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Study: Growing Number of Employees Are Not Loyal
Inside Indiana Buisness ^ | 9/7/07 | Walker Information

Posted on 09/07/2007 12:34:26 PM PDT by qam1

High-risk employees in the American workplace outnumber those who are truly loyal, according to Walker Information’s most recent national study of employee loyalty. Although the percentage of truly loyal employees – 34 percent – is unchanged from two years ago, the percentage of employees categorized as high risk now exceeds those who are loyal, creating a widening gap for employers struggling to improve retention. The Walker Loyalty Report for Loyalty in the Workplace, examining trends in both employee loyalty and business ethics, reveals 36 percent of employees are high risk – a spike of five percentage points from 2005. Based on Walker’s proprietary loyalty model, high-risk employees, unlike their truly loyal counterparts, are not committed to the organization and are likely to leave within two years.

“Employers are faced with a situation where the number of employees causing a negative drain on the organization outweighs those who are working to positively support it,” said Chris Woolard, senior consultant for Walker Information. “With more than a third of employees classified as high risk, the results of our study signal concern as to how the negative attitudes often characteristic of this group will affect organizations – and their ability to compete successfully – down the road.”

Loyalty affects employee behavior
This year’s study results indicate loyalty has significant impact on how employees behave and perform on the job day-to-day. For example, 81 percent of employees deemed loyal (those in the truly loyal and accessible categories) are likely to execute the company’s strategy in their daily work, while just 38 percent of those who are not loyal (high-risk and trapped categories) say they will do the same. Similarly, 92 percent of loyal employees indicate they work to make the company successful, compared to just 49 percent of disloyal employees. When it comes to helping colleagues with heavy workloads, 89 percent of loyal employees say they are willing to provide assistance, while just 60 percent of their counterparts will agree to pitch in when needed.

Harder to win loyalty with new employees According to the study, employee loyalty during the first 10 years on the job generally increases as employee tenure rises, but a large number are high risk. Employees with a company for less than one year were the least loyal at just 26 percent, while loyalty was highest (45 percent) for those with six to nine years on the job. After a decade on the job, however, loyalty diminishes. Just more than a third (36 percent) of workers with between 10-19 years of tenure are categorized as truly loyal with the percentage dropping to a mere 30 percent for employees with 20 or more years under their belts. Interestingly, the most-tenured categories (10-19 years and 20 years or more) register the highest percentages of trapped employees with 33 percent and 36 percent, respectively.

Employers show some improvement in factors driving loyalty
The news, however, isn’t all bad for employers, who made some strides, according to the study’s findings, in the experience areas most predominantly tied to loyalty. Fifty-eight percent of those surveyed said their employers show care and concern for them – one of the leading drivers of loyalty – compared to just 54 percent in 2005. Within this category, 55 percent agreed their employers were working to develop employees for the long term, up from 50 percent two years ago. In all, the top experience-based drivers of loyalty in ranking order are fairness at work, care and concern, trust in employees – emerging for the first time as a loyalty driver – feelings of accomplishment, and satisfaction day-to-day.

Loyalty among Generation Y workers shows dichotomous trend.
While Walker’s study reveals workers in their 20s – commonly referred to as “Generation Y” – as most loyal with 38 percent, as a group they are more dichotomous with 78 percent classified as either truly loyal or high risk. As the generation closest to retirement, “Baby Boomers” ranked lower in loyalty – with just 32 percent truly loyal – and followed Gen Y in the number of high-risk employees with 37 percent.

“With the lowest number of trapped employees and the highest percentage of those deemed high risk, the implication is Generation Y workers are confident better opportunities exist,” Woolard said. “Although there are any number of social and economic reasons for the loyalty dichotomy we see in this generation’s results, one possible explanation is their view that the imminent exit of the Baby Boomers will spell better positions for them, ultimately making employee loyalty less relevant.”

Employees want to have a role in company strategy
A series of questions in the 2007 employee loyalty survey points to employees’ overall willingness to be involved in company strategy. Having employees involved in strategy development is a key factor in employees embracing it, but only 44 percent indicated they were involved in the strategy. More than 60 percent (62 percent) agreed they are important to the company’s strategy which reinforces the need for employee’s opinions to be heard regarding the strategy. Senior leaders play a key role in the success of the strategy but only 50 percent of the employees felt senior leaders communicated the strategy well and make good decisions. Only four out of ten of the employees felt the senior leaders inspired them.

