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.
L
“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,”
__________________
I work for my husband and he knows how true that can be ;)
You’re absolutely right. Loyalty is a two way street.
I’ve had some exposure to corporate environments over the last few years, and I can tell you at least some of the corporations treat their employees like paper towels.
Sadly, that mutual respect is no longer the standard.
It works both ways: when the companies are no longer loyal to their people, then the people are also no longer loyal to their companies.
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.
Read somewhere that workers change jobs much more frequently than ever before - average 25-30 year tenure is now 3-5 years.
In my line of work (and this may very from those w/ ‘real’ jobs) but I can assure you that there isn’t any semblance of loyalty from the employer in a freelance relationship.
ding ding ding. We have a winner.
Sign of the times, but I’d bet that employees are still much more loyal the employers.
Not many employees have moved to Mexico or China.
Anyone besides me remember the banking layoffs?
Welcome to “Free Agent Nation.”
Have you ever gone on strike?
Have you ever gone on strike?
This article is pathetic. As someone close to me said about company loyalty - “Between you and your company - you are even every 2 weeks”.
Funny how the article never bothers to define “loyalty”. Here’s the basic definition: loyalty = stupidity. I.e., not demanding a raise, not causing trouble, not saying what you think. Being a mindless drone. I’m glad the “loyalty” numbers are going down.
People work for money.
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?
Besides, there is always one infallable way to keep key people: pay them what (or better, more than) they are worth. I expect that unwillingness to do just that is why some companies are now bemoaning the loss of "loyalty" as a virtue. ;)
Ping list for the discussion of the politics and social (and sometimes nostalgic) aspects that directly effects Generation Reagan / Generation-X (Those born from 1965-1981) including all the spending previous generations are doing that Gen-X and Y will end up paying for.
Freep mail me to be added or dropped. See my home page for details and previous articles.
Loyalty has been outsourced to a 3rd world country.
Any other company would have found a reason to replace me, and I would have been out of a job. But instead, they stood behind me all the way!
During those six months, I had invented something that would be worth millions to the company. They trusted me and invested the time and money to manufacture the equipment that I requested.
While I was forced to work from home, they demonstrated absolute trust in me, and followed my directions.
Last week, we got our first experimental results, and that invention worked PERFECTLY!
Thanks to their trust, when I needed their support the most, our company will now become the world's leader in our field.
Mutual trust and support, is how a small company becomes a leader.
I am so damn proud of the people that I work for!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.