Purpose is cool: why purpose-driven businesses attract and retain talents

In the era of the?Great Resignation?a company that is able to attract talents is certainly ahead of its competitors. After all, companies are made of?people?and without them there isn’t much business happening. Interestingly enough, there is a strong relationship between purpose and companies’ ability to attract and retain talents.

What’s a purpose-driven business?

Purpose is the reason why something exists or is done. It’s literally your company’s why. In the old-school scenario we used to consider?sustainability?(often called Corporate Social Responsibility) as something “extra”, outside of the main operations and commitments of a business.

Thankfully that has now changed – well, it’s in the process of changing! Companies have started to recognise the fundamental role that a strong?commitment?to people and the planet play for their business. And this in turn has meant a mindset shift to a whole new way of doing business.?

The purpose-driven model is a business model where sustainability isn’t just an add-on, but a crucial part of the decision-making process. At all levels of the company, from Director to middle managers and all employees. A purpose-driven business is a business that puts People, Planet and Profit at an?equal?level.?

The purpose-driven model is a business model where sustainability isn’t just an add-on, but a crucial part of the decision-making process. At all levels of the company, from Director to middle managers and all employees. A purpose-driven business is a business that puts People, Planet and Profit at an?equal?level.?

Learn more about how to build a purpose-driven business?here.

Talent and purpose go hand in hand

People are quitting their jobs more than ever. Since Covid happened employees realised they needed something else, something?more. They realised that they wouldn’t settle for just ANY well-paying job.?

For example, in the UK alone,?20% of the workforce?is planning to?quit?in the next few months. In Italy,?70% of employees?between 26 and 35 have either changed or are planning to change jobs soon. And similar trends are happening across the globe.?

But why??

Talents out there are looking for?purpose. They want to be part of something bigger. They want their employers to be part of the change.?

Unsurprisingly,?94% of young people?consider the climate crisis the most important crisis facing the world today. And 87% want to be an?active part?of the change. And that of course isn’t limited to their private lives…

60% of people between 18-34 years old think work should give them a chance to?contribute?to building a better world.

Basically, the idea of working for a business without a purpose and a commitment to change just isn’t on the table. From now on, to attract?talents?companies must shift to a purpose-driven business model.?

Become the business where talents land

OK so the Great Resignation is certainly a worrying phenomenon for some. But it doesn’t have to be for you. It can actually become a massive?opportunity?for your business. The fact that people are leaving their jobs means that there is an increased availability of amazing talents out there, looking for amazing purpose-led companies to join.

In fact, it’s not a coincidence that?50% of people?aged 23-38 would consider quitting their job to work for an organisation positively contributing to?social?and?environmental?issues. Basically, what I’m saying is that?you can be the place where these talents land, not the company they leave!

And it’s absolutely crucial that you start early. Because the more you?grow, the more important purpose will become.?

Kickstart your purpose journey as early as possible

Once you’ve attracted talents you want to make sure they remain passionate about your company and love working with you. Because that means they’ll stay.?Now when you’re 2-3 or even 10 people that’s relatively easy. But as soon as you start having senior managers, then middle managers it’ll be more difficult to keep people?engaged, especially if the business isn’t driven by a strong purpose.?

Just think that while?only?15% of middle managers?and non-managers feel that their own purpose is aligned to the company’s purpose. They’re basically almost entirely unengaged. And that’s exactly why you should start to think about purpose?early?in your business journey.?

Most companies grow based on a profit-driven business model but once they become “big” people start to leave. They feel disconnected to the company, lose?motivation?and eventually move on. Hence situations like the Great Resignation.?

However, if purpose is strongly embedded in your business vision as well as day-to-day operations then it’s more likely that people will remain hooked to whatever it is you’re working towards. Passion for a cause creates motivation and motivation drives?retention. As simple as that!

Specifically, people that care about people and the planet have an?estimated?40% higher employee retention?rate compared to purposeless companies.?

“Employees?are agitating for decisions and behaviors that they can be?proud to stand behind?and gravitating toward companies that have a clear, unequivocal, and?positive impact on the world”

Be the place where talents land, not the company they leave.?Get in touch?to kickstart your purpose journey!

This article was originally published on Prosperah's blog.