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THE PURPOSE-DRIVEN WORKPLACEA HUMAN RESOURCES GUIDE TOSUSTAINING ENGAGEMENTIDEASCALE WHITE PAPER

The Purpose-Driven Workplace: A HumanResources Guide To Sustaining Engagement34578111213The Purpose-Driven WorkplaceWhat is a Purpose-Driven WorkplaceWhy Purpose-Driven Work is Gaining MomentumPurpose is Essen al to Employee Performance and Reten onHuman Resources Can Create and Sustain a Purpose-Driven WorkplaceHow to Set Up Systems That Support Workforce Purpose andEngagementBayada Home Health Care Case StudyConclusion14Related Reading

THE PURPOSE-DRIVEN WORKPLACEThe Purpose-Driven WorkplaceHaving a purpose-driven workplace is no longer something unique to non-profits. You don't needto sacrifice profits for the sake of conscience and philanthropy. In fact, year after year, the topcompanies like Google, Facebook, Whole Foods, Zappos, and Toms, continue to be a force forgood while continuing on the profitability path.Beyond feeling and doing good, the importance of purpose for any organization goes beyond the"right thing" and expands into every facet of the organization, including culture. A 2014 culturesurvey by Deloitte discovered that focusing on purpose rather than profits builds businessconfidence and drives investment1. Similar studies demonstrate the importance of purpose foremployees: 73% of employees who say they work for a purpose-driven company are engaged,whereas only 23% of employees are engaged at companies that are not purpose driven. Clearly,having a purpose-driven workplace is a vital part of business.This whitepaper covers: The purpose-driven workplace Why it’s critical to retention The value of sustainingworkforce engagement long-term What HR can do to support the purpose-driven workplace How to set up systems that support workforce engagement3

THE PURPOSE-DRIVEN WORKPLACEWhat is a Purpose-Driven Workplace?A purpose-driven workplace infuse purpose into all that it does. It pursues purpose as well asprofitability. It doesn't mean that your company’s mission focuses 100% on saving the world.Many times, it's just about creating a connection between the work that's done in yourorganization and a larger purpose and helping employees see that connection.When you create a purpose-driven workplace, you provide your employees with a way to: Make a positive impact on others and on the community around them Connect with others and build meaningful relationships at work Achieve continued personal and professional growthWhen you provide employees with these elements in their daily jobs, they'll feel like their workmatters, and they'll know that they are making a difference. Even more, they will grow and learnwithin your organization, helping you create a deep well of talent for promotions over time.A purpose-driven workplace also means that your company's mission matters beyond profits. Isthere a clear, compelling vision for the company, or are you just "making widgets"? Is thecompany's mission statement words in a new employee orientation guide, or is it actually livedout in the organization?Another important question to ask is, “Are your leaders engaged in their work?” Gallup found thatonly 36% of management, executives, and officials are engaged2. If your top leaders aren'tengaged, then you can expect the rest of your employees won't be either. If you believe that youhave disengagement, it's possible that it stems from the lack of purpose.73% of employees who say they work for apurpose-driven company are engaged,whereas only 23% of employees are engagedat companies that are not purpose driven.4

THE PURPOSE-DRIVEN WORKPLACE5Why Purpose-Driven Work is Gaining MomentumThe focus on purpose in the workplace is partly generational. Millennials are now 36% of the workforce3,and they view the world differently than preceding generations.Millennials View the World Differently Success. Millennials have a different perspective on what success means, both personallyand professionally. They are much less interested in climbing the ladder and getting thecorner office than previous generations. Collaboration. Millennials prefer to collaborate and be part of a team. They don't enjoythe top-down management approach that previous generations have become accustomedto. They tend to think of themselves as equal to or on the same footing as coworkers andsenior executives alike. Technology. While the speed of technological development may seem overwhelming toBaby Boomers and Generation X, Millennials tend to embrace it. In addition, millennialshave an optimistic view of their ability to impact the world, in part due to the waytechnology has expanded the social impact of individuals. Management. Millennials tend to view management as coaches and mentors, not expertsor authority figures. They want to learn and grow from the example of others, but theydon’t feel like they need to be told what to do or how things should happen.To Millennials, work is not just about income. It's an avenue of personal enrichment, fulfillment,and continual growth. Adapting to this mindset and providing an environment that's receptiveto it will help your organization attract and keep top talent.Another reason purpose-driven work is gaining momentum is that the importance of purpose inkeeping employees engaged and highly productive has become clearer. Aside from the hugecost of turnover or the profitability argument, having employees with purpose creates anenvironment that spreads accomplishment and positivity that spreads beyond the walls of yourorganization. If you want to maximize the success of your organization, connecting with youremployees' needs to contribute and add value to society and their own lives is essential.

