Dan Figurski has four children, three of whom recently entered the workforce. “While interviewing, they asked about the companies’ beliefs and DEI efforts,” he told journalist Delores Edwards, executive producer of Basic Black, GBH News during a panel discussion at From Day One’s Boston conference.

“Pay did not seem to be high on their priority list,” Figurski, president of KinderCare for Employers, continues. “When I graduated, I only cared about pay. I had to pry it out of them.”

While the story was told half in jest, it certainly drives home the point that for Millennials and Gen Z, pay isn’t as much of a priority as culture, DEI, L&D, and other aspects of organizations. Figurski is mindful of that in his line of work, where he oversees 30,000 educators, 90% of whom are under the age of 28. “If we don’t adjust the hiring process to meet incoming talent, we’re going to miss it entirely,” he reflects.

Creating a Purposeful Culture

Creating a purposeful culture involves different steps. “First,  listen to your employees. Find out what they want and what empowers them,” said Paul Francisco, senior vice president and chief diversity officer at the financial services company State Street.

“Make sure we understand who we are,” echoes Amy Van Aarle, executive vice president, marketing and communications for EF Education First. “It’s really about going deep. What do we do well?”

For David Fineman, who is the global leader of workforce planning, people analytics and process enablement at the software company PTC, there’s a creative process behind the act of building a purposeful culture. “PTC also means ‘power to create,’” he says. “When you think about creating, you’re creating around different areas: services that benefit stakeholders, meaningful communities, training the next generation of employees.”

“I think alignment is incredibly important, and it’s never perfect. You’re always coming together, coming apart,” says Van Aarle. The lack of perfect alignment can be offset by purpose. “Purpose is really important,” says Marissa Vargas, vice president of DEI at insurance provider Liberty Mutual. “At Liberty we even have a Chief Purpose Officer.”

Finding the Motivation

Once it’s been accepted and acknowledged that money is not the first motivator, investing in growth and development becomes paramount. “How can they add skills and grow as professionals? How do people build on that technology base?” says Fineman.

Learning and development also means accepting the fact that job hopping is no longer seen as a red flag. “Now, as people have the liberty to change jobs frequently, we have to think about talent mobility,” says Fineman.

“Insurance is not always seen as the most glamorous industry,” says Vargas, noting that their challenge lies in attracting the newer generations, with Gen Z being the most eager to bring their whole self to work. “Another way is through letting them know of our commitment. We have a very active ERG, and that’s a great way to cross generations.”

At the heart of all of this is transparency. “Everyone wants to politicize DEI, and what we do is stay focused on what matters,” says Francisco. “We have to think of this work as critical. It’s not a nice to have, it’s part of how we do business. We all want to make sure we have a way to put food on the table, but it has to be in a way that’s impactful and for the greater good.”

Staying the Course

One way to make an impact regarding attracting new candidates is actively broadening your talent pool. “Broaden the population of schools—HBCUs, technical programs,” says Fineman. This serves as a foundation for an already vibrant intern program, where “The first interview was not with a hiring manager, but someone who was testing for value. I was one of these ambassadors, and interviewed for that purpose.”

This resonates with Francisco, who grew up outside of the United States. Once he moved stateside, he experienced a warm welcome, which led him to end up playing American football. “My experience, in terms of belonging, was just so impactful, that I wanted to feel the same upon joining the workforce,” he says. That was not the case.

“I ended up creating a platform, talking about things we didn’t take for granted, and a sense of community we created throughout.” Ambassadors for culture are, in Francisco’s opinion, able to fill that void, and these can be embodied by middle managers, who are at the center of company culture. “I haven’t seen companies invest in them: how do we do that better?” he asked.

Van Aarle comments on the obsolete nature of having all the answers.  “When I first started managing people, you were supposed to have all the answers. But the truth is, you need a ton of help. I wish I knew that I didn’t need to know everything”

And, on that note, Figurski advocates for “an environment where you can be wrong. Years ago, if I was wrong I was punished,” he says. “Now people understand it’s a journey. You have to meet people where they are.”

Angelica Frey is a writer and a translator based in Boston and Milan.