The Decline Of Employee Loyalty
The News Journal featured a rather unusual article yesterday about the decline of worker morale and loyalty with the new corporate culture of cut, cut, cut.
The fallout from the strained employee-employer relationship can be seen in several key ways.
» Workers are networking aggressively, not for fun but because they fear they could lose their jobs.
» Workers are taking fewer professional risks in the workplace, and that lack of innovation may hurt both workers’ career prospects and companies’ bottom line.
» Workers are increasingly ready to jump ship to new jobs. Positions are scarce now, but when the economy heals, companies may risk an exodus of talent. In one 2011 study, more than one in three workers hoped to be employed by a different company in the next 12 months, and fewer than half felt a strong sense of loyalty to their employer.
Americans tend to see themselves through rose-colored glasses. We see ourselves as the land of opportunity where an immigrant can rise up through hard work to become a millionaire. Recent studies have shown this is no longer true for America, and economic opportunity is worse than for most other developed countries.
I have never lived through a time when most people stayed at one company for their entire career. People move jobs more often and our benefits have been cut significantly. How many people do you know who are going to get an actual pension when they retire (if they can even afford to retire)?
The question I have is how long this situation will continue. Will there be a new worker’s rights movement?
Workers are now loyal to their professions, not necessarily to the company they happen to be working for.
Workers are simply responding rationally (if a bit late) to their employers’ lack of loyalty to them. It is employers who sought to convert workers from long-term assets to short-term commodities, and they were very successful at it.
I guess Reagan breaking PATCO is as good a milestone as any to mark the beginning. Then later in the 1980s, corporate raiders saw pension funds as weaknesses and targets. And in the 1990s, companies began converting their traditional pensions to 401(k)’s. I actually worked for a management company that helped companies make those conversions.
We are all temps now.
This has been in the works for a very long time. If you ever worked for a public company, you’ve seen how they can manage their quarterly numbers by laying off people.
A number of years ago I had lunch with the founder and CEO of a company that I had been laid off from. He was lamenting to me the lack of loyalty from workers — he was upset that workers were always looking out for a better deal. I pointed out to him that he is getting back the loyalty that he extended to employees. Everyone at his company understood that no matter your contribution or productivity, that was never as important as good numbers for shareholders. I pointed out that it was *him* who was imparting the crucial lessons on loyalty and he should not be surprised at the current state of affairs.
He was stunned at this, of course, and I think I derailed the real conversation he wanted to have with me, which was about returning to the fold. But the lack of loyalty didn’t exactly start with employees. If the rule is every man for himself, you should not be surprised when workers make decisions based on their own self-interests.
“We see ourselves as the land of opportunity where an immigrant can rise up through hard work to become a millionaire.”
I still believe this can be true. Unfortunately, the term “immigrant” has a different connotation.
“I have never lived through a time when most people stayed at one company for their entire career.”
I have, and I did stay at one employer, in a variety of positions, for most of my career. My uncle worked at DuPont-Seaford for over 37 years. Back then they treated their employees as family, sponsoring clubs and activities to encourage friendships and teamwork. That’s rare in the workplace these days. It works both ways. During my career, I trained and certified hundreds of employees, only to have many of them later jump to another employer with fewer benefits, for a 15-25 cent per hour pay increase.
Dupont-Seaford was a company people would stay at for 37 years, and try to get their kids in. But the gravy train finally ran out with the move of lycra production to Asia. They’re lucky they had it as good as they did for as long as they did. I’ve been in business for 26 years as a sole proprietor, and I can say this: IT KEEPS GETTING HARDER. It has never been easier from one year to the next. Employees, for the most part, do not understand this. They punch out at 5pm and don’t think about it until it’s time to punch in the next day, which is their right I suppose. But when the boss has to continually figure how much harder he’s going to have to work for how much less, it gets passed down the chain sooner or later. Anyway, “it’s all rent”, as I have always said.
They punch out at 5pm and don’t think about it until it’s time to punch in the next day
And you wouldn’t have it any other way. Do you really want them to stay on the clock for overtime? Do you really want them thinking about how to advise you on your management of the business? Are you prepare to share enough information with them so they actually could “think about it?”
Probably not. That’s why you have employees instead of partners.
It obviously doesn’t keep “getting harder” for every business. But it always keeps getting harder for employees.
