A recent study conducted by Bain & Company analyzed 150,000 Glassdoor reviews of the 81 largest US retail and consumer products companies, revealing that less than 3% of employees mentioned their company's purpose. This lack of clarity around purpose is concerning as a strong purpose has been shown to motivate employees, foster teamwork, and drive exceptional results.
Research has indicated that a 10% improvement in employees' connection to their organization's mission can lead to an 8.1% decrease in turnover and a 4.4% increase in profitability. Additionally, purpose plays a crucial role in a company's ability to navigate change effectively, a vital skill in today's dynamic business landscape.
While many companies have purpose statements, the study highlights that mere lip service to purpose is insufficient. The case of Purdue Pharma, whose actions contradicted its stated purpose, serves as a cautionary tale. In contrast, companies like Merck, with a long-standing commitment to purpose, have demonstrated the positive impact of aligning actions with stated values.
As the business environment evolves with trends like remote work and a focus on diversity, the need for a clear and meaningful purpose becomes even more pronounced. Companies like Worley have engaged in cocreating their purpose with employees, fostering a sense of ownership and alignment across their workforce.
The study underscores the importance of authentic purpose that resonates with employees. Superficial efforts at crafting purpose statements are insufficient; true value lies in a purpose that is clear, meaningful, and embraced by all members of the organization.
