The Power of Purpose: How Aligning Your Company’s Values Leads to Happier Employees and Success

What is the Employer Value Proposition

The way we think of work is changing. As millennials and Gen Z begin to consume the majority of the workforce, and as we adapt post-pandemic, the expectations are higher. In fact, 50 million workers quit their jobs in 2022 according to Federal Data. They began to call this, “The Great Resignation“, which has exposed many holes in the way human resources and company leaders look at how they measure employee happiness.

In 2019, an employee survey from a Harvard Business Review article found that only 28% of respondents felt connected to their company’s purpose. Now, according to a recent article from Forbes, “We’re in the middle of a pivotal moment where purpose, value and meaning are essential for business.” Many HR leaders are taking on a new role as culture and community activists. The push towards creating a purpose-driven workplace and focusing on employee happiness is crucial to increasing business success in areas such as productivity, customer satisfaction, competitive advantage, and retention.

What Does Company Purpose Mean?

A purpose goes beyond a mission statement. It is how a company shares a dream, aspirations, and passion. A company’s purpose has a direct correlation with a company’s culture. It is why you do what you do.

“Purpose (which should last at least 100 years) should not be confused with specific goals or business strategies (which should change many times in 100 years). Whereas you might achieve a goal or complete a strategy, you cannot fulfill a purpose; it’s like a guiding star on the horizon—forever pursued but never reached,” David Packard, Co-Founder of Hewlett-Packard (highlighted in a Harvard Business Review article, The Difference Between purpose and Mission).

How Company Purpose, Employee Happiness, and Success All Connect

Passionate Employees = Increased Productivity

In a Harvard Business Review study, 90% of businesses that had a clearly defined purpose that resonated with employees saw growth and profits at or above the industry average. Furthermore, over 60% of employees for these businesses said they were motivated and/or passionate about their work, which was almost twice as much as companies that didn’t have a defined purpose. When a purpose is clear it allows employees to become invested and share that drive toward productivity and enhance performance.

When there is a shared purpose between a company and its employees, routine tasks can transform into opportunities for meaningful contributions. The workforce’s genuine enthusiasm for the company’s purpose fosters a collaborative and energetic work environment, where ideas flow freely and teamwork flourishes. As a result, this heightened sense of purpose-driven passion translates into increased dedication, efficiency, and productivity.

Positive Employee Experience = Customer Satisfaction

It’s important to acknowledge the crucial role employees play in establishing strong relationships with customers, which stems from their own employee experience and connection to the company’s purpose. Loyal customers are worth up to 10 times as much as their first purchase, meaning that if your goal is to obtain long-term success your company’s profit comes second to customer satisfaction. It can be more challenging to attract new customers than to retain and make the existing ones loyal. Therefore, creating a purpose-driven and positive workplace to enhance employee experience is vital, as it directly influences your customers.

Engaged employees are more likely to go the extra mile to ensure exceptional customer experiences, as they understand the impact that their contributions have to the company’s purpose. When employees have genuine enthusiasm, it shines through in their interactions with customers, creating authentic and positive connections. Ultimately, a purpose-driven workforce not only fosters a harmonious work environment but also delivers superior customer service, enhancing customer satisfaction and loyalty by embodying the organization’s core values.

Employee Engagement = Competitive Advantage

An article on Gallup defines the competitive advantage that comes with a clearly defined purpose: “Establishing and operating from an anchor of purpose can create a competitive advantage: A company’s competitors might be able to replicate products and services, but that company can successfully differentiate itself from the rest by hiring and engaging employees who can fulfill and deliver its purpose and brand in the marketplace.”

When employees resonate with a meaningful organizational purpose, their work takes on a deeper sense of intention and fulfillment. This motive fuels their commitment and enthusiasm, driving the desire to go above and beyond. As passion boosts engagement, employees begin to naturally become powerful advocates and strengthen the brand’s authenticity and reputation. When a company’s purpose is well-communicated and embraced it can not only empower the workforce but also provide a distinct advantage amongst competitors.

Happy Employees = Improved Retention

Research from McKinsey & Company showed that 51% of employees cited for leaving or considered leaving, lacked a sense of belonging at work. According to an HR Executive that participated in a Harvard Business Review article, “In our organization, we’ve emphasized both purpose and belonging because they must go hand in hand. We want people to feel like everything they do matters not just to the organization, but to each other. We want people to feel a shared sense of purpose as well as fulfillment in their own purpose. We refer to it as solidarity.”

The presence of a well-defined company purpose has an extreme impact on employee
happiness, playing a pivotal role in enhancing retention rates within the organization. This connection to something larger than themselves fosters a sense of fulfillment and satisfaction. This emotional connection, and alignment in values, creates a strong bond between employees and the organization, making them more inclined to stay and contribute long-term. As a result, the alignment of employee values with the company’s purpose not only boosts job satisfaction but also leads to improved retention rates, creating a stable and committed workforce that further strengthens the company’s overall success.

How is Employee Recognition Important to a Company’s Purpose?

Employee recognition plays a crucial role in reinforcing and amplifying a company’s purpose. When employees are acknowledged and appreciated for their contributions, it reaffirms the connection between their efforts and the organization’s values, goals, and purpose. Recognition serves as a tangible validation of the meaningful role each employee plays in driving the company’s purpose forward.

By recognizing and celebrating employees who embody the company’s values and contribute to its purpose, the organization reinforces the alignment between individual and collective goals. This alignment creates a sense of unity and shared commitment, fostering a positive and collaborative work environment.

Furthermore, employee recognition enhances morale and motivation. When employees feel valued and recognized, their job satisfaction and engagement levels increase. This leads to higher levels of productivity, creativity, and dedication. Recognized employees become more invested in their work, going above and beyond to contribute to the company’s purpose.

Importantly, recognition also encourages a culture of continuous improvement. When employees see their efforts acknowledged and rewarded, they are inspired to strive for excellence and consistently align their actions with the company’s purpose.

Employee recognition serves as a reinforcing loop that strengthens a company’s purpose-driven culture. It creates a positive cycle where employees’ commitment to the purpose is acknowledged and celebrated, leading to increased engagement, improved performance, and a more cohesive work environment—all of which ultimately contribute to the fulfillment of the company’s purpose and its overall success.

If you are interested in learning more about WorkProud and how we can help establish a strong foundation for your organization’s purpose, contact us today.

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