Increasingly, we’re seeing a shift towards businesses identifying themselves as being ‘purpose-driven’. You might say, ‘sure, but haven’t companies been driven by a purpose since the days of farmers and craftsmen bartering and trading countless centuries ago?’ And you’d have a point. We’re talking about a purpose beyond just profit, though.

What these firms do is prioritise a clear, meaningful mission that extends past how much money they’re able to make. They focus on creating a positive impact in their space. Whether that be in sustainability, social justice and reform, or some sort of community development.

For some employees, particularly the younger generations, these kinds of ‘purposes’ can now be a key motivator at work. They seek employment that aligns with their social values and contributes towards a greater cause. So when they see an organisation working towards those kinds of goals, untapped vaults of motivation suddenly become unlocked.

We seem to have nodded goodbye to the days of employees being keen on perks like free snacks, gym memberships or the ability to play ping-pong at lunchtime. That’s if those so-called ‘benefits’ ever did actually interest anyone other than slightly misguided HR directors, MDs and CEOs. This shift marks a significant change in workplace culture, where purpose-driven work is increasingly seen as a more fulfilling career path.

Younger workers are gravitating towards companies that share their ethical values or pledge to social commitments that they admire. For organisations, embracing purpose isn’t just trendy, it’s a strategy to attract and retain top talent (as well as do a little good in the world). In this new landscape, purpose and talent attraction are perfectly matched, creating a workplace culture that benefits both the company and its all-important employees.

You’ve seen enough of Sir David Attenborough’s nature documentaries… We’re talking about ‘symbiosis’ here; a relationship where two different species live closely together, to the benefit of both.

More than just a job

So, then. Folk are increasingly drawn to companies with a mission beyond profit, seeking workplaces and employers that align with their values and offer a sense of purpose. This desire is nothing new – it’s just more pronounced now. And it’s backed up by some serious science.

Well-established psychological theories such as Self-Determination Theory (SDT) – developed by psychologists Edward L. Deci and Richard M. Ryan back in the 1980s – have it that people are motivated by three fundamental needs: autonomy, competence and relatedness. When employees feel their work contributes to a larger cause, they experience greater fulfilment. Why? Well, because it satisfies their need for belonging, connection and – ultimately – meaning.

Okay, let’s take a step back from all that for a minute, shall we? It’s getting dangerously close to the philosophical.

This need for ‘work that matters’ isn’t just limited to high achievers, the very well educated or super high-level roles. Increasingly, entry-level and service workers are seeking jobs that offer some degree of purpose greater than just toil for coin.

By way of a somewhat vague example, lots of people working in customer service and retail roles are motivated by the opportunity to work for a brand with strong ethical values or a company that supports social causes. So applicants are now seeking to find out potential employers’ sustainable practices, community and charity work, or social justice initiatives.

Ultimately, people today want more than just a wage slip — they want to be part of something a little bigger than themselves. They want employers whose missions resonate with their own values, creating a sense of pride and cohesion that extends beyond the workplace.

Here’s a thought… Perhaps employees have always wanted this. They’ve just never existed in a time where they feel empowered enough to express as much.

Purpose vs. perks

Traditional ‘work perks’ like free gym memberships, employee discounts and complementary coffee may add a smidge of workplace appeal, but their impact on long-term employee satisfaction pales in comparison to legitimate purpose-driven work. Fair compensation is, of course, non-negotiable. 99% of us work primarily to get paid. It’s not greediness, it’s necessity. But while purpose may rank behind pay, increasingly we’re seeing it outweigh salary when it comes to attracting and – importantly – retaining talent in the long term.

Companies with uber clear missions – be they environmental, social, or cultural – create a palpable sense of meaning to work that traditional perks simply can’t replicate. Take Patagonia, for example. The relatively high-end outdoor clothing brand. They’re all about integrating sustainability into the core of their business, empowering employees to work toward environmental change. And they seem to mean it too.

At the tail end of 2022, the company transferred ownership to a non-profit charitable trust which is dedicated to environmentalism and saving the planet. CEO Ryan Gellert doesn’t pretend that Patagonia isn’t still focused on making a profit. But they’re up front that it’s not ‘at any cost’. This ethos has made Patagonia a magnet for mission-driven talent. It’s also attracting a new demographic of customers too.

Similarly, ice cream behemoth Ben & Jerry’s centres everything it does around its founders’ socially progressive morals and values. So much so that it’s almost tricky to work for them unless you have some sort of interest in social activism. Employees don’t just sell ice cream, they’re told. They use the frozen treat to help support campaigns on climate justice and fair trade. As the company says: ‘we love making ice cream – but using our business to make the world a better place gives our work its meaning.’ It’s not just about feeding people a chilly dessert with little chocolate fish in it.

