Introduction: Shifting Employee Engagement in 2024
As we delve into 2024, a significant transformation in employee engagement is reshaping the workplace. Bureau of Labor Statistics January US Employment Report is a testament to this change, showcasing a continual decline in unemployment and a rise in wages. This trend hints at a more competitive labor market. In this intensifying talent war, business leaders and industry experts are preparing for a notable shift in the aspects of work that employees value most.
The current work landscape is undergoing a profound evolution. Employees are increasingly advocating for workplaces that align with their values, emphasizing purpose, well-being, autonomy, and individual influence. As businesses navigate these shifts, adapting to these evolving expectations will be crucial for sustaining engagement and productivity in a global economy characterized by constant change.
Rise of Purpose-Driven Workplaces: Insights from Carol Cone
Carol Cone, renowned as the "mother of purpose" and a vanguard advocate for purpose-driven strategies in the corporate world, has witnessed this transformation firsthand. "Employees today are looking for more than just a paycheck. They want their work to contribute to something larger that aligns with their values," Cone explains.
This sentiment has been echoed in various industry research studies since the pandemic began, consistently showing a connection between purpose-driven work and improved employee engagement, retention, and overall satisfaction.
The Impact of Purpose-Driven Strategies on Corporate Performance
Companies that successfully imbue a sense of purpose in their work culture are reaping the benefits of a more engaged workforce and achieving financial gains. "Organizations where employees feel a strong sense of purpose and believe in their leaders' vision are outperforming the stock market by nearly 7%," notes Cone, citing a report from Great Places to Work. Deloitte's research further reinforces this, showing that purpose-driven companies enjoy retention rates 40% higher than their counterparts.
A revealing Harris Poll/Cone Employee Purpose Engagement Survey found that 68% of employees believe it is insufficient for companies to focus solely on profit generation. They expect companies to have a broader impact on employees, customers, communities, and the environment. However, the survey also uncovered a concerning fact: only about half of U.S. employees believe their companies are genuinely committed to these broader goals. The results of corporate cultural chasms like this result in a less engaged workforce and ultimately lost value, given that purpose-driven companies experience a 1.5x greater growth rate, according to McKinsey.
The challenge of measuring a company's purpose and its impact on the workforce has historically been difficult. However, innovative diagnostic tools like EPiQ (Employee Purpose iQ) are being developed to help manage purpose as a crucial internal asset. These tools are designed to reverse trends toward burnout and disengagement by closely monitoring the employee-employer connection, leveraging AI for environmental oversight, and creating agile work environments that authentically reflect corporate values and employee voices.
Mental Health and Employee Well-being: Emerging Priorities
The importance of mental health in the workplace has become increasingly prominent. The American Psychological Association's "Work and Well-being Survey" in 2023 highlighted that 81% of individuals now prioritize mental health support in their job choices. Kristian Darigan Merenda, a partner at CCOP and 20-year industry veteran, sheds light on this trend: "There's a growing recognition that supporting mental health in the workplace is not just about treating symptoms but about creating an environment where employees feel valued and understood."
Ignoring mental health concerns in the workplace carries significant business implications. Anxiety and depression alone cost the global workforce up to one trillion dollars in lost productivity each year, as pointed out by the World Health Organization. The ongoing Great Resignation and the trend of quiet quitting further highlight the consequences of unmet employee needs.
"When employees resonate with their organization's purpose and feel their mental well-being is prioritized, they are more engaged, motivated, and loyal," says Merenda, referencing the findings from CCOP's "Purpose Under Pressure" study. This study indicated that 91% of employees feel they're in the right place during challenging times when their company's purpose aligns with their values.
Innovative Practices: Quest Diagnostics and Employee Engagement
Quest Diagnostics has demonstrated how an evolved Purpose strategy, "Working Together to create a Healthier World, one life at a time," can advance employee engagement and satisfaction. This strategy, coupled with significant improvements in the company's Environmental, Social, and Governance (ESG) approach and governance structure, the Quest for Health Equity (Q4HE) initiative, and the healthyMINDS effort in partnership with Spring Health, are reaping tangible benefits of aligning corporate purpose with employee well-being.
Volunteerism as a Driver of Purpose and Engagement
In the post-pandemic world, meaningful employee engagement has become a critical consideration. Deloitte reports that 86% of employees value meaningful work. Volunteer programs have emerged as vital aspects of this engagement, enhancing empathy, reducing stress, and promoting leadership skills. A study by the Chief Executives for Corporate Purpose (CECP) showed that corporate volunteering can increase the sense of purpose at work by 33%.
"Considering the tight connection between having a 'sense of purpose' at work and volunteer engagement and the fact that recent research from Accelerist has shown that employees consider community volunteering important, the case for investment in community outreach and internal community-building is clear," says Merenda.
The Future of Work: Aligning Employee Well-being with Organizational Purpose
Merenda reflects on two recent client efforts, "Johnson Outdoors' Clean Earth Challenge and Whirlpool Corporation's collaboration with Habitat for Humanity are prime examples of volunteer programs that have made a significant impact."
In partnership with the National Wildlife Federation, Johnson Outdoors' program centers on protecting the outdoors for future generations. The involvement of employees in creating and growing the program has been integral to its success, surpassing its original goal of removing one million pieces of trash from natural habitats by more than 300%.
Through its BuildBetter with Whirlpool initiative with Habitat, Whirlpool Corporation has infused human-centricity into its strategic volunteerism. The partnership ensures meaningful connections between the partner families and volunteers, with regular global "Habichat" employee social impact education sessions and a focus on two-way conversations, leading to significant relationship development over time. This evolving effort will celebrate its 25th anniversary in 2024, providing more than $136 million in financial contributions, $125 million in major home appliances, and thousands of employee volunteers helping build new homes for first-time homeowners and their families, collectively impacting nearly 1 million people. Employee volunteers have played a critical role in completing 250 climate-resilient and energy-efficient U.S. Habitat homes through the BuildBetter with Whirlpool program, which is expected later this year.
Corporate Responsibility: Beyond Profit to Social Impact
The benefits of aligning with corporate purpose can be profound, including reducing turnover by up to 50% and increasing productivity by 13%, as highlighted by the Impact Project ROI Report.
"Fostering a compassionate work culture beyond token gestures is vital. Strategies must align an organization's critical internal programs with its mission and vision to help employees understand their role in the bigger picture, "explains Cone. "This often includes developing resources for various life stages and events, establishing mental health ERGs, training leaders in empathetic mental health discussions, encouraging managers to model positive behaviors, promoting open dialogue, and empowering leaders with the skills to recognize and address signs of team stress and burnout."
"The traditional view of employees as mere cogs in a corporate machine is obsolete," Merenda says. "Today's workforce demands a workplace that offers financial stability, purpose, compassion, and a real commitment to well-being. When employees resonate with their organization's purpose and feel their mental well-being is prioritized, they are more engaged, motivated, and loyal.
"As leaders and organizations, it's our responsibility to meet these expectations, benefiting both our workforce and our organization's health and vitality.' Cone contends. "It's not just a moral imperative but a strategic one, integral to the success and sustainability of modern business. Looking ahead to the new year and beyond, it's clear that aligning employee well-being with organizational purpose isn't just desirable – it's essential."
