Declining Employee Loyalty: A Casualty of the New Workplace

In a nomadic world, a decreasing sense of commitment

If loyalty is defined as being faithful to a cause, ideal, custom, institution or product, then there seems to be a certain amount of infidelity in the workplace these days.

Consider some recent studies: MetLife’s 10th annual survey of employee benefits, trends and attitudes released in March 2012 puts employee loyalty at a seven-year low. One in three employees, the survey says, plans to leave his job by the end of the year. According to a 2011 Careerbuilder.com report, 76 percent of full-time workers, while not actively looking for a new job, would leave their current workplace if the right opportunity came along. Other studies show that each year, the average company loses anywhere from 20 percent to 50 percent of its employee base.

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Loyalty

If you want loyalty, buy a dog.

ruh roh

Rough... err... I mean.... ruff

Declining Employee Loyalty

The worst thing a company does to its employees is it creates this posture: "Employees are hired / fired at will". And, arbitrary firings of talented employees is the #1 reason why no one feels secure enough to do their best. One engineer I know was employed for 23 years at a major US company, and his accomplishments are still considered exemplary after 4 years of his sudden, unceremonius dismissal based on trumped up charges created by a jealous, unqualified supervisor who felt threatened by this engineer. The engineer went on to another company, and the original employer, having exercised his wonderful right to fire the employee "at will" has been fired by many customers who went with the engineer to his new employer.

Most successful companies have veteran employees for decades who give their all-out performance to their employers. Most of these companies are also Japanese, and most of them happen to succeed brilliantly where their stupid US competition has miserably failed; even when US happens to have 19 out of the top 20 universities in the world.

Endless reviews and polls will not result in employee loyalty. Only a culture of nurture, where the employer is committed to take care of the honest, hardworking employee, and does so repeatedly as a part of the corporate policy, will earn employee loyalty.

...And Deming would say...

Great comments, Vijay. It reminds me of Deming's 14 Points For Management. In particular, I am reminded of Point 8 - Drive Out Fear and Point 12 - Remove Barriers That Rob People Of Their Right To Pride Of Workmanship. Deming's other Points for Management apply as well. Demiong's theory of management will create loyalty above and beyond buying a dog!