For decades, business leaders motivated employees through a mix of compensation, benefits, and perks.

While these remain critical levers for employee satisfaction, a new Gallup report, “The Power of Purpose,” points to an often-overlooked driver of employee performance that presents a huge opportunity for employers — purpose, the idea that people see their job as meaningful and contributing to something greater than themselves. The report found:

• Employees who feel connected to something meaningful are more engaged: Whether through their role, their organization’s mission, or the ability to pursue purpose outside of work — they are less burned out and far more likely to stay.
• Yet for most workers, purpose remains elusive: Only 17% of employed Americans strongly agree that they have a strong sense of purpose in life. Just 13% strongly agree that their work meaningfully connects to that purpose.

This gap represents not just a human opportunity, but a strategic one. For business leaders willing to rethink how work is designed and managed, purpose may be one of the most powerful — and underutilized — agents for performance.

The difference between purpose at work and life

The impetus for “The Power of Purpose” report, commissioned by Stand Together, was an exploration of the “holy grail” — the idea of having a “great job and a great life,” explained Ed O’Boyle, global practice leader at Gallup.

The report distinguishes between life and work purposes:

• A life purpose reflects how people view their lives and what gives them meaning. For some, that could be raising a family or their faith or spirituality; for others, it could be community service.
• A work purpose translates into their impact on others. “Work purpose isn’t just about the task you’re doing,” O’Boyle said. “It’s about whether you feel your work positively contributes to others in some way.”

The research didn’t find that everyone must find their life’s calling at work. Instead, it suggests that organizations that help employees harmonize these two dimensions unlock significantly better results.

“This data shows us that purpose is tied to outcomes leaders care deeply about: engagement, well-being, retention, and productivity,” O’Boyle noted.

For leaders, that means purpose is not an abstract concept but a driver of organizational outcomes — and one that deserves attention.

Purpose drives outcomes: What the data found

Employees who reported both high life purpose and high work purpose — about 22% of respondents — show dramatically better outcomes:

• 43% are engaged at work, roughly 10 percentage points higher than the national average.
• 63% are thriving in overall well-being, nearly double the rate of those with low purpose alignment.

Employees who reported little connection between their personal purpose and their work fare worse:

• Only 14% of this group is engaged, and just a third reported thriving in well-being.
• These are employees who, as O’Boyle put it, are “working because they have to, not because they feel invested.”

Employees with a strong sense of life purpose are nearly four times more likely to be engaged at work and are 24 points less likely to be actively looking for another job.

• “That kind of stability matters for every organization — from a global enterprise to a small print shop,” O’Boyle said. “Retention is productivity.”

Barriers to purpose at work

If purpose is so powerful, why do so few people experience it?

Most workplaces don’t create space for conversations around purpose, O’Boyle noted.

• “People don’t naturally sit around thinking about how their life purpose and work purpose connect,” he said. “And that link is not being made in the workplace.”

Some workers may feel they should keep their personal and work lives separate. At the same time, managers, who may already be stretched thin, can feel ill-equipped to discuss purpose with their teams.

• But the research indicates that taking the time to create the conditions necessary to talk about purpose, like employee engagement and social connection, can pay dividends for employers and workers.

“Lowering the barriers for people to share what matters to them outside of work can be an unlock for productivity,” O’Boyle said.

How to foster an environment of purpose

One of the most important takeaways for business leaders is that enabling purpose does not mean forcing alignment or turning managers into life coaches. Instead, the data points to three strategies that consistently support employees in developing purpose:

1. Make work purposeful. One of the most universal ways to foster purpose at work is to show employees how their role makes a difference. Leaders can do this by establishing and championing an authentic, organizational mission that employees’ roles ladder up to.
2. Connect work to employees’ life purpose. For some, the alignment of work and life purpose is direct, like a teacher who enjoys guiding young people. In other cases, employers can support purpose alignment by tailoring talent development strategies to match employees’ interests.
3. Support all paths to purpose. Businesses can offer employees the time, flexibility, and accommodations to pursue their purpose. Respecting employees’ lives outside of work and creating space for conversations about their interests and passions are just a few ways leaders can empower workers to pursue their purpose — wherever it may be.

O’Boyle pointed to real-world examples of companies, like Home Depot and UPS, that in the past created roles and flexible arrangements that supported employees’ training for the Olympics. While not every employee is a budding Olympian, employers can offer accommodations that allow for passions like volunteering, caregiving, or coaching.

The data also suggests that purpose is not dependent on advanced degrees or elite credentials. When people earn enough to thrive, achieving that harmony between work and life purpose becomes more accessible across roles and industries.

“When people feel supported in what matters to them, they show up more fully when they’re at work,” O’Boyle said.

Dive deeper into the report

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