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.
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.
Figures.
Ah, they are just like big ol teddybears. Sweet as can be.
I’m sure they are. You have a nice weekend.
D1
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.
You too.
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.
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.