Exploring the impact of organizational purpose in attracting talents to startups

Abstract

In today's competitive business environment, attracting top talents is a critical challenge, especially for startups. Although existing literature highlights an increasing preference for intrinsic motivators among individuals and a growing debate about purpose, the impact of a well-defined purpose on attracting talents to startups remains underexplored. This study tries to fill this gap by investigating the effect of a well-defined purpose on talent attraction within startups. Using a quantitative research approach, the study surveys 203 Gen Z and Millennial participants, including current and potential startup employees. The analysis reveals that talents are attracted to startups with a well-defined purpose. Specifically, women and Gen Z individuals are significantly more attracted to startups with a well-defined purpose than men and Millennials. Furthermore, the findings suggest that talents who perceive a strong alignment between their personal purpose and the organization’s purpose are willing to accept a lower wage in order to be intrinsically motivated and engaged. The study contributes by highlighting the important role of having and communicating a clear organizational purpose in attracting diverse talents. Gender and generational differences significantly influence how talents perceive and prioritize the organization’s purpose. Startups can not only improve their financial resources but also foster a purpose-driven culture by focusing on purpose alignment in the hiring process. This study addresses the research gap on the impact of purpose in startups and provides valuable guidance for startups to attract and retain top talents in a highly competitive market.

Date of Award	25 Jun 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Nuno Moreira da Cruz (Supervisor)