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.
I’m so sorry... nice kitty, nice kitty...
Good for you.
90 day package in exchange for not working in the field for a whole year?
Yes, you’d be surprised with reference calls. If you did a good job and put in a 2 week notice, you are much more likely to get a positive reference in the future, not to mention many companies now have it in your contract/handbook you get paid for severance/leftover vacation ONLY if you put in a 2 week notice. That and it’s just professional courtesy. If your new employer doesn’t understand that, then they themselves probably would drop you in a dime if they found someone else for slightly cheaper.
Yup, sucks - to keep your insurance another 90 days while you try and find a cost effective repalcement, you can’t work in the area of your “expertness” for a year.
Its OK, the outfit has been bleeding talent in a big way since the massive layoff - folks trying to beat the next round I suppose.
I do well now and am happier than ever in the past.
2 way street.
I don’t think loyalty has to equal any of those things, especially the not saying what you think part. When I’ve hired people part of what I hired them for was their intelligence and their different perspective, if they think the company or department is doing something wrong they damn well better speak up because that’s part of what we’re paying them for.
Of course part of that is that I’ve never believed in loyalty to faceless constructs. I’ve never been loyal to a company, I’ve been loyal to a CEO, loyal to managers, loyal to co-workers, but never a company.
PS: The one in the middle is a mere 120 lbs. ROTFLOL
Back in the late 1980’s I had to go to several locations and tell the staff that we were there to shut them down ...don’t even open the doors today, you’re closed.
I’ll never forget that experience, I was physically sick for the days we were there packing up the store.
Of course you could always take the route my father did back in the 90s, and start your own company. He now makes more than he did then and is able to take 6-8 weeks of a year for short term mission trips for our church plus a week or two of regular vacation.
Absolutely, the software industry in Tucson is too intertwined with too much inbreeding. You never know when you’re going to run into somebody again or somebody who knows them, doesn’t pay to screw somebody over.
Loyalty is a two way street.
May not agree with you about indie movies but I agree with you 100% here.
As long as everyone remains truthful all disagreements are FRiendly.
Back on topic I wonder if by their little survey that makes me loyal or high risk. I have no loyalty at all for the company, and I’m not fond of the CEO, but my boss and his boss have earned large amounts of my loyalty.
Loyalty is a two way street. If businesses want to be able to hire and fire according to business cycles, fine. But why be shocked when workers decide to take the best deals for themselves as well?
Very true. They owe you a paycheck nothing else.
Well, from what I can tell, they look very nice. Good for you.
I will be less Catty in the future. ;-)
The loyalty door should swing both ways, but it doesn’t. Employers want loyalty, but don’t give it. Things sure have changed the last couple of decades.
He fired me and put his kid brother in charge.
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