The generationally driven shift towards ‘purpose over paycheck’
Author: Anita Jiang | Sponsorship and Partnerships Director
Within a highly digitised and connected world, economic, social and environmental challenges have become increasingly globalised. Everywhere we look, the desire to create ‘impact’ and ‘purpose’ has certainly gained immense momentum. Not only are consumers tactfully allocating their purchasing power to demand ethical and sustainable supply chain practices (as explored here), job seekers are also looking for opportunities that leverage their talent for community and engagement.
The term ‘sustainability’ is not merely a buzzword. The acceleration of environmental crises - as witnessed during the devastating Australian bushfires as well as social issues such as rising income inequalities - have demanded increased awareness for sustainable practices. Rather than remain as bystanders, millennials who feel accountable believe that the workplace is where they can be most impactful in solving the world’s most pressing issues. As illustrated below in a study conducted by Deloitte, 59% of millennials believe they are accountable to some degree in protecting the environment. However, only 38% believe that they can exert a “significant” level of influence.
Therefore, an organisations’ commitment towards making a positive societal impact is not merely a want, but a need for millenials. There is a demand for companies to act with integrity rather than make unsubstantiated and misleading claims about the ethical attributes of their operations, otherwise known as ‘greenwashing’. Here, we observe the rapid emergence of Corporate Social Responsibility (CSR), an evolving business practice that incorporates the triple bottom line: “people, planet and revenue” into a company’s business model. CSR ensures companies conduct business ethically and is often a popular selling point when recruiting for the best employees. The UN’s 2030 Sustainable Development Goals (SDGs) provide a framework for modern CSR practices that are aimed towards integrating with local communities, protecting the environment and making socially responsible investments. SDG 12 to 15 are particularly relevant for Australian companies seeking to develop effective CSR practices as environmental degradation and the threat of climate change are pressing contemporary issues.
More specifically, employees want to make an impact on their own terms, have a say in the causes that their company supports and choose when to volunteer their time. Leading professional services firm Deloitte runs an IMPACT Day each year where thousands of employees band together to build community awareness through participation in pro bono services and volunteering. This type of initiative encourages team building and allows employees to commit to causes they are personally passionate about, such as assisting the homeless, financial literacy or animal welfare.
According to Mercer, thriving employees are three times more likely to work for a company with a strong sense of purpose. Therefore, to be a place that candidates want to work, companies need to be successful in leveraging their purpose through showcasing their culture, values, and mission during the recruitment process. We know that ‘purpose’ can make a brand unique, but what does it really mean?
‘Purpose’ is essentially the ‘why of work’; a conscious expression of how an organisation intends to evolve and transform itself. This purpose allows businesses to promote their workplace culture, commitment to impact and even transformational change characterised by sustainability.
Patagonia - a leading sustainable apparel company - exhibits an effective purpose as they strive to “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” Reading this statement, we immediately understand that Patagonia aspires to deliver the best product through innovation and accountability whilst also considering multi-stakeholder perspectives as they seek solutions to the environmental crisis. This company’s unequivocal commitment to reflecting on the wider impact of their operations is highly appealing to both consumers and potential employees.
Not only must companies establish a clear vision and mission, they must also commit to transparency and accountability for the goals they set out to do through ensuring that employees have the data to understand how their job impacts the company, clients and the community.
The prevalence of technology and social media has allowed people to openly express outrage over bad business practices. This increase in media and community attention has catalysed the evolution of purpose within profit based business models where business cannot get away with acting in their own self interest while disregarding the environment and workers' rights.
As corporations become larger, richer and more influential, job seekers place a premium on firms that do more than just turn a profit and obey the law. In order to effectively respond, employers must work to reconcile the ‘purpose gap’ - one that occurs between personal values and an organisation’s bottom line. As students entering the workforce soon, it is definitely comforting to know that caring about society does not need to come at the expense of a financially sustainable job.