The world is constantly changing, and the ways in which we work are ever evolving. Individuals are adapting their needs, and businesses are looking at new ways to retain talent in order to keep up. In the last three years alone, we’ve seen the demands of professionals change at a pace greater than at any other time in recent history – in large part due to the pandemic, we’ve seen (and continue to see) the Great Resignation, labor shortages, and layoffs in their thousands, particularly in the tech sector. All of this change has led to the development of a new way of working and the rise of the impact-driven professional and impact-driven business.
What Defines an Impact Driven Business?
An impact driven business goes beyond profit. It’s an organization that places measurable social, environmental, and community outcomes at the heart of its strategy—without sacrificing financial performance. These businesses operate on the principle that long-term value is created not just for shareholders, but for all stakeholders: employees, customers, communities, and the planet.
Unlike traditional models that separate corporate social responsibility (CSR) from core operations, impact-driven companies embed purpose into every layer—from how they design products and treat employees, to the transparency of their supply chains and governance practices. According to the Harvard Business Review, companies that integrate purpose into their business model outperform peers in both retention and customer loyalty.
Notable examples of impact-driven businesses include Patagonia, which integrates environmental stewardship into its entire supply chain, and Ben & Jerry’s, known for its strong activism on social justice and equity. These companies don’t just communicate values—they live them.
For professionals, aligning with an impact-driven business means joining a workplace where their contributions resonate on a broader scale. For employers, embracing this model strengthens brand reputation, improves employee engagement, and drives sustainable innovation.
As more professionals prioritize mission alignment, the impact driven business model is no longer optional—it’s a competitive imperative.
As the job market evolves, organizations are refining how they identify purpose-driven candidates. Instead of relying solely on resumes, many now use innovative talent screening techniques that evaluate both technical skills and alignment with company mission and values.
Changes of Impact Driven Applications
Over the past several years, there’s been an explosion of interest in impact driven – or purpose driven – leadership, where professionals are being more vocal about what they want. This is particularly true for Millennials and Gen Z, because companies aren’t aligned with who they are or what they want. Professionals are no longer seeking new opportunities based solely on their skillset and the experiences listed on their resumes. They are actively seeking employment with companies where they can make a difference and have an impact. Research from a Randstad study shows that younger generations want their personal convictions to align with their employer’s, with nearly half of both Millennials (48%) and Gen Z (49%) saying they wouldn’t accept a job that didn’t align with their values on social and environmental issues compared to just over a third (35%) of Baby Boomers.
Our youngest generation of job seekers – Gen Z – are open about the fact that they value authenticity in personal relationships, with 71% feeling they can be their “true self” with friends. Why should they not seek this authenticity in all aspects of their lives?
For impact-driven professionals, company culture is often a deciding factor. A strong emphasis on cultural fit not only improves hiring outcomes but also plays a critical role in long-term retention and employee engagement.
Interests to Impact Driven Organizations
Professionals want to work for companies that align with their core beliefs, values and interests – whether that’s working for a company with sound ESG practices; proven diversity initiatives; or CSR programs that positively impact the employees and the communities they serve. Data shows that professionals are better employees when they’re actively engaged in a company’s mission. Employees who are not engaged or who are actively disengaged cost $7.8 trillion in lost productivity. That’s equal to 11% of global GDP. Something fundamental needs to change.
A clear gap has emerged between employees and organizations. According to a Workvivo survey of 350 HR leaders, over 70% believe their company culture and engagement is strong. Meanwhile 80% of employees report feeling less connected to their company culture. Over half of employees (53%) said a company with an inspiring mission and purpose would convince them to move jobs. This generation is already “hyper-connected”, so how can businesses keep up and nurture working environments that facilitate deeper and more authentic connections?
Transparency in compensation is crucial for attracting top talent who prioritize both purpose and fairness. Professionals increasingly rely on salary comparison tools to evaluate offers and ensure alignment with market standards.
