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Purpose-Driven Organizations Foster Employee Retention And More

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For several years now, and even more prevalent since the COVID-19 pandemic, companies have slowly, yet consistently, begun to embrace the concept of shifting to a purpose-driven mission.

We can surmise what this means generally — a company stands for more than just revenues and the bottom line. Purpose-driven companies put a stake in the ground to benefit society as a whole – economically, environmentally and socially. When they do, the rewards are many.

For instance, McKinsey reports that having a clear purpose can:

  • Promote growth by creating loyal customers, building trust and strengthening your customer base.
  • Bring out the best in employees, helping you retain your top performing team members and foster employee motivation.
  • Help you manage unexpected or potentially damaging situations through an established and well-known brand purpose accepted by all stakeholders which can help the company minimize fallout and regain trust.
  • Improve your balance sheet by meeting stated ESG (environmental, social and governance) goals – issues that are key factors for many millennials when choosing an employer.

Today’s Workforce Compels Organizational Change

Why this shift to purpose-driven organizations? It’s simple. Today’s employees demand it. The Academy to Innovate HR states that almost two-thirds of U.S. workers admit the pandemic has shifted their priorities, and 82% indicate that it is important for a company to have a purpose. Yet, despite growing efforts to establish and articulate organizational purpose, a Gallup analysis of more than 110,000 business units in 96 countries reports only 21% of employees are engaged at work and only 33% are thriving in their overall well-being. While these statistics improve for the United States and Canada — 33% engaged and 60% thriving — two-thirds are not engaged at work, with 22% experiencing daily sadness.

This can have a negative impact on productivity and overall corporate performance. However, the more employees are engaged, the higher the likelihood of them staying longer at a job. Working in an organization with a clear purpose and set of values goes a long way to fueling a positive culture and more engagement. For companies across all industries, this translates to better employee retention, loyalty and overall satisfaction.

Social Security Disability Insurance (SSDI) Beneficiaries Value Purpose-Driven Organizations When Heading Back To Work

In our work as a Social Security-authorized Employment Network (EN), Allsup Employment Services (AES) has an up-close look at companies who have redefined their missions to be more purpose driven. These companies are better able to attract new employees, retain existing team members and draw from a highly skilled and trusted population of people with disabilities.

When SSDI beneficiaries consider working again through Social Security’s Ticket to Work Program (TTW), they hope their employers will be:

  • Empathic to their issues and needs.
  • Willing to meet reasonable accommodations.
  • Willing to work with them for a mutually productive relationship.

In our experience helping people with disabilities return to work, companies that do all of these and more, reap the benefits from loyal, hard-working and talented team players. In fact, a clear purpose will also help engage existing talent, increase productivity and fill the $8.5 trillion gap the talent shortage is expected to cost in 2030.

Building A Purpose-Driven Organization Requires Commitment

Creating a purpose-driven model requires focus and a clear understanding of all constituents – shareholders, the workforce, suppliers, ecosystem participants, local communities and others. Leaders need to have a grasp of the effect purpose-driven statements and actions will have on each audience. According to Salesforce, building successful purpose-driven organizations requires:

  • Integrating purpose into their business strategy — A company’s corporate social responsibility position can guide their everyday business decisions.
  • Using a purpose mindset to advance measurable goals – A good example of this is when a company sets a goal to increase workforce diversity by hiring individuals with disabilities.
  • Engaging their partners for positive impact – Companies do not operate in a vacuum. They rely on their suppliers, community and other key partners to deliver results. Those organizations that encourage – or even demand that their partners share a common purpose – have a better chance for success.

SSDI beneficiaries who choose to return to work with the support of an EN like Allsup Employment Services understand the importance of working in companies that are purpose driven. At the same time, companies are seeing the intrinsic business value of taking a stand on issues that matter, such as providing an inclusive environment that welcomes diversity and equity. The upside is an engaged and fulfilled workforce embracing more creativity and innovation, increased loyalty and a positive societal impact.