Purpose Congruence: What is it and Why is it Key to Business Success?

The pandemic fundamentally changed how many of us see the world. Dramatic changes like that to our psyches never fully go away, even if the world seems mostly be back to normal on the surface.

Covid led to the Great Resignation, where employees left their jobs en masse.

Research by Adobe suggests that the main cause for this was employees feeling dissatisfied at work. Rather than purpose congruence, it was more like purpose disconnect.

During the Great Resignation, over 50 million US workers left their roles. While the Great Resignation is over, what employees want from work hasn’t. If they don’t get it, they quiet quit. They disengage. They do the bare minimum required to get their pay cheque.

And now we have businesses wanting employees to return to the office full-time despite most employees preferring a hybrid model. And despite the impact that forcing employees to return to the office can have on diversity initiatives.

There’s a disconnect forming between employees and their employers. If we’re not careful, it could turn into a chasm.

A lack of purpose congruence lowers motivation and productivity, reduces innovation, and diminishes business profits. It’s a disaster all round.

And when we dive into the stats, you’ll realise that’s not hyperbole. Purpose congruence is no longer a nice-to-have, it’s imperative for modern business success.

Businesses need to find a way to reconnect with their employees to keep them engaged, retain talent, and attract new talent. It’s only then that they can maximize their impact for shareholders, employees, and the rest of the world.

Connecting employees to business purpose is the key to unlocking enormous business growth. But what do we actually mean by that?

What is purpose congruence?

Purpose congruence is when company purpose and employee purpose align. The purposes don’t have to be identical.

In fact, they shouldn’t be identical. That risks groupthink, less innovation, and decreased diversity. No thank you.

It’s also not about forcing employees to follow a set path and mindlessly follow the corporate purpose. If they don’t buy into it, they’re even more likely to feel disconnected and disengaged, putting in less effort and maybe even dragging the mood down within the organization.

Employee purpose and company purpose should run parallel to each other, working toward the same goals even if their paths differ (and they probably will). This alignment leads to more creative employees who are more satisfied with their working lives and want to be there.

Why does purpose congruence matter?

Strong purpose congruence has a positive impact on everything from employee satisfaction to productivity.

Purpose alignment impacts organizational culture and, as a result, workplace efficiency. If employees are aligned with company objectives, they’ll work harder because they’ll feel like what they do matters. It’s compatible with their values.

So much so that many will take a pay cut in exchange for working in a role where they feel like they’re making a difference.

Think of a vegan. If they worked for an abbatoir, it wouldn’t align with their values and they’d disengage. If they worked for a plant-based recipe box, there’d be better alignment between their core values and the business’s overarching goals.

This person organization fit is key to purpose congruence. Not to encourage groupthink, but to ensure that every employee plays a pivotal role – and sees the value of that role – toward the shared goal.

Gartner data from June 2024 found that when employees are “energized and excited about their work”, they’re 31% more likely to stay, 31% more likely to go above and beyond, and contribute 15% more to the business.

Another study found that when organizations have purpose-driven leadership, their employees are more satisfied and they have stronger reputations in the market, leading to happier customers and shareholders. And who doesn’t want that?

Companies that lead with purpose also have 30% higher innovation levels and 40% higher talent retention year-on-year. I think we can both agree those are some pretty impressive statistics that could make a massive difference to any business.

What does purpose at work actually mean?

All those benefits are all very well and good, but what does it actually mean for employees to have a purpose at work, if it’s not about getting everyone to walk in a line repeating the corporate purpose over and over like they belong in Apple’s 1984 advert?

Let’s explore what purpose congruence at work actually looks like, and what employee purpose can look like, using Formula 1 as an example…

Making a difference

When we think of purpose, often, we think of the big-picture, meaning of life stuff.

And sometimes, that’s what employees think of too. They want a job where they’re contributing to society and making a difference in the world.

When engineer and aerodynamicist Adrian Newey joined Red Bull’s Formula 1 team in 2006, the team was at the bottom of the grid and had never won a race.

His engineering knowledge helped Red Bull become not just world champions, but one of the most dominant teams in the sport’s history.

But recently, he felt himself growing bored—there was nothing more for him to do.

That’s when he realized he needed a change. His purpose didn’t align with the team’s goals anymore.

His purpose is to innovate and turn teams around. So far, he’s done that with Williams, McLaren, and Red Bull.

Once Red Bull hit its peak, he’d achieved his goal. He’d gone beyond it, really. What was there left to do?

He recently announced that he’s moving to Aston Martin, a mid-field team owned by billionaire Lawrence Stroll.

Aston Martin’s goal is to become world champions when the next set of regulations come into Formula 1 in 2026. Making now the perfect time for Newey to move on. His goal to innovate and to turn teams around aligns with Aston Martin’s goal of becoming world champions.

Using creativity and skills

Purpose congruence doesn’t have to be informed by big-picture goals. It can also mean a person being able to fully use their skills and flex their creative muscles. 