THE PURPOSE-DRIVEN WORKPLACEFinally, there have been changes in how work is conducted as technology expands andgenerational shifts occur in the workplace4. Flexibility. Employees now expect more flexibility than they ever have before, and job sharingprograms are on the rise. Analytics. Real-time analytics is changing how performance is managed, allowing more selfmanagement and personal control over how work gets done. On-the-Job Entrepreneurship. More employees are thinking like entrepreneurs and seethemselves as the "business owner" of their working lives. Consequentially, sharing a mutualpurpose helps you not only capture their attention, but it keeps them focused on yourorganization helping achieve both your purpose and theirs.These changes in generational perspective, focus on employee engagement, and changes in how workhappens are all contributing to an increased emphasis on purpose-driven work.6

THE PURPOSE-DRIVEN WORKPLACEPurpose is Essential to Employee Performanceand RetentionWhen people feel a strong sense of purpose, theirperformance improves in many areas of life.Purposeful people have better health and morelongevity. They also have less burnout and strongerproductivity5.Better health and longevity make a big difference inthe performance of an organization. When employeestake less sick days, have fewer visits to the doctor, andhave a higher level of energy and focus, they are simplybetter workers. They cost the company less money inboth benefits and missed time.People who feel purposeful also work harder. Theyhave greater productivity because they feel a sense ofmeaning in what they’re doing. They are far less likelyto burn out, in large part because they understand theimpact that their work is making. This allows them tofeel satisfaction and meaning instead of feeling likethey are grinding away for no reason.The City of Atlanta is a great example of purposedriven workplace making a major difference inperformance and retention. It created a program thatbrought its employees together with a specificpurpose: to reduce waste, save money, and eliminatered tape.Did You Know?Companies need to spend theequivalent of six to nine monthsof an employee’s salary in orderto find and train a replacement.For highly trained employeesand executives, the cost can beup to 213% of the employee’ssalary6.Turnover rates in companies withhigh engagement are 40% lowerthan for companies with lowengagement.Creating engagement through apurpose-driven workplace is a lowcost, high-reward focus that canhave the added benefit of helpingyour company solve long-standingproblems.As a result, morale among the City of Atlantaemployees improved in every area of city employment. Those who weren't directly impacted by thechanges also saw a boost in morale. Higher engagement created increased productivity, highercustomer satisfaction, and improved efficiency. It's contagious.The City of Atlanta created these changes without increasing wages or benefits. They simply askedtheir employees to work together to make the organization's processes better. Not only did they getgreat ideas and make money-saving improvements, but they also saw enormous benefits in terms ofperformance and retention.7

THE PURPOSE-DRIVEN WORKPLACEThe Value of Employee Engagement Over theLong TermIncreased engagement has a huge range of benefits. Engaged employees are absent less often,in part because they are healthier and in part because they don’t feel the need to skip work forno reason.Engagement also improves the quality of work that takes place and keeps employees safer.High-engagement business units report 48% fewer safety incidents, 41% fewer patient safetyincidents, and 41% fewer product quality defects.Highly engaged workers are 87% less likely to leave a company than their disengagedcounterparts. As a result, sharing the purpose of the organization and helping employees makea difference with their work can save the company a significant amount of time and money.Lower turnover rates mean that your organization can save the money and headaches involvedwith replacing personnel frequently. You will also gain the benefits of employees achieving truemastery at their position, rather than having someone become adequate, leave, and have tostart over with a new hire. Employees who have mastered their jobs are not only more efficient,but they can often suggest improvements to the work process that will impact the companylong after they've moved to another position.People don’t hate working. They hate working in a meaningless job. People want to come towork, understand what they do, and see how it positively impacts their lives, the organization,and society as a whole. Seeing a connection between their role, the overall mission of thecompany, and a benefit to society is essential.8

