Fewer Than Half Of All Employees of U.S. Based Companies Now Consider Their Employer Worthy Of Their Loyalty Presented by: Karen Gauthier

Fewer Than Half Of All Fewer Than Half Of All Employees of U.S. Based Employees of U.S. Based Companies Now Consider Companies Now Consider Their Employer Worthy Of Their Employer Worthy Of Their LoyaltyTheir Loyalty

Presented by:Presented by:

Karen Karen GauthierGauthier

SituationSituation

Employee Loyalty: does it exist?Employee Loyalty: does it exist?

Loyalty Matters Because:Loyalty Matters Because:

Better overall company performanceBetter overall company performance Lower recruitment and training costsLower recruitment and training costs Higher levels of citizenshipHigher levels of citizenship Satisfied customersSatisfied customers

Research QuestionResearch Question

Can Company A, through its Can Company A, through its employment practices, encourage employment practices, encourage employee loyalty?employee loyalty?

Operational DefinitionOperational Definition

Employee loyalty is defined in terms of Employee loyalty is defined in terms of active behaviors that demonstrate pride active behaviors that demonstrate pride in, and support for the organization.in, and support for the organization.

Loyalty begins with the Loyalty begins with the integrityintegrity of senior managementof senior management

TrustTrust from employees from employees RespectRespect for employees for employees Honest and open Honest and open

communicationscommunications Mutual Mutual concern and caringconcern and caring ResponsibilityResponsibility to employees to employees AccountabilityAccountability of employees of employees GrowthGrowth opportunities given opportunities given

Eight Critical Elements of Eight Critical Elements of Management BehaviorManagement Behavior

Organizational LeadershipOrganizational Leadership

Loyalty centers on the integrity of Loyalty centers on the integrity of management behaviormanagement behavior

The chief executive has a strong The chief executive has a strong influence on the company cultureinfluence on the company culture

SurveySurvey

38 question survey 38 question survey Distributed to all employees on open Distributed to all employees on open

enrollment dayenrollment day Hats given to first 100 people Hats given to first 100 people

completing surveycompleting survey Immediate responseImmediate response Captured responses from 206 Captured responses from 206

employees, a 66% response rateemployees, a 66% response rate

Sample QuestionsSample Questions

1. I understand the company’s goals and objectives1. I understand the company’s goals and objectives � � Strongly Strongly � � AgreeAgree � � Neither agreeNeither agree � � Disagree Disagree � � StronglyStrongly

AgreeAgree nor disagree nor disagree disagree disagree

2. I trust the company leaders to act with fairness and integrity2. I trust the company leaders to act with fairness and integrity � � Strongly Strongly � � AgreeAgree � � Neither agreeNeither agree � � Disagree Disagree � � StronglyStrongly


3. The company values people over short term profits3. The company values people over short term profits � � Strongly Strongly � � AgreeAgree � � Neither agreeNeither agree � � Disagree Disagree � � StronglyStrongly


4. Management listens to employees’ concerns4. Management listens to employees’ concerns � � Strongly Strongly � � AgreeAgree � � Neither agreeNeither agree � � Disagree Disagree � � StronglyStrongly


Positive ResponsesPositive Responses

IntegrityIntegrity Customers can rely on Customers can rely on Company A to deliver Company A to deliver outstanding quality service outstanding quality service and value.and value.

75% 75% agreementagreement

Caring and Caring and ConcernConcern

My supervisor is willing to My supervisor is willing to hear honest feedback from hear honest feedback from me.me.


Negative ResponsesNegative Responses

Responsibility/Responsibility/

AccountabilityAccountabilityThe overall morale in the The overall morale in the company is high.company is high.


GrowthGrowth In understand where the In understand where the advancement opportunities advancement opportunities are that may be available to are that may be available to me.me.


Responsibility/Responsibility/

AccountabilityAccountabilityThe morale in my The morale in my department is high.department is high.


Employees Feel Accountable Employees Feel Accountable and Responsible for Company and Responsible for Company SuccessSuccess

I feel as though I am being held I feel as though I am being held accountable for results.accountable for results.

79% agreement79% agreement

Customers can rely on Company A to Customers can rely on Company A to deliver outstanding quality, service and deliver outstanding quality, service and value.value.


