LOYALTY
IS DEAD. LONG LIVE LOYALTY!
Carol Kinsey Goman, Ph.D.
Condensed
from her book, "This Isn't the Company I Joined" (new
edition due January 2004).
If
your definition of loyalty requires patriarchal companies offering
lifetime job security to a work force pledging steadfast allegiance
-- then loyalty is indeed dead. Workers today face the reality
that whether they work for a large conglomerate or a smaller entrepreneurial
firm, there are no employment guarantees. And management, in turn,
is dealing with a work force whose values differ tremendously
from those of their predecessors.
With
traditional loyalty, everyone knew the rules: Management gave
employees a sense of "family," of job security. Even
if "old Joe" wasn't pulling his fair share, he could
expect the company to "take care" of him by allowing
him to stay in his current position or by finding him another
job within the organization.
In
exchange, workers gave up the right to question authority, to
criticize the company, or to do their jobs in any but the "one
right way" approved by the organization. They wore the company
uniform, used the company product or service, and supported the
organization's position on community matters. Orders were handed
down the bureaucratic chain of command, to be followed precisely,
and then released to the next level.
This
traditional view of loyalty no longer applies. Changes in the
business world and in the work force require a different approach.
Workers can no longer expect lifetime, or long-term, employment.
Nor can they expect stability. Change has become a fact of corporate
life to be accepted and dealt with.
Employers,
on the other hand, are encountering a far more skeptical work
force, with a different set of expectations and demands. Employees
today no longer believe that top management will guide their career
progression. Workers are creating their own career paths, and,
in most cases, consider job-hopping a normal route to professional
success. Today's employees are educated to expect that they may
work for as many as twenty different companies - in perhaps four
or five different careers - over the course of their professional
lives.
Yet
opportunities abound for organizations that take the initiative
in creating compelling and realistic guidelines for mutual loyalty
in the workplace. But this requires a new definition of corporate
loyalty and new expectations on the part of workers and leaders.
The death of old traditional loyalty opens opportunities for a
new, enlightened form of loyalty based on shared values and goals,
and mutual caring and respect. Organizations can benefit by tapping
into the commitment of their workers. Employees yearn to feel
emotionally connected to their work. It is the right time to address
these mutual needs and to redefine loyalty in ways that will serve
both.
THE
TWO DIMENSIONS OF LOYALTY
Loyalty
has two dimensions: the internal or emotional level and the external,
behavioral aspect. Internally, loyalty is a feeling of bonding,
mutuality, affiliation, or trust. Various dictionaries define
loyalty a "true, constant, or steadfast in allegiance."
One definition is "faithful to a person, ideal, custom obligation,
duty or organization." Another definition is "devoted
attachment and affection."
For
our purposes, the key to defining loyalty starts here: Loyalty
is first of all an emotion that manifests internally as caring
and concern for another person or entity. Loyalty is basic to
our nature as human beings - a potent force that can be brought
forth for the good of all.
Externally,
loyalty may manifest itself in a variety of ways. Since emotions
are obviously invisible, it is through the behavioral dimension
that we evaluate another's loyalty to us. In organizations we
often have expectations of loyalty behavior that are implied rather
than explicit. The "loyalty compact" is an implied set
of mutual expectations regarding the manifestations of loyalty
by both the organization and the work force. These behaviors have
changed on both sides, but many of us continue to judge loyalty
by old, outdated standards. It is time for the old standards to
be questioned, and for the loyalty contract to be stated openly
to that employees and management can make enlightened commitments.
THE NEW LOYALTY COMPACT
In
progressive organizations across the country, a new kind of relationship
grounded in mutual trust and respect is emerging between employers
and employees. This new compact is developed out of realistic
expectations on both sides. It is a path that reflects the new
reality for business and society in a global market, as it attempts
to align the interests of the organization with those of its employees,
to share both the risks and rewards of doing business.
As
leaner companies rely on fewer employees to shoulder more of the
work, the developing relationship between company and worker is
changing from paternalism to partnership: Companies owe it to
their work force to aggressively pursue new ideas, products, services,
markets, and customers. Employees expect to be treated fairly,
to develop professionally, and to have meaningful, challenging
work. In return, employees owe the organization their willingness
to participate in business growth, idea development, customer
service, and organizational transformation. Balancing the employee-employer
compact is not a matter of adding more items to one side of the
balance sheet or eliminating some from the other side. Increasingly,
it is a matter of finding items that are of value to both the
employer and the employee. Robert Haas, CEO of Levi Strauss has
said, "We are at the center of a seamless web of mutual responsibility
and collaboration. . . a seamless partnership, with interrelationships
and mutual commitments."
An
example of how one company approached the new compact is Royal
Bank of Canada. RBC took a 93-person cross-section of their work
force off site for a weeklong conference to create the basis for
their changing employee-employer relationship. The group drafted
this outline of the new understanding to be presented to all employees:
"If you buy into the organization's values and goals, contribute
energy and ideas, grow and develop personally, and take care of
our customers -- then together we will create a good work environment,
provide all the challenge you can handle, help you develop new
skills and broaden your experience, and offer support and guidance
for career and professional growth. And, you'll be a part of a
company setting the pace in its industry; you will enjoy working
here, manage the pressure, and see how the pieces fit together."
PARTNERSHIPS FOR AN EMERGING WORKPLACE
Royal Bank Group provides
Training, learning, development opportunities
Rewards, recognition, pay for your contribution
Challenging job and growth opportunities
Technology support
Support for employability, marketability
Support for personal and family needs
Professional HR support
Employee
provides
Commitment to work, teamwork, and customer
Work skills in keeping with changing jobs
Contribution focused on business objectives
Personal ownership of development and growth
Flexibility
Effective people management
Attitude
In
our post-industrial world it is not capital assets that will determine
the success of an organization, but rather the intensity of motivation
of its employees to continually change and improve to meet or
set the next standard. Employees who are emotionally involved
with the organization are far more productive than those who have
emotionally withdrawn. Companies need loyal employees who are
enlightened and willing to participate in a vital, competitive
business environment.
Employees
need loyal employers. In an environment of mutual commitment,
employees gain honest communication from management, challenging
and empowering work responsibilities, recognition and appreciation
for their efforts, personal/professional development opportunities,
and equitable treatment. In addition to these tangible benefits,
employees want to commit to companies because doing so satisfies
a powerful, and basic, human need to connect with and contribute
to something significant.
Carol Kinsey Goman, Ph.D. is an international speaker, consultant
and author of nine books, including "This Isn't the Company
I Joined" (New edition due January 2004) and GHOST STORY:
A Modern Business Fable. She presents keynote speeches and seminars
at business meetings and conferences. To book Carol for your next
event, or for permission to reprint this article, contact her
by email: cgoman@ckg.com, phone: 510-526-1727, or through her
web site: www.CKG.com.