The labour market is constantly changing, and it is more important than ever for companies to understand what drives candidates in their career choices. One of the most significant trends we see in our recruitment processes is the growing importance of purpose, and we find that many candidates, especially from the younger generations, are purpose driven. Purpose is no longer just an added bonus; it has become a crucial factor that increasingly influences where and how candidates choose their next job.
Purpose as a competitive parameter
Purpose has become a key competitive differentiator for organisations. Candidates are no longer just looking for financial security; they also want to work for companies that are able to demonstrate a clear purpose that aligns with their personal values. Thorsten Andersen, Director at Compass, describes it this way: “Although it’s often younger profiles that emphasise purpose, we see a broader trend where candidates across age groups and professional experience are increasingly choosing companies that can demonstrate a strong purpose.”
This development is driven by society’s increasing focus on sustainability, social responsibility and innovation in green technologies. Purpose can therefore be expressed in many ways, from initiatives to reduce the carbon footprint to creating positive social change. For companies, it is no longer enough to deliver great products or services; they must also be able to show how they contribute to the development of society. This makes purpose a key factor in the battle for the best talent.
Italsisation of purpose
For organisations that want to attract and retain top candidates, it is not enough to have a strong purpose; it must also be communicated effectively and authentically. It is crucial that purpose does not just live on the company website or as part of the mission and vision. It needs to be integrated into the company’s culture and appear genuine and engaging at every level. Thorsten emphasises the importance of purpose being articulated in a sincere way. “It’s far more important for candidates to hear their potential future leader speak about the company’s purpose from the heart than just reading about it on a website,” he says. When purpose is presented as a living part of the company’s everyday life, it becomes a strong driver for candidates’ choice of workplace. Authentic engagement from management creates credibility and can be the deciding factor that makes top candidates choose one company over another.
This emphasises the importance of companies not only having a purpose, but also communicating it in a way that resonates with candidates. A strong and honest dialogue about purpose can be what sets a company apart from the competition and ensures it attracts the best talent in a competitive market.
Purpose as a motivation and retention factor
Purpose not only plays a role in attracting candidates, it can also be a key motivator for employee retention. When employees feel that their work makes a real difference and aligns with their personal values, their engagement and loyalty increases. This can be a strong motivator to stay with a company, especially at a time when job satisfaction and meaningfulness have become central themes in career choices.
However, Thorsten points out that this effect is not the same for everyone. “It’s more relevant for the younger generation, or for the more experienced part of the candidate field, who typically have different reflections on working life,” he explains. For highly career-driven candidates who are focused on progression and ambition, other factors such as a good manager and a good working environment may weigh more heavily.
However, Thorsten believes that if the economy turns and demand for vacancies increases, candidates will still prefer to work for an organisation where they can stand by its values. This means that even in a future with a more competitive labour market, many candidates will be willing to accept a lower salary if it means that they can work for a company whose values they can stand behind.
In some sectors, such as life sciences and green energy, purpose alone can be enough to attract talent. However, these sectors often face challenges in recruiting sufficiently qualified labour, especially when it comes to highly specialised professional skills. This shows that while purpose is an important factor, it is not always enough to overcome other challenges in the recruitment process.
Where does purpose rank?
Although purpose has become a significant factor in candidates’ career choices, it is rarely among the absolute top priorities when considering a job change. According to Thorsten, job role responsibility, flexibility and salary still typically top the list of most important considerations. However, purpose can act as a catalyst that pushes candidates to take the leap and consider new opportunities, even if they are happy in their current job. Thorsten emphasises: “Purpose can be the factor that makes them enter the dialogue and consider a job change, even if they are happy in their current job.”
This shows that while purpose may not be the primary driver, it is a powerful secondary factor that can tip the balance in favour of a company. Purpose can open the door to conversations that would not have happened otherwise, giving companies an advantage in the competition for talent. This emphasises the importance of having a clear and engaging purpose that can attract candidates at a time when they may not be actively seeking new opportunities but are receptive to something that speaks to their values.
Industry nuances
The importance of purpose also varies significantly across industries. In sectors such as life sciences and green energy, purpose plays a particularly prominent role in attracting candidates. Our consultants working in these areas find that candidates actively seek out companies that work with sustainability or improving human health. This is because these industries are closely linked to global challenges such as climate change and health crises, giving the work a higher meaning and relevance for many candidates.
Thorsten, elaborates: “As soon as a position has a hint of being part of the green transition, purpose becomes a crucial factor that makes the position more attractive.” This is because candidates in these industries are often driven by a desire to contribute to larger societal goals, whether it’s fighting climate change or improving public health.
In these industries, purpose is therefore not just an attraction, but a necessity. Companies that can demonstrate a strong sense of purpose have a significant advantage in the competition for talent, as candidates increasingly value meaningfulness in their work. This makes purpose a key competitive parameter in sectors where sustainability and health are at the core of the company’s mission.
Conclusion
Purpose has become a key competitive differentiator in today’s recruitment landscape, especially in industries like life sciences and green energy. For companies looking to attract and retain talented candidates, communicating their purpose in a clear and authentic way is crucial. Candidates are not just looking for a place to work, but a place where they can make a difference and work on something that aligns with their personal values.
However, companies should be aware that purpose can rarely stand alone as the only factor. As mentioned earlier, it is an important part of an overall value proposition, where classic factors such as job role, work environment and salary still play a significant role. It’s the balance between these elements that creates a complete attraction.
By combining a strong purpose narrative with attractive working conditions, companies can create a powerful positioning that appeals to both the hearts and minds of future employees. A company that manages to integrate purpose as a genuine part of its culture while offering competitive terms and conditions is in a strong position to compete for the best talent. This holistic perspective is key to successful recruitment in a market where both meaning, and material benefits must go hand in hand to attract and retain the most desirable profiles.
