The global workforce landscape is experiencing a seismic shift. Generation Z, the first truly digital generation, is entering the talent pool en masse. By 2025, Gen Z will make up 27% of the global workforce [Source: McKinsey & Company], wielding a unique set of values and expectations that redefine what it means to be a successful employee.
Unlike previous generations, Gen Z isn’t solely motivated by hefty paychecks or corner office perks. Research by Deloitte suggests they are the most purpose-driven generation, with 83% stating they want a job that makes a positive impact [Source: Deloitte Millennial Survey 2020]. They crave transparency, authenticity, and a strong sense of belonging from their employers.
Purpose, however, isn’t generational
While my argument for purpose stands tall on the back of the ‘next’ wave of our global workforce, you may ask: what about the rest of the 3/4ths? And to that, I say – this desire for a deeper connection isn’t just a Gen Z phenomenon. It’s a fundamental human need that traditional employer branding strategies, often focused on flashy perks and hollow promises, simply can’t fulfil.
Here’s the paradox: companies are still throwing money at ping pong tables and nap pods, hoping to attract top talent. However, these tactics are more like offering colourful sprinkles on a bland cake.
This shift in worker psyche presents a challenge for traditional employer branding strategies. Companies need to demonstrate a clear purpose that extends beyond the bottom line.
Why purpose matters
The time when a large paycheck was the key motivator is now behind us. Today’s workforce seeks meaning in their work. A company with a clearly defined purpose, one that extends beyond just generating profits, can attract and retain talent who are genuinely passionate about the company’s mission.
Think of purpose as the glue that binds a diverse workforce. In today’s globalised world, companies are a melting pot of cultures, generations, and backgrounds. Purpose acts as a unifying force, fostering collaboration and creating a more cohesive work environment.
Here’s the real kicker: a strong employer brand built on purpose can have a ripple effect beyond your employee base. Consider the “Boomerang Effect.” When a company’s purpose resonates with an individual’s values, it can reignite their passion and encourage them to return, even if they left for other opportunities.
The customer connection
The impact of purpose doesn’t stop at the office door. Purpose can demonstrate a higher level of reasoning for your company’s existence that goes beyond employer branding. When purpose is rooted in improving people’s lives, it brings a tangible benefit to the customer and lands an emotional connection that creates a clear differentiator from the competition. Customers are also increasingly drawn to brands whose employees believe in the company’s mission. A strong employer brand built on purpose can indirectly enhance customer perception, leading to a more positive brand image overall.
The talent marketplace shift
Gone are the days of passive job seekers. Today’s candidates are actively researching companies before applying, and purpose is a key deciding factor. By showcasing your purpose through employer branding initiatives, you attract talent who are a better fit for the company culture, reducing recruitment costs and saving valuable time.
Purpose as a catalyst for innovation
A workforce passionate about the company’s purpose is a breeding ground for innovation. Employees who feel their work contributes to the greater good are more likely to go the extra mile, develop creative solutions, and drive positive change within the organisation.
The competitive advantage
In a tight talent market, purpose can be a significant differentiator. Companies that effectively showcase their purpose stand out from competitors who focus solely on traditional benefits or compensation.
The bottom line
Building an employer brand around purpose isn’t just about attracting talent; it’s about creating a meaningful culture. By embracing purpose, companies can engage their workforce, spark innovation, and achieve lasting success.
To elevate your employer branding, start by defining your company’s purpose. What difference are you making in the world? Communicate this clearly and genuinely, as the purpose is the core of your company culture.
Prioritising purpose helps attract passionate talent, build loyalty, and succeed in today’s competitive talent market.