Social Impact Recruitment: The Competitive Edge You Didn’t Know You Needed

In today’s rapidly evolving world, where businesses are increasingly held accountable for their financial performance and social and environmental impact, social impact recruitment is gaining traction. Social impact recruitment refers to hiring skilled individuals committed to making a positive difference in society. These employees bring passion, dedication, and a sense of purpose that can transform organisations. But what is the value of social impact recruitment, and why should businesses prioritise it?

Reputation

Hiring individuals passionate about social change can significantly enhance a company’s reputation. Society expects more from businesses, from their social values to the ethical programs they champion. The 2023 Edelman Trust Barometer shows that businesses are seen as increasingly ethical and capable of delivering tangible change, especially compared to the government and media.

Figure 1: The Edelman Trust Barometer 2023

The Edelman Trust Barometer 2023 shows how competent and ethical the public views government, media, NGOs and business. Business was viewed as the most ethical and competent.

Customers are therefore holding businesses to higher standards – a recent Big Issue survey found that 8 in 10 shoppers are more likely to give their business to companies that reflect their values.¹Moreover, around 70% of respondents said they are more likely to purchase from brands that actively promote their ethical and sustainable practices.

This is also true for B2B transactions as ethical companies have been shown to outcompete others consistently. The LRN 2024 Benchmark of Ethical Culture Report found that companies with the strongest ethical cultures outperform those with weaker ethical cultures by 50%.² This was measured across market share, levels of customer satisfaction, employee loyalty, innovation, adaptability and growth. Similarly, from 2021, any private sector company bidding on public sector contracts is required to demonstrate their ability to generate social value through their project.³

The successful businesses of tomorrow are focused on expanding their social impact. These initiatives attract business, create stronger connections with their customers, and strengthen brand loyalty and customer retention.

Fresh Perspectives

Why should ethical initiatives influence your hiring process? The answer lies in the transformative power of social impact recruits. These individuals often bring fresh perspectives and innovative ideas, driven by their commitment to addressing societal challenges. Research supports this: ‘mission-driven’ companies have been shown to achieve 30% higher levels of innovation compared to their counterparts.⁴

Social impact recruits foster creative solutions and novel approaches to problem-solving within an organisation. Their dedication to social causes can help integrate greater social change into existing practices and structures, enhancing both the ethical and financial performance of a business. Innovative spirit is not just beneficial but essential. In an ever-evolving market, having a workforce that is both passionate about social issues and skilled in creative problem-solving can give a company a significant edge.

“Alone we can do so little; together we can do so much.” – Helen Keller.

Attracting Top Talent

Today’s workforce, especially millennials and Gen Z, is increasingly motivated by more than just a paycheck. In a survey of Gen Z workers from jobs site Monster, 70% of respondents ranked purpose as more important than pay.⁵

“How we hire impacts who we hire” – John Vlastelica

These individuals seek employers who are committed to making a positive impact on the world. By embedding social impact into the core of recruitment strategies, organisations can attract top-tier talent who are looking for more than just a job – they want to be part of something bigger.

Recent studies support this trend. According to a McKinsey survey, 70% of employees derive their sense of purpose from their work, with a significant majority of senior executives finding alignment between their personal and professional purposes.⁶ However, there is a notable “purpose gap” among frontline employees, with only 15% feeling this alignment.⁷ Bridging this gap can be a key factor in employee satisfaction and retention.

Employee Engagement

Attracting top talent is as important as retaining it. People dedicate 30% of their waking life to their job, yet many feel unfulfilled.⁸ Nearly 20% of people leave their jobs for more rewarding positions.⁹ The solution is to create an environment of purpose. Research indicates that aligning an employee’s purpose with the organisation’s mission results in 77% higher engagement rates and 87% greater intent to stay.¹⁰ Employees are more motivated and committed when they see their work contributing to a larger cause.

Building a workplace that values social impact through regular communication and employee recognition and integrates social impact into the company’s mission leads to greater employee engagement, motivation, and productivity, resulting in greater #WorkJoy.

Social impact recruitment is more than just a trend; it is a powerful strategy that can drive meaningful change both within and outside an organisation. By prioritising the hiring of individuals committed to making a positive difference, companies not only contribute to a better world but also position themselves for long-term success in an increasingly conscientious marketplace. Embracing social impact recruitment is not just good for society; it’s good for business.

Not sure where to start? Our Impact Matchmaking service can help you find the perfect fit for your board, advisory team, leadership, or team roles. We #ImpactMatch you with diverse, expert talent who aligns with your values and goals. 💚

While AI is a powerful recruitment tool, it can’t replace the depth of understanding gained through the art of conversation. Assessing if candidates are truly impact-led requires a nuanced, human approach. Impact Match’s strength lies in our extensive experience in social impact roles, enabling us to identify and connect with individuals who share our commitment to meaningful change. Human connection is crucial to ensure potential hires align with the ethos of social impact recruitment.