loyalty-blog-imageLooking around at today’s organisation and it would seem as though employee loyalty to their organisation and organisations’ loyalty to their employees is dead. For many of today’s workforce, the greener grass at the other company or new position is too tempting to pass up. In fact, a recent study by LinkedIn showed that Millennials, those who reach adulthood in the 20th century, will work for nearly twice as many companies in the first five years of their career than their parents did. What’s more, today the average person will have twelve to fifteen jobs in their lifetime. Is this the nail in the coffin for loyalty?

A look at history

In the not-so-distant past, loyalty in the workplace meant remaining at the same company throughout a person’s career. During much of the 20th century, employees would work their entire career for one or two employers and in return, the organisation would give their employees the unspoken promise of lifetime employment and a pension retirement. With the popularity of unionisation throughout the 1960’s and 1970’s, collective bargaining agreements and the promise of steady raises and consistent employment held employees to their companies during uncertain economic times where double digit inflation was the norm. However, as the grip of unions began to loosen in the 1990’s in favor of human resource departments and individual performance reviews, employee loyalty began to loosen as well. With the advent of the internet and the expansion of a global economy, suddenly labor costs could be cut dramatically by hiring a less expensive workforce in another country and a company’s loyalty to their workers at home was cast aside in favor of global expansion and rising profits.

Redefining Loyalty

While it is tempting to assume that in today’s economy, it is impossible for organisations to show loyalty to their employees, it perhaps is more important to redefine what loyalty looks like in the 21st century. Where our parents and grandparents showed loyalty to their company by doing their job tirelessly for 30 or 40 years, today’s worker is more likely to look for ways to use their individual talents on behalf of the organisation. Whether they are looking for innovative ways to solve a problem, creating effective work teams or helping employees reach their own career potential, today’s workers are driven by a need to see how their work relates to the organisational objectives as a whole. Managers who use performance reviews to discuss how an individual’s goals relate to the overall organisational mission will be rewarded with loyalty to that objective. Such loyalty is arguably more productive in today’s fast-paced business environment and contributes to a strong workplace culture.

Loyalty can also be defined as compensating employees fairly for the work they are completing. Too many companies rely on their organisational mission for their compensation strategy, arguing that contributing to their purpose should be enough to combat unfair wages. In reality, organisations who compensate their employees fairly and who have clearly defined objectives for bonuses and raises are more likely to retain their employees.

While it is nice to talk about organisation-wide strategies for both garnering and showing loyalty, applying these principles on a team level may be even more important. While more than 30% of Fortune 500 chief executives have lasted less than three years over the course of the last two decades, research from the Gallup organisation shows that employee engagement, a common indicator of productivity, has declined across industries over the last decade. Since top-down initiatives cannot function if senior leadership is in constant fluctuation, the lot falls to mid-level managers to foster team loyalty:

  1. Identify and reiterate the team’s purpose. Align the team’s short and long-term goals with organisational strategy that will help team members see how their success contributes to the business as a whole.
  2. Encourage open discussion without blame or shame. Creating an environment where ideas, opinions, successes and failures can be shared without fear of negative repercussions fosters a sense of loyalty amongst a team’s members.
  3. Ask more questions than you answer. Casting a wide net throughout the team for feedback and input allows everyone to express their feelings and work toward a consensus.
  4. Openly praise success. Both individual and team-based success should be frequently praised in public when objectives are achieved.

While it is unlikely a person will end their career with the same company they began it with, loyalty to a team or organisation is not dead. Instead, it has a new face that is reflective of a fast-paced, changing economy.

To your mental health,

– Pedro Diaz

Author: Pedro Diaz
Pedro-Diaz-authorPedro Diaz is the CEO of Workplace Mental Health Institute. He’s an author and accredited mental health social worker with senior management experience. Having recovered from his own experience of bipolar depression, Pedro is passionate about assisting organisations to address workplace mental health issues in a compassionate yet results-focussed way. He’s also a Dad, Husband, Trekkie and Thinker.

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