A Guide to the Eighth Element of Employee Engagement: A Company Mission Statement With Purpose
When was the last time you assessed your mission statement?
If the answer is when you started your business, it might be time for a refresh.
Empirical evidence shows that a large proportion of prospective employees prioritize purpose over salary when job hunting. For example, 44% of them submit a lower wage bid after learning about an employer’s values and dedication to social responsibility. In other words, people are willing to trade a higher paycheck for the chance to be part of something meaningful.
With that in mind, we’re going to help you revamp your company’s mission statement with examples and a step-by-step guide for fulfilling the eighth Element of Employee Engagement:
- “The mission or purpose of my company makes me feel my job is important.”
What Is a Company Mission Statement?
First things first: What exactly is the function of a mission statement?
The obvious answer is that it explains what your organization is trying to achieve, but if that were really the case, most would say something like, “We want to make a lot of money.”
However, a mission statement should transcend the simple goal of profitability– that’s every business’s goal! Instead, it should do its best at distilling your most important components into a sentence or two. When the power of these three statements combine, it should serve as the core around which your business strategy and culture grow.
- What do you do?
- Why do you do it?
- How do you get it done?
The Employee Engagement – Mission Statement Relationship
But how exactly does a mission statement impact employee engagement?
When employees know what their company stands for and how their individual roles contribute to a greater purpose, they are more likely to feel invested in their work because their profession aligns with their personal values. That emotional connection turns routine work into an active contribution towards something they believe in.
Your company mission statement is also a tool for navigating tough times, acting as a rallying point that reminds your team what the bigger picture is. Even the most motivated employees have bad days, but knowing that the work they’re doing matters can help them refocus instead of reconsidering whether their job is worth the stress.
Crafting a Compelling Company Mission Statement
Even if you already have a mission statement, it’s worth coming back to it throughout the life of your business to be sure that it still serves as inspiration and motivation for your employees. Consider whether it has the following characteristics:
- It’s authentic, reflecting the true character of your organization without vague or generic statements that could apply to any business.
- It’s clear and specific enough that everyone understands it, from top executives to entry-level employees.
- It’s inspirational, evoking a sense of purpose and motivation that encourages your team to see their work as part of a worthwhile endeavor.
- It has longevity, providing a consistent guiding principle for your organization that resonates through even when undergoing refinement.
Real World Examples
Let’s examine some real-world examples of effective mission statements to illustrate how all of these principles come together in practice.
Warby Parker
Mission Statement: To inspire and impact the world with vision, purpose, and style.
- What they do: Design and sell eyewear.
- How they do it: Providing fashionable eyewear at affordable prices while also giving back to the community through their Buy a Pair, Give a Pair program.
- Why they do it: “We aim to demonstrate that a business can scale, become profitable, and do good in the world– without charging a premium for it.”
IKEA
Mission Statement: To offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.
- What they do: Design and retail a wide range of home furnishings.
- How they do it: Focusing on the three pillars of functionality, design, and affordability so that their products are accessible to a broad audience.
- Why they do it: “We want to have a positive impact on the world – from the communities where we source our raw materials to the way our products help our customers live a more sustainable life at home.”
TED
Mission Statement: Discover and spread ideas that spark conversation, deepen understanding, and drive meaningful change.
- What they do: Organize conferences and presentations on various topics.
- How they do it: Curating and disseminating powerful ideas through an extensive online platform that can reach a global audience.
- Why they do it: “TED is a non-profit that believes powerful ideas, powerfully presented, move us: to feel something, to think differently, to take action. In a world that can feel dark and overwhelming, these ideas have ripple effects of many magnitudes, pointing toward the possibility of a better future for people, communities and humanity at large.”
Mission Statement: To organize the world’s information and make it universally accessible and useful.
- What they do: Provide search engine and other information-based digital services.
- How they do it: Organizing vast amounts of information into an easy-to-use index.
- Why they do it: “People around the world turn to Search to find information, learn about topics of interest, and make important decisions. We know people rely on us so our commitment will never waver.”
A Step-by-Step Guide for Writing Your Company Mission Statement
Now that we’ve looked at examples of successful mission statements, it’s time to sit down and craft your own. Follow these steps to capture the what, how, and why of your organization in a single, impactful sentence:
Step 1: Write down what your business does
Start by identifying your business’s core function. What product or service do you provide? What need does it fulfill? Be specific and concise.
Examples:
- Software company: Provide cloud-based financial management solutions for small businesses.
- Restaurant: Serve farm-to-table dining using locally sourced ingredients.
- Non-profit organization: Donate educational resources to underprivileged children.
Step 2: Write down how your business does things
Next, consider the methods, values, or strategies that differentiate your business from others. How do you deliver your product or service? What principles guide your operations?
Examples:
- Software company: Leveraging user-friendly design and a 24/7 customer support system designed specifically for small business owners.
- Restaurant: Partnering with local farmers to obtain sustainable products while reducing their carbon footprint associated with shipping services.
- Non-profit organization: Organizing volunteer-led programs within the community and scheduling out a regular calendar for the neighborhood’s elementary schools
Step 3: Write down why your business does it
This is the most important and meaningful part of your mission statement. Why does your business exist? What drives your organization beyond profit? What impact do you intend for your company to leave on the world?
Examples:
- Software company: Empower small businesses to be more competitive in the market by providing them with affordable, accessible tools to manage their finances
- Restaurant: Support sustainable dining practices while building a larger regional farm-to-table dining culture.
- Non-profit organization: Break the cycle of poverty through education bolstered with quality learning resources.
Step 4: Combine and refine
Next, you’ll take your answers from steps 1-3 to craft a cohesive, easy-to-understand and memorable statement. Try a few different combinations and run them past stakeholders– including your employees– to see which one resonates with them most.
Examples:
- Software company: To provide small businesses specialized financial management tools they need to scale and sustain their operations.
- Restaurant: To foster a dining experience that celebrates sustainability and supports small farmers, artisans, and craftspeople in the state.
- Non-profit organization: To break the cycle of poverty through the power of learning.
Aligning Your Team With a Purposeful Company Mission Statement
As a business owner or thought leader, you may find it challenging to distill the breadth of your organization’s work into a single, concise sentence. After all, your business juggles a multitude of goals and values that seem impossible to squeeze into just a few words.
Instead of going at it alone, consider working with leadership coach Lori Moen, as she can provide an outside perspective that clarifies your core objectives and values. With Lori’s guidance, you can create a powerful mission statement that aligns your employees’ goals towards a common purpose that, hopefully, is the driving force behind the organization’s long-term success.
