When I heard that Amazon has pledges to go carbon-neutral by 2040, my assumption was that this was mostly to increase customer appeal. Perhaps, enough customers had voted with their dollar to encourage a large company to announce their initiatives. Or maybe a little PR to distract from the recent findings that Amazon had products on its marketplace that were unsafe or banned.
Instead, I found a study that compared the effects of corporate social responsibility and increase of wage on the number of applicants. The study concludes that a business that presents itself as a “do-gooder” has the same effect as increasing wages by 36%. In addition, the study found that those recruited with the responsibility messaging were more productive and less error-prone. I would like to point out here that social responsibility is not limited to carbon emissions or environmentally friendly initiatives; so you can maintain an open-mind about what social responsibility looks like for your business. Though, it should be noted that political opinions can be a shot in the dark in regard to how the public will react.
Now, while you may be thinking that you will automatically save on a decreased wage, it is suggested to use the social responsibility as a way to maximize your investment in a new hire – so don’t rush to devalue an employee by a third. Therefore, I suggest you don’t plan your budget for corporate social responsibility on paying employees less. There are other ways to find money in your business.
Silverback can review healthcare, telecom, or your day-to-day purchases in office supplies to find you savings, which you can then invest in the cause of your choice. Many times, our clients stay with the same vendor, but if a vendor change is chosen by your company, we work hard to assist in a smooth transition; all the while not costing your company a dime until you start seeing the savings.
So, if you are interested in finding money so you can invest in your company’s appeal to new recruits, please reach out to us to start the conversation.