Organisational purpose is playing an increasingly important role in helping New Zealand organisations navigate economic uncertainty, organisational change and evolving workforce expectations, new research from Hum Consulting, finds.
The findings are published in a new whitepaper, Purpose when Tested: Why organisational purpose matters more than ever in a changing New Zealand economy.
The research, conducted independently by Market Research NZ on behalf of Hum Consulting, found overwhelming support for organisational purpose as a driver of success.
Hum Consulting says 95 percent of respondents said their organisation has a clearly defined purpose, while 88 percent rated purpose as important or extremely important to organisational performance.
“Leaders also reported that purpose becomes especially valuable during periods of significant change, helping guide decisions and maintain employee engagement.”
Hum Consulting Partner Mat Kearney says the research highlights that purpose is no longer simply a statement on a wall or website.
While leadership alignment around organisational purpose remains strong, understanding is not always consistent throughout the wider workforce…
“Organisations today are facing increasing complexity, from economic uncertainty and workforce challenges to rapid technological change. The leaders we spoke with see purpose as a practical tool that helps guide decision-making, align people and maintain focus when priorities compete,” says Kearney.
The study also identified a critical challenge for many organisations. While leadership alignment around organisational purpose remains strong, understanding is not always consistent throughout the wider workforce.
Senior leadership alignment averaged 4.5 out of 5, compared with 3.9 out of 5 for organisation-wide understanding, indicating many organisations still have work to do to fully embed purpose into everyday operations.
The whitepaper concludes that the greatest value comes not from creating a purpose statement, but from ensuring purpose influences decisions, behaviours, priorities and organisational culture.
“Leaders surveyed consistently linked purpose with stronger performance, greater resilience during change, improved decision-making and better talent outcomes.”
The research also found that purpose is becoming increasingly important for attracting and retaining staff. Respondents rated the importance of purpose to talent attraction and retention at an average of 4.1 out of 5, highlighting its growing role in employee engagement and employer differentiation.
The company says the research gathered insights through phone interviews from senior leaders across a broad range of New Zealand organisations, including CEOs, managing directors, general managers, people leaders and board-level decision makers. Participants represented sectors including manufacturing, construction, professional services, agriculture, transport, energy, healthcare and government. The research explored the relationship between organisational purpose, business performance, leadership alignment, change management and talent outcomes.
