What do people look for when moving careers? While salary is still important, the new generation of professionals is looking to make a positive impact on the world.
Why do people decide to change careers? The obvious answer is they are hoping for a higher salary and better benefits, but this doesn’t show the whole picture. Data from Indeed shows that the most common reason is unhappiness with the sector in which they work, with another major cause being a lack of challenge or satisfaction.
While career happiness is hard to quantify, it is definitely connected with a mission or sense of purpose. A Udemy study shows that 62% of people would take a pay cut in order to work at a company with a mission that matches their own. This is backed up by the fact that companies with a purposeful mission experience 49% lower attrition, according to LinkedIn research.
And of course, once professionals have found a career with a solid mission behind it, they are more likely to stay there. A Glassdoor survey found that 64% of people say their company’s mission is one of the main factors keeping them in their job. As time goes on, the ability to make a positive change is going to become a major factor in people’s career choices.
A generational trend
Younger generations have always wanted to change the world, but it seems like that has become more of a practical reality for Millennials and Generation Z. More importantly, it’s something that these demographic groups are putting into practice with their careers, taking definitive steps to make a positive impact on the Earth.
The Deloitte Global Millennial Survey 2020 found that not only do both Millennials and Gen Z have a strong sense of personal responsibility to drive positive change, but that COVID-19 has only served to strengthen this. Some 71% of Millennials and 68% of Gen Z have already taken actions to try and make a difference as a result of the pandemic.
For Gen Z, this overlaps neatly with the group’s career goals. A study by Girls With Impact found that 65% of this generation are looking to personally create something world-changing, and 45% want to work for a company that benefits the Earth and its people. As more and more of this demographic enter the workforce, societal impact is going to be a significant career motivator for them.
Companies are becoming more socially responsible
The increasing desire for professionals to make a difference is coinciding with a rise in companies with a definitive purpose, aiming to bring positive change to the world or fix a specific problem. More than 3,500 Certified B Corporations – companies that are legally required to balance purpose and profit – have been created, and the Business Roundtable of America has redefined the meaning of a company, emphasising that the point of a firm should be to benefit all Americans, not just shareholders.
This is happening alongside a change in what ‘sustainability’ means for companies. Where previously, greenwashing tactics were commonly used to make businesses seem more environmentally friendly than they were, a recent Schroders survey has shown that investment and consumers are now turning against this tactic. Instead, corporations are founded around environmental and social missions, from Foodtech and Agtech firms revolutionizing our food systems to Synbio companies creating new types of sustainable products, from alternative protein to bio-based chemicals.
More and more consumers are becoming aware of social and environmental issues, and expecting companies to do something to help. Global Web Index found that 57% of consumers would be willing to pay more for eco-friendly products, for example, while 84% would stop buying from a company with a poor environmental record.
Of course, those same consumers will be looking for jobs that match their values, while also creating demand for companies that make a positive change to the world. Once again, COVID-19 has accelerated this trend, with 60% of people reporting to Accenture that they are making more ethical, sustainable, or environmentally friendly purchases thanks to the pandemic.
More investment for positive change
Spurring all this on is a growing focus from finance. According to a PwC report, venture capital investment into tech that tackles climate change is growing at around five times the rate of the overall market. This is especially the case in Europe, where research from Dealroom and Tech Nation found that so-called “impact-focused” investing accounts for 15% of total venture capital investment; double the global average.
The growth of these impact-driven start-ups means there is much more of a demand for skilled professionals who are passionate about making a change. And with more and more of the younger generations caring about these issues, this seems set to become a virtuous cycle.
A wide range of factors have always gone into career decision-making, from salary to flexibility to company culture. However, it is only recently that social and environmental impact has become something jobseekers are considering. Despite being a newcomer, this is quickly becoming one of the biggest considerations for Millennials and Gen Z, and companies need to pay attention.
