Unlocking Gen Y & Z: cultivating a purpose-driven culture to boost engagement

You can no longer dangle some financial benefits in front of Gen Z and millennial employees like the proverbial carrot and be done with it. Younger generations expect more than a paycheck. They want to derive a sense of value from their jobs. Cultivating a purpose-driven culture is an essential strategy for organisations to foster more engagement among employees, and the benefits of these efforts are far-reaching.

According to a recent Gallup study, employee engagement has dropped during the COVID-19 pandemic and has still not reached the heights of early 2020. Especially among younger generations (Millennials born after 1989 and Gen Z’ers), the lack of clarity regarding expectations and purpose resulted in a decrease of engagement.

Articulating a compelling vision of the company’s purpose helps employees to understand the greater significance of their work

Interestingly, different generations respond differently to the undeniable changes in the way we work. Baby Boomers even seem to be doing better – their engagement has increased from 34% to 36%. So, to motivate younger workers, it’s clear that mere financial incentives will not suffice. Gen Z and millennial employees often look for work that aligns with their values and allows them to make a meaningful impact. They want to feel like they are part of something bigger than themselves. To engage these younger generations, organisations need to cultivate a purpose-driven culture.

Communicating the mission and values

The first thing on the purpose-driven agenda therefore, is to clearly define and communicate the organisation’s mission, values and goals in a way that resonates with younger employees. Articulating a compelling vision of the company’s purpose helps employees to understand the greater significance of their work and inspires them to do their best work.

Of course, you can’t just articulate your purpose and expect everybody to feel engaged with it. Purpose is a very personal thing: there needs to be a match between the organisation’s values and those of the individual employee. So, it’s always a good idea to incorporate a purpose assessment into your hiring strategy to ensure that the pieces of the puzzle fit.

It’s easier to stay motivated and keep going when things get complicated when you know what you’re working for, and when you have reason to believe that what you do really matters.

Feeding ownership

Next to personal purpose, it’s also essential to align individual roles and responsibilities with the broader organisational purpose. When employees see how their contributions directly help in achieving the organisation’s mission, they’ll feel a greater sense of value and fulfilment in their work. The ownership that comes with these insights will further increase employees’ confidence and create stronger ties between coworkers. It’s easier to stay motivated and keep going when things get complicated when you know what you’re working for, and when you have reason to believe that what you do really matters.

The role of leadership

Leaders have an important part to play in a purpose-driven work environment. By emphasising the importance of each team member’s role in driving the organisation towards its purpose, they can significantly boost motivation among their employees. They can further motivate and inspire them by demonstrating authenticity, transparency and a genuine commitment to the organisation’s purpose.

Benefits of a purpose-driven culture

Cultivating an organisational culture that focuses on purpose helps to engage and motivate younger employees, which results in more job satisfaction and thus a higher retention rate. But the benefits don’t end there. Happy and engaged employees are more motivated, innovative and committed to achieving shared goals. As their performance and productivity improves, customer satisfaction also rises. And last but not least, companies with high engagement rates also show lower percentages of absenteeism. Now that you see that there is clearly no downside to cultivating a purpose-driven culture in your organisation, what are you waiting for?

Conclusion

For people and organisations to thrive in this post-pandemic era of work, cultivating a purpose-driven culture of belonging is critical. People want to feel part of something bigger than themselves. By understanding their impact on the organisation’s mission and why their work matters, people will feel more connected to their work. This sense of purpose, engagement and ownership will lead to more productive, creative, innovative and resilient employees across the whole organisation, from the c-level to the most junior employees.

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About Projective Group

Established in 2006, Projective Group is a leading Financial Services change specialist.

We are recognised within the industry as a complete solutions provider, partnering with clients in Financial Services to provide resolutions that are both holistic and pragmatic.  We have evolved to become a trusted partner for companies that want to thrive and prosper in an ever-changing Financial Services landscape.