Why are forward-thinking companies rushing to incorporate Purpose deeply into their corporate culture?
Is Purpose a sustainable movement, or a short-term fad?
Imperative, the New York based startup in my own portfolio behind The Purpose Economy, just released the 2016 Workforce Purpose Index.
Reading through the full report, I found five key stats that I felt encapsulated why Purpose has become so important, and begun to penetrate even the most conservative corporate boardrooms, with staying power.
Stat 1: The Correlation between Purpose and Growth
According to Imperative's study, 58% of companies with a clearly articulated purpose achieved growth of 10%+ over the past three years. 85% of companies with clearly articulated purpose showed some growth overall, while 42% of companies without it showed negative growth.
Stat 2: Workplace Satisfaction
According to Imperative's survey of Linkedin members, 73% of purpose-oriented members are satisfied in their jobs, against 64% of the non-purpose oriented. 39% are likely to remain for 3+ years, against 35% non-purpose oriented.
Stat 3: Purpose Correlation to High Performing Countries
The top five purpose oriented country workforces were Sweden at 53%, Germany (50), Netherlands (50), Belgium (49), and Poland (48). The US was in the top-middle, at 40%, and most developed and high performing economies were 35%+. The bottom were the UAE (28%), Qatar (28%), Kuwait (26%), and Saudi Arabia (23%).
Stat 4: Free Branding
Satisfied purpose-oriented employees were 47% more likely to promote their employer externally, without incentive.
Stat 5: Better and More Entrepreneurial Jobs
Purpose has a stronger correlation to higher performing jobs in more entrepreneurial functions: the top five are community and social services, entrepreneurship, education, health services, and research.