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The Pongo Blog

Why Employees Aren't Loyal Anymore

March 05, 2008 (10:00AM) by Rick Saia, CPRW

Here’s an item that, after I read it, didn’t surprise me at all:  The main reason employees cite for wanting to leave their companies is a lack of career opportunities.

This comes from a study conducted across four continents by BlessingWhite, Inc., a business management and leadership consultancy. BlessingWhite asked workers for the most important factor that pushes them to think about changing jobs. The top three answers offered by more than 3,300 North American workers were:

  • My career – I don’t have the opportunities to grow or advance here. (29%)
  • My desire for change – I want to try something new. (14%)
  • My work – I don’t like what I do or it doesn’t make the most of my talents. (14%)

What these numbers tell us – rather loudly given that this amounts to 57% of the survey base – is that many workplaces don’t place a high enough priority on helping their employees grow their careers and find workplace happiness.

Some employers may believe that’s not their role, but a constant inflow and outflow of talent is a drag on productivity. So, if the warning bell has not been rung already in these businesses, then they may suffer from at least one of these two problems: arrogance and ignorance.

Why? Because, unlike in the business climates from post-World War II up to the 1980s, when people were more likely to stay with an employer for many years, today’s workers are more self-aware and more confident, especially Generation Y (aka: the Millennials or the 20-somethings). If they think they can get a better deal elsewhere, they’ll bolt. If they believe they’re being mistreated, they’ll bolt even faster.

Not convinced? Try this nugget from another study, conducted by Kenexa Research Institute: Only 25% of workers in a global survey believe their organizations “provide strong guidance in goal setting, managerial feedback and career development,” although that percentage more than doubles (to 53%) for respondents from the U.S.

So, while businesses are behind the curve in helping employees with career goals, close to half of U.S. businesses are apparently doing something about it. At the least, that’s encouraging.

What about you? Does your employer (or a former employer) help you in your career development? Or is this something you tackle either alone or with the help of trusted peers or friends?

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Comments (6)

I'd offer a slightly different perspective on this. Management doesn't engage the employee in the job using the employee's strengths.

Without engagement in the work itself, including giving the person 40-hours of work to do, it doesn't matter much about career management.

In terms of straight career management, it is surprising to me how many companies have good practices in place -- and how few managers implement the practices.

If you don't engage in providing a semi-annual review for your employees -- and many companies have the practice, ignored by managers -- then it's tough to expect an employee to think that the company is concerned about their career.

Posted by: Scot Herrick | March 05, 2008 at 4:49 PM | Quote This Comment

Scot -- Thanks for your perspective. In my experience, it's more of a rarity for a company to have a semi-annual, or even annual, review process as part of its culture or management philosophy, and strictly adheres to it. I remember one previous employer that did, and my manager inspired me to do bigger and better things, for which I continue to be grateful.

A company can say that it cares about its employees' career development, but, as the saying goes, talk is cheap, and many companies would prefer to do things on the cheap. You must back up talk with action.

This, I believe, reinforces my point about a lack of employee loyalty. I also believe that employers that don't take a more active role in employee development run the risk of losing ground to competitors since the younger demographic groups (Gen X and the Millennials, or Gen Y) are more apt to move on rather than stay on to advance their careers.

- Rick

Posted by: Rick | March 06, 2008 at 9:00 AM | Quote This Comment

I used to work for a company that had all of these things in place to help their employees grow their career. Every six months there were reviews, complete with pages and pages of self evaluations, managerial evaluations, etc. There was so much involved that managers had to take two weeks off work right before the actual review just to get all the associated paperwork done.

Many employees and managers thought this was all too much and a waste of time. But the bottom line is, if you look at the average number of years each employee has been with the company, it shows that the system works. Each review ended with a development plan that was agreed on by the employee and their manager. Each plan had outlined, specific steps defined to meet the goals of the plan.

Sure, you can throw in all the company picnics, award programs, incentive bonuses and everything else. But when you see a headcount of over 700 people in a company and the average years per employee with the company is over 15, I'd say that's pretty impressive. I left there because of a relocation, and I have never seen another company like that in my career.

Posted by: Mel | March 18, 2008 at 9:06 AM | Quote This Comment

Nice observations Mel! Thanks very much for your comment.

You're right. Picnics, award programs, bonuses and the like are not the entire solution. A company that does what your former employer did is an example of where ALL employers should be headed if they believe their workforces are important to their success. Again, they need to "walk the walk."

Posted by: Rick | March 18, 2008 at 11:52 AM | Quote This Comment

I'd like to add that companies began NOT caring about employees >20 years ago. While they may say that they encourage career development, far too many covertly discourage it. One major electronicsTh chain tells their employees they will reimburse for management classes. But when the employee tries to get the time to do it, management actively frowns on the employee taking the time and them having to spend the money.

Too many companies will talk about wanting employee imput, but totally ignore it when it's given. They cut out the very people who understand how things work and upper management makes decisions without ever taking into account the very people who have to impliment them and make them work. Then they get PO'd because the employee morale is in the tank, when they have only themselves to blame.

Loyalty goes BOTH WAYS, not just one.

Posted by: JD | July 11, 2009 at 5:02 PM | Quote This Comment

Hi JD!

Yes, some employers use funny logic when they try to make money by trying to inspire their employees, yet wind up shooting themselves in the foot.

Best, ~ Rick

Posted by: Rick | July 13, 2009 at 2:49 PM | Quote This Comment

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