5 Reasons Why Your Company Should Start Talking About Purpose From 2022
Employee disengagement and attrition have been issues that organizations have always had difficulty addressing. One of the primary reasons was the improper understanding of employee motivation and the managers’ traditional carrots and sticks approach. The covid pandemic exacerbated the engagement problem, which precipitated the ‘great resignation’ in its wake. People quit their jobs in droves as they no longer felt a sense of purpose in their professional lives. With employees looking for more than just a means to make a living, organizations need to focus on company purpose and corporate social responsibility to align with the ideals of the modern-day workforce. Here are 5 reasons why purpose is important:
1. It increases employee engagement
Employee engagement is directly correlated to improved performance, job satisfaction, retention and loyalty. Employees are more likely to quit an organization that doesn’t share their values; it is similar to how people boycott brands that differ in their values. A well-defined company purpose demonstrates the loyalty of an employer to its people and motivates them to participate in the bottom line.
2. A purpose drives companies to grow faster
As mentioned above, having a purpose increases employee engagement. Highly engaged employees improve productivity and the profitability of a company. A report by Deloitte highlights that companies with corporate purposes report 30 percent more innovation and 40 percent more employee retention. Brands that promote sustainable living also connect to customers through purpose. Most consumers today believe that companies are responsible for the community and environment, and it is the strongest driver in their purchase decisions after price and quality.
3. It increases customer loyalty
Companies with a purpose build a brand image that exudes responsibility. With the whole world moving towards higher goals such as sustainability and equity, emphasizing on corporate social responsibility is the way to participate in the larger movement. The good social perception of these companies can win hearts and build customer loyalty along with turning them into brand ambassadors.
4. It is what the next generation of employees look for
Millennials and the generations who succeed them look for more out of life than mechanical routines. They care more about the purpose of their life and the impact their actions have on the environment. The younger generations also prefer to work for companies that have an authentic purpose, and 70 percent of them expect their companies to participate in working on societal issues. The next generation of the workforce has more responsibility towards the environment, and they are well aware of the negative consequences of non-action.
5. It makes a real impact
Having a purpose that also overlaps with their corporate social responsibility ensures companies engage in programs and drives that have a real impact on the world. Social responsibility empowers employees to contribute by leveraging the organisational resources at their disposal. Whether it is raising awareness about societal or environmental causes or mobilising resources to take action, the effect on the world is real.
Donatekart has been working with multiple companies, helping them create a meaningful impact through their corporate social responsibility programs. One of the significant partnerships that Donatekart has had is with Times Internet wherein one can earn Time points by reading news, watching videos, commenting et al and use these points to donate for charities by redeeming your points at Donatekart’s website.
You too can be a part of this endeavour and inspire your employees to give back to the society by just a simple click.