It keeps getting harder for almost all of the businesses. And when you have the market cornered in some way, it doesn’t stay that way. It changes, and you have to change with it or you get left behind. That’s what a lot of employees don’t understand. These changes are usually “harder” for all of us. “Who moved my cheese?” might be a good read for you, puck.
I never understood why small business owners line up behind the Chamber of Commerce and the “pro business” platform. The political interests of small business owners are closer to that of workers than of a Fortune 500 CEO. Hell, most business regulations exempt small business anyway.
Let’s not underestimate how much employer health plans are locking workers into their jobs and contributing to the demoralization. Single-payer health care would put employment much closer to a free market than we have now.
I will have a pension when I retire (and hopefully my agency will be offering early retirement with a buyout). But with the current crop of people being recruited to serve as managers in the Federal government without any leadership of people skills, you’re going to see many people either leaving or taking retirement. And I’m not sure how much longer we’re going to take the continued bashing we’re being given on a daily basis by the House Rethuglican caucus.
Be thankful you have an “employer health plan”, and a fuckin’ job as far as that goes. I’ve been a “single-payer health care” customer my whole career. That “single-payer” has been ME. No pension for me. No buyout.
Well, Delbert, it seems you long to have a real job, instead of being a sole proprietor. Why not look for one?
See this is part of the *loyalty* problem. Admonishing people to be thankful for what they have doesn’t exactly compute with providing value to an employer. There is no doubt that there are employers out there who are operating at pretty thin margins, but there is also no doubt that there are LOTS of employers out there who are quite delighted to value themselves a hell of alot more than the people who are helping to create the value they are extracting from their companies.
More than corporate tax rates, single-payer health care would make American companies ALOT more competitive in the global marketplace. It isn’t a surprise that the automakers supported it…..
Remember, Cass, Delbert doesn’t have any employees. See if you can figure out why.
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Delbert has employees, Geezer. And “it’s all rent”, mutually. But looking back on it, I might have been better off with a “real job”. To the young ones I say: “Do a double major in Criminal Justice and Human Resources, then go Federal”. No budget cuts on that avenue.
Jumping ship is the only way to increase your salary to what the new guy next to you get’s hired at. If you are in a job or company for more than 5 or 7 years chances are the guy they just hired with the MBA to work alongside of you is getting paid more by several percentage points.
Nowadays an employer gives you an employee, calls you a manager, gives you a 5% raise and says congrats.
However, companies don’t care. They aren’t going to be paying pensions to these people b/c they aren’t there long enough to be paid the tens of thousands a year a guy would have been paid had he been there for 40 years.
If companies cared about morale it’d be different of course. But they don’t.
which is why I’m currently interviewing for three different positions with 2 different corporate behemoths all after being in my current position for 2 years. I have more skills then I did in 2009 and plan on increasing my salary 10% (with any luck of course)
I’m a commodity and i plan on being paid properly for my services. I’m fine with never earning a huge pension. I just pray I get Social Security and have saved up enough in my ROTH to become a TEA partier some day
“I’m a commodity and i plan on being paid properly for my services.”
That is well put.
Damn well put, donviti. Like I have always said, “It’s all rent”. Nothing wrong with moving around to get the going rate if and when you have to. Employment contracts are good too. Stops the “pile on” phenomenon when the boss sees you can handle more.
Fair enough for employees, but companies that take the “it’s all rent” approach under perform companies that don’t.
But then, if you cared about results, you couldn’t be a Republican.
Wingnut ideology über alles. Amiright?
Well if you are big enough, under-performing is a temporary set back that can be overcome
I don’t think “it’s all rent” has anything to do with politics. It might be construed as anti-union. Employer vs Employee is not Conservative vs Liberal as far as I can see. Nor would it be vice versa.
Provided that you catch it in time — c.f. GM or Chrysler or Wilmington Trust for that matter.
Get what you can when you can from who you can.
FUCK loyalty to companies that shit on their LOYAL employees.
Maybe a start-up company with a SMALL number of employees working side by side with the owner to make it go would be an instance where LOYALTY would work.
Otherwise, in this day and age companies, generally, couldn’t care less about their workers plight in this economy.
Farewell and GO FUCK YOURSELF seems to be the norm anymore.
It is world view. Im my vast experience, results take a second place to ideology for nut brained Republicans like you. Don’t bother denying it. I am done here.
*This is the sound of a gavel*
Case closed.
