Purpose Pays: The Hidden Driver of Productivity

About two years ago, Professor Bridgette Wessels from the University of Glasgow, Co-chair of the Productivity Institute Scotland Forum, invited me to speak at a panel on sustainable productivity. In my opening remarks, I highlighted the findings of Prosper’s “Now is the Time for Purpose” report and its impact on businesses, with one case study reporting a 16% improvement in productivity after transitioning to an employee-owned model.

The panel discussion sparked an idea between Bridgette and I – making the case for purpose as a driver of productivity. We quickly drafted a research project proposal with two aims: to understand how business leaders, managers, and employees work with purpose, and to explore how purpose might enhance productivity.

The Productivity Institute (TPI), via ESRC funding, decided to support the project “Purpose in Business: exploring the relationship between purpose and productivity”, which started in March 2024.

This joint research effort also strengthened the relationship between TPI and Prosper, culminating in a Memorandum of Understanding in May 2024.

The project involved secondary analysis of the “Now is the Time for Purpose” report and interviews with employees and business managers from small, medium, and large businesses across various sectors and ownership models.

One year into the project, Bridgette and Dr. Anna Clover interviewed 80 participants, including managers and employees in strategic and operational roles from four businesses of different sectors, models, and sizes, as well as one social enterprise, all already on their purposeful journey.

On 8th April 2025, the Business, Purpose and Productivity report was launched. The report highlights key findings and actionable insights for businesses:

• To ensure that purpose can enhance productivity, businesses need to:
• Assess their use of resources through the lens of purpose, to develop efficient, effective and sustainable productive processes.
• Consider and recognise the characteristics of leadership for purpose, those that guide the development of purpose and lead with integrity and purpose.
• Shape their working practices through purpose.
• Ensure that internal and external relations are developed through purpose.
• Develop sound evidence of their purpose, which can be used to attract investment and ascertain how purpose is contributing to sustainability.
• Take an inclusive workplace approach to enable the collaborative development of purpose

In conclusion, purpose enhances productivity by promoting sustainable resource use, fostering good working practices and business relations, and increasing employee wellbeing and motivation. Achieving these benefits requires attention to resource intelligence, purpose-centred leadership and management, and shared values in business relations.

Our work, however, is not finished. Together with a group of stakeholders and thanks to insights from a group workshop (attended by businesses, social enterprises, enterprise agencies, and academia), we will develop a purpose-driven toolkit for businesses and organisations. This toolkit will help them identify and develop their purpose, and communicate it within and outside the organisation, regardless of where they are in their business journey.

If you want to help us developing the toolkit or want to learn more about the research email me at Eleonora.vanello@prosper.scot