THE PURPOSE-DRIVEN WORKPLACEHuman Resources Can Create and Sustain aPurpose-Driven WorkplaceThere are a lot of ways to create a purpose-driven workplace. These ideas are just a startingpoint. Ask your team to see what else they can come up with!Discuss the Impact of Your ProductsCreating purpose at work starts at the top. Purpose can be highlighted by leaders who think andtalk about what their industry is good for. Unilever makes soap, but that soap reduces disease andhelps kids in poor countries live longer. When leaders bring that purpose to the forefront on aregular basis, it makes what seems like a mundane job very meaningful.Give BackOrganizations can also emphasize giving back. Companies like Toms and Yoobi run profitable,successful companies who focus on giving on a one-for-one basis. In both cases, a strong sense ofpurpose is created at every level of the company by focusing on giving back.Toms connects their sales success with making a difference around the globe. They currently helpprovide shoes, prevent bullying, improve access to clean water, and more. As a result, employeesat Toms know that by making the company successful, they are making a difference around theworld.Yoobi focuses locally. The company’s name means “One for you, one for me.” For every colorfulnotebook or office accessory purchased, Yoobi donates an item to a classroom in need in theUnited States. Employees at Yoobi know that when they get the word about their company’sproducts, they are helping struggling children right here at home.Share StoriesYour company might consider creating purpose by sharing the stories of people who werepositively affected by the business. Drug companies can bring in patients whose lives were savedor improved by the business’ products. Tech companies can allow employees to shadow acustomer for a day to see how they implement and use the company’s technology.When employees are able to learn about and even meet the people who the company serves, itwill help them feel a sense of larger purpose when they come to work each day. Regardless ofwhat department they work in, they’ll understand that helping your organization succeed ismaking a difference in someone’s life.9

THE PURPOSE-DRIVEN WORKPLACEProject TimeAnother way to create purpose at work is by offering project time – time that employees canspend working on company-related projects that are personally compelling. When employeesknow that they can spend part of their work week on a project of their choosing, it will increasemotivation and engagement.You can also work to ensure that employees’ jobs and responsibilities are focused in areas of thecompany’s need that align well with their personal interest. This won’t always be possible, so alsoconsider helping an employee understand what they can do to work their way into a departmentthey’d really enjoy. Knowing what to do to move into a desirable job can give an employee a strongsense of purpose.Solicit OpinionsAs the City of Atlanta discovered, employees love sharing their ideas about how to make the citywork better. If you can bring employees together in a crowdsourcing project to attack a particularorganizational problem, you can create engagement and purpose by allowing collaboration. Youwill also get the added bonus of solving the company’s problems in unique and innovative ways.10

THE PURPOSE-DRIVEN WORKPLACEHow to Set Up Systems That Support WorkforcePurpose and EngagementA great starting point for creating a purpose-driven workplace is to ask employees what would bepurposeful and meaningful to them. Having a platform where you can launch an employee engagementcommunity can help you explore more about how your employees define meaning in their own work.Platforms like IdeaScale can help.How to Create an Employee Engagement SpaceUse technology, like IdeaScale, which allows you manage the innovation process. Start by creating asecure, open space to gather ideas. From there, develop ideas, implement them, and learn from theresults. In reality, the process of learning what a purpose-drive workplace means to your employees isnot much different than gathering ideas for any other innovation project.Consider proposing the different engagement options listed above in your discussion community andask what would mean the most to them. You might find that your staff is more excited about giving backto the local community or would rather engage with and hear customer impact stories. The main thingis that you let them tell you how to create purpose that's aligned with the organization.Face Challenges BoldlyDon't be afraid of challenges that come up within the engagement community space. You may need toutilize best-practices to ensure employees and leadership communicate effectively within the space.You'll find out what problems can be solved in the group, and which ones need to be handled one-onone. Most importantly, you'll discover how your community can create a truly positive impact on theinternal and external challenges your organization faces.Tips and TricksHere are some ways to use an employee engagement community effectively: Connect. Ask meaningful questions about problems that need solutions and about how employeesfeel purposefulness could be improved. Offer feedback. Get involved in conversations and share the company’s perspective on issues thatarise, including why it may not be feasible to take on certain initiatives right now. Build teams. Encourage collaboration by having teams work together on projects and having themleverage each other’s skills to solve problems. Deliver. Discussing purposefulness isn't going to make a difference if nothing changes. Be sure toimplement some the changes that are discussed in the community and let the community knowabout it.11