Employees’ view of company ethics levels off
While Walker’s past studies of business ethics have noted an upward trend in employee perception of company ethics, this year’s results remain virtually unchanged from 2005. Sixty-three percent of employees agree their company is highly ethical, and 57 percent believe their senior leaders are ethical. The study also shows a clear link between employees’ perceptions of company ethics and employee loyalty. Ninety-one percent of truly loyal employees believe their organization is highly ethical, compared to just 35 percent of employees in the high-risk category. Similarly, 89 percent of loyal employees feel their senior leaders have personal integrity, while just 31 percent of high-risk employees feel the same.

About The Walker Loyalty Report in the Workplace Data for The Walker Loyalty Report for Loyalty in the Workplace was received in July, 2007 from 2,950 people, 18 years and older, working in companies with at least 50 employees. Completing an on-line survey, the respondents were full- and part-time employees representing business, non-profit, and government organizations. The loyalty report results were weighted according to the June 2007 release from the U.S. Bureau of Labor Statistics.


TOPICS: Business/Economy; Culture/Society
KEYWORDS: generationy; genx; loyalty; workplace
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To: qam1

A lot of employers aren’t all that loyal themselves either these days.


101 posted on 09/07/2007 5:16:18 PM PDT by Sue Perkick (And I hope that what Ive done here today doesnt force you to have a negative opinion of me.)
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To: Califreak
Working like that is what earned me a ticket out of the toll central office equipment engineering group. I always had my work done, so a few of my co-workers complained that I didn't have enough work. My boss responded by taking offices from them and making them my responsibility. I was handed the 'really awful' offices. Same result. My work was complete, my desk was clear. The complaints resumed and another round of dumping problem offices ensued. Same result again. The new complaint was that I had all the offices and many people didn't have enough to do. It wasn't 'fair'. Frankly, many of those people were professional slugs. They worked as slowly as possible to give the impression that the work was difficult and time consuming. Demonstrating otherwise wasn't very popular. I was thankful to find a far more interesting line of work inside the company.
102 posted on 09/07/2007 5:17:55 PM PDT by Myrddin
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To: wtc911

You had the right attitude. I will say that it’s very hard to live by that rule if you’re working for the wrong corporation though. I’ve seen a lot of sales people ground up in the corporate blender.


103 posted on 09/07/2007 5:19:22 PM PDT by DoughtyOne ((Victory will never be achieved while defining Conservatism downward, and forsaking its heritage.))
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To: IronJack

I was downsized recently from a property that absolutely could not afford to lose the manpower but in the upper management’s infinite wisdom, decided that because certain functions had been transferred to the corporate office that it was time to cut labor costs. That this cuts down on the quality of the lives of customers (reduced knowledge base of workforce, drastically reduced hours) AND employees (added burdens, little to no increase in pay) means nothing.

it’s not even REALLY about making money for the company because that would be about pure profit. In many cases what I see is that each mid to upper manager is looking to boost their resume with quantifiable ‘results,’ so they can move on to cushier posts. And the company is interested in showing numbers to stockholders, which in many cases are just part of a vast shell game that don’t reflect the reality of the moment or market.

There’s no loyalty out there and you’re being played for a fool if you think there is any to be found.

One reason I like privately owned companies is that there is at least a CHANCE that they will have created a different ethos and you might actually see a ‘team’ and ‘loyalty’ to reasonable extents.


104 posted on 09/07/2007 5:49:11 PM PDT by Skywalk (Transdimensional Jihad!)
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To: donna

I’m as pro-capitalist as you’ll find. Well, maybe there are a couple people. Anyways, one thing I noticed about corporations is that instead of REAL profit and growth being the prime mover (as we’re told) what really happens is that decisions are NOT made with the long-term reputation or security of the company in mind (reputation when you’re dealing with customers who have alternatives is pretty important) but stock prices and personal objectives.

Sure, my main concern is getting paid for the work I do but I wouldn’t do a disservice to a customer or the company just to make some more money.

So the execs get to go in front of the stockholders with numbers that may or may not accurately reflect the market or the company’s health AND you get managers who are interested in making a name for themselves then jumping right to another ‘opportunity’ so they can make even more money and step up the ladder.

