Will Purpose-Driven Jobs Bring Americans Back to Work?

There’s still a shortage of labor in the U.S., with three million fewer Americans working today compared to February 2020. 

The shortage is a lingering effect of the pandemic and the ensuing Great Resignation (the mass exodus of workers from the workforce following the pandemic)–and it’s giving employees more power than ever before.

Money Isn’t Enough

In a market where talent is scarce, turnover is high, and retention is top-priority, employers are sweetening the deal for employees by offering more benefits, more career development, and–in some cases–better pay. 

In fact, America’s largest private employer, Walmart, just raised its minimum wage to a range of $14 to $19 an hour (depending on location), up from $12 to $18 an hour. The market is tightest in lower-wage industries, so the wage hike is designed to ensure Walmart has attractive pay in the markets they operate in–to both recruit and retain talent. 

But, according to Harvard Professor, Ranjay Gulati, money isn’t enough. He believes that attracting, retaining, and developing talent is primarily about one thing–it’s about purpose. Top economist and Bain senior partner, Darrel Rigby, agrees in his latest paper in HBR. 

In a recent article in Fortune, Gulati proposes a new name for the Great Resignation: the Great Rethink. He believes that the disruption in the labor force is due to a mass crisis of meaning among employees. With more choices than ever before and a changed outlook on life due to the pandemic, workers are rethinking their relationship with work and how it fits into their lives. 

“People have looked at their jobs and thought: I want meaning and purpose in the work that I do, and I’m not finding it here,” he says. 

Hence, the resignations. Only purpose can bring Americans back to work. 

Introducing: Deep Purpose

There is plenty of research out there that shows that employees of all ages want jobs that not only pay well or suit their skills, but that are also meaningful and values-aligned. 

Recent research out of McKinsey found that 89% of employees desire a sense of purpose at work, and a study from Gartner has similar findings. 

In his newest book, Professor Gulati introduces the concept of “deep purpose,” which he believes empowers organizations to “operate with heightened passion, urgency, and clarity.” It drives “exceptional performance” and helps employers attract and retain top talent (and get the most out of them). 

Deep purpose is about becoming a values-driven organization. It’s about working mission and vision into daily operations and communications. It’s about having clear long-term goals for the organization that everyone can work towards. 

It’s not necessarily about doing work or producing something that “benefits society” in the classic sense (although that helps); rather, it’s about serving customers and stakeholders and providing as much value to them as possible–instead of driving towards profit at all costs. 

“Deep purpose companies thoroughly embed their purpose in their strategy, processes, communications, human resources practices, operational decision-making, and even culture,” he says. 

This way, everyone works from the same playbook and is energized around a common goal. Ultimately, this will make decision-making more efficient and effective. 

A Win-Win

For employees, finding a company with (deep) purpose-driven work means more daily motivation and enjoyment on the job. It means higher productivity; work doesn’t feel empty or futile any more. It feels meaningful and exciting. 

It means further career enrichment and development. Employees at deep purpose organizations tend to care more about–and dig deeper into–their subject matter. 

It even opens the door for career mobility as purpose-driven work makes employees more likely to stick around (and stick it out through the hard times). 

Greater productivity, more engaged employees, long-term retention (and a growing base of institutional knowledge)? Music to the ears of HR managers everywhere–especially in the midst of a labor crisis with an impending recession on the horizon. 

Deep purpose is a win-win for all. 

More On Purpose

This week, discover how deep purpose helped a Nashville small business owner turn her wellness studio into a national franchise. 

America Back to Work: Expert Interview Series returns on Tuesday, and we’re sitting down with Candice Bruder, founder and CEO of Pure Sweat Studios to get her insights on the power of purpose-driven work. Click here to listen and subscribe. 

Plus, check back Friday on the blog where we’re sharing our top tips for building a purpose-driven organization that helps you attract, retain, and develop top talent.