THE PURPOSE-DRIVEN WORKPLACEBayada Home Health Care Case StudyA great example of creating systems that support purpose and engagement comes from BayadaHome Health Care. Bayada was facing significant challenges in bringing together the various bestpractices and innovations that were taking place in 260 offices around the country. The leadershipwanted to find a way for everyone to share their processes so they could be evaluated. Then, Bayadacould choose the best systems and implement them companywide.Bayada decided to create an innovation community initiative. This brought together the far-flungemployee base into a single virtual workspace. A regional director championed the initiative, whichhelped it gain traction and credibility.A pilot program engaged over 400 users and resulted in 100% participation without any incentivecampaign needed. Through the innovation community, companywide changes involving social mediaguidelines, employee training, and automated employee systems were realized. You can access thiscase study using the links provided in the related reading section of this whitepaper.12

THE PURPOSE-DRIVEN WORKPLACEConclusionCreating an employee engagement community to find out what purpose means to your staff is agreat starting point. Once you know what they’re looking for, you can move forward with creatingthose opportunities.It's important to understand what it means to have a purpose-driven workplace, and then take stepsto create one. When you know how to create a purpose-driven organization, and how tocommunicate your purpose to employees, you will be able to create an engaged, creative, andproductive workforce within your organization.How are you going to create a purpose-driven workplace in your organization? We'd love to help youcreate your virtual community with IdeaScale. For an in-depth product tour visit: https://ideascale.com/product-tour/13

THE PURPOSE-DRIVEN WORKPLACERelated ReadingBlogs:IdeaScale Bloghttps://ideascale.com/blog/Innovation Managementwww.innovation.seThe Daily eaScale Innovation my/Case Studies ReferencedCity of nta/BAYADA Home Health e Wisdom of Crowdsby James SCrowdsourcingby Jeff HoweA Guide to Open Innovation and Crowdsourcing: Advice From Leading Experts edited by Paul Sloane1. "Culture of Purpose Deloitte US Building Business Confidence." Deloitte United States. Deloitte, 22 Nov. 2016. Web. 12Jan. 2017.2. Gallup, Inc. "State of the American Workplace." Gallup.com. N.p., 2013. Web. 12 Jan. 2017.3. Brack, Jessica, and Kip Kelly. "Maximizing Millennials in the Workplace." UNC Executive Development (2012): n. pag. KenanFlagler UNC. UNC Executive Development. Web. 12 Jan. 2017. pment/custom-programs/ /media/DF1C11C056874DDA8097271A1ED48662.ashx 4. "2016 Workplace Predictions: Purpose-Driven Employment." Fierce, Inc. Fierce, Inc., 29 Dec. 2015. Web. 12 Jan. 2017. rivenemployment .5. Cable, Dan. "A View From Davos: Putting Purpose to Work." The Huffington Post. TheHuffingtonPost.com, 4 Apr. 2015. Web.12 Jan. 2017. m-davos-putting b 6599104.html .6.Kantor, Julie. "High Turnover Costs Way More Than You Think." The Huffington Post. TheHuffingtonPost.com, 15 Feb. 2016.Web. 12 Jan. 2017. rnover-costs-way-more-than-you-FOR MORE [email protected] / Americas 1 800-549-9198New Zealand 64-080-099-5088Australia 61-02-9037-8414United Kingdom 44-0-808-189-147614

The Value of Employee Engagement Over the Long Term Increased engagement has a huge range of benefits. Engaged employees are absent less often, in part because they are healthier and in part because they don’t feel the need to skip work for no reason. Engagement also improves the qu