There are some exceptions but they are usually when the founder is still a strong part of the company’s direction or when he/she is still the controlling stockholder.


105 posted on 09/07/2007 6:01:36 PM PDT by Skywalk (Transdimensional Jihad!)
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To: 3catsanadog

If you’ve ever worked in retail or really anything ‘lower level’ that interacts closely with customers, you see how they push these kids to get people to sign up for the store credit card or some other nonsense and it’s the supervisors and the execs who get the bonuses for whipping the employees.

And what do the people (some who really do great jobs selling this garbage) who do the REAL work get (keep in mind they get in trouble and sometimes fired for having ‘low numbers’ for something that really was never part of the job when they were hired or mentioned to them?)

They get a raffle, a free CD or some such nonsense. meanwhile, the person who just told someone else to tell the cashiers or sales associates to get to work OR ELSE gets his next vacation paid for.

Absolutely ridiculous.


106 posted on 09/07/2007 6:21:37 PM PDT by Skywalk (Transdimensional Jihad!)
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To: Califreak

At a certain public television network that I was at for about a decade, we essentially got the same stuff for several years and it is probably still going on.

I am glad I am free of the ugly green star man which became the new logo. There are lots of rumors about how that ugly design came to be. Most of them involve a lot of money. That is for another day.

To get a raise there you either had to be a favorite, have something on somebody, or be willing to sue. I was in the last category. The little leader upstairs favored a couple and the rest, like me, really didn’t matter.

I got a little proof of some underhanded stuff going on and after failing to have a reasonable conversation, told him abruptly what was going to happen after I make some phone calls to people downtown that had law degrees and made way more than he did. It was the first time I ever heard panic from him. I had a case and all I had to say was “veteran”.

The last thing he wanted was to be closely looked at. No doubt others past and present would love to know certain things and have some questions answered.

A big one that is one some minds still, even though I have left, is why no one never, ever, no matter what ever can get promoted out to something else. The “leader” started out at the bottom and has apparently forgotten about it.

As as a follow-up, I have heard from friends still there, that no one in house applied for my slot (knew better) and got very few others from outside and it has not been filled. It probably won’t be in the interest of saving precious pennies that the “leader” can claim for himself and do nothing for the working people.

I am so glad I sliced ties with that organization with the way things are run these days. The previous CEO was a great guy and was making good changes which upset some good ole boys. Unfortunately, he died unexpectedly and many miss him. Things went downhill from there.

Things aren’t perfect but they are a major improvement in my new line of work.


107 posted on 09/07/2007 6:37:47 PM PDT by wally_bert (I will never, ever give a dime to a PBS pledge drive.)
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To: decimon

My husband has worked up the ladder, ten years after leaving the Navy. He has worked for four different employers. With each job move, he found a better position in which to use his skills and better benefits. He works for himself, in a sense. He keeps his eye on the prize and makes it to that goal by action... not sitting still in one place. It just isn’t in his nature to wait for a raise that won’t be there. In ten years he has increased his pay by about $30,000. He is pleased with his progress.


108 posted on 09/07/2007 6:50:32 PM PDT by Pan_Yans Wife (I will be to this generation a second Mohammed" Joseph Smith)
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To: Pan_Yans Wife

Sincerely, good for you both. My situation was much different but I don’t want to leave tear stains on the forum so I won’t go into that. :-)

I will say that it would have been much easier to leave my job if not for the fact of sacrificing benefits like the pension. In fact, I believe the job would have been much better if they’d known that people like me could leave. As it was, they knew that, after some number of years on the job, their employees were mostly ‘trapped’ employees. They played a statistical game of employee retention.


109 posted on 09/07/2007 7:10:18 PM PDT by decimon
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To: decimon

I won’t pretend to understand the risks that you took by staying. But everyone must look at their own situation and decide accordingly. Perhaps your former employer has learned a lesson, the hard way.

I hope you still find opportunities, when you look for them. Unless of course you are enjoying retirement.

Retirement scares me, a little. I can’t imagine what the future holds for us. But we’ll get there, one day.


110 posted on 09/07/2007 7:18:26 PM PDT by Pan_Yans Wife (I will be to this generation a second Mohammed" Joseph Smith)
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To: Califreak

Your #51 contains some great information. Thanks.


