How Purposeful Leaders Inspire Innovation and Team Growth

Just 42% of U.S. workers feel optimistic about the nation’s future — the second-lowest number since early 2024, according to SHRM’s June 2025 Current Events Pulse. That drop in confidence reflects broader turbulence, including recruitment challenges brought on by economic uncertainty and increased workplace immigration enforcement. In times of upheaval, employees look to their leaders in hopes of seeing a leadership model that’s grounded in purpose and long-term vision.

They need purposeful leadership, a leadership framework rooted in the ability to inspire, engage, innovate, and help teams achieve and become more, all while fostering a culture of inclusion. That idea took center stage in a recent conversation between SHRM Linkage CEO Tamla Oates-Forney and SHRM President and Chief Executive Officer Johnny C. Taylor, Jr., SHRM-SCP. Together, they explored how leaders can elevate teams by acting with intention, inspiring innovation, and staying anchored to a clear mission. 

Defining Purposeful Leadership

At its core, purposeful leadership is about intentionality. “When you do something intentionally, it means you have a purpose in doing it. You don’t accidentally stumble upon it,” Taylor said. Purposeful leaders envision the change they want to create — in themselves, in others, and across the organization — and they take action to make it real. But they don’t do it alone.

However, being intentional doesn’t mean being forceful. Purposeful leaders don’t demand change; they inspire it. “The higher you go, the less it becomes about what you can do yourself and more about your ability to drive change and influence through others,” Oates-Forney explained.

That blend of vision and influence is what defines purposeful leadership. And while the foundation may be universal, Taylor emphasized that there’s no single formula for inspiring others. How leaders show purpose and spark it in their teams depends on context, personality, and culture. 

Substance Over Shine 

One common misconception about leadership, the discussion revealed, is that inspiration requires flamboyance or charisma. “Not every leader has that ‘thing,’ ” Taylor noted. “Some may not be charismatic, but they might have a dry sense of humor or a unique way of addressing issues that inspires others. Leadership is about finding your own way to inspire people.”

More than a third of individual contributors (39%) ranked “Inspire” as one of the top five behaviors they want to see from leaders, according to a 2023 SHRM survey, Changing the Face of Leadership. That makes it even more crucial to embody that trait in a way that reflects your authentic leadership style — whatever form that may take.

There’s good news for those who don’t embrace a vibrant or charismatic leadership style: Results matter, too! “I think you can inspire through the outcomes you drive. You don’t have to be the loudest person in the room,” Oates-Forney said. “Often, people get caught up in ‘shine over substance,’ but I prefer leaders with a high ‘say-do’ ratio,” meaning they regularly follow up on their commitments.  

The Right Team Makes Purpose Possible

Who you lead is just as important as how you lead. No matter how much you embrace purposeful leadership, you may not see results if you have the wrong team for the job. According to Taylor, cultural alignment is what sets team members apart. “When I interview people, I assume they can do the job. The question is whether they can work in the way we work,” he said. 

An optimal candidate should have both cultural alignment and technical competence. Most organizations outline the technical competencies in their job descriptions and interviews, but Taylor said they also need to establish clearer cultural expectations. “You must establish cultural clarity within your organization. It’s not about copying another company’s culture; it’s about defining your own and sticking to it,” he said. “Cultural alignment is just as important as competency.” 

Lead with Vision, Not Just Visibility

Purposeful leadership is not black and white. Transparency, for example, is a gray area. “Not everyone can handle full transparency. I’m transparent to the extent that it’s appropriate for the audience,” Taylor said.  

When leaders are transparent, they open themselves up to criticism. The more people know, the more there is to criticize, especially when stakeholders are involved. 

Leaders must learn to manage differing stakeholder views while remaining true to their goals. “When you have a vision, it needs to be thoroughly vetted and thought through, but once you’re on it, you have to commit,” Taylor said. “Some people will be vocal detractors. You focus on the people in the middle who are willing to listen and be educated about your vision.”

Purpose Is the Heart of Sustainable Leadership

Purposeful Leadership thrives at the intersection of intentionality, cultural alignment, and staying grounded in the “why” behind every action. Half of CHROs anticipate a shift toward human-centered leadership in 2025, according to SHRM’s CHRO Priorities and Perspectives report. This evolution prioritizes empathy and people-focused management over the traditional “command and control” style.

“Leadership requires a steady hand and clear direction,” Taylor noted. “But you also need to ensure everyone feels seen, valued, and heard.”

When leaders embrace purpose, they’re not just sustaining their organizations — they’re sustaining themselves. “If you’re doing work for the sake of doing it, the longevity of that work is going to be short-lived,” Oates-Forney said.

As much as employees need their work to have purpose to stay engaged, leaders need it to stay grounded. “Purpose sustains you,” Taylor said. “The world is in a crazy place right now, and purpose helps you stay grounded.”

Learn more about developing purposeful leaders with the Purposeful Leadership Model from SHRM Linkage.