The purpose principle states that employees derive intangible rewards from what?

The purpose principle refers to the idea that when employees find a sense of meaning in their work, and when their goals and values align with the organization’s mission, they experience intangible rewards. This notion emphasizes the importance of understanding the deeper impact of work beyond just the financial rewards.

In this context, a value-consistent purpose signifies that employees are motivated and fulfilled when they feel their personal values resonate with the larger goals of the organization. When an employee's work goes beyond mere tasks and connects to a significant mission or a greater good, it fosters a sense of belonging and commitment. This can result in increased job satisfaction, engagement, and loyalty, which are all key components of intangible rewards.

While financial incentives, peer recognition, and promotional opportunities can also contribute to employee satisfaction, they typically represent more tangible or extrinsic rewards. In contrast, the value-consistent purpose aligns with intrinsic motivators, highlighting how deeply employees can connect with their work environment and the broader impact of their contributions. Hence, the understanding of the purpose principle reveals that intangible rewards stem from meaningful alignment between personal and organizational values.