Why Purpose-Driven Businesses Retain Their Staff
Jan 26, 2021 12:13:22 PM / by Sustainably Run
Across the world, millennials are making up the biggest chunk of the workforce. However, statistics show that they are not happy in the workplace. According to a study that was carried out Deloitte, 49 per cent of millennials stated they would quit their current job in the next couple of years if they could. A lack of purpose at work is one of the main reasons for this. The study concluded that 63 percent of millennials don’t think that their business leaders make a positive impact on the world. It’s time for this to change if companies want to hold onto their best talent.
Employees care more about purpose than ever before
The statistics don’t lie, and they show that purpose is becoming vital to attract and retain employees. A report that has been published by not-for-profit think tank Tomorrow’s Company and Danone UK, has revealed that over 25 per cent of British managers would take a cut in their salary for a job that is purpose-led. Moreover, over half would leave their role if their business’ purpose and values did not align with their own, and one-third would leave their current role if the business’ overall purpose was not clear. This shows that purposeful leadership is vital to commercial resilience and staff engagement. It is no longer a luxury CSR exercise.
So, what exactly is company purpose?
It’s all well and good saying that your business has an environmental purpose or a social purpose. Anyone can say this. Having a genuine purpose is a different matter entirely.
A company purpose is a reason why your business exists, aside from to make a profit. It is what your business stands for and where it is going. For example, your company may exist because you want to help people to lead more balanced lives, you could want to have a positive impact on the mental health of our nation, or you may be interested in creating a more eco-friendly world. These are all examples of company purposes. Your purpose needs to be about more than monetary gain.
As mentioned, it also needs to be authentic. A purpose-driven business is one that acts with their purpose in mind whenever they take an action. Every business decision needs to be made with your purpose at the forefront. Simply putting together a purpose statement and then forgetting about it is not enough. Your customers and your employees will hold you accountable, and this will cause retention rates to drop because your staff members will know that you are not genuine in your plight.
How do purpose-driven companies boost employee engagement?
The reason why purpose-driven companies are able to hold onto their talent is that employees feel more engaged. When someone is engaged, their loyalty levels and sense of satisfaction increases as well. So, how does having a purpose create this engagement? Let’s take a look at the elements here:
CSR initiatives help employees to feel loyal to your cause and business
Businesses that look to improve the environment, society, and economy have shown that they have improved levels of employee engagement. Businesses that engage in CSR (corporate social responsibility) programs realise that by prioritising social responsibility alongside its profits they can boost reputation, retention, and engagement amongst their workforce. As mentioned, CSR can take a number of different forms, from volunteering, to philanthropy work, charity work, and lowering carbon footprint.
By making a difference in the world and the community you are placed in, you cause your employees to be engaged because they know that the work they are doing is making a difference. They do not feel like they are working every hour under the sun to simply line your pockets. They know that their work is making a difference to the wider community.
As a consequence, you will be able to hold onto your best talent for longer because they will not only be committed to your business but they will be committed to your cause as well. Parting ways with a business that has a purpose and is committed to the greater good is much more difficult than parting ways with a company that only cares about profit and making money.
A lot of companies invest extensively in their workforce in the form of professional development. These businesses aid their employees in gaining credentials and honing their skills, helping them to advance their careers. A lot of companies worry about offering professional development because they feel like this will hurt their profits and they are worried that their talent will simply leave them. In practice, though, professional development has the opposite impact. It makes employees feel connected because they know that their leaders are invested in their future.
Motivating your team to work with a purpose
When your staff members know that the work they are doing makes a difference, their resilience and determination levels tend to increase as a consequence. Meaningful work is a massive motivate that helps people to tackle challenges and problems in the workplace with purpose and passion.
Having a purpose-driven workplace matters when it comes to sustainable teamwork and business success. Not only should you make sure that employees are aware of your company’s purpose and how their work influences this, but you can help them to find their own sense of purpose as well. You can do this by helping them to understand what they are good at, what they care about, and how they relate to others.
Ensure your business has a social impact to boost employee retention
So there you have it: an insight into purpose-driven businesses and how this can help to drive your staff retention levels up. Having a genuine purpose can help to give your business a competitive advantage by driving profit levels, increasing consumer engagement, and boosting employee loyalty.