Accountability/ResponsibilityAccountability/Responsibility

Employees Feel Positive About Employees Feel Positive About Supervisor RelationshipSupervisor Relationship

Caring and ConcernCaring and Concern

My supervisor is willing to listen to hear My supervisor is willing to listen to hear honest feedback from me.honest feedback from me.


I believe I am being treated fairly by my I believe I am being treated fairly by my supervisor.supervisor.


I believe my supervisor is concerned with I believe my supervisor is concerned with my well being.my well being.


Employees Say Their Work Is Employees Say Their Work Is ChallengingChallenging

Growth OpportunitiesGrowth Opportunities

I have opportunity to learn new things.I have opportunity to learn new things. 73% agreement73% agreement

I am challenged in my day-to-day work.I am challenged in my day-to-day work. 69% agreement69% agreement

I feel as though I get the training I need to I feel as though I get the training I need to perform my job well.perform my job well.


Employees Say Employees Say Communication is LackingCommunication is Lacking

Open and Honest CommunicationsOpen and Honest Communications

Company A does a good job of keeping Company A does a good job of keeping me informed about matters affecting me informed about matters affecting the company.the company.


Management listens to employee’s Management listens to employee’s concerns.concerns.


Management addresses employee's Management addresses employee's concerns.concerns.


Employees Feel There is a Employees Feel There is a Lack of Integrity and TrustLack of Integrity and Trust

Integrity and TrustIntegrity and Trust

I trust the company leaders to behave I trust the company leaders to behave with fairness and integrity.with fairness and integrity.


Formal policies are enforced Formal policies are enforced consistently.consistently.


Overall there is a high level of Overall there is a high level of cooperation between business units and cooperation between business units and departments.departments.


The overall morale in the company is The overall morale in the company is high.high.


Comparison to National NormsComparison to National Norms

National Survey by WorkUSA2002National Survey by WorkUSA2002 Only 39% of employees at U.S. Only 39% of employees at U.S.

companies trust the senior leaders at companies trust the senior leaders at their firm.their firm.

Company A Company A 53% said they trusted company 53% said they trusted company

leaders to behave with fairness and leaders to behave with fairness and integrityintegrity


2001 National Survey by Walker 2001 National Survey by Walker InformationInformation 53% willing to recommend their firm 53% willing to recommend their firm

to others looking for a job.to others looking for a job. Company A Company A

66% were willing to recommend it as 66% were willing to recommend it as a good place to work.a good place to work.

1999 National Survey by Walker 1999 National Survey by Walker InformationInformation 24% of all U.S. employees plan to be 24% of all U.S. employees plan to be

with their current employer in two with their current employer in two years.years.

Company ACompany A 62% agreed that would likely be with 62% agreed that would likely be with

the company in two years.the company in two years.


Comparison to National NormComparison to National Norm

In Reichheld’s Loyalty Acid TestIn Reichheld’s Loyalty Acid Test 45% of employees agreed that their 45% of employees agreed that their

company deserved their loyaltycompany deserved their loyalty Company ACompany A

65% of employees agreed that their 65% of employees agreed that their company deserved their loyaltycompany deserved their loyalty

The ResultsThe ResultsDo this company’s employment practices Do this company’s employment practices

encourage employee loyalty?encourage employee loyalty?

YES!YES!

I Recommend Reinforcing I Recommend Reinforcing Some Existing PracticesSome Existing Practices

Communicate Company’s missionCommunicate Company’s mission Continue support and training for Continue support and training for

supervisorssupervisors Foster a working environment that Foster a working environment that

encourages interesting and encourages interesting and challenging workchallenging work

Provide performance expectations and Provide performance expectations and trainingtraining

More open and honest More open and honest communicationscommunications

Better sharing business goals and Better sharing business goals and cooperative effortscooperative efforts

Consistent enforcement of policiesConsistent enforcement of policies Provide clear understanding of Provide clear understanding of

advancement opportunities advancement opportunities

I Recommend Some I Recommend Some Opportunities Opportunities for Changefor Change

QuestionsQuestions

Documents

Fewer Than Half Of All Employees of U.S. Based Companies Now Consider Their Employer Worthy Of Their Loyalty Presented by: Karen Gauthier