service's new digital platform will simplify the matching of volunteers with opportunities. RVS' Volunteering Marketplace will make it easier for companies to find the right opportunities for their teams. I’d like to thank everyone who plays People’s Postcode Lottery for their support in making this possible.”