When you are in a daily battle to manage rising costs, attract and retain employees and win new business, it can be easy to put off ‘softer’ objectives such as defining your company’s purpose.

But business leaders who do not articulate their organisation’s values may find that it hampers their efforts to build a sustainable and resilient company. 

This was made clear in our FutureFit survey of 500 UK business decision-makers from a wide mix of sectors. More than half of the respondents (58%) we polled agree that a sustainable business is one that is both purpose-led and has future-proofed itself by diversifying its supply chains and customer base. 

Beyond the ambition to be sustainable, the most compelling reason to define your purpose may be to help attract and retain employees. Nearly half of decision-makers (44%) agree that giving employees purpose at work helps prevent them leaving for a job offer with a slightly higher salary. 

Given that 38% of businesses reveal they are finding it more challenging than before to attract talent, the benefit of holding on to employees – and cutting the cost of recruitment and on-boarding – is clear (see chart).

To what extend do you agree or disagree with the following statements?
(% of respondents who agree) 

Other measures that businesses hope will attract and retain staff in the short term include employee benefits (40%) and higher wages (36%). In the longer term, they plan to trial a four-day week (28%), redesign their office space (27%) and subsidise a canteen (19%). 

Compared with these, defining and articulating your purpose could be a more cost-effective strategy for attracting and retaining staff. 

Your company’s purpose does not need to be a lofty and unrealistic ambition to save the world. In fact, the survey suggests it should be grounded in the work that you do. 

Just over half of the respondents (52%) say their business purpose directly relates to the products or services they offer. And most of those who do (63%) say it has resulted in new opportunities or partnerships.  

It is easier to declare your purpose than to make it a reality, of course, and it is vital that companies live up to their commitments. Just over 51% of respondents agree that ‘purpose needs to be proven through everyday actions within our business’. 

Failing to follow your company’s stated purpose could lead to accusations of ‘purpose washing’. And if your employees are invited to help define this purpose but later see that it is not being followed, it could do more harm than good. 

• Get your people involved: make your staff champions of your company’s purpose by involving them in the process of creating it so that they feel invested in the business’ success.
• More than just a statement: ensure your organisation’s purpose is being proven through everyday actions within the business.
  
• Prove it – put measurement frameworks in place to help ensure that the purpose is being followed and that your organisation is committed to it.