Staying for the right reasons

Conviction, not compensation

The answer is unlikely to be about reward – or, at least, not just about reward. Naturally, employees expect to be paid appropriately but, for a growing number, other aspects of work take precedence. In one of the biggest recent studies into what people actually want from work, market research specialist Gartner found the COVID-19 crisis had changed people’s priorities. Almost two-thirds (65%) said they had reassessed the place that work had in their lives, 56% now wanted to contribute more to society, and 52% had begun questioning the point of their jobs.

Employees are looking to work for organizations with a strong purpose that goes beyond making money. They’re seeking employers who can articulate what they stand for, and whose leaders transparently practice what they preach.

Purpose doesn’t have to mean undiluted altruism. Not every organization is able to save the world, and not everyone wants to work for a charity. But if they want staff to stick around, leaders need to give staff a sense that their jobs matter to society, as well as the business. Purpose may be partially driven by commercial targets (to be the most customer-centric business in a particular vertical, say), but it should have an authentic societal benefit at its core and must be clear and communicable.

In addition, purpose must be felt throughout the organization. If head office is content merely to voice platitudes, it will find they resonate less and less down the organizational hierarchy. At a certain point, they may even become counter-productive, alienating staff who see no connection between what the leadership is saying and what they are being asked to do every day.

This is one reason why Unilever, for example, is currently pushing for each of its 400 brands to have a social or environmental purpose. The consumer goods giant is also working on a project to integrate individual employees into its purpose-driven approach.

Finding ways to make sense of purpose at a local level can be a valuable retention-driving exercise. Employees who see their employers engaging with the community, whether by sponsoring the local soccer team or sourcing from local businesses, will feel a greater connection and unity with the organization, further insulating them from the siren call of rival employees seeking to lure them away.

Shared purpose, decided together

Purpose, then, can help employers to provide their employees with a powerful reason to stay, strengthening the relationship based on shared goals. Some employers are even looking to employees to set those goals for the business, inviting lower-level staff into the decision-making process.

Finnish paper giant Stora Enso provides an example of how this might work in practice. Faced with the challenge of transforming its business in a tough marketplace, its executive leadership appointed a “Pathbuilder” committee, comprising staff from every level. The committee worked with senior sponsors to respond to mission-critical difficulties as the business reoriented itself. In addition, they invited hundreds of people from the organization to co-create their strategy for quality, engagement, and retention.

The transformation project not only delivered remarkable commercial results (tripling the share price and completely revising the revenue model) but also had positive impacts on talent management. More than 70% of those appointed to Pathbuilder (many not previously identified by the organization’s talent programs) subsequently moved into new and distinct, or more senior roles. Enthused by their opportunity to set the agenda, almost all stayed with the business to put it into practice.

This story is a reminder that employees want to feel they are learning, developing, and progressing in their careers. A recent study from PwC found 47% of CHROs are now looking hard at how to improve career advancement opportunities as part of their retention strategy. That could mean clear career progression ladders for staff who want to move up in the organization, or helping staff to acquire new skills and experience in adjacent roles. The aim is to show employees they have an exciting future if they commit to the employer.