Why younger workers are drawn to responsible companies

Many companies struggle to retain staff and so are unable to grow and yield returns on investment in their teams — but many conscious brands face the opposite: too much retention.
Commitment to social and environmental issues can positively impact an organization, from startups to listed companies, to attract and retain talent.
The alignment with companies with a purpose is more evident among the younger generation. The Deloitte Global 2021 survey revealed that Generation Z and millennials — groups aged between 10 to 25 and 26 to 41, respectively — demand more accountability and look to be part of companies that make a difference.

Having a purpose builds engagement among employees, which fuels creativity and innovative ideas. A survey by EY indicated that an organization that has a purpose can have a workforce 1.4 times more engaged and 1.7 times more satisfied.

Besides cash incentives and work-life balance benefits, two key aspects workers seek in any organization are trust and fulfillment.

According to the 2021 Edelman barometer, which measures trust in four institutions: businesses, Nongovernmental organizations, governments and media across ethics and competence, only companies emerged as a trusted institution. The highest trust measures were recorded in India, China, Indonesia, Saudi Arabia and the UAE, demonstrating key opportunities for newly formed firms in these countries to tap into these forces.

Startups may be ahead of large corporations in seeking staff trust. One advantage young firms have over large corporations is their ability to transform, lead and inspire their employees around a common purpose, due to their greater flexibility, flattened hierarchy, innovative ideas and closely-knit work environment.

By eliminating the hierarchies often found in large corporations, trust gaps can also be erased making it easier for staff to understand and align around a vision.

While employee trust is a key opportunity for consciously-driven startups, fulfillment is another gain. A McKinsey survey indicated that 70 percent of the sense of purpose among workers is largely defined by their job, and when fulfilled, the outcomes they report, on both professional and personal levels, are two to five times higher than unfulfilled peers.

This suggests increasingly blurred boundaries between life and work, where personal values and life goals meet in the workspace.

Several conscious startups in the region have been able to grow and inspire staff by addressing environmental or social concerns, felt by the communities they serve.

The founder of a Dubai-based startup fundraising platform — which raised so far over AED 63 million for humanitarian relief, health and environment projects —  attributes the success of his business to its deep purpose, which he says immediately won the buy-in of employees, who share the same values and have previous experience of either volunteering with charities, or fundraising for a cause they believe in.
The pandemic has forced people into long periods of reflection. This presents an opportune time for startups to satisfy the needs of workers seeking fulfillment and purpose to meet their heightened expectations. While organizations tend to immerse themselves in day-to-day operations and targets, it is important for them to regularly pause and feel the pulse of their staff through candid conversations and compassionate leadership.

• May Barber is a LEED Green Associate Architect and Brand Management Advisor focused on building brands with purpose.

• Mourad Ben Ayed is a seasoned Advisor in Finance and Strategy focused on purpose-driven businesses and an educator at the American University in Sharjah.