THINK
LOYALTY IS DEAD? THINK AGAIN!
Perhaps no one ever stated it so explicitly, but that was the basic loyalty contract between employer and employee 20 years ago. Is loyalty dead and gone, a victim of turbulent times in the corporate world? Or is it still here, only different somehow? I've been researching organizational loyalty for two decades. To update my data, I recently asked 250 professionals if they were loyal to their organizations -- and if their organizations were loyal to them. I was overwhelmed by responses reflecting the importance of loyalty in people's working lives. Contrary to many headlines, employees in my study say their loyalty is very much alive! People want to be loyal employees. In fact, loyalty is such an inherent part of their values that many of them continue to feel loyalty even when their organizations have stopped being loyal to them. Are
you loyal to your employer? Is
your employer loyal to you? Loyalty redefined Loyalty has two dimensions: internal and external. Loyalty is, fundamentally, an emotional attachment. The internal dimension is the emotional component. It includes feelings of caring, of affiliation, and of commitment. This is the dimension that must be nurtured and appealed to. The external dimension has to do with the way loyalty manifests. This dimension is comprised of the behaviors that display the emotional component and is the part of loyalty that changes the most. The first step is to redefine loyalty as internal feelings that can be manifested in a variety of new ways. Instead, what happens most often is that the leaders of an organization feel that they are very loyal to their employees and that the organization has policies in place to reflect that -- but that workers don't understand what management is trying to do. On the other hand, employees who feel they are very loyal to their companies aren't demonstrating it in ways management understands. So what you end up with are some well-meaning people at both ends of the bargain who aren't clear about what is really going on. The terms of the loyalty compact are far different from what they were in the past. Rather than a blind corporate allegiance, employees show their commitment through their efforts for the organization. Here's what my research showed about the current manifestations of loyalty: How employees show loyalty "While I'm in my present job, I will do everything I can to be as effective as possible in my job, advance the interests of my employer and contribute to its achievement of business objectives." o
Work hard and go beyond what's expected - 80% Note: But . . . even loyal employees aren't planning on staying with a single employer
24% of employees are planning on leaving their current employer when the economy/job market improves. 19% aren't planning a move, but are keeping their options open. 57% are planning to stay. Interesting
note: How organizations show loyalty to employees "When I experienced difficulties, everyone was sympathetic, offered time off, gave me flowers. There was a genuine display of concern for me that was truly heart-warming. It's not just a company that gives lip service to 'sharing and caring'!" o
Equitable pay When organizations are perceived to be disloyal Retention (on both sides of the bargain) may be a relict of the past, and only a few people listed "job security" as one of the ways their loyal employers showed them loyalty. Still, almost everyone who insisted their senior management wasn't loyal listed layoffs, and the way they were handled, as indicative of organizational disloyalty. "The focus is all on stockholders and the bottom line. Decisions seem to be made solely from a financial perspective with no concern for people. When cutting jobs, there has been no loyalty shown to those who've been here the longest or done the best job." Other examples of disloyalty came from inequity in budget cuts: "The biggest budget cuts were employee-focused. They eliminated all our merit increases, rewards and recognition programs -- and then the top management got bonuses." And still others were disheartened by the impersonal nature of business: "It used to feel like a family. Our new CEO is all 'Business is business' and 'Don't take it personally.'" Why people are loyal Modern life in all its complexity creates a feeling of isolation. Meaningful involvement in our work and workplace relationships can provide a rewarding sense of belonging. Most of us learned about affiliation and commitment in our early home life and social activities. The importance of belonging, contributing, and being loyal is easily recognized. Here are the three categories of reasons why people give their loyalty to an organization. Imagine the power of blending all three! People are loyal because: o
They are inspired to be loyal. o
It's part of who they are. o
It's an equitable transaction. What does all this mean for management? Okay, so here's the new deal. Workers can no longer expect lifetime employment, nor can they expect stability. Change has become "business as usual." Employers, on the other hand, must deal with a far more mobile work force that has multiple loyalties and a different set of values than the previous generation. The brainworkers of today consider job-hopping a normal route to professional growth and personal fulfillment. Smart companies and leaders can tap into employee commitment by recognizing and accepting these new realities and creating programs and relationships that capitalize on them. The components of the new deal are: 1. The relationship between employees and organizations has changed from one based on a long-term agreement to one that addresses the temporary nature of most business liaisons. Just remember that people want to work at organizations they care about -- even if it's not forever.
3. There is a strong positive relationship between employees' perceived future opportunities with their present employer and their commitment to that employer. If organizations are serious about building an incentive for longer-term loyalty, they need to focus on succession planning, leadership development, special assignments, challenging work, job shadowing, training programs, and ongoing feedback. The irony that complicates the issue is that employees are more loyal when they are challenged and given the opportunity to develop skills -- the same skills that are useful in looking for a new job elsewhere someday. 4. Pay might not be always the most important thing, but it always ranks right at the top. Pay is only a non-issue when an employee is not dependent on a paycheck or has another source of income. A general rule is that you must offer a competitive salary/wage for that position. 5. Benefits are similar to pay. If other like businesses are paying certain benefits, you will have to also. The more astute businesses offer 'cafeteria style' benefits, enabling employees to pick and choose which benefits are best for them. 6. Corporate leaders must set the loyalty agenda, articulating how an employee's participation contributes to the greater good of the organization. That greater good must involve doing something more than contributing to the bottom line and building market share. It ultimately has to do with values, mission, purpose, and being connected to something greater than themselves. 7. Inspiring loyalty takes good management. People work best when they have meaningful relationships with their bosses. That doesn't necessarily mean a social relationship (though it could be), but at least an open, trusting relationship where bad news can be shared as safely as good news. And even more than honest communication (which is one-way messaging), employees must feel they have input in the workplace. They are looking for a dialogue, not a monologue. 8. A most critical element is respect. To what depth do your employees feel that you respect and sincerely care about them as individuals? Respecting an employee means that his/her opinions count, that appreciation and recognition are shown for good work, and that the employee feels listened to. Gallup research has found that peak performers in a variety of organizations feel that someone at work cares about them and their personal progress. They report that someone regularly and frequently asks about their progress. 9. Layoffs have become an inescapable part of today's business reality. But when it comes to layoffs, a responsible employer who adheres to the loyalty contract takes a long-term view of employment. This doesn't mean they guarantee jobs for life, or fail to remove under-performing employees, or disregard profit and shareholders. It just means that employers do their best to keep employees who are performing well in their jobs -- and that they use layoffs only as a last resort. 10. Loyalty is tied directly to the health and quality of the corporate culture. Organizations that treat people well, placing emphasis on future development and providing opportunities for growth, generate allegiance and commitment. Although jobs are currently scarce, employers need to recognize that if they have not worked to maintain employee commitment, they will experience a dramatic problem with employee retention as the economy improves. Employers, managers, and supervisors who take steps to win their employees' loyalty now will reap the benefits of attracting and retaining the best.
Speaker,
Consultant, and Author of:
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