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Why Every Company Wants Purpose-Driven Employees

BrightPlan Team

BlackRock CEO Larry Fink stirred up conversations in 2019 when his annual letter to chief executives strongly urged businesses to make a positive contribution to society. Coming from the head of the world’s largest asset manager, leaders took notice. In response, many leading companies committed to incorporate purpose into the way they do business. Serving stakeholders beyond just shareholders is not only good for society―it’s necessary for long-term success. A purpose-driven company also attracts one of the most valuable assets―purpose-driven employees.

Who are purpose-driven employees and what makes them so valuable? 

Purpose-driven employees display high levels of commitment to a purpose that aligns with their company’s purpose. They are primarily motivated by that purpose and feel a genuine connection to their work. They are still motivated by monetary incentives―they are employees, not volunteers after all―but money is not the number one motivating factor for their work.  

Here are three attributes of purpose-driven employees and some ideas on how to develop a sense of purpose among your employees. 

1. Purpose-driven employees are more loyal and engaged. 

Purpose-driven employees have a 40% higher engagement rate and a 70% higher job satisfaction rate than their non-engaged colleagues. They are also three times more likely to stay at the company than employees who don’t. 

These highly engaged employees are more likely to be motivated to solve whatever challenges the company faces, leading to greater organizational resilience. 63% of executives recently surveyed by Ernst & Young found that purpose beyond monetary gain enabled their company to address market disruptions more effectively due to a highly motivated and innovative workforce. 

2. Purpose-driven employees are more productive.

Taking pride in and feeling a deep connection to one’s work does more than just boost job satisfaction and engagement for employees―it also boosts productivity. According to a survey published in HBR, purpose-driven employees work one additional hour per week and take two fewer days of paid leave annually. The same study estimates that the productivity boost from having purpose-driven employees is valued at more than $9,000 per employee per year for the organization. 

3. Purpose-driven employees are rarebut many are looking to be one. 

The third attribute of purpose-driven employees is how few employees self-identify as one. The average American employee surveyed by the organizational consulting firm Better Up says that their work is half as meaningful as it could be. The same survey also found that 9 out of 10 employees are willing to trade money for more meaning in their work―precisely 23% of their salary. Employees are willing to trade money for more meaningful work. 

Attracting and fostering purpose-driven employees 

The value of purpose-driven employees is clear. But how can employers attract these employees and increase the sense of purpose among their existing workforce? 

The first thing a company should do is invest in its company culture. Companies with a strong sense of purpose are more likely to attract employees whose purpose aligns with that mission. The company needs to also have a culture of social support. Employees cite a collective sense of shared purpose as an important way work feels meaningful for them, and highlight in contrast that a toxic culture is a barrier to meaningful work.

Creating a company culture that is centered around purpose can have clear advantages for both employers and employees. Purpose-driven companies tend to attract purpose-driven employees. These employees are more engaged, loyal and productive. They are also happier at work and more satisfied with their jobs. With many employees willing to sacrifice compensation for meaning, it’s time for employers to take notice.

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