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Is Employee Loyalty Important to Your Business Strategy?

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Employee Loyalty
The late baby-boomers experience 11 jobs throughout their entire career, whereas people in their twenties have been changing jobs every 2 years on average (Psychology Today). They’re on pace to be only one job shy of the boomer’s grand total after just one decade.Maybe they’re young and misguided, and they’ll find their way.Or maybe it’s because, given the way business is done, it is the smart thing to do?

  • With the Internet and social networking like LinkedIn and Facebook, it’s much easier to find interest from new employers. And not only is it easier, changing jobs is…
  • Fiscally responsible. Keeping a job usually results in a 3-4.5% raise, barely staying ahead of the inflation rate (2.1%) (Forbes)
  • Meanwhile, changing jobs usually results in a pay rise of 10-20% (Forbes)
  • Plus, in the long term, those who leave their jobs more often, make 50 percent more than those who stay (Forbes)

According to Cameron Keng at Forbes, it’s not whether you are going change jobs in the near future, but when you will. So, fix a job change into your five year plan.

The present attitude is pretty bleak as far as employee loyalty goes. Keng does qualify the importance of money with emotional factors, but still ends on this note: “As an individual, you’re a CEO of one, and you have a duty to maximize your profits” (Forbes).

Is this really the state of employee loyalty nowadays? A profit duty—to who? That’s just replacing one empty allegiance with another empty allegiance.

At the same time, can you blame an employee when enticed by statistics that offer 50% more money?

And why aren’t businesses doing more to keep their employees? Especially given these facts:

  • It is cheaper to hire the right employee and retain her or him with higher pay, than it is continually lose employees and have to recruit and train replacements (Forbes)
  • Loyal employees connect personally with loyal customers over a long period of time (Incentive Mag)
  • Experienced employees know the ins and outs of the existing customer and the typical customer persona
  • Employee loyalty begets quality service, in turn begets customer loyalty. Check out Schlesinger and Heskett’s “Virtuous Circle

How does employee experience affect customer experience in the IT Service Desk world? Download Carolyn Blunt’s e-book, Why IT Service Desks should say ‘Yes’

The old fashioned parental-like relationship between companies and their employees no longer exists. Maybe that’s because there are more available higher-paying options for employees, creating a more even ground.

But loyalty can still be found. Employers who acknowledge the equality are better at retaining employees. These companies are willing to meet employees’ desires, like allowing flexible hours, communicating with more transparency, and removing the stress-inflicting production quantifiers (B Plans).

Basically, employees are no longer loyal to a company just because. No more empty allegiances.

Employees are loyal to ideas, projects, teams and people who excite them. As Bill Taylor notes in his book, Mavericks at Work, “People do their best work when they identify themselves as part of a team or project” (Psychology Today). Just as employees add value to the company, the company should add value to the employees’ life.

But that was 2006. That value is outdated, right? According to Keng, you’re a CEO of one, with profit on your mind. It must be an old idea from the good old days.

Actually, no. The trend is turning back to giving higher priority to employee experience. Now Millennials entering the workforce are returning to the concept of loyalty in a new way. They are interested in committing to a strong corporate culture that gives them something to be excited about (Psychology Today)