Businesses like Patagonia and Ben & Jerry’s are attractive employers to many, but this is especially true when it comes to younger staff. The data backs this up. A 2023 Deloitte survey found that the majority of Gen Zs (86%) and millennials (89%) report that having a sense of purpose is vital to their overall wellbeing and job satisfaction. And 20% have already moved jobs or industries to better align their work with their environmental values, with another quarter planning to do so in the future.

While perks may attract, purpose retains. And, crucially, ignites passion and creates drive.

Fair pay lays the groundwork, but purpose creates the culture. In an era where people seek to line up their work with their beliefs, the strongest benefit a company can offer is a mission actually worth believing in.

The importance of widening everyone’s scope

Efficiency is a cornerstone of most businesses, but over-streamlining can sometimes backfire. Over a century ago, Henry Ford’s forward-thinking assembly line innovations revolutionised manufacturing. The man was a pioneer. A visionary. He was also a rather divisive figure with questionable politics who was obsessed with control and oversight. He made his car plant infinitely more efficient, but he removed any feeling that those who worked for him were artisans or craftsmen.

Ford turned work into a monotonous grind for many, reducing employees to simplified cogs in a machine. Today, hyper-efficiency and over-automation risks recreating this alienation, stripping jobs of meaning and severing employees’ connection to their work. We have a new look to our assembly lines. One which risks disassembling workplace motivation.

Purpose-driven companies must avoid this trap by balancing operational efficiency with opportunities for employees to feel they’re part of something bigger. Let’s talk about another example to (hopefully) prove our point here. Consumer goods giant Unilever integrates sustainability into its core business strategy, making sure to engage its 128,000 global employees in various initiatives.

A good few of Unilever’s brands, such as Dove (body positivity) and Hellmann’s (food waste reduction), are heavily involved with social and environmental causes. This resonates with both consumers and employees, who increasingly value purposeful businesses in a big way. Sure, some folk working for Unilever won’t care much and will just prize their salary, but that’s okay too. ‘Purpose’ is there if they want it.

This is a key point for organisations considering a move towards a shift towards prioritising purpose… Don’t force people to care or pretend to care if that’s not a motivator for them. It’s okay to eulogise. Just don’t preach.

A culture of ‘head down and do your job’ was just about acceptable in Ford factories in 1913, even if it wasn’t all that fun. But now? It just doesn’t rev everyone’s engine.

The Purpose Paradox and getting it wrong

Be careful with this, though. Purpose is important, but don’t fake it. Please, please don’t fake it! You’ll end up regretting it.

There’s something called ‘The Purpose Paradox’ in business which can rear its extremely ugly head when companies, eager to embrace purpose-driven branding, miss the mark spectacularly and appear disingenuous. While well meaning, these efforts can backfire, to the horror of employees and customers alike. The problem often stems from a lack of authenticity. When a company’s lofty mission statements don’t track with its actions, the disconnect is glaring. And often embarrassing.

Take Pepsi’s now infamous Kendall Jenner ad from back in 2017. It was an ill-conceived attempt to piggyback on popular social justice movements of the time (or ‘to project a global message of unity, peace and understanding,’ as they claimed at the time). The short film was immediately and widely criticised (correctly) as tone deaf, patronising and exploitative. Pepsi pulled the thing after just a day. And what a day that was, especially in the boardroom at Coca-Cola’s head office.

Similarly, some companies tout sustainability efforts while engaging in practices that contradict their messaging. Take, by way of example, major fashion brands that launch what they’ll call ‘eco-friendly’ lines, all while continuing unsustainable production on a truly massive scale. These examples reek of virtue signalling and greenwashing. And employees, just like consumers, can smell this kind of rank insincerity a mile off. Mixed in with the potent stench of hypocrisy and it’s an unpleasant stink indeed.

A lack of a purpose’s authenticity can seriously erode trust and morale. Employees want to work for companies that practise what they preach. So when actions don’t back up values, it leads – understandably – to disillusionment. A recycling scheme that’s more PR than impact, for example, not only angers eco-conscious workers, it also undercuts organisational integrity on a wider scale.

For businesses, the takeaway is clear: mean it or don’t do it. You can’t fake purpose. Authenticity is a must. Commit fully to values or risk damaging employee engagement and your reputation. Purpose must be lived, not just marketed.

If you’re inclined to embrace purpose, however, go for it. You’ll reap the rewards.