By matching professionals with opportunities they actually care about is one way in which professionals can find roles that have an impact, greater social responsibility, and truly align with their core beliefs. Current solutions in the market tend to focus on matching individuals with opportunities based solely on resume skills and experience, and don’t take into account beliefs, values and interests, resulting in mismatch of expectations, high levels of churn in employees and irrelevant social networks and unfilled job openings.
Another trend that we are seeing is that professionals want to make more informed decisions – information that can help them to easily review a company’s leadership, societal and environmental work, reputation, and impact. Through the creation of a level playing field where professionals and businesses have equal access to the same insights, such as companies’ environmental and societal impact data, and the needs and wants of professionals, meaningful relationships and an equitable place to unleash people’s potential, can be built. Having access to a platform where companies can better promote themselves as impact driven will enable them to better source and match with talent that aligns with their mission, values and culture, and businesses can benefit from higher retention, improved productivity and ROI, and a more sustainable and diverse workforce. This satisfies the needs of the professional and the business as they are able to find opportunities and people that are aligned with their mission.
The ESG trends shaping companies’ narratives in particular are attracting more mindful employees. The demands of society, investors, governments, and their agencies continue to increase and show greater interest in being purpose driven. This is ‘forcing’ companies to think more about their ESG practices and not just offer box-ticking initiatives. This has an impact on the companies and the people they employ. The barrier for the professionals is knowing about these ESG practices. The creation of a platform that enables an individual to access this level of data is one of the ways that companies will find talent aligned with their values, and professionals will find personalized opportunities that match with their beliefs.
Competitive organizations are turning to compensation analytics to design pay structures that reflect both equity and value alignment—core principles for today’s impact-driven workforce.
But there’s still a long way to go and the impact driven professional is here to stay. The overall environment and the recruitment process needs to change. There needs to be a continuous effort to move away from traditional recruitment practices to using Artificial Intelligence (AI) sourcing software – using data to meet the growing demand for talent, and the changing needs of professionals. It’s predicted that the adoption of cloud based technology in Human Resource Management (HRM) and growth of AI will grow the combined social networking and software recruitment market to $608 billion by 2025.
Time will tell how things develop in the coming years, as professionals continue to seek opportunities that give them the chance to make a difference, have an impact, and be purpose driven. We won’t go backwards, we’ll only continue to see greater demand for impact driven roles, and organizations will need to ensure that they keep up with these demands in order to retain and hire employees.
Frequently Asked Questions
What is an impact-driven business?
An impact-driven business is a company that integrates social, environmental, and ethical goals into its core operations. Unlike traditional businesses focused solely on profit, impact-driven companies prioritize creating positive change for communities, the environment, and stakeholders — alongside financial performance.
Why is purpose-driven work important to Gen Z and Millennials?
Gen Z and Millennials increasingly value purpose-driven work because it allows them to align their careers with their personal values. According to Randstad and Deloitte surveys, nearly half of Gen Z and Millennial workers would not accept a job at a company that doesn’t align with their social or environmental beliefs.
How does company culture impact employee retention?
A strong and authentic company culture improves employee engagement, trust, and long-term retention. Employees who feel aligned with their employer’s values are more productive and less likely to leave. Studies show that disengaged employees cost the global economy $7.8 trillion in lost productivity annually.
What do professionals want from impact-driven organizations?
Professionals seek alignment with ESG (Environmental, Social, and Governance) values, transparency in compensation, inclusive workplaces, and opportunities to create real-world impact. They also want tools to evaluate a company’s purpose, leadership, and societal contributions before accepting a role.
How are AI tools transforming impact-driven hiring?
AI-powered talent platforms are improving the matching of professionals with purpose-driven opportunities by evaluating not just resumes, but also values, interests, and cultural fit. These tools enhance transparency, reduce bias, and help companies build more sustainable and aligned teams.
What is the difference between CSR and impact-driven business?
CSR (Corporate Social Responsibility) is often an add-on initiative, whereas an impact-driven business embeds purpose into every part of its model—from hiring and compensation to product development and environmental impact. CSR can be surface-level, while impact-driven strategy is foundational.