5 Reasons Why Purpose Drives Business
On average, humans spend more time working than spending time with their loved ones, so it’s important to do what you love, and love what you do; work with a purpose beyond getting a pay-check. We understand that everyone needs a pay-check, but working with a purpose other than financial gain can be very beneficial towards mental and even physical health.
Studies show that working with a purpose increases profitability, employee fulfillment, happiness, longevity and even lifespan! That’s why we work to help businesses realize their purpose and help them inject that purpose into their business through the proper strategies.
“People are increasingly looking for jobs that give them personal fulfillment; and companies are seeing that purpose-oriented employees are more productive and successful.”
— © Imperative
Here are 5 reasons why purpose drives business:
1. Higher Returns for Purpose-Driven Companies
In the book, Firms of Endearment, the authors built an 18-firm index of purpose-driven companies and tracked their financial performance over 10 years. They found that the 18 FoE companies showed an average annual return on equity of 13.1%—that's 9% higher than the S&P. Working with purpose doesn’t stop at the employees or the employer. In 2018 an american study found that 8 in 10 customers were loyal to purpose-driven companies. Customers view purpose-driven brands as being more caring and, as a result, are more loyal to them.
"This is about companies looking at their organization and DNA and determining what their role in society is," she says. "There’s no question that users are more sophisticated than ever, and they will make sure brands are living out their purpose."
— Alison DaSilva, EVP at Cone
2. More Fulfilled at Work
The U.S. Purpose Index study found that purpose-driven employees have 64% higher levels of fulfillment in their work. Let’s break that down: 64% of employees that work with purpose are happy, and this doesn’t matter who, what, where or when. Purpose is a motivator regardless of differences in region, culture, language, and occupation. When employees and employers are happy and working with a purpose they perform better, are more productive and they are more creative.
3. Higher Employee Retention
Research from Deloitte shows that “mission-driven” companies have 30% higher levels of innovation and 40% higher levels of retention. This means that not only do employees want to create something great, they want to stay and keep creating great things! Creating purpose in the workplace is essential for this level of employee engagement and overall employee happiness. It’s no longer enough to offer a raise or holiday bonus to keep your valuable employees. They need a purpose they can connect with.
4. Meaning Over Recognition
84% of millennials say that making a difference is more important than professional recognition. Gallup writes: “Our best selves emerge when we have experiences that connect us and create a sense of belonging”. Imagine how your business might change if you had a shared sense of purpose with your team. Imagine how your workplace might change or improve if you were only bringing out the best of your employees. Now imagine what effect that could have on your world, and even THE world.
5. Lower risk of death
Waking up in the morning happy about your place of work is critical to well-being. In fact, a longitudinal study found that people who feel like they have a sense of purpose in their work lives have a 15% lower risk of death compared with those who said they were more or less indifferent. Also, it didn't seem to matter when in their life people found their direction. They could be in their 20s - 70s+. Finding purpose doesn’t have an age limit.
Higher returns, employee fulfillment, employee retention, happiness and a longer life. Having a purpose matters. It matters to your customers and to your employees. If you don’t have a purpose yet, it's never too late to find one. Having a purpose is something we practice at Sunday Roast and we love helping brands connect their purpose to their audience, or help them develop and integrate purpose into their business.
Do you need help finding and implementing your purpose? Download our latest playbook 🚀
Purpose Unleashed: A FREE Guide to Transform Your Brand and Ignite Growth
Get clarity about your business's unique purpose, write an inspiring mission statement and learn how to use it to grow your digital impact.
Links to sources:
https://www.prweek.com/article/1466208/eight-10-consumers-say-theyre-loyal-purpose-driven-brands-cone
https://www.forbes.com/sites/caterinabulgarella/2018/09/21/purpose-driven-companies-evolve-faster-than-others/?sh=3f6b5ddf55bc
https://www2.deloitte.com/insights/us/en/deloitte-review/issue-16/employee-engagement-strategies.html
https://www.gallup.com/workplace/232958/bring-best-people-company.aspx