111 posted on 09/07/2007 7:45:23 PM PDT by semaj (Just shoot the bastards! * Your results may vary. Void where prohibited.)
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To: qam1
Study: Growing Number of Employers Are Not Loyal

Fixed
112 posted on 09/07/2007 7:46:57 PM PDT by mysterio
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To: OCCASparky

Great story - my comment was based on less *technical* employment - but your example is illustrative of *valuable tenured experience* being undervalued by employers.

Thanks for your common sense with a smile;)


113 posted on 09/08/2007 3:43:07 AM PDT by sodpoodle (Despair -Man's surrender. Laughter - God's redemption)
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To: JOAT
As has been repeatedly mentioned already, most employers show absolutely no interest in a long-term relationship with the employees, so what else could be expected?

When you anticipate a long-term relationship (10 or more years), you naturally have some interest in the long term viability of the place. When you know you're likely to leave (or worse, get laid off) you tend to have minimal interest in the fate of the company beyond the end of your stay there.

114 posted on 09/08/2007 6:05:38 AM PDT by SauronOfMordor (When injustice becomes law, rebellion becomes duty)
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To: qam1

I’m as loyal to my company as it is to me.

In short, always have a bug out plan.


115 posted on 09/08/2007 6:08:12 AM PDT by Tijeras_Slim
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To: sodpoodle
No need for tenured employees with experience and *institutional memory vaults*, the computer stores all company archives and need-to-know at the click of a mouse.

Companies keep telling themselves that...and keep finding out just how wrong they are.

116 posted on 09/08/2007 6:11:53 AM PDT by Non-Sequitur (Save Fredericksburg. Support CVBT.)
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To: DoughtyOne
You had the right attitude. I will say that it’s very hard to live by that rule if you’re working for the wrong corporation though. I’ve seen a lot of sales people ground up in the corporate blender.

_______________________________________________

Absolutely. I worked one company for two years (management) then went back to sales for another for five years (MCI - a nightmare where they demanded that you bleed orange and rewarded mediocrity). I ended up at UUNET right after Bernie bought it and made it part of WorldCom.

Bernie was a thief but he championed the entrepreneurial attitude and scorned those who ran with the pack. His attitude was 'pay people for what they sell with no ceiling and the good ones will hit it out of the park'. It worked, a few of us earned over a million.

117 posted on 09/08/2007 7:41:38 AM PDT by wtc911 ("How you gonna get back down that hill?")
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To: Myrddin

” Frankly, many of those people were professional slugs. They worked as slowly as possible to give the impression that the work was difficult and time consuming.”

Interesting story. I’ve noticed that the “professional slugs” are also the ones who tear more productive workers down through office politics, character assassination and outright sabotage. If they were forced to perform on such a level as the more productive employees, they wouldn’t have time to engage in these destructive practices, which in my opinion, are the only reason these scum manage to survive for so long. They seem to take pride in their behavior. The logic behind that completely escapes me....

BTW, most of the folks I’ve seen who operate like this are liberals. I don’t know if that’s just a coincidence or not.

The best people I ever worked with were conservative Christians and a Mormon. This goes back to how dumping God ruins everything.


118 posted on 09/08/2007 8:41:19 AM PDT by Califreak (Go Hunter!)
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To: wtc911

Very good. Glad to hear it. Some would have capped you, but they let you earn as much as you could, raising their numbers in the process. That’s smart IMO.


119 posted on 09/08/2007 10:19:34 AM PDT by DoughtyOne ((Victory will never be achieved while defining Conservatism downward, and forsaking its heritage.))
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To: wardaddy
Loyalty? Cuts both ways. I'm probably the real-life equivalent of Sgt. Todd from the movie "Soldier". After life-long conditioning the betrayals taught me to only serve the deserving. You've been an honor to serve and I care for your family and interests as if they were my own. All I ask is don't let a genetically superior replicant kick my ass and replace me.

On the lighter side I Googled "loyalty" and came up with the following:

Ol' Johnny was a unique individual, to say the least.

120 posted on 09/08/2007 12:20:52 PM PDT by NewRomeTacitus (Jason's by himself Monday - CB's court date & my pinched spinal nerve recovery))
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