As we approach the annual planning and budgeting cycle, it's a great time to reflect on the impressive results that come from prioritizing purpose-driven goals.
According to a recent Deloitte study, companies that prioritize their purpose have higher rates of productivity and growth, as well as a more contented workforce that stays longer. In addition, these purpose-focused companies report 30% higher levels of innovation and 40% higher levels of employee retention compared to their competitors.
So, how does this translate into profitability?
The book "Firms of Endearment" tracked the financial performance of 18 purpose-driven companies over a decade. These 18 companies boasted an average annual return on equity of 13.1%, which is 9% higher than the average company in the S&P 500. Overall, the study found that purposeful companies outperformed the S&P 500 by an impressive tenfold.
In short, being purpose-driven gives companies a competitive advantage, which is a goal every leader is keen to achieve.