Companies and organisations are understandably busy with cutting costs and finding new sources of revenue during the pandemic. One thing they should not neglect is employees’ perception of the company. As the saying goes, don’t throw the baby out with the bathwater. Good employees are key to turning the tide. Employee turnover should not be something that firms look at only in peaceful times.
The topic of corporate social responsibility (CSR) has been much discussed. Recent research found that employee perceptions of their firm’s CSR activities are related to the employees’ emotion, attitude and behaviour. A series of studies that I did with colleagues from the University of Hong Kong and George Washington University in the United States found that when employees perceive their company’s CSR efforts more highly, they feel more organisational pride (emotions), are more attached to the company (attitudes) and show a lower turnover rate (behaviour). This is true for both managers and non-managers.
In fact, employees’ perceptions of the company’s CSR can be a novel early indicator of employee turnover. Companies would do well to pay more attention to its social performance as there is now a tangible effect. In the United States, many brands took to social media to express their stand for the death of George Floyd, an unarmed black man. Some Facebook employees “walked out virtually” to protest the company’s handling of US President Donald Trump’s Facebook post that relates to the subsequent protests. What companies now do, and don’t, for the environmental, social and governance aspects are much scrutinised.
This is especially true for millennials. The Deloitte Global Millennial Survey 2019 with over 13,400 millennials showed that millennials view businesses less favourably compared to previous years. 76 percent think that businesses care about their own agendas but not so much for the wider society. It is not just enough for companies to carry out CSR. They need to care about how their employees view their CSR efforts too. When the company’s initiatives do not inspire employees or managers, it is likely that these do not appeal to other stakeholders as well. Companies can then review the type of CSR activities and decide on those that most resonate with employees.
It may be tough times for companies now with the pandemic and an ever-changing geopolitical landscape. However, whether the times are good or bad, businesses have a part in making the society and world a better place. If not now, then when?