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Employee engagementLatest NewsRecruitment & retentionWorkplace cultureRetention of staff

How to create a purpose-led culture to retain top talent

by Stephanie Coward 11 Jul 2023
by Stephanie Coward 11 Jul 2023 Shutterstock
Shutterstock

Creating purpose at work is often said to improve retention, but how do employers achieve and communicate this? Stephanie Coward discusses the use of targets and transparency in fostering a purpose-led culture.

The UK has a talent retention problem, with nine in 10 businesses reporting they struggle to retain employees, according to a 2022 survey by Wildgoose.

On top of this, over 10% of UK workers say they have never stayed in a role for longer than a year and 20% say they haven’t ever stayed with an employer for more than two years, according to Acuity Training.

From salary concerns to seeking a better work-life balance, people leave their jobs for many reasons. That said, a substantial number (15%) cite a lack of motivation as their reason for departure. Indeed, back in 2021, an Edenred study found a lack of motivation was the number one reason workers across the UK left their jobs.

Purpose at work

Job ‘hoppers’ or ‘lifers’: workplace loyalty debunked

Three in five would not work for company that doesn’t share values

“Purpose” is the art of aligning employees’ work with a meaningful mission or higher goal that goes beyond mere financial success.

Often, organisations can be called ‘purpose-led’ when employees understand the larger impact and value of the work being done, and how it contributes to a wider mission.

Purpose in the workplace, while abstract in nature, brings with it a variety of tangible benefits. Namely that organisations with purpose have better retention rates. On top of this, purpose-led organisations can benefit from increased productivity and a more engaged and motivated workforce.

Bring purpose to life

There are many ways businesses can bring purpose to life. One way is through targets, such as objectives and key results (OKRs). OKRs are a common collaborative goal-setting management methodology for individuals, teams and companies. They are significant, concrete, action-oriented – and ideally aspirational.

When it comes to fostering a purpose-led organisational culture, OKRs are essential. Indeed, the right OKRs can instil a sense of direction for the business and help people connect their actions to company-wide strategic goals.

Other ways of sustaining purpose include internal communications. This can be providing regular company updates in the form of monthly company calls, sending out internal newsletters and embracing internal collaboration tools.

Providing transparency and context, internal communications give leaders the opportunity to reinforce and remind employees of the organisation’s mission and vision. Further, by sharing relevant information about the organisation’s performance, market trends, and strategic decisions, employees gain a better understanding of the context in which they operate.

By sharing relevant information about the organisation’s performance, market trends, and strategic decisions, employees gain a better understanding of the context in which they operate.”

The role of tech

A robust HR solution can also help organisations develop a purpose-led culture. For example, the right HR solution will provide transparency on employee progress and centralise vital information about performance management – two things that can boost productivity and motivation.

The right platform will also let managers and peers give timely recognition and appreciation for employees who demonstrate behaviours aligned with the organisation’s purpose. Ideally, the solution will be cloud-based and accessible from anywhere – and maybe via a mobile app to make it as easy as possible for colleagues to review objectives while on the go.

Purpose, motivation and job satisfaction all go hand in hand. If someone feels unchallenged, uninterested, or unfulfilled by their current role, they may opt to look for a job that aligns more with their passions, skills and values.

By fostering a purpose-led culture, employees can feel connected to a larger mission, and by helping them understand the impact of their work, employers can create an environment that encourages long-term commitment and job satisfaction.

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Of course, how a business defines purpose will depend on what they provide. There are many different types of missions and multiple ways of being purpose-led. However, the right purpose-led culture will engage employees and help improve talent retention. Indeed, the more we feel our work has meaning, the more it positively impacts our attitude and work performance.

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Stephanie Coward

Stephanie Coward is the managing director for HCM at IRIS Software Group, and is responsible for driving forward IRIS’ HR and payroll offering and focusing on meeting the needs of HR professionals. Stephanie has over 25 years’ experience in the technology sector, managing and transforming businesses. And over the past 10 years, Stephanie has managed businesses providing strategic HCM software technologies as well as HR and Payroll managed services.

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