Trying to understand what your employees care about, how they find satisfaction in their jobs and what gets them excited to work for you can be a daunting task for most brands. Throw purpose into the mix, and it’s a whole different ball game. Social purpose refers to a company’s commitment to making a positive impact on society beyond its profit motives. If customers expect a brand to be purposeful and authentic in activating its purpose, are employees any different?
Research indicates that employees increasingly value working for companies with a strong social purpose. This shift is particularly noticeable among younger generations, such as Millennials and Generation Z, who prioritize meaningful work and social responsibility. Employees want to feel that their work contributes to the greater good and aligns with their personal values. One mistake that brands often make is to compartmentalize their stakeholders, particularly customers and employees. Every employee is a customer and vice versa. Therefore, they both expect the brands they engage with – whether as consumers, employees or advocates – to be purpose-driven and genuinely care for the planet.
While a strong, authentic commitment to solving societal challenges can help brands foster a positive workplace culture, the story isn’t so simple or one-sided. In his book (and TedTalk), The Purpose Effect: Building Meaning in Yourself, Your Role and Your Organization, Dan Pontefract makes a business case for how organizations can build and articulate clear purpose on three levels: the individual employee, their role and the organization. The sweet spot lies where all three levels intersect. Purpose in the workplace can be a unifying thread that leads to a sense of personal fulfillment when organizations build purpose-based roles and experiences. The author argues that if employees connect their individual purpose to their role and that of the organization, it can lead to higher employee engagement and organizational performance.
According to research by PwC, employees are twice as likely to stay when there is a strong sense of purpose alignment with their values. When employees believe their work has a positive impact, they are more likely to be motivated and committed. This sense of purpose fosters a stronger connection between employees and their employers, leading to higher retention rates and improved morale. Moreover, a clear social purpose can help brands attract top talent. In a competitive job market, candidates often look for employers whose values resonate with their own. Companies known for their social impact can distinguish themselves and appeal to job seekers who want to be part of something meaningful.
However, it is crucial for companies to be authentic in their social purpose efforts. Employees, just like customers, can quickly discern whether a company's commitment to social issues is genuine or merely a marketing ploy. Authenticity builds trust, while superficial efforts can lead to skepticism and disengagement. So, while employees do care about the social purpose of their employer, their loyalty and admiration are linked to the authenticity by which that purpose is brought to life through actions and leadership and the positive impact it has on their daily roles. Companies that integrate social purpose into their core values, operations and decision-making are likely to see benefits in employee satisfaction and loyalty.