Carewashing Not Fooling Employees or Customers

Organizations are constantly looking for ways to attract and keep good employees. They are also looking for ways to create a more positive image for themselves. While some organizations have been successful at finding ways to better take care for their employees, others say they are helping employees, but fail to follow through on their promises. "Carewashing" is the term used to refer to companies' superficial adoption of compassionate initiatives designed to attract and keep employees but often these initiatives do not meet the needs of employees. Companies also use carewashing as a promotional tool to attempt to improve their image to external stakeholders. The superficial nature of carewashing is exposed when employees complain or experience high levels of stress, inadequate support, and unresolved workplace issues. Mental health days, wellness programs, and flexible working policies are cited as programs that do appeal to employees. Addressing employee issues requires employing these practices into the company's core values and daily operations. The effort by companies trying to attract and keep employees has been driven by new and different demands from workers, especially younger employees. Some of the things employees today want is recognition for their efforts, a better balance between their professional and family life, and work that has meaning. Employee stress and burnout levels have increased since the pandemic. A recent Gallup study shows that the number of workers who believe their employers care about them has dropped from 49% in 2020 to 21% in 2024. Employees indicate working for organizations with a culture that promotes improvements in their well-being is more important than higher compensation. Studies suggest that employees and customers see through these carewashing efforts. Employees who identify what their employers are doing as carewashing are disgruntled and often leave the company. These efforts erode employees' trust in the organization. Some organizations respond to higher levels of turnover by implementing employee team-building activities or any number of carewashing techniques according to Vincent Palombo, Associate Professor of Management at Tiffin University. "But if your organizational culture is poor, then any of these initiatives will not yield a reduction of turnover; in fact, it may have the opposite effect as employees are quick to recognize a cover up of cultural issues." According to a recent study, more than 80% of the world's workers are unhappy with their jobs. Companies are trying all kinds of new programs to reduce this number. But amenities like gym memberships, aromatherapy rooms and mindfulness exercises do not necessarily keep employees happy. Managers need to find ways to respond to the deeper aspirations of employees described above. Even Pope Francis is a critic of carewashing. Francis harshly criticized the "ugly" and widespread branding strategy of "carewashing," in which "entrepreneurs or legislators, instead of investing in safety, prefer to wash their consciences with some charitable work." Some have called for the government to regulate carewashing. The problem with these types of efforts is that it is very difficult to create an objective definition of these constructs, much less try to enforce regulations if they were written. To prevent carewashing, organizations need to create cultures based on resilience, trust, empathy, psychological safety and integrity. They need to align their commitments with their capabilities so they do not disappoint their employees. "Some of the historical theories remain accurate. For instance, Herzberg's Motivation-Hygiene theory in the 1960's was on point. Employees are motivated by the work, responsibility or advancement. The other things such as company perks and work conditions, for example, are expected, and could actually serve to demotivate" Palombo added. Perry Haan is Professor of Marketing at Tiffin University. He can be reached at haanpc@tiffin.edu.