Skip to comments.Study: Growing Number of Employees Are Not Loyal
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 Informations 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 Walkers 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 years 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 companys 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, isnt all bad for employers, who made some strides, according to the studys 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 Walkers 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 generations 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 companys strategy which reinforces the need for employees 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 Walkers past studies of business ethics have noted an upward trend in employee perception of company ethics, this years 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.
3. Setting a departure date
The article says that if you are “in a professional or clerical position, two weeks are appropriate. If you are in a managerial position, three to four weeks is appropriate.” That’s a joke. You could give four week’s notice. There is no guarantee of a good reference.
There are critical situations today where the day you announce your resignation is the day you leave. This may not be up to you. The company may not want you at its offices as you are a potential threat to its systems and security.
As head of security, I would not want anyone around who has access to company networks and application systems.
You may want to give two week’s notice, but from a security standpoint, you are out the door that day. Locks are changed. Passwords and IDs are terminated so you should have no access to files or other confidential information. That is the reality of today’s workplace.
Did you know that many denial-of-service (DoS) attacks are initiated by disgruntled employees? If the company you’re working at doesn’t have that stringent of a policy, they are leaving themselves open for attack. That’s definitely not adhering to the Sarbanes-Oxley Act or any compliance policy that focuses on secure environments.
4. Tying up loose ends
Making sure you turn in all IDs, keys and corporate credit cards is standard.
You don’t want the liability of being blamed for anything that happens after you give notice. Clear out your desk and office of all personal effects a day or two before you announce your departure. You just may be escorted to the door as soon as you tell your boss of your intentions. There is no going back to your desk.
Many companies are so paranoid today. They don’t want any employees hanging around after they submit their resignation.
Leaving contact information depends on the individual situation. You may not want to be contacted after you depart, or in most cases, companies will not give out your contact information. No one is going to forward leads or loyal customers to you for fear that they are losing potential business.
New best practice: immediate departure
Here is a true story that just happened where someone was leaving for a better opportunity and was debating this exact issue of “giving notice.”
My advice to her was to clear out her office the day before, give a clear resignation letter and have everything ready to turn over and leave the day of her resignation. She was in charge of critical information and computer systems. There were many legitimate reasons why she left (pay, workload, lack of recognition and the company’s loss of business).
It was a wise move to leave. She left on a Monday.
Two days later, the servers crashed and the company got a subpoena for a lawsuit. If she would have stayed, she could have been blamed for the crash and potentially held up to be a witness in the lawsuit. It could have jeopardized her new opportunity if she went the “old school” route. She was really thankful she resigned the way she did.
So much for giving two weeks’ notice. The potential liabilities aren’t worth it.
Follow-up: Employees debate ethics of giving two weeks’ notice
Carlinism: A person leaves the day they resign. Otherwise, they leave the door open for lots of liabilities.
More at this link: http://wistechnology.com/article.php?id=1757
I would give two weeks notice if the place I was working for was decent, and if co-workers were also decent. It is a rare thing nowadays.
No loyalty to employees => No employee loyalty.
>>it’s just another service to be outsourced like janitorial and gardening. They only find out once it’s too late, after they’ve already done something stupid
No matter how skilled or well trained an employee is, this is the case, regardless of the job performed. Corporations will rarely if ever acknowledge making a mistake with one or many employees. They’ll just make do with lesser ones.
You read my mind. How can these employers who regularly practice layoffs to ensure dividends to the stockholders expect any loyalty from the employees? Loyalty works both ways.
We read in the paper about the big bonuses and perks our CEO gets (with him reining in about $2,000,000 extra dollars a year). Then when the company makes U.S. World & News list of best hospitals, the employees get a thermal coffee cup. And it leaks.
To show employee appreciation, they have what I call "Happy Days". 2-3 free food parties during the day and employees get a free gift. A t-shirt, or sweatshirt - things of that order.
I guess they think that these things will make us forget raises and bonuses.
It's an insult to most employees.
“To show employee appreciation, they have what I call “Happy Days”. 2-3 free food parties during the day and employees get a free gift. A t-shirt, or sweatshirt - things of that order.
I guess they think that these things will make us forget raises and bonuses.
It’s an insult to most employees.”
Don’t forget the mandatory monthly birthday parties!
Prove your solidarity and eat cake or you will be shot!
I was really worried there.
About the only way that will happen is if he starts working for himself.
I never pay attention to that Corporate CEO stuff. It’ll drive you to distraction. I did work for a hospital that reminded me so much of your comments related to yours.
Due to the pressures of having to give away services to illegal aliens, our hospital cut many corners. Employee wages were frozen for over seven years. Of course that was for the underlings. Nurses got raises every year. Nice ones too...
I finally got sick of it and took an offer I couldn’t refuse.
My wife was a person who would bust her arse to be a ‘great’ employee. She didn’t do it for the institution. She did it because she got self-fulfillment out of it.
She helped plan and conduct fundraisers. She sat on several employee committees to help with employee moral and policy review services. When employee recognition days came around, she and I were the ones who stayed around until 1:00 a.m. to hand out goodies.
Then a consulting firm came through and cleaned house. It was actually fairly clever how they worked it. They involved the employees and let them make recommendations. Yep you guessed it, my wife’s name came up.
We’re talking ten years ago, and my wife’s name still comes up constantly at this hospital in top level managerial meetings as a person ‘who used to do that’, when it’s asked why certain things don’t get done anymore.
She also happened to be a member of a service club in our town, and was known by just about everyone who is anyone, and those people have constantly reminded the hospital what fools they were to let her get away. She used to get these people to contribute to the hospital. When she left many of them were so angry they quit contributing.
The administrator of the hospital came and appologized to her months later. They realized they’d made a very foolish decision.
