Recently, the U.S.-based Walker Information conducted a loyalty survey among thousands of employees. It was found that 70% of those surveyed were satisfied with their current company. However, only 30% were loyal to it. The corresponding figure for 2001 was 6%. From a certain perspective, this change is obvious and encouraging. On the other hand, another aspect of the survey results is worrying: as high as 34% of those surveyed belong to the "high-risk" employees for their employers — meaning these people are physically present but mentally absent. Additionally, 31% of them stay at their current company due to situational constraints. Thus, at least two-thirds of employees pose risks to their companies.
This survey helps us understand why American corporate employees frequently switch jobs between different companies. From another angle, the survey results inform employers about measures they can take to improve employee loyalty — many of which cost little while creating opportunities for profit growth.
In general, improving employee satisfaction alone is not enough to enhance their loyalty.
They are satisfied but not loyal
The latest survey by Walker Information found that although American employees' loyalty has improved compared to the past, many still treat their work perfunctorily and cannot fully commit themselves. This indicates that employers are wasting significant resources on human capital without any tangible benefit, directly affecting the stability of their companies.
The 70% satisfaction rate among those surveyed is based on substantial investment in human resources by companies and also relates to the shortage of job positions in the U.S.
Additionally, many "satisfied" employees express loyalty only verbally. 80% of those surveyed believe they aspire to a higher-level job than their current one. Today they may work diligently for the company, but tomorrow they might suddenly jump to a better-paying or more beneficial company — even if these benefits are not immediately realizable.
Truly loyal employees genuinely love their work. They don't just fulfill their duties; they go above and beyond for the company's benefit. The survey showed that 96% of the loyal respondents claimed they would willingly undertake tasks outside their job descriptions for the company’s good. In contrast, 65% of the "high-risk" employees who have no choice but to stay claim they only do the bare minimum required by their job descriptions. Loyal employees are devoted to the company. They admire the company they work for and believe their employer plans for their long-term growth and welfare. These employees even strictly adhere to the company's ethical standards.
Walker Information's employee loyalty questionnaire revealed that 86% of loyal employees would not consider changing jobs within two years, whereas only 48% of the "high-risk" employees would stay that long.
Long tenure does not equate to loyalty
Many people stay at a company for years not because they are loyal, but due to situational factors preventing them from leaving. Those who reluctantly stay and pass the days harm the overall environment of the company, affect others' efficiency, and spread negative opinions about the company. However, such employees do help avoid high recruitment costs.
Generally, long tenure and position lead to employee burnout. The survey showed that many employees who have worked at a company for 10 or even 20 years are simply marking time. Among those who have worked at a company for less than two years, only 25% considered themselves as merely passing the days. Some do not want to leave because the company offers generous benefits and treatment, so despite being tired of their current job, they choose to stay. Others nearing retirement age do not wish to lose nearly secured retirement benefits by switching jobs.
Some lack necessary skills and abilities in the labor market, making it hard to find other jobs, or there are few similar job openings available, so they have to stay at their current company勉强.
Through the employee loyalty survey, researchers found that two-thirds of employees pose risks to their companies — they are always ready to quit for various reasons, and once they decide, no one can stop them. Reasons for quitting could include strained relationships with employers, family and personal issues, or being part of a sought-after workforce.
Once employers realize how many employees are disengaged, they will take steps to increase employee loyalty. After all, losing the trust of employees causes incalculable losses. A recent survey by Hay, a renowned consulting firm, showed that rehiring an experienced employee costs approximately 18 times their average monthly salary, and recruiting new employees can be even more expensive.
How to cultivate loyal employees
The employee loyalty survey report found that several key factors contribute to cultivating employee loyalty, including catering to employees' interests, providing growth opportunities, and the quality of their positions, while compensation has almost no relation to employee loyalty.
The employee loyalty survey indicated that 48% of employees believed their company actively considered their interests to some extent, while 30% of respondents thought the company would not consider their interests unless they fought for them. Only 45% of respondents said their company considered their career growth — offering continuous education, technical training, and helping them advance professionally.