The Shift Toward Purpose in the Workplace

Employees increasingly want to feel that their work matters, that it connects to something bigger than themselves. At the same time, organisations are realising that retention, engagement, and performance all hinge on more than financial rewards.

For HR leaders and business owners, this poses both a challenge and an opportunity. Ignoring the need for purpose risks higher turnover and disengagement. Embracing it can transform culture, improve loyalty, and sharpen your competitive edge in the talent market.

Turnover has always been costly, but today, the reasons people leave are shifting. While pay and progression remain important, a growing body of research shows that a lack of meaning in work is one of the most common drivers of disengagement.

In a recent survey conducted by T2M Resourcing, 68% of respondents said that purpose is a must for them to stay engaged at work.

According to Gallup’s State of the Global Workplace report, global employee engagement declined to 21% in 2024, with managers experiencing the largest drop.

Many are quiet quitting, which is a form of mentally ‘clocking out’ and doing the bare minimum because they feel disconnected from the company’s mission.

Disengaged employees are less productive, more likely to burn out, and more inclined to seek roles elsewhere. The cost of replacing an employee is generally around 20% of their annual salary once you factor in recruitment, onboarding, and training.

In short, when people feel their role doesn’t matter, they leave. And replacing them is far more expensive than cultivating purpose in the first place.

Gen Z, the oldest of whom are now in their late 20s, is shaping the future workforce. Their expectations around work are reshaping HR strategies worldwide.

A lot of research has shown that Gen Z have prioritised purpose over pay more than any other generation. They want employers that champion sustainability, diversity, equity, and social responsibility.

For employers, this is a wake-up call. Purpose-driven culture is no longer a “nice to have”, it’s quickly becoming a non-negotiable for attracting and retaining tomorrow’s leaders.

Creating a sense of purpose at work doesn’t mean every role has to solve global problems. Instead, it’s about helping employees understand how their daily efforts contribute to the bigger picture and ensuring that organisational values are genuine and lived.

Here are practical ways employers can build a purpose-driven culture:

Lead with authenticity

Purpose starts at the top. Leaders must consistently communicate why the organisation exists beyond profit, and back it up with visible action.

For example, if sustainability is part of the mission, leadership should model eco-friendly practices, not just talk about them.

Connect individual roles to impact

Employees want to know their work matters. Managers should regularly highlight how each person’s contributions feed into wider business goals or societal impact.

Even small tasks feel meaningful when their link to the bigger mission is made clear.

Create opportunities for employee input

Purpose is strongest when employees feel they have a voice. Open feedback channels, innovation forums, and collaborative projects help staff feel connected and valued.

This also strengthens trust, as employees see their input shaping the company’s direction.

Invest in genuine CSR and ESG initiatives.

Tokenistic corporate social responsibility no longer cuts it. Employees want to see initiatives that align with the company’s core values and have measurable outcomes.

For example, businesses might partner with local charities or communities, committing to real diversity improvements or reducing carbon footprints in meaningful ways.

Recognise and develop people

Recognition is one of the simplest ways to foster purpose. Celebrating achievements, big and small, shows employees their work is valued.

Development opportunities also reinforce purpose by giving employees a sense of progress and growth.

Investing in purpose isn’t just an act of goodwill; it delivers tangible business benefits.

• Stronger retention and lower turnover: Employees who feel connected to a mission are far less likely to leave.
• Boosted engagement and productivity: Purpose-driven staff are more motivated, innovative, and resilient.
• Employer brand advantage: Companies with an authentic purpose attract higher-quality candidates and stand out in competitive markets.
• Long-term performance: Research consistently shows that purpose-led companies outperform peers financially in the long run, as they build trust with both employees and customers.

The evidence is clear: employees who lack purpose will eventually walk out the door. Gen Z, the workforce of the future, is looking for authentic alignment between company values and daily work. And businesses that rise to the challenge by embedding purpose into their culture will reap the rewards: retention, engagement, innovation, and long-term growth.

For leaders, the question isn’t whether purpose matters at work. It’s whether you can afford to ignore it.