The surveyers who came into our hospital didn’t know my wife. They didn’t know all that she did. They didn’t try very hard to find out either. And so it made sense to them to eliminate her position. She directed a program that saw over 600 people come into the hospital for free, and donate their time.
Within two months, that programs was destroyed. All but about 100 quit. At seven years later, that program only had about 200 people in it.
All that free labor and all the plusses my wife meant to the organization, gained her no reverse loyalty whatsoever.
Within a year she was making 25% more. Today she makes almost double what she made there.
Corporate driven management can be a very self-defeatist thing. Those who think it’s the greatest thing since sliced bread generally don’t know what they are talking about. Corporations are just too big to operate efficiently.
I do think corporations are necessary for certain large projects. Small businesses couldn’t raise the capital to get some massive things done. But I do think corporations have expanded to the point that it isn’t good for them or ultimately our nation.
I worked 10 years for a major telecom outfit - got laid off with zero notice. I did get offered a 90 day severance package, all I had to do was agree not to work in the field for a year.
The CEO did get a million $ bonus that year - dumping 20% of your workforce will make the profits look good - for a while.
I do project work now and ask for/get very good money. No office politics or anything else - come to work, work and then leave. Allows for some nice vacations as well.
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.
Yup. I work in HR, and it’s ugly to see what goes on. It’s made me physically ill a few times.
The article cites "boomers" as having the lowest loyalty. I think that is a consequence of experience with the reality that employers have zero loyalty to employees. The younger employees just haven't been around long enough to get slapped by their disloyal employers yet.
As a personal example, I worked 240 hours per month from May 2001 to April 2002. I was paid for 160 hours per month, but my employer billed the customer for the whole 240. The revenues kept a who department of people with no assignments from being laid off. In June 2002, the place where I was putting in those long hours folded. My company was no longer on the gravy train with big revenues coming in from my labor. Did they set any money aside and make plans for future work? No. I was sent a layoff notice...along with all the other "chair warmers" who had produced nothing for almost a year. ZERO LOYALTY! I had 480 hours of vacation on the books. I took 40 hours and used the time to chase new work. In that week, I tracked down $3 million in new opportunities. I took that work to a different manager inside the company. My layoff was over. The other POS manager who took all the money and sent me a layoff notice wanted a "piece of the action". I told the guy to screw himself. No loyalty goes both ways.
A fool and his money soon part seperate ways. It would be interesting to see what that companies financial shape was 7 years after that.
this is not true of anyone who works for me....very loyal bunch I’d say
Someone help me out here... my brain seems to not be working. What the heck does that mean? 78% either "truly loyal" or "high risk?" DOES NOT COMPUTE!
Is that like when CNN said that "Experts agree: Bin Laden either dead or alive?"
Then the telecom melt-down occurred in early 2000 to 2002. I was laid off... I got the message loud and clear. I picked up a new career about 4 months later (I'm still with the same company - nearly 5 years now).
Work hard and do the best possible with the understanding that businesss is business. If something better comes along (career-wise)... do NOT hesitate... take it!
The corporate memory and skill embodied in employees is grossly underestimated. I left the employ of PacBell in 1991...along with 5,000 others. The company decided it needed to cut headcount to improve the bottom line. They did save lots of salary expense. They also wiped out 500 major projects that were underway. Out of that 500, they determined that 380 were a total loss. They no longer had the ability to proceed. They took the 100 most likely to succeed and outsourced many to a well known IT consulting firm. Nearly all of the outsourced jobs were screwed up beyond belief. Once again, the loss of corporate memory lead to incorrect decisions by unknowledgeable contractors.
One of the key reasons I joined the 5,000 in the November 1991 exodus was the sure knowledge that I would be mercilessly hammered as a resource to the outsourcing. No thanks.
boy, this is right on the money.
i see this daily.
at cvs the younger people could care less whether the kids shoplift the place blind.
my apartment building. the maintenance man is in charge of the hired landscapers. rumor has it that he gets a cut for using this company.
they’re in the process of destroying the trees, bushes, and flowers because they don’t want to care for them.
i mentioned a problem to the maintenance man and he said that he wanted to spend the owner’s money. at first i thought he was joking, then i realized no, he was not.
he’s alway’s slipping stuff into his pickup.
My company went from a 'traditional' defined benefit retirement plan to a defined contribution plan shortly before my retirement. I wish the change had been made before I began working for them as the defined benefit plan is just a shackle.
The employee is as much a business as the company worked for. The relationship between the two is a service contract. That may sound cold but it is realistic.
I later heard he had to hire THREE people to do my job and was still wondering why I left.
Ah, they are just like big ol teddybears. Sweet as can be.
I’m sure they are. You have a nice weekend.
My wife worked for the San Ysidro health center early in our marriage. He job was coding the insurance forms. She was very good. They had to hire 3 people to replace her as well.
The contract where I was working 240+ hours per month was a consequence of covering for 2 C++ programmers, 4 Java programmers and 2 EEs. It wasn't supposed to be that way, but I just kept inheriting responsibilities as Qualcomm pulled their employees out of the Wingcast operation.
People who can do the work of THREE people are terribly unpopular. I know-I used to be one.
Looking right now.
Hope everyone likes commissions and incentives instead of real pay raises.
I was in high-level sales and for my last six years was always in the top five nationally. I didn't want management because I wanted to rely on my efforts only, not try to prosper by babysitting eight others.
My espoused theory was that my one and only job was to maximize my personal earnings while minimizing time away from my family. One guy in particular hated my 'me-first' attitude. He was convinced that the best path was to sell whatever the marketing dopes were pushing that month. He never understood that my way put more money in every pocket up the ladder or that when the rifs started the only safe place was at the top, even after he was axed in one.
I'm retired, wonder what corporation he's loyal to now.
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