While large corporations receive the lion’s share of fanfare when it comes to celebrating their social impact commitments, instilling purpose at small businesses is just as important and can deliver amazing positive impact.
Small businesses (SMBs) may not have the same scale or resources, but they have an edge over large corporations when it comes to building organizational purpose. SMBs are often more nimble, more willing to take risks, and can implement change quickly. Once an SMB commits to building purpose, it can be less complicated to get management (and employees) on the same page. And given the lack of bureaucracy, hands-on leadership can help ensure that daily operations are in-line with company values.
According to research conducted by McKinsey, 70% of employees say that their sense of purpose is defined by their work. Like it or not, business leaders—even at SMBs—play an essential role in helping employees find purpose and make the most of it. Bringing purpose to life in the workplace isn’t simple and it will require work, but as outlined below, the benefits are well worth the effort.
When purpose permeates your company culture, you can expect to enjoy the following:
Retain the Best Talent
Purpose helps you keep the people who matter.
When employees find purpose in the workplace, they genuinely enjoy their work. These employees are not only more productive, but they will remain with your team for a longer period. In fact, employees are two times more likely to stay with a company when they feel connected to the overarching purpose. For millennials, that number is even higher. When this group of individuals has a strong connection to their employer’s purpose, they’re five times more likely to stay.
Build the Best Team
Purpose enhances recruitment efforts.
Purpose assists with recruiting top talent. Now more than ever, job seekers are interested in understanding the higher goal(s) of the company to determine if their personal values align. In fact, a recent study shows that 93% of employees under 30 agree that the more socially and environmentally responsible their companies become, the more motivated and loyal they will be. Furthermore, 88% of millennials want to work for a company whose values reflect their own. If you don’t have your purpose defined, you are out of luck.
Achieve Clarity
Goals connected to purpose increase productivity.
Purpose helps create a North Star, not only for the company, but also for teams and individuals. When employees are inspired by a big and clear goal that is about more than profits, they can more easily set smaller, more tangible and achievable goals that ladder up to the bigger picture.
Studies also show that when teams and individuals understand how their roles fit into a broader vision of the company, they feel more fulfilled. Research by Bain & Company concludes that if a satisfied employee’s productivity level is 100%, an engaged employee’s level is 144%, but the productivity level of an employee that is truly inspired by the purpose of their employer is a whopping 225%.
Create Shared Values
Forms a stronger connection to the work and team.
Without purpose, employees often lack pride in their work, resulting in low levels of engagement and poorer production. Work feels like work, especially when management focuses exclusively on short-term, top-line growth and disregards the broader purpose of why people are doing what they do. When purpose is part of the culture and the entire team embraces a common set of values, they are more likely to collaborate, focus on solutions rather than problems, and help their colleagues achieve goals. If you want your employees to feel more like a team than a group of people clocking in and out, it’s all about purpose.
Spread the Love
Purpose-driven employees are your best ambassadors.
When employees are proud of what they do, they naturally become brand promoters. They help to inspire fellow colleagues, they speak on behalf of their employer in the community and with potential customers, and they can play an important role in recruiting new talent. According to Sustainable Brands, “while consumers say they only believe about 16 percent of what companies tell them, those same consumers say they believe 52 percent of what an employee says about a company.”
Positive Action Pays Off
Boost the bottom line.
Purpose is a powerful profit driver. A study published by Harvard Business Review found that when companies had a clearly articulated purpose which was widely understood in the organization, they had more positive growth as compared to companies that hadn’t developed or leveraged their purpose. Specifically, 52% of purpose-driven companies experienced over 10% growth compared to 42% of non-purpose-driven companies. Purpose-driven companies benefitted from more product launches (56% compared to 33%) and success in major transformation efforts (52% compared to 16%). Another way of looking at it is that purpose can help make all of your efforts just a little bit easier or, in some cases, much easier.
Contribute to Greater Good
Pursuing purpose benefits people and planet.
Healthy, happy employees and a healthy, happy planet are the direct outcomes when purpose is at play. Utilizing a business platform, such as the EarthShare Giving Platform, to call attention to charitable initiatives and issue areas increases their recognition and can create a groundswell of support.
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Environmental conservation and sustainability are great causes with which to drive purpose in your company or organization. It’s universally understood that these areas are critical—now more than ever—and require support. If you’re interested in improving employee purpose, EarthShare can help! Reach out to regional@earthshare.org to enroll on the EarthShare Giving Platform for custom content, volunteer opportunities, company-specific campaigns, and so much more.
