Purpose-Driven Work

Employees are increasingly asking themselves questions about the purpose of their work. It's a direct result of the pandemic and recent economic turmoil. More employees conclude that their work lacks purpose and as a result, they choose to pursue a different career. Workers are prioritizing sustainable practices and expect their employers to reflect that in job descriptions. In shaping the future of work, purpose-driven work and the employee value proposition will play vital roles in acquiring and retaining talent.

The definition of purpose-driven work varies from person to person. People have different values that they expect their jobs to resonate with. In a broader sense, purpose translates to whether people feel valued and their activities have a sustainable impact on themselves and society. The role of organizations in defining purpose is immense. According to McKinsey & Company (2021), 70% of employees said their sense of purpose is defined by their jobs. Purpose-driven work touches on intrinsic values of happiness and recognition. A report by Capgemini (2022) found that there's a big difference between leaders thinking their employees are happy in their job (92%) and employees feeling happy in their job (30%). Similar results apply to recognition. Gartner (2023) reported that 82% of employees value personal recognition but only 45% feel their organization sees them as a person instead of an employee. To understand purpose-driven work for the individual, three questions need to be answered: (1) what makes the employee feel whole, (2) how is true satisfaction achieved with the employee, and (3) how much value does the organization return for the input of the employee? Organizations that frequently engage with their employees in discussions over value at work are better positioned to deliver purpose-driven work.

Experiencing purpose at work differs starkly between geographies and employees holding different positions in the organization. Around the globe, you'll find the most purpose-oriented workforce in Sweden (52%) and the least purpose-oriented workforce in Saudi Arabia (23%) (LinkedIn, 2016). Overall, 18% of people employed feel they get the expected purpose from their work (McKinsey & Company, 2021). 62% experience some sense of purpose but want more (McKinsey & Company, 2021). Leaders and senior managers are much more likely to experience purpose in their work than their hierarchically lower-ranked peers. McKinsey & Company (2021) reports 85% of leaders are living purpose in their day-to-day work compared to just 15% of frontline employees. The big difference between leaders and frontline employees in experiencing purpose is likely due to how big their influence is on the strategic directions of organizations. The more distant an employee is to strategic decision-making, the higher the risk of misalignment between jobs and personal values. For organizations to align the two, leaders have to facilitate conversations with employees about the purpose they derive from the organization, their work, and activities outside of work.

A lack of purpose experienced by employees has big implications for organizations. Employees long to be part of something larger than themselves. When employees do not perceive their work as purpose-driven it harms their job satisfaction and consequently their productivity and that of those around them. There are two noticeable examples that showcase the impact of jobs that lack purpose. The first example is climate change. According to the European Commission (2022), 96% of Generation Y employees expect their employers to take steps toward becoming more sustainable and 51% of employees wouldn't work for an organization without strong environmental commitments. The second example is pay equity. Gartner (2023) reports that sensitivity around pay equity is growing. The direct impact of negative employee views on pay equity is a 13% jump in job searches, a 15% drop in intent to stay, and a 13% drop in employee engagement. The implications extend beyond these examples. Organizations providing employees with opportunities to deliver a positive impact on social and environmental issues have more fulfilled (74%) and loyal (70%) workers (European Commission, 2022). Crafting future careers requires further integration between society and business interests. To deliver purpose-driven jobs, leaders must align strategic objectives with the personal objectives of their workforces.

Building purpose-driven jobs is sophisticated. Because people have different values and pursue differing objectives, shaping these jobs requires strong fundamentals and a degree of flexibility to tailor a job and match it to an individual. First, organizations must commit to sustainability. It's a topic that will stay top of mind for employees over the coming decades. An organization that looks away from societal emergencies, such as the climate crisis, will struggle to attract and retain talent. Second, leaders must reflect on the purpose of their organizations. The organizational purpose is under the direct control of leadership and requires their staunch commitment. This demands constant conversation around- and measurement of contributions to the organizational objectives and outcomes by themselves and their teams. Finally, organizations and their culture should encourage curiosity. The restraints of job descriptions negatively impact purpose. 63% of workers expect more opportunities to add purpose (McKinsey & Company, 2021), which requires customizing the responsibilities of the individual based on their skill set and expertise. To deliver purpose-driven jobs, leaders need to commit to sustainability, organizational purpose, and customization of day-to-day activities.

Purpose-driven work is the opportunity for individuals to conduct activities that have a positive contribution to society and enable recognition by others. How people perceive purpose depends on their values and to what extent they're able to exercise their skills. There's a big role for leaders to bridge the difference between the purpose they experience and that of their peers in operational roles. Purpose-driven work has a positive impact on employee satisfaction, productivity, and retention. Leaders need to take sustainability seriously, talk about and measure organizational purpose, and tailor employee responsibilities, to tap into the benefits of purpose-driven work.