Brampton - A few weeks ago, in the Toronto Star, there was an article titled "How We Live – 'Loyalty' a Moving target". The facts were compiled by Peggy Mackenzie based on information from Ipsos Reid. And the facts tell quite the story about employee loyalty.
Fifty-two percent of Canadians have a strong sense of loyalty to the employer, but yet 72% would desert their employers if offered a comparable job with more pay.
Since I'm always talking about employee rewards and recognition, this comes as no surprise. I've seen figures from another survey that indicate that the most important recognition an employee wants is to know he's valued, but surely dollars have to count a close second. High salaries, competitive salaries, are the most obvious way an employee can gauge his importance to his company.
We have a very volatile workforce in Canada. The number of companies an average Canadian has worked for is 5 and the percentage of Canadian employees who have worked for their current employer for five year or less is a whopping 53%. A scanty 13% have worked for the same company for 20 or more years.
The days of an employee being a 'lifer', a person who stays in one job for most or all of his life, are over. That used to be the norm and it used to indicate a stable employee. Now it suits a person applying for a new position to have a multi-faceted employment history. Exposure to a number of jobs, even in varying industries, indicates a flexibility and wisdom of a perspective employee.
But the fact remains that it costs a company big bucks every time an employee leaves and every time they need to hire and train a new employee. And so it's in every employer's interest to retain loyal employees.
Then why isn't this happening? What are employers doing to warrant such a volatile workforce? Where's the employee loyalty gone?
First, I believe the volatility happens in a primarily younger segment, where employees are intent on building up their resume and finding the right fit in a job that may continue to attract them for a much longer period. Secondly, I continue to say that so few companies work on a system of employee value and teamwork. Many talk the talk, but it seems that few actually walk the walk.
Each year The Financial Post, Deloitte, CIBC Commercial Banking and Queen's School of Business select Canada's 50 Best Managed Companies. This year, one of the winners was Weston Forest Group from Mississauga. This company, according to an article in the Mississauga Business Times, has grown from a family-run lumberyard founded over 50 years ago, into a multifaceted organization, supplying the world with a wide array of forest and wood products. President Rick Ekstein offers this insight: "Our business is built on the value-added partnerships we form with our customers and the support we give our staff to grow, it's truly a team effort. We couldn't have won without the loyalty of our customers, suppliers and employees."
Best managed, least volatile, most loyal – doesn't it all depend on the way you value your employees?
Like all great customer service, it's that simple.
© Marcia Barhydt 2008