What can we learn from not-for-profit employees about why purpose matters most?
We leveraged research findings from the Gensler Research Institute based on their studies of the drivers shaping the not-for-profit workforce and the engagement, purpose, and motivation that differentiates them. Their research explored the “why” of not-for-profit work, and specifically the impact of intrinsic motivation and meaning on employee performance and experience. Most importantly, in a sector taking on some of the most daunting challenges facing society today, intrinsic motivation is a key driver of innovation.
Despite being the third largest industry in the American workforce in terms of employment, the not-for-profit world suffers from tattered facilities, poor workplace design, and generally subpar infrastructure. Many blame it on the “Overhead Myth” — the misconception in the world of philanthropy and among the general public that donations should go directly to programming costs, rather than to an organization’s operating costs, or overhead. As a result, many organizations are judged by the metric of how much of their budget they spend on their overhead – the lower the better. It’s very common to see donated furniture, secondhand computer equipment, dark or unsuitable spaces, and other office hacks in many a not-for-profit office space.
Under these conditions, is it any surprise that some not-for-profits suffer from high turnover rates and lower salaries among their employees? One could be forgiven for assuming that people and talent are not a priority in the not-for-profit world, despite the fact that people are often the difference makers for these organizations.
Key findings:
Meaning comes from within, and is a key component of motivation and performance
Employers can facilitate intrinsic motivation if they reimagine themselves not as enforcers of productivity, but enablers of meaning
Not-for-Profit employees are four times more likely to be motivated by mission than the average employee in another sector
A well-designed workplace can be a powerful tool to foster intrinsic motivation, reduce turnover and enable a engaged, healthier, collaborative, self-directed, resilient, enthusiastic, and loyal workforce