The next generation of workers is demanding more than a paycheck—they want a purpose.
A recent Brookings Institute report states that, “Almost two-thirds (64 percent) of millennials said they would rather make $40,000 a year at a job they love than $100,000 a year at a job they think is boring.” The report continued, “Millennials overwhelmingly responded with increased trust (91 percent) and loyalty (89 percent), as well as a stronger likelihood to buy from those companies that supported solutions to specific social issues (89 percent).”
Employees may expect a higher purpose and more impact, but higher expectations are mutual. Companies expect longer hours and more productivity—in short, a committed staff. So in order to attract and retain the best, most committed talent, it seems employers had better demonstrate how they use business as a force for good, not just talk about it.
This is why companies like Etsy are winning the war for talent. "I thought the Etsy mission was amazing," former
According to Grishaver, Etsy’s status as a Certified B Corporation legitimized its claims to be a purpose-driven business. Candidates are attracted to companies that walk the talk, and Certified B Corps meet rigorous standards of social and environmental performance, transparency, and accountability. Etsy’s experience is not unique. There are more than 1,100 B Corps of all shapes and sizes, and one common experience they have all had—from Warby Parker to Ben & Jerry’s to Patagonia to Seventh Generation—is that they are attracting the best and brightest by providing higher quality jobs connected to a higher purpose.
But these companies aren’t only offering purpose to prospective candidates; they have to offer a vibrant working environment and fair working conditions, as well. Providing higher quality jobs is harder to demonstrate, but if you can do so, it can also be a differentiator. Again, that’s where the B Corp certification helps demonstrate that the company makes good on its claims to be a great place to work, since companies have to meet standards for how they treat their employees, too.
Here are a few reasons why workers seeking purpose want to work at a B Corp:
- B Corps offer better benefits. B Corps are 43% more likely than other businesses to pay at least 80% of employees’ health insurance premiums.
- B Corps are more family friendly. B Corps are significantly more likely to offer 5+ weeks of paid family leave time (42% more likely for paternity, 65% more likely for maternity), and provide more flexible workplaces.
- B Corps reward great work. B Corps are 73% more likely to have all employees participate in a bonus plan and 64% more likely to fill positions internally.
- Not surprisingly, this means that B Corps have more engaged employees. B Corps are 46% more likely to have satisfied and engaged employees than other businesses.
Of course not every company is going to become a B Corp, but every company can begin to build a better business—and attract and retain the best talent—by measuring and managing their impact with as much rigor as their profits. Free tools like the B Impact Assessment can help any business measure, compare, and improve its impact.
To win the war for talent and customers, businesses must start pursuing purpose, as well as profits, and perhaps more importantly, they must demonstrate that they practice what they preach.
Jay Coen Gilbert is one of the co-founders of B Lab, a nonprofit organization dedicated to building a new sector of the economy that uses the power of business to solve social and environmental problems.
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