The Ultimate Competitive Advantage: Purpose

With quit rates soaring and employers experiencing the pain of increased turnover, there is a race to find – and keep – good talent. While pay, benefits and flexibility are high on the list of “must-haves,” today’s employees are insisting on an entirely new type of workplace – one with a clearly defined purpose at the center that serves as a North star and provides greater meaning to their work.

A company’s purpose clearly states the “why” behind its existence – it is not what it does or how it is done. It articulates the wrong an organization wishes and actively seeks to right in the world. And it provides a compelling reason for anyone, especially employees, to associate with your company. While that may sound lofty or soft, employees are increasingly demanding this from their employers. Without making your company’s purpose clear, you may be sacrificing employee satisfaction, engagement and ultimately leave them looking for greater meaning elsewhere.

The business case for building a purpose-driven organization is solid. A McKinsey study found that when employees felt their work was meaningful, their overall performance improved by 33%, and they were 75% more committed to their employer. Moreover, employees with a strong sense of meaning were 49% less likely to leave their jobs and reported being more driven to make their company successful. The same study cited that employees who connect with their company’s purpose typically develop a bond so deep that the company’s identity becomes part of the individual employee’s identity – the company’s success is also the person’s success.

How to Make Purpose Your Competitive Advantage

1. Use Purpose as a North Star
   A clearly defined purpose will guide all your actions serving as a filter that informs business strategy, product development, service offerings, hiring processes, training programs, employee development plans, and more. By aligning your organization’s strategy, decision making, actions, communications and experiences with your purpose, employees will begin to see your commitment and your purpose will become real for them. This will, in turn, provide greater meaning and value to their work and enable you to establish deeper and more meaningful connections with your staff and customers.
2. Build Culture Around Purpose
   Culture drives everything you do in your business and it’s imperative that employees are clear on the kind of culture you seek to create. Purpose helps you create aligned, authentic efforts. If you can tie all of your efforts to your purpose, the rituals, processes and programs that make up your cultural fabric will have meaning and value. Employees will come to understand and connect with your purpose in a deeper way and feel more connected to their work. When the interactions employees have with your company are meaningful, it creates better work experiences, and you are better able to drive your desired business outcomes.
3. Leverage Storytelling to Bring Purpose to Life
   Your company purpose should be at the forefront of all your internal and external communications – from recruiting to onboarding to marketing – across all channels including social media, web, PR, signage and collateral. A great and effective way to do that is to use actual stories that demonstrate how you are living your purpose. This can be from employees or customers or come from the company itself. These stories will make up your brand which impacts your reputation inside and outside the walls of your organization and helps to attract new employees – and keep current ones.
4. Recognize and Celebrate Purpose-aligned Accomplishments and Behaviors
   Celebrating individual and team achievements that align with your purpose helps to embed purpose into your organization and deepens the connection employees have with your company. Defining purpose and values-driven behaviors and/or creating specific measures will enable you to reinforce and magnify what you are trying to achieve.
   
   Simply stating a purpose statement is not, in itself a competitive advantage, however living yours can truly set you apart from others – whether competing for talent or customers. Organizations guided by a strong purpose are more profitable, have more engaged employees, experience more loyal customers, are more innovative, and are better at navigating transformational change.
   
   If you have a purpose, lean into it and build on it. If you don’t have a purpose, we suggest someone on the leadership team championing the idea and creating one in-house or using an outside firm to help you with it.