Something that Newey was probably less able to do with a car so dominant. When you’ve already designed the most dominant car in Formula 1 history, what is there left to do?

Sure, other cars will catch up eventually. But there’s only so much you can do with each set of regulations. That’s why they change every few years—to keep the sport fresh.

Plus, the car’s design is only part of the team’s success. Strategy and driver skill play huge roles too.

Newey isn’t in it for money. If he was, he could’ve retired years ago. He’s paid more than most of the drivers on the grid (except for household names like Sir Lewis Hamilton). For him, it’s about motorsport and the creativity and challenges and innovation that it can bring.

(Did you know hybrid engines exist because of F1?)

Employees can only reach their full levels of creativity if they align with the company’s purpose. If they’re disconnected, they won’t have as much energy. Feeling disengaged is surprisingly draining. Any the energy they do have will be spent outside of work, leaving less for innovation at work.

Knowing the direction

If you don’t know why you’re doing something, it’s really hard to keep going. Sometimes purpose really is as simple as understanding how your efforts contribute to organizational goals.

Going back to the Formula 1 example, Newey knows what direction Aston Martin is heading in. Everyone has since Stroll took over: reach the top of the grid within 5 years.

It’s a clear goal, and it’s clear how Newey’s focus on innovation and turning teams around runs parallel to that, achieving purpose congruence between himself and his new team.

Forming healthy workplace relationships

Employees need to understand how what they do helps the business and the people they work with.

Most people, if they can’t see the difference they’re making, and nobody explains it, won’t connect the dots. The only way to change that is for leaders to explain the differences employees make and celebrate people’s hard work. A little recognition goes a long way.

Going back to the Formula 1 example one last time, before Newey’s exit, Red Bull team principal Christian Horner regularly played down the impact Newey had on the car’s success. And it does take several hundred, if not thousand, people to make a successful team run.

But Newey’s 12 constructors championships, 13 driver’s championships, and 200 grands prix wins speak for themselves. He’s the most successful race engineer in Formula 1 history.

It is a coincidence that the team has struggled since he left, as Newey would’ve likely still been involved with recent car upgrades. But it is an interesting parallel that they’ve won considerably fewer races since his departure was announced, isn’t it?

And let’s not forget the difference it can make when the person in charge downplays someone’s contribution to a company. It doesn’t lift up the rest of the team like it should, instead it implies that success and legacy aren’t worth celebrating and that that person isn’t valued.

There have been tensions within the team for other reasons too. So when you put all that together…it’s no wonder Newey cut his contract short.

All right, that’s it for the Formula 1 analogies. Now that you see the value in purpose congruence, what can you do to achieve it?

How to reach purpose congruence

There’s no magical spell or quick fix to find purpose congruence. Creating it, and maintaining it, takes work. It’s only through that hard work that employees will believe you actually want to achieve it and value their input.

This all starts with providing employees with the opportunity to have their voices heard.

Listening tools like Sanctus Listening (powered by Rungway) allow them to share how they feel about what’s going on in the business, reinforcing and building relationships as well as ensuring that nobody gets lost in the noise. Just because someone isn’t the loudest voice in a meeting, that doesn’t mean they don’t have something valid to say.

Tools like Sanctus Listening can give you insights into how employees really feel about what’s going on in your business. It can help you identify problem areas before they escalate, potentially saving time, money, and energy.

It can also help you work out what your employees want and need from you, and how they feel about the current business direction. This may not always result in comfortable answers, but growth only comes from confronting uncomfortable truths. Even the biggest, most diverse organization, has improvements it can make.

The next step is to help employees figure out what their purpose is and where their strengths lie. Some employees may already know theirs, but not everyone does, especially if they lack self-confidence. Or they may know it on instinct but not know how to articulate it.

Sanctus Coaching allows employees to explore their abilities and thoughts in a safe space, getting an objective opinion, analysis, and opportunity to bounce ideas around.

When companies are purpose-driven, and have effective coaching practices, they achieve 10% higher profitability and 20% higher customer satisfaction. Just think of what you could do with that extra revenue and reputation.

Offering upskilling and reskilling opportunities can also help employees capitalize on their existing skills. It can strengthen their positions within the business, boost their confidence, provide opportunities for growth or transition, and help them still get opportunities even if AI replaces some or all of their job.

The more you help employees identify what matters to them, support them to find their voices, and work toward something that matters to them, the more likely you are to reach purpose congruence between employees and your business.

Purpose congruence drives innovation

Purpose congruence isn’t just nice to have anymore. It’s key to retaining current talent and helping you attract the next generation of innovators.

Getting everyone onboard with organizational goals helps you identify where your strengths and weaknesses are as a business so that you can hire to fill those skill gaps and keep walking in the same direction—while avoiding groupthink.

Purpose at work doesn’t have to be about the big-picture, changing the world stuff. Sometimes it’s about employees feeling seen and valued at work, having a clear direction, and feeling like what they do actually contributes to the business’s success. All these things create a more structured, supportive work environment that fosters innovation, helps you stand out from competitors, and achieves purpose congruence.