The Well-Being Effect: How Volunteering Could Reshape Work Culture

By Manuela Moscoso

As the link between meaning, purpose and productivity gains recognition, leading organizations are finding new ways to align business goals with social impact. One area gaining attention is the potential benefit of employee volunteering and corporate social responsibility (CSR). Research increasingly shows that CSR initiatives can boost employees’ psychological health, strengthen their sense of purpose, and improve retention and commitment. 

In a competitive job market where values and meaning matter more than ever, particularly among Gen Z candidates, these findings are not only relevant to business leaders—they also offer valuable insights for researchers exploring how psychology, labor and organizational behavior intersect.

Recent research has begun to illuminate the mechanisms through which volunteering activities benefit employees on both psychological and physiological levels. Participation in CSR initiatives appears to generate meaning, foster belonging and reduce stress, all of which contribute to what positive psychology has long described as holistic well-being. In an era of increasing occupational stress and job dissatisfaction, this link may represent an underutilized avenue for both preventative care and strategic human capital development.

Can volunteering improve employee well-being?

A study that directly examined the relationship between volunteering and employee well-being was led by Portocarrero and Burbano in 2024. They conducted a randomized field experiment among 221 new employees at a Latin American financial institution. Participants who engaged in a one-day CSR activity—mentoring students as part of the company’s social impact program—demonstrated a 50% reduction in turnover after a year, compared to a control group that underwent a standard onboarding experience. While the activity ostensibly served a philanthropic purpose, its deeper function appeared to be psychological: reinforcing a sense of purpose and belonging during the important early phase of employment.

Notably, the study also found that male employees reported significantly lower stress levels several weeks after participating in the CSR initiative—approximately 30% less than their peers in the control group. These findings offer empirical weight to the idea that volunteering may serve as an emotional shield, reducing the psychological burden of occupational demands. This is particularly noteworthy given the global rise in stress-related illnesses and burnout across sectors—2025 research indicates that two-thirds of American employees suffer from burnout (Karmali).

Gratitude, meaning and psychological flourishing

These findings are echoed and deepened by Portocarrero, Gonzalez and Ekema-Agbaw’s (2020) meta-analytic review of dispositional gratitude and its link to psychological well-being. Comparing studies including over 100,000 participants, the authors conclude that gratitude is one of the most robust dispositional predictors of subjective and psychological well-being. Crucially, gratitude provokes positive emotional experiences, builds social capital and reduces negative feelings such as anxiety and depression.

The implications for CSR initiatives are profound. Volunteering often elicits gratitude—not only from the beneficiaries of the act, but also from the volunteers themselves, who derive meaning from their engagement and reflect on their own circumstances with a renewed sense of perspective. This process enhances what the authors term "positive well-being"—a construct that combines elements of subjective and psychological well-being (Portocarrero et al., 2020).

Moreover, the direct, interpersonal nature of many volunteering experiences can be critical in shaping positive responses by reinforcing the volunteer's personal role in generating impactful change. When CSR is designed authentically and aligns with employees’ values—as it did in the banking study, where mentoring aligned with employees' strong appreciation for education—its psychological benefits are magnified (Portocarrero, 2025).

Organizational implications: from strategy to culture

Beyond individual outcomes, these findings suggest a changing paradigm in how organizations approach CSR—from an auxiliary function, or even as a “soft” marketing ploy, to a central strategic pillar. When properly implemented, CSR becomes a mechanism for strengthening organizational justice. It also enhances employees’ perception of their employers’ benevolence and cultivates loyalty. As the LSE study notes, new employees are particularly impressionable during onboarding, and CSR participation at this stage can anchor their emerging professional identities in shared values and purpose (Portocarrero & Burbano, 2024).

Another element of these findings that’s worth noting is their gendered dimension. The 2024 study found that the benefit of the volunteering activity on employee retention was much stronger in men, at 65%, than women, at 25% (Portocarrero & Burbano, 2024). While women traditionally place higher value on communal experiences, men in the study seemed to undergo a more reflective process as a consequence of their CSR participation. This suggests that CSR may play a different role—but equally valuable, psychologically—across demographic groups, potentially reducing gender disparities in engagement and emotional connection to the workplace (Portocarrero, 2025).

The importance of purpose

When employees feel their work has a positive impact on society, they’re more likely to feel inspired and motivated in their roles. One participant in the 2024 study explained that the CSR onboarding activity helped him “internalize the bank’s purpose of transforming dreams into reality” (Portocarrero, 2025). Purpose-driven organizations tend to enjoy higher employee satisfaction, deeper engagement and lower turnover—benefits that contribute directly to stronger performance and long-term sustainability (Southwell). 

As we mentioned, a clear sense of purpose is emerging among younger generations in particular as a critical driver of employee engagement. In a 2025 Deloitte report, nearly 90% of younger employees said that having a sense of purpose at work is important for their job satisfaction and well-being. Moreover, there’s a strong link between personal values and workplace satisfaction, with a nearly 60% correlation among millennials between their sense of happiness and their alignment with their company’s values. In this context, it’s no surprise that a volunteering experience can improve employee morale.

Conclusion

The integration of volunteering into corporate life isn’t simply a matter of ethics or reputation—it’s demonstrably a matter of health and satisfaction. As evidence mounts, it becomes increasingly clear that CSR initiatives can serve as potent interventions for promoting psychological well-being, enhancing organizational commitment and cultivating a more humane and sustainable corporate culture.

For us here at IE University, this intersection of altruism and well-being is not just a compelling subject for research—it’s a call to businesses, employees and students alike to find purpose and well-being in their work.

References

Deloitte (2025). 2025 Gen Z and Millennial Survey: Growth and the pursuit of money, meaning, and well-being. https://www.deloitte.com/content/dam/assets-shared/docs/campaigns/2025/2025-genz-millennial-survey.pdf

Karmali, M. (2025). Over half of American employees have used AI to take workplace training, according to new data. Moodle. https://moodle.com/us/news/ai-for-workplace-training-in-america/ 

Portocarrero, F. F. & Burbano, V.C. (2024). The Effects of a Short-Term Corporate Social Impact Activity on Employee Turnover: Field Experimental Evidence. Management Science 70(9):5871-5895. https://doi.org/10.1287/mnsc.2022.01517  

Portocarrero, F. F., Gonzalez, K., & Ekema-Agbaw, M. (2020). A meta-analytic review of the relationship between dispositional gratitude and well-being. Personality and Individual Differences, 164, 110101. https://doi.org/10.1016/j.paid.2020.110101

Portocarrero, F. F. (2025, April 7). How CSR activities reduce turnover—and why men stand to benefit more than women. Forbes. https://www.forbes.com/sites/londonschoolofeconomics/2025/04/07/how-csr-activities-reduce-turnoverand-why-men-stand-to-benefit-more-than-women/ 

Southwell, N. (n.d.) Purpose-Driven Organizations More Likely to Have Engaged, Committed Employees. The Cigna Group Newsroom. https://newsroom.thecignagroup.com/purpose-driven-organizations-more-likely-to-have-engaged-committed-employees