Assuming you are smart about the skillset you are mastering it doesn’t matter where you work in the banking world. There are specific skill sets, specifically Statistical Modelling software that if you are good enough with it, you can make 6 figures no matter where you go and will be sought after by headhunters across the united states.
Most people I know in the risk analysis business wait it out at a company. Get a seperation package, start looking while they are getting severance and if they are motivated enough, double dip.
Even with the economy moving sideways, the local banks are hiring. Which indicates that slowly, slowly the economy is getting healthier and more risk is being tolerated by the banks.
shorter skippertree
Get what you can when you can from who you can.
FUCK loyalty to companies that shit on their LOYAL employees.
Maybe a start-up company with a SMALL number of employees working side by side with the owner to make it go would be an instance where LOYALTY would work.
Otherwise, in this day and age companies, generally, couldn’t care less about their workers plight in this economy.
Farewell and GO FUCK YOURSELF seems to be the norm anymore.
every man, woman & child for himself.
Now picture George Costanza shoving an old lady out the way so he could escape the apartment that was on fire.
http://www.youtube.com/watch?v=GuP9YClyPRY
a company does not exist to serve it’s employees. That is why they must be compelled by law to treat all of them fairly. If you want your company to be loyal to you, bring something to the table. The second someone in your place of business says “X cant be done without _______” you have earned the company’s loyalty. If you take on responsibilities and do your job such that certain tasks and such “can only be done by you” you have won. That is so important esspecially now with so many people competing for so few jobs.
does every employee deserve some degree of job security/retirement? OF COURSE. yes they do. Is the reality of the world that you always have to be competing for your job…. even if you have been there for a long time? yes. That is the reality.
Yea donviti, and George would have been the first to don a dress on the Titanic, that worm.
My personal view is that there should be laws that make it more difficult (not impossible) to fire an employee. The nation and states have a social and economic interest in the stability of the workplace for employees. Delaware’s “at will” hiring/firing standard is harmful and scandalous. Such standards are virtually unheard of in the European industrialized nations where citizens enjoy a better standard of living than citizens in the USA.
I just developed a schoolboy crush on Dana Garret, woman or man.
“I just developed a schoolboy crush on Dana Garret, woman or man.”
You’re in luck. Dana is mostly a woman.
I think his mother was a woman.
I used to feel the same as Dana about making it harder to fire employees.
But the other half of at-will is that you can quit whenever you want. I now realize I have benefited more from at-will than I have been harmed. When the labor market is on the way up, you can hop-skip your way to higher pay and a more valuable skill set, as donviti points out (I did the same thing in the 1990s, and I guess I’m still doing it).
I like the idea of having due process for termination, but the right way to go about it is to have a contract.
I think some minor but helpful changes should be made to at-will employment, like maybe lengthening the benefits coverage, or requiring some amount of severance in lieu of notice. The WARN Act was a good start.
Puck, most Americans can’t simply quit a job anytime they wish even during the best economic times. Wages for most new jobs are generally low and employer-provided healthcare is increasingly becoming uncommon or inadequate. There is generally too much risk in changing jobs. Besides, the level of indebtedness by American households make changing employers too risky. At-will mostly benefits employers.
I’ve been at the same job, with a small business, for twenty years. The owner and I are both very loyal to each other and the business. I think it is the real benefit of working for a small business and a fair trade off for the corporate pension. I have never entertained the idea of leaving this job.
I was the most loyal employee ever until last month. I had nothing I considered a day off, worked 24-7 during peak season, sold the product year ’round. Last month my bosses fired my best employee, without even talking to me, or to him. I have no idea why, and am told it’s a personnel matter… yeah, like covering 3 jobs when the boss had a family emergency, for no extra pay, wasn’t a ‘personnel matter.’ I’ve been waiting over a week for the ‘formal’ notification, which is one of those ‘check’s in the mail’ things while I continue to work.
Oh, pardon. My guy wasn’t ‘fired’ because he’s an ‘independent contractor.’ *rolleyes*
I’ve never asked any special favors except the opportunity to do my job, which I’m damn good at. Now what I want is an explanation of why they just made my job so damn difficult and I’m being treated like I’m coming up the walk with an armload of “WatchTowers”.
No drugs, no sex, no violence, bondable. People are morons.
Dana at 8:04 hits the nail on the head.
If you leave your current employer – even if you have a new job lined up – chances are pretty good you won’t have health insurance for three months. So unless you’re a healthy 20something with no dependents, you simply CAN’T change.