Many workers today struggle to find meaning in their work. Despite attempts to compensate for this alienation through monetary rewards that connect workers to the firm’s profits, or, more recently, through nonmonetary incentives that aim to connect workers to the firm’s broader purpose, many workers remain unconvinced and disconnected. As the organization of work in large corporations separates workers from the product of their labor, the workplace becomes a site for producing monetary value rather than personal values, happiness, or fulfillment.
In this paper, the authors evaluate an alternative solution. They implement an intervention called “Discover Your Purpose” (DYP), which helps participating workers reflect on their life purpose, and if and how their jobs can aid in achieving that purpose. In a randomized control trial: a study design where participants are randomly assigned to either a treatment group or a control group to measure the causal effects of an intervention , 2,976 white-collar employees participate in a series of readings, essay writing, and a workshop through DYP. The authors measure how the intervention impacts their productivity, performance, and salaries, and find the following:
- Workers in the treatment group are 21% more likely to leave their jobs compared to those in the control group. In particular, the treatment inspires workers whose performance is below standards to quit and move to a job with higher meaning.
- Performance increases following the intervention because low performers either leave the firm or improve in their current jobs. About half of the decrease in below-standard performances is due to employees exiting the firm; the other half is due to improved performances.
- This improvement is reflected in an increase in workers’ overall compensation. Both the mean bonus earned by employees and the percentage of employees earning performance bonuses increase.
- The treatment reduces the differences between the job priorities commonly stated by men compared to women, suggesting that the intervention effectively alters traditional gender-based priorities within the workplace. In addition, men in the treatment group are more likely to take parental leave.
- The firm benefits. If the improved performance lasts for two years, in line with the empirical findings, a cost-benefit analysis yields at least a 72% internal rate of return (IRR): a financial metric that calculates the expected annual growth rate of an investment, considering the time value of money. It’s the discount rate at which the net present value (NPV) of all cash flows from an investment equals zero. In simpler terms, it’s the rate at which an investment breaks even. .
In suitable organizations, the approach can be highly beneficial: employees who find purpose in their roles tend to show improved performance, higher earnings, and greater job satisfaction. This is especially true with the growth of generative AI in the workplace.
However, there are two limiting factors for firms seeking to implement their own DYP intervention: First, the firm must present a work culture where a worker’s search for meaning can influence their career path, even if that means leaving the firm. Second, firms must commit to keeping all information private.
As the authors observe, while more research is needed to establish the efficacy of DYP, this research has the potential to help everyone, from the labor productivity of firms to the well-being of individual workers.