We live in a world where change is the only constant, and to keep evolving, a new approach to existing strategies is a must. Among various approaches, purpose-driven strategies have proven to be a means to keep your organisation at the top of the game for a long time. In recent years, embedding purpose into corporate strategies has emerged as a crucial driver of competitive advantage. Companies that have a clear vision inspire employees and increase employee engagement. Not only this but incorporating purpose-driven strategies can also boost innovation and customer loyalty and help organisations move towards sustainable financial performance.
Having a purpose-driven strategy is not enough; an organisation has to involve its employees in the strategy as well. Accurately pinpointing an employee’s purpose in an organisation gives them a sense of accountability and inclusiveness. This inclusive model drives employee performance to the next level and, as a result, helps the organisation achieve its goals. According to a study by Harvard Business Review, 89% of executives believe that a sense of purpose can drive employee satisfaction.
Moreover, having a sense of purpose allows employees to perform well. Think of it like life: When we have a purpose, life becomes easy, and every day is a new day waiting to be conquered. This is exactly how purpose-driven strategies work. Research conducted by Deloitte revealed that companies that pinpoint employees’ purpose see a 30% higher level of innovation and 40% higher levels of employee retention.
One of a company’s most important goals is to hire and retain a talented workforce, and giving employees a purpose helps organisations retain them. According to Deloitte’s 2020 Global Human Capital Trends report, 73% of employees who say they work at a “purpose-driven” company are engaged, compared to just 23% of those who do not.
This is also important for employees, as a sense of purpose helps them find fulfilment and satisfaction in their jobs. The aforementioned Harvard Business Review study found that employees who have a purpose in their organisation are 64% more likely to find fulfilment and satisfaction in their job roles. Moreover, such employees are more loyal towards their work and their company, which helps organisation save money which would have been otherwise used in hiring and training new employees.
