Focusing on your purpose is one of the most important things you can do to succeed in business. However, all too many people lose sight of the tangible, pragmatic benefits of focusing on your organization’s purpose.
Since purpose is so important to the Qualigence mission, we thought we’d outline some direct benefits associated with organizational purpose.
#1 Organizations That Prioritize Purpose Are Consistently More Profitable
It’s true – the best argument you can make for purpose is that purpose-driven companies pull in more revenue. A recent white paper from the Harvard Business Review and The EY Beacon Institute demonstrated that the more a company emphasizes purpose (and the more employees understood that purpose), the more revenue they brought in.
In short, companies that heavily prioritized purpose reported more revenue over the past 3 years. In contrast, companies with little or no emphasis on purpose reported lower revenues, while companies with a slight emphasis performed somewhere in the middle.
Many businesses overlook purpose because they’re chasing the dollars, but ironically, it turns out that emphasizing purpose first means profits will follow. From a dollars and cents perspective, purpose just makes sense.
#2 Purpose Provides a Clear Direction for Business Strategy
Let’s face it, business strategy can get messy fast. With a lot of different voices and opinions at the executive table, it can be hard to stay focused on what’s most important and what will benefit the business in the long run.
Purpose serves as something of a lodestar here. Regardless of the specifics of each situation, the current trends in the market, and the challenges your business faces, you can look to purpose to guide decisions. It’s about keeping the team focused on what’s really most important in business – providing exceptional value to your clients or customers.
#3 Purpose Differentiates You from the Competition
One of the best things about purpose is it sets you apart from the competition. From a sales and marketing perspective, communicating your purpose lets people know that you’re in business for more than just making money. It builds brand trust and makes people want to do business with your organization.
Thinking past sales, it’s also a vital tool for attracting top talent. Candidates in today’s day and age want to be a part of something bigger than themselves. They want to make an impact on the world around them and work for more than a paycheck. As such, having a clear purpose to leverage in employment branding and recruitment marketing is vital.
#4 Purpose Inspires Performance
People work for money, but their perform for purpose. Team members will show up and do the minimum required of them to earn their salary, but in order to unlock discretionary effort, we must truly inspire them.
Purpose is what inspires people to go above and beyond. It’s the sense that your team is truly doing good work that makes an impact in the world. It’s the sense that your company is offering something special and uniquely positive. That’s what brings teams together to work on something bigger than themselves and deliver their absolute best.
#5 Purpose Boosts Talent Retention and Employee Satisfaction
More and more professionals are looking for a greater sense of satisfaction with their work. As a result, they not only seek out purpose-driven companies but stay with them for longer. In an incredibly cut-throat talent market, retaining our best talent is vital.
When we give our team a reason to work beyond money, they will stay with us for the long haul. Altogether, it is readily apparent that purpose is something of a silver bullet for talent acquisition, retention, and performance management.
Is Purpose a Priority for Your Organization in 2020?
The takeaway is that purpose is an absolute must for staying competitive through 2020. While purpose can transform nearly every aspect of your business, we naturally focus on the people side of things as a talent acquisition and optimization firm.
If you’re curious about how you can put purpose into action through talent acquisition and talent optimization, be sure to check out our purpose toolkit. It’s an executive summary of how we help businesses get the right people and unlock their best performance – click the button below to download it!