High-risk employees outnumber those who are truly loyal, according to Walker Information’s most recent national study (US) of employee loyalty. Although the percentage of truly loyal employees – 34 percent – is unchanged from two years ago, the percentage of employees categorised as high risk now exceeds those who are loyal, creating a widening gap for employers struggling to improve retention.
“Employers are faced with a situation where the number of employees causing a negative drain on the organisation outweighs those who are working to positively support it,†said Chris Woolard, senior consultant for Walker Information. “With more than a third of employees classified as high risk, the results of our study signal concern as to how the negative attitudes often characteristic of this group will affect organisations – and their ability to compete successfully – down the road.â€
This year’s study results indicate loyalty has significant impact on how employees behave and perform on the job day-to-day. For example, 81 percent of employees deemed loyal (those in the truly loyal and accessible categories) are likely to execute the company’s strategy in their daily work, while just 38 percent of those who are not loyal (high-risk and trapped categories) say they will do the same.
Similarly, 92 percent of loyal employees indicate they work to make the company successful, compared to just 49 percent of disloyal employees. When it comes to helping colleagues with heavy workloads, 89 percent of loyal employees say they are willing to provide assistance, while just sixty percent of their counterparts will agree to pitch in when needed.
According to the study, employee loyalty during the first ten years on the job generally increases as employee tenure rises. Employees with a company for less than one year were the least loyal at just 26 percent, while loyalty was highest (45 percent) for those with six to nine years on the job. After a decade on the job, however, loyalty diminishes. Only 36 percent of workers with between 10-19 years of tenure are categorised as truly loyal with the percentage dropping to a mere thirty percent for employees with twenty or more years under their belts. Interestingly, the most-tenured category (twenty years or more) register the highest percentage of trapped employees with 36 percent.
The study also reveals workers in their twenties – commonly referred to as Generation Y – are more dichotomous when it comes to loyalty. Seventy-eight percent are classified as either truly loyal or high risk. As the generation closest to retirement, Baby Boomers ranked lower in loyalty – with just 32 percent truly loyal – and followed Generation Y in the number of high-risk employees with 37 percent.
“With the lowest number of trapped employees and the highest percentage of those deemed high risk, the implication is Generation Y workers are confident better opportunities exist,†Woolard said. “One possible explanation for this dichotomy is their view that the imminent exit of the Baby Boomers will spell better positions for them, ultimately making employee loyalty less relevant.â€
The news, however, isn’t all bad for employers, who made some strides in the experience areas most predominantly tied to loyalty. Fifty-eight percent of those surveyed said their employers show care and concern for them. Within this category, 55 percent agreed their employers were working to develop employees for the long term. In all, the top experience-based drivers of loyalty in ranking order are fairness at work, care and concern, trust in employees – emerging for the first time as a loyalty driver – feelings of accomplishment, and satisfaction day-to-day.
