Is employee loyalty on the decline?

Is employee loyalty on the decline?

In days gone by, it was commonplace for people to spend 10 or more years with an employer to show their loyalty and build up strong relationships and experience within a company. These days, however, it's becoming increasingly common for people to jump from job to job much more regularly. This could be because the new generation of workers – Millennials – may feel less pressure to stick with a job they are unhappy with, or it may point to a shift away from employee loyalty. Whichever is the case, an increased focus on employee engagement can go a long way to reversing this trend.

If you suspect worker loyalty at your organisation could do with improvement, you're not alone. According to Metlink's recently-released 10th Annual Survey of Employee Benefit Trends, employee loyalty is at a seven-year low. In fact, if the survey is indicative of your workplace, one in three of your employees is planning to leave his or her job by the end of the year.

Employee disconnect from work can be triggered by many factors. Some may still be feeling the effects of the recession, which forced many companies to make cuts to their staffing, while others may be disillusioned with the reduction of training, promotion and employee rewards that has occurred as many organisations tighten their belts. As the younger generations enter the workforce, they have a new set of expectations on what they want out of their career, and with this comes to desire to move on when their roles do not meet these expectations.

A 2013 study by PayScale, Inc found company location and history had a significant impact on median employee tenure, with those in non-major cities and with a long-standing history retaining staff for longer. While you cannot always change these elements of your own business, you can provide incentives and rewards for tenure and engagement.