Methlife’s 10th annual survey of employee benefits, trends and attitudes, released in March, puts employee loyatlty at a 7-year low. The survey shows one in three employees plan to leave their job by the end of the year. According to a report conducted in 2011 by Careerbıilder.com, 76% of fulltime worker would leave their job if the right opportunity comes along, even tough they havent been actively seeking for a job. Other studies Show that each year the average company lose its 20%-50% employee base.
A big amounf of employees do not feel connected to their work. The reasons cited fort his ; the recession ( during which companies laid off big swaths of their employees with little regard of loyalty) , a whittling away of benefits , training and promotions for those who remain. And another reason is ; a young generation of millenials ages between 15-30, whose expectations are different about their career. When talking about employee loyalty, the subject should not be considered one-sidedly. A management professor Adam Cobb’s words set as a great example to the status of loyalty between employer and employee : ‘My loyalty to the firm is contingent on my firms loyalty to me’ Cobb says loyalty should not be a value that companies rely on. But it is not right to say employees have no loyalty. If the companies took care of their employees and loyalty was reciprocal, would employees stil be job hopping? Peter Capelli, director of Wharton’s Center for HR, agrees that recently, employers’ attitude towards theit employees has changed. Employers see the employees as short-term resources. This behaviour ended life-time employment and job security depends now on continuing usefullness to the employer. Payment cuts, increasing workload ocur when it is beneficiary to the company. Wharton management professor Matthew Bidwell divides the term into two parts: "One piece is having the employer's best interests at heart. The other piece is remaining with the same employer rather than moving on." Management experts, he says, describe this as "organizational commitment." And that, he notes, is changing. "There is less a sense that your organization is going to look after you in the way that it used to -- which would lead you to expect a reduction in loyalty as well." But Bidwell questions how much loyalty people ever felt to their organizations, in good times or bad. "Employees are often more loyal to those around them -- their manager, their colleagues, maybe their clients. These employees have a sense of professionalism -- and loyalty -- that relates to the work they do more than to the company." Loyalty, which can be considered a component of employee engagement, is based on a number of factors, says Harter, including whether the employer "looks out for employees' best interests, pays attention to their career path, gives them opportunities to improve their well-being and so forth." In this equation, managers play a crucial role, he adds, referring to a survey done several years ago that analyzed all the reasons people stay with or leave an organization. "If you're looking for a silver bullet, it is the quality of the relationship between an employee and his or her manager that determines the overall level of employee engagement. Good companies develop a growing list of great managers over time.... It's local level teams and how they are connected together by leaders and managers" that have the most impact. Research also shows that not all behavior is self-interested, Small adds. "Sometimes people do things at considerable cost to themselves, like sticking to a job with lower pay when they could move on and potentially earn more money. It's because we care a lot about relationships and the welfare of others. When we have a relationship with our firm or colleagues, there is a social cost to leaving." To the extent that an employee is well treated by a firm or a boss, "that might, on the margin, make a difference"...
Please join StudyMode to read the full document