Purpose-driven messaging good for business, talent retention in 2019 & LGBTQ entrepreneurs to watch
The Sector News: This month’s top conversations in the social impact industry
The research is in — your purpose-driven messaging is good for business
Purpose messaging drove 88% to purchase products and inspired viewers to advocate for the brand
You may have heard the research findings that the majority of consumers prefer businesses take a social stance, now researchers have found an even more significant connection between consumer perception and purpose-driven businesses. A new report from Porter Novelli and Cone Communications shows consumers experience a deep emotional connection to businesses that share their purpose while marketing their products or services. Even side-by-side with promotions highlighting functionality or practicality, respondents experienced higher levels of attention and emotion from purpose-driven advertisements.
Purpose messaging drove 88% to purchase products and inspired viewers to advocate for the brand and amplify its message to friends, family or on social media. The report also showed higher numbers of public trust (89%) and loyalty (83%) toward brands who communicate their values. This report is right on the heels of the Edelman Trust Barometer for 2019, showing an increase in public trust, desire for systemic social change and an impetus to engage in creating it. All positive signs for social enterprises in 2019!
Recruiting talent in the social impact industry
Competing with big brands and traditional businesses in terms of profit has always been top of mind for social impact organizations, but more recently, it is talent acquisition that is sparking discourse. With less financial capital for competitive salaries or stacked benefits like massive corporate offices can provide, finding and maintaining talent can be difficult for social enterprises and nonprofits alike. The Society for Human Resources Management shares that pay and benefits accounts for around 38% of employee turnover, and the average cost for replacing an employee is about six to nine months’ salary.
Deloitte’s Human Capital report advises social enterprise focus their efforts in retention, rather than acquisition.
To compete with mainstream offices as the talent pool tightens, Deloitte’s Human Capital report advises social enterprise focus their efforts in retention, rather than acquisition. Instead of spending resources and energy on recruitment, the report suggests investing in the professional growth, skills building and mobility of current employees, to help them gain the skills for roles that need filling. Others in the social impact sector are approaching talent retention by getting creative with benefits.
“We want to attract the best possible talent, but how do we compete with massages and Michelin stars?”
This spring, nonprofit Charity:Water implemented a program called The Pool, where a subset of donations are used exclusively for employee benefits and bonuses. The way it works, successful entrepreneurs of businesses who have recently gone public, like Uber, WeWork and Casper, pledge a portion of their stock profits to The Pool and Charity:Water pledges to pay that out to its employees, either through bonuses, raises or stock in participating companies. Though unconventional and potentially ill-received by the nonprofit sector, founder Scott Harrison sticks by the move, saying “We want to attract the best possible talent, but how do we compete with massages and Michelin stars?” The Pool and programs like it, Harrison hopes, will attract the same caliber of talent that may take jobs at “Facebook, Google and Amazon.”
Happy Pride! 11 LGBTQ leaders paving the way
Pride Month began in the 1960s as a way to honor the StoneWall uprising of 1969. Since then, the month has grown into a time of reflection, recognition and celebration of the LGBTQ community. Though recognizing LGBTQ trailblazers is important year-round, we wanted to take time at the end of Pride Month to turn the spotlight on LGBTQ entrepreneurs making a difference.
Below, we’ve put together a list of 11 LGBTQ social enterprises and leaders to browse and support!
LGBTQ Entrepreneurs to Watch
- Arlan Hamilton — Arlan is the co-founder and CEO of Backstage Capital, a venture capital organization committed to funding projects run by underrepresented founders, focusing on women, people of color or LGBTQ entrepreneurs.
- Darren Spedale, Bryan Janeczko, Joe DiPasquale, and Lorenzo Thione — The founders of StartOut launched the initiative in 2009 to create more opportunities for LGBTQ entrepreneurs. The membership organization has grown to include 6 chapter cities across the country and provides necessary resources to help LGBTQ-owned ventures succeed.
- Danielle LaRock — Danielle is the Founder of Tiny Haven WV an up-and-coming tiny house “glamping” adventure company and a Jim Schorr Scholar at Social Enterprise Alliance. Tiny Haven teaches and employ those formerly incarcerated in maintaining and building tiny houses on wheels and funds projects that empower those homeless to find lasting homes.
- Hayley Sudbury — Hayley is the founder and CEO of WERKIN, a people analytics platform that uses behavioural science and inclusive mentorship to increase the visibility of diverse talent.
- Byron Pierson — Byron is the Founder of The Serenity Strategy Network and a Jim Schorr Scholar at SEA. The Serenity Strategy Network is a nine-step LGBT+ diversity strategy for higher education and the workforce. The goal of the strategy is to foster an environment that promotes positive LGBT+ identity development and acceptance.
LGBTQ-owned Social Enterprises to Support
- Open For Business — an educational platform promoting inclusion and diversity in the workplace through research supporting the economic impact of LGBT inclusion.
- TransTech Social Enterprises — a social enterprise connecting qualified LGBTQ candidates with career opportunities
- Noto Botanics — a cosmetic company making vegan, cruelty free and natural beauty products. Committed to inclusion in the cosmetic industry, products are labeled “agender.” A portion of Noto Botanics’ proceeds goes to organizations like the Los Angeles LGBT Youth Center, Downtown Women’s Center, Days For Girls and many more.
- Dfrntpigeon — A clothing brand run and designed by LGBTQ and homeless youth in Portland Oregon. All proceeds go to paying the youth designers for their art and two staff members dedicated to supporting the effort.
- Pals Socks — A sock company working to teach kids about diversity and acceptance through fun, mismatched socks.
- Kirrin Finch — a clothing company creating menswear-style apparel for women. Committed to doing good, all of their clothes are made sustainably and 80% are produced locally in New York.
