February 07, 2005
Employee Loyalty is Dead!
When did it happen? When did companies begin to treat employees as disposable assets? When did employees begin to ask not what they could do for their employers, but what their employers could do for them?
Was the catalyst for changing the employee/employer contract Jack Welch’s (a.k.a. Neutron Jack) massive layoffs as part of the transformation of GE in the 1980’s? Was it increasing competition from global companies that forced American businesses to change their employee practices? Was it the search for instant wealth during the Internet bubble of the late 1990’s that changed the rules of the game? Was it the aftermath of September 11?
Well the catalyst, in this case, doesn’t really matter. Businesses need to create the circumstances within their organizations and communities that motivate and inspire workers to give their best . . . even if they are not going to be employees for life. Research on the millennial generation, for example, shows that they are expected to have, on average, 9 jobs by the time they are 35. Does this make them less loyal or committed? By traditional notions of what loyalty and commitment mean, perhaps. But length of stay and productivity at work are not necessarily the same thing. How many people have you worked with that have effectively retired on the job?
What does matter is that drivers of employee commitment and loyalty are changing and organizations need to adapt to new employee expectations. For example, the Millennials seem place as much emphasis on the community in which the job is located as the job itself. Issues like the health and vitality of the community, healthy lifestyles, community service, diversity and artist communities are becoming increasing more important to getting the next generation to consider your community, let alone your company.
Studies conducted by the Center for Effective Organizations at University of Southern California showed that in 2002, companies with highly committed employees outperformed (based on ROI) other companies by 100%. In simple terms, the more employees are involved, the more committed they become. And the more committed the employees, the better the economic performance. Some of the best practices of these organizations are:
1. Creating an environment of open communication between employees and management
2. Helping employees overcome obstacles to greater involvement at work
3. Soliciting employee ideas about work improvements
4. Delegating decision-making to the lowest possible level
5. Encouraging employees to manage and direct their own careers
The impact of the globalization of business means that businesses have more opportunities and more competition. With opportunity comes uncertainty. And this uncertainty means that the traditional employer/employee contract (i.e., job security, career advancement, etc.) is a thing of the past. That doesn’t mean the employee commitment and loyalty have to be a thing of the past. Companies that provide interesting and challenging work, develop their people, and engage workers in improving the business are likely to have a highly committed workforce, even if they don’t plan on being their for life.
Posted by Greg Robinson at February 7, 2005 02:41 PM
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Hello: I have been with my employer for 25 years. Why? Because I have suffered agoraphobia and find the prospect of getting a new job daunting. Forcing myself to stay has given me an interesting perspective of the job market, and although I feel that I might have improved my wages by moving, I cannot say that I would have developed the positive attitude I carry with me to work each day. It is really not the job, nor the boss, but an employee's attitude that needs nurture. Not all change is good. There is something to be said for stability. Paula
Posted by: at March 15, 2005 11:14 AM
Paula, thanks for your post. Indeed, not all change is good but it seems like it is the reality for most workers these days. Stats show that the average 20 something will have 9 jobs by the time they are 35! Ourganizations need to do what they can to nurture their employees while they have them to create the most productive work environment. My guess is that you work for a company that is doinga lot of the right things. Care to share what they do well with us?
Posted by: at March 16, 2005 10:12 AM
We seem so have a lot of trouble getting young employees to adhere to simple policies such as dress code. They also spend an enormous amount of energy trying to change procedures or push their work off on others. If half this energy was spent doing the jobs they were hired to do, they would be wonders. We are trying to hire older employees so we don't have to teach work ethic.
Posted by: at April 18, 2005 09:33 AM
Carolyn, if you work for a small company with limited recruiting needs then a having a very narrow job spec may work for you. The challenge with the new generation of workers (as it has been with all previous "young employees") is that they have grown up in different times and want different things than the older generation. Different does not mean better or worse . . . just different. The challenge for organizations and managers is not to question the motivations of young employees but to tap into their passion to get the most out of them.
Posted by: at April 19, 2005 09:45 AM
What are they doing right? The organization is one that cares for the elderly in the last years of their life. I think the theme of caring is the glue that keeps most employees here, in SPITE of the organization. Employees need to turn away from self-centered, short-term rewards and slow down. Lose that third car, the extra bedroom, or the nanny and take time to live - outside and inside of work. Paula
Posted by: at May 15, 2005 10:59 AM
Hello: I have been with my employer for 25 years. Why? Because I have suffered agoraphobia and find the prospect of getting a new job daunting. Forcing myself to stay has given me an interesting perspective of the job market, and although I feel that I might have improved my wages by moving, I cannot say that I would have developed the positive attitude I carry with me to work each day. It is really not the job, nor the boss, but an employee's attitude that needs nurture. Not all change is good. There is something to be said for stability. Paula
Paula, thanks for your post. Indeed, not all change is good but it seems like it is the reality for most workers these days. Stats show that the average 20 something will have 9 jobs by the time they are 35! Ourganizations need to do what they can to nurture their employees while they have them to create the most productive work environment. My guess is that you work for a company that is doinga lot of the right things. Care to share what they do well with us?
We seem so have a lot of trouble getting young employees to adhere to simple policies such as dress code. They also spend an enormous amount of energy trying to change procedures or push their work off on others. If half this energy was spent doing the jobs they were hired to do, they would be wonders. We are trying to hire older employees so we don't have to teach work ethic.
Carolyn, if you work for a small company with limited recruiting needs then a having a very narrow job spec may work for you. The challenge with the new generation of workers (as it has been with all previous "young employees") is that they have grown up in different times and want different things than the older generation. Different does not mean better or worse . . . just different. The challenge for organizations and managers is not to question the motivations of young employees but to tap into their passion to get the most out of them.
What are they doing right? The organization is one that cares for the elderly in the last years of their life. I think the theme of caring is the glue that keeps most employees here, in SPITE of the organization. Employees need to turn away from self-centered, short-term rewards and slow down. Lose that third car, the extra bedroom, or the nanny and take time to live - outside and inside of work. Paula
