Purpose: The Key to Employee Retention and Success

Employee meeting — Photo by Austin Distel on Unsplash

Employee turnover is a financial burden with profound organizational implications. According to Gallup, the cost of replacing an employee can range from one-half to two times the employee’s annual salary¹. For a company with just 100 employees, this could translate into an annual financial loss of hundreds of thousands, if not millions, of dollars.

The disruption caused by high turnover extends well beyond direct financial costs. Organizations with frequent turnover experience lower productivity rates². Moreover, a volatile staff roster can severely damage team dynamics, erode institutional knowledge, and diminish morale, potentially triggering a detrimental spiral in company culture.

In today’s dynamic business environment, where talent is as precious as it is transient, it becomes clear that retention is not merely about keeping employees on the payroll but about engaging them in a meaningful way. A purpose-driven work environment is beneficial and essential for retaining top talent and ensuring company success.

Purpose: Key to job satisfaction

Purpose transcends the basic functions of a job or the general mission of a company. It connects every employee’s daily responsibilities to a larger societal or environmental impact. Purpose in the workplace means that employees are not just executing tasks; they are contributing to outcomes that align with their values and the greater good. This sense of contributing to something meaningful can transform a mundane job into a fulfilling career.

Evidence from PwC’s “Putting Purpose to Work” report underscores the tangible benefits of this approach. It reveals that companies with a clearly defined and communicated purpose have notably higher retention rates. According to the report, Millennials are 5.3x more likely to feel connected to their job and less inclined to leave, while non-Millennials are 2.3x less likely to leave³.

Deloitte’s 2024 Gen Z and Millennial Survey also found that 86% of Gen Zs and 89% of Millennials say having a sense of purpose at work is vital to job satisfaction⁴. The same study highlighted that these generations are increasingly likely to turn down assignments or employers that don’t align with their values.

About 50% of Gen Zs and 43% of Millennials have rejected assignments, and nearly 44% of Gen Zs and 40% of Millennials say they have rejected employers⁴. Reasons for refusing an employer or an assignment include factors such as having a negative environmental impact or contributing to inequality through non-inclusive practices and more personal factors like a lack of support for employees’ mental well-being and work-life balance.

These findings show that a purposeful workplace fosters strong emotional commitment, deeply anchoring employees to their roles and the company. When employees see the real-world impact of their work, it meets higher-level needs such as esteem and self-actualization, as outlined in Maslow’s hierarchy of needs. This fulfillment is crucial in today’s employment landscape, where job-hopping has become more common but is less desirable among workers who feel their roles offer real value and personal growth.

Pushing for climate action

The importance of purpose extends beyond personal fulfillment and job satisfaction; it also includes advocating for broader societal changes. Gen Zs and Millennials are pushing employers and the wider business community for more climate action. Roughly six in 10 Gen Zs and Millennials believe businesses have the opportunity to influence a range of societal challenges, with protecting the environment at the top of the list⁴.

Climate change is an issue that weighs heavily on these generations – about 62% of Gen Zs and 59% of Millennials are anxious or worried about it⁴. They use their career decisions and consumer behaviors to take personal responsibility and push businesses for progress.

Around 54% of Gen Zs and 48% of Millennials say they and their colleagues are putting pressure on their employers to take action on climate change, a trend that has increased steadily in recent years. Additionally, two in 10 Gen Zs and Millennials have already changed jobs or industries due to environmental concerns, with another quarter planning to do so in the future⁴.

As consumers, about two-thirds of Gen Zs and Millennials are willing to pay more for environmentally sustainable products or services⁴. Many also take personal actions, such as avoiding fast fashion, reducing air travel, eating a vegetarian or vegan diet, or purchasing electric vehicles.

Plastic Bank Philippines team with Erlinda Penaflor, owner of one of Plastic Bank collection branches.

Subscribing to purpose and impact

At first glance, integrating purpose and impact into business operations can seem overwhelming. Aligning daily activities with broader societal and environmental goals may appear daunting. But what if we told you that you could achieve this with the click of a button?

You can achieve this by subscribing to Plastic Bank’s Impact Subscription, which offers businesses a tangible way to support environmental sustainability and social equity by ensuring the collection of a predetermined amount of plastic bottles by collection members, who exchange the collected plastic for money and social benefits at Plastic Bank branches.

Upon subscribing, businesses select their desired level of impact and gain access to a Professional Impact Account. This account includes marketing toolkits, impact certificates, quick pay top-ups, a customized Impact Page, storytelling templates, and exclusive updates. The subscription renews automatically every 30 days, ensuring continuous support for collection communities and seamless updates to the subscriber’s Impact Page, which publicly showcases the business’s dedication to reducing plastic pollution.

Subscribing to Plastic Bank’s Impact Subscription positions brands among purpose-driven market leaders, aligning their business with ethical practices that significantly boost consumer loyalty and enhance brand equity. Companies can use their commitment to ending plastic pollution and poverty as powerful levers for building a resilient, trusted brand that stands out in a crowded marketplace. This enhances consumer loyalty and helps attract and retain employees passionate about making a difference.

Creating a better work environment for everyone

Creating a work environment that meets the expectations of Gen Zs and Millennials ultimately benefits all employees. These younger generations have significantly influenced the evolving standards of what is expected from employers over the last decade, and they will likely continue to do so. They advocate for what most employees want: meaningful work within purpose-driven organizations.

Meeting these expectations takes time and effort. It requires employers to actively engage with their workforce, listen to their needs, and continually adjust their strategies. However, organizations that succeed in this effort will cultivate a more satisfied, productive, and agile workforce.

Discover how Plastic Bank can transform your workplace with purpose. Visit plasticbank.com now!

Shane McFeely and Ben Wiger, “This Fixable Problem Costs U.S. Businesses $1 Trillion,” Gallup, March 13, 2019, https://www.gallup.com/workplace/247391/fixable-problem-costs-businesses-trillion.aspx
“High Turnover Rate: What Does it Mean for Your Company?,” Factorial, December 13, 2023, https://factorialhr.com/blog/causes-high-turnover-rate/
“Putting Purpose to Work: A study of purpose in the workplace,” PwC, 2016, https://www.pwc.com/us/en/purpose-workplace-study.html
“Deloitte’s 2024 Gen Z and Millennial Survey finds these generations stay true to their values as they navigate a rapidly changing world,” Deloitte, May 15, 2024, https://www.deloitte.com/global/en/about/press-room/deloitte-2024-gen-z-and-millennial-survey.html