Purpose Pays: Korn Ferry Survey Shows Executives See Direct Link Between Purpose-Driven Leadership & Long-Term Company Financ...
November 05 2019 - 8:00AM
Business Wire
-- Company Mission/Values Top Reason to Choose
One Employer Over Another --
Editor’s Note: Survey Responses at End of
News Release, Infographic Here
Purpose doesn’t just add to an employee’s well-being, it adds to
a company’s bottom line. That according to a new Korn Ferry
(NYSE:KFY) survey of executives.
The vast majority of respondents (96 percent) agree that there
is a long-term financial benefit to companies that make a strong
commitment to purpose-driven leadership, with 77 percent agreeing
“to a great extent.”
One of the reasons purpose-driven leadership may add to
corporate financial gain, according to the survey, is the impact it
has on employees. Eighty-nine percent of respondents believe
understanding and embracing the mission/purpose of their
organization increases employee productivity.
“Without embracing the purpose of an organization – the
motivating force of why it is so important that we exist –
employees will become disenchanted,” said Kevin Cashman, Korn Ferry
global leader, CEO and Executive Development. “Many will leave, or
worse yet, stay and not be engaged nor offer discretionary effort
for their organization.”
Nearly two-thirds of respondents (59 percent) say their personal
principal driver at work is the belief that their work has purpose
and meaning. Only 11 percent say pay/financial rewards is their
primary driver.
When asked about the main reason they would choose to work for
one organization over another, the largest percentage (33 percent)
note a company’s mission and values, followed by company culture
(30 percent). Only 12 percent say the main reason they would choose
one job over another is pay/benefits.
Nearly three-quarters (71 percent) of respondents agree that
people at their organization work primarily for reasons other than
compensation.
“It’s important that day in and day out, organizational leaders
live their purpose and mission. It must permeate all areas, from
employee and customer interactions, to a go-to-market strategy and
corporate social responsibility efforts,” said Cashman. “Being
purpose-driven is not just a ‘feel good’ for companies – purpose
motivates and elevates their competitive stance and financial
performance.”
About the survey
There were 391 responses to the online executive survey, which
took place in October 2019. Please note that due to rounding
responses may not equal 100 percent.
Survey responses
Does understanding and embracing the
mission/purpose of your organization increase employee
productivity?
To a great extent
42 percent
To some extent
47 percent
To little extent
9 percent
There is no correlation
2 percent
Is there a long-term financial benefit
to companies that make strong commitments to purpose-driven
leadership?
To a great extent
77 percent
To some extent
19 percent
To little extent
0 percent
There is no correlation
4 percent
What is the main reason you would
choose to work for one organization over another?
Company mission/values
33 percent
Company culture
30 percent
Career progression
14 percent
Benefits/pay package
12 percent
Company brand/reputation
5 percent
Flexible working
5 percent
Job stability
2 percent
What is your personal principal driver
at work
The belief that my work has purpose and
meaning
59 percent
The ability to be a leader
25 percent
Pay/financial rewards
11 percent
Recognition/social status
5 percent
To what extent would you agree with the
statement “People work at my company primarily for reasons other
than pay”
To a great extent
30 percent
To some extent
41 percent
Not at all
9 percent
To little extent
20 percent
Do your organization’s employees
understand and embrace the mission/purpose of your
organization?
To a great extent
37 percent
To some extent
37 percent
To little extent
19 percent
To no extent
7 percent
About Korn Ferry
Korn Ferry is a global organizational consulting firm. We work
with clients to design their organizational structures, roles and
responsibilities. We help them hire the right people and advise
them on how to reward, develop and motivate their workforce. And,
we help professionals navigate and advance their careers.
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version on businesswire.com: https://www.businesswire.com/news/home/20191105005039/en/
Tracy Kurschner 612.309.3957 Tracy.Kurschner@Kornferry.com
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