Is a lack of purpose the reason so many are disengaged?

Research from major organizations such as Gallup and Deloitte has repeatedly indicated that employee engagement levels are continuing to fall across many organizations and territories.

Many assume this is a result of pandemic and hybrid working/working from home… I would suggest that this is a very dangerous assumption and an easy way of assuming that it doesn’t have anything to do with the organization or its leaders.

That simply isn’t true.

It is worth remembering that engagement levels were already extremely low long before pandemic, as illustrated by the ‘Macleod report’ to government of 2008/9, which showed that less than 30% of people said they were ‘engaged at work’. So 2 out of 3 were not, even then.

It’s also worth remembering that the term ‘employee’ doesn’t just mean, as is often assumed, ‘staff’ at the sharp end. Employees exist in boardrooms, the senior team, in middle management and at first-line manager level. After the challenges of recent years, disengagement is at least as likely there, and often overlooked. This has a major impact on morale and team effectiveness.

For my part, I believe it has a great deal to do with Purpose.

Or rather the lack of it.

Many people, especially but not solely, younger people, are only going to fully engage with a role, organization, team and purpose that they find compelling and worthy of their best efforts.

The idea of spending their days doing something which really doesn’t matter to them, in order to put money in someone else’s pocket, leaves them cold and thus likely to either perform far below their capabilities, or to leave.

A lot of organizations are specifically designed to feel this way, based on the ‘old’ business model that was established to preserve the status quo and maintain the social order. When an organization – and therefore its leadership – exists to deliver financial returns and pays little attention to the deeper needs of its people and society, then a disinterested and disengaged workforce is the likely outcome.

Those organizations that have woken up to this new reality and defined a compelling purpose that exists beyond (but not instead of) simply delivering profits and shareholder returns are reaping the rewards. They are recruiting the best talent, innovating and creating opportunity for all, building inclusive cultures that are attractive to contemporary society – and enabling their people to be proud of the work they do and what it achieves. They are seen as ‘good’ organizations and their people quickly become the best advocates for the business, leading to others aspiring to join them.

You’ll probably have heard about the ‘Triple Bottom Line’ that is at the heart of movements such as B Corp. If you haven’t, read about it in this article and others from our Insights Hub.

The TBL expects organizations to seek to align the needs of People, Prosperity & Planet to make business a force for good and a regenerative influence on the planet we all need to live on. This may sound very airy-fairy and not very businesslike. However, the level of focus and concern with regard to the impact of business on the environment, wellbeing & mental health, climate change, the developing world and the drive for an equitable society means that every business needs to take this very seriously.

Failing to do so represents an existential threat. Here’s why.

• Investors are deserting those organizations seen to have negative impacts on the planet and people and moving their money to more ethical destinations
• People, especially those from the Millennial and Gen Z age groups that so many business are trying to attract, are deliberately seeking to join regenerative organizations and often won’t work for those they see as ‘bad’
• Organizations that attract the best talent will quickly innovate themselves ahead of the competition. It’s already happening. They will gradually draw all of the brightest minds away from the organizations they see as ‘out of touch’ with the needs of TBL

Any organization and senior leader needs to ask themselves a few simple but powerful questions.

• Why would talented individuals choose to work for you? – If your immediate answer is something to do with salary and benefits packages, you’re probably missing the point
• What is truly compelling about your organization’s purpose?
• What is it there to do and how does that add value to the human experience?
• How much would it matter to the world if your organization ceased to exist?

The answers may worry you – and unless you have a good purpose story, they should.