Don’t put workplace loyalty in the history books (yet)
The notion of having the same job for life and a high sense of loyalty towards employers is a quaint concept that is long gone, according to workplace experts.
In an article published in the Financial Times, workplace specialist Lynda Gratton wrote that loyalty, a virtue prized in personal relationships, has disappeared altogether in the workforce due to the globalised high speed economy.
The result, she said, is "shortening contracts, outsourcing, automation and multiple careers".
Wendy Phaneuf, managing director of consultancy firm The Training Source, told The Globe and Mail that what bosses perceive as employee loyalty is often really nothing more than services rendered in exchange for their paycheck and some job perks.
"In the past, you worked for a company for life, and you'd do anything for the company, including sacrificing your family life," Phaneuf said. "True loyalty means going the extra mile when it's needed, and many employees today are unwilling to do so unless they're compensated for their extra effort."
Further, workforce consultant Tammy Erickson said in her Harvard Business Review blog that the concept of loyalty has been replaced with trust, and this is actually a more complex value to manage.
Speaking to the New York Times, Erickson pointed to an equation that she believes will shape the relationships between corporations and workers in the decades ahead.
In an interview with Human Capital, David Helvadjian from Australian workplace consultancy firm Gallup, said: "If you really want loyalty and trust to prosper, engagement is the key."
For companies looking to reignite loyalty, he said it is paramount that employers clearly communicate the mission and purpose of their company, as well as clearly communicate employee's roles so there is no confusion whatsoever.
"When we look at different businesses, if engagement is high, turnover is low. If people are engaged, they will feel valued and a part of something they can remain loyal to, and they can therefore learn and grow. If employees feel that management doesn't listen to them, they will go elsewhere to have those needs met," Helvadjian said.
"The organisation will provide interesting and challenging work. The individual will invest discretionary effort in the task and produce relevant results. When one or both sides of this equation are no longer possible (for whatever reasons) the relationship will end," Erickson said.
She added that "if the organisation no longer has interesting or challenging work for the individual to do, or if the individual is no longer willing or able to engage in the work - to invest the levels of discretionary effort required for excellent results - it is in everyone's best interest to part ways."
The concept that companies need to actively foster trust is a position backed by Australian workplace consults.
By talking to employees about what they do well, turnover will be reduced, Hevadjian assures. "We did a study of 65,000 employers, and those who provided feedback had 15% greater retention. By sitting down and talking about their strengths, [employees] will feel valued, and like they're in an environment where they feel they're being told what they're doing well instead of focusing on their weaknesses."
Gallup consultancy works from a list of top tips which they say is the key to increasing loyalty and decreasing turnover:
- At least bi-annually ensure someone at work has talked to your employees about their individual progress.
- Ensure employees know what is expected of them at work.
- Ensure employees have the materials and equipment to perform their job description.
- Encourage employee development.
- Genuinely care about employee's opinions and make them count when they are given.
- Make sure your company's mission or purpose is clearly communicated while making employees feel their job is important.
- Create an environment where the workforce iscommitted to quality work.