At royall we’re very clear on our purpose, and we always have been. Our purpose is 'Helping organisations achieve measurable success through their people’. We’re here to help businesses attract, engage and develop the best talent in our industry. We’ll be the best client partner you’ve ever had, because our service is like no other. We’ll help you find your purpose too - but why is it so important? In today's fast-paced business world, purpose has become an increasingly important topic. Company purpose is the reason a company exists, beyond just making a profit. It's the ‘why’ behind an organisation and guides their decisions and actions. Having a clear and meaningful company purpose is essential for several reasons, not least because it’s increasingly important to your chances of hiring, and keeping, the best talent. A recent report states that 50% of talent would quit if they felt a company’s values were off, and over half of Gen Z and Millennials said they’d take a pay cut to work for a company whose values they loved. Strong stuff.
In this article, we'll explore why company purpose is important and how it can benefit a company.
Provides Direction and Focus
A company purpose provides direction and focus for the organisation. It helps employees understand the company's goals and values and gives them a sense of purpose in their work. But the purpose must also be ‘practical’. What we mean by this is that an organisation should work collaboratively to activate its purpose: it should build a joined-up business and people engagement plan, agree key organisational and business metrics, and then implement. They should measure what matters and show people how they make a difference. They need to develop a measurable infrastructure for growth, people and sustainability. Otherwise, how can an organisation tell if its purpose is truly meaningful? Additionally, when employees are aligned with the company's purpose, they are more engaged and motivated. This leads to higher productivity and better performance, which ultimately benefits the company as a whole.
Builds Brand Reputation and Loyalty
A company purpose also helps to build brand reputation and loyalty. Consumers today are more conscious about the companies they support and want to know that their values align with the companies they purchase from.
A clear purpose that aligns with consumers' values can help to build trust and loyalty. It shows that the company is more than just a profit-driven entity and is committed to making a positive impact on the world.
Attracts Top Talent
In addition to building brand reputation and loyalty, a company purpose can also help to attract top talent. Today's workforce is more interested in working for companies that have a clear purpose beyond just making a profit.
When a company purpose aligns with an employee's values, it can create a sense of purpose and fulfilment in their work. This can lead to higher job satisfaction, lower turnover rates, and attract more top talent to the company.
Drives Innovation and Creativity
Having a clear purpose can also drive innovation and creativity within a company. When a company has a higher purpose beyond just making money, it can inspire employees to think outside the box and come up with new and innovative ideas. This can lead to the development of new products, services, and processes that can benefit the company and its customers. It can also help to differentiate the company from its competitors and give it a competitive advantage in the market.
Creates a Positive Impact on Society
Finally, a company purpose can help to create a positive impact on society. When a company is committed to making a difference in the world, it can inspire employees, customers, and stakeholders to take action and make a positive impact themselves. This can lead to a ripple effect of positive change in the world. For example, a company that is committed to reducing its environmental impact can inspire employees and customers to adopt more sustainable practices in their personal lives. In conclusion, having a clear and meaningful company purpose is essential for several reasons. It provides direction and focus for the organisation, builds brand reputation and loyalty, attracts top talent, drives innovation and creativity, and creates a positive impact on society.