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Welcome to HR 101. Class is now in session. Today’s discussion is about paid volunteer time-off (VTO).
The history. Wells Fargo claims to be the first big bank to offer its employees paid VTO, introducing the initiative in 1976. It was a relatively novel idea at the time, but one the organization felt would not only benefit the community it served, but its employees.
Since then, other employers have slowly adopted their own VTO policies. In 2002, 19% of employers offered paid VTO, according to SHRM data shared with HR Brew via PR rep Anne Sparaco. By 2023, that number had reached 28%.
Fast-forward. Some employers that currently offer paid VTO include toy company Hasbro, which provides its employees with four hours of paid VTO each month. Apparel retailer Timberland and private-company data provider Crunchbase offer their employees 40 and 32 hours of paid VTO annually, respectively.
VTO can provide employees with professional development opportunities, and provide employers with a way to attract and retain talent, according to HR services firm Sheakley.
Many employees today are mission-driven and want to work for organizations that align with their values and help make positive changes in the world. Indeed, employers that offer employees purpose-driven programs related to volunteering and charitable giving see 52% lower turnover among newer employees, according to a 2022 survey by Benevity.