The True Cost of Low Employee Loyalty
Posted by Jeffrey Henning on Thu, Jan 22, 2009
Employees who feel trapped or are at a high risk for leaving won't just hurt your organization in the future, when they quit your company. They are hurting your organization now.
According to a 2007 study from Vovici partner Walker Information, disloyal employees are less likely to recommend your organization as a good place to work than loyal employees are: just 39% of such employees are very likely or extremely likely to recommend your company, compared to 92% of loyal employees (a 53-point difference). But not only are disloyal employees not promoting your company to those outside the organization, they aren't doing any favors for those inside the organization either. Disloyal employees are 29 points less likely to help coworkers with heavy workloads, and 38 points less likely to take on tasks that are "above and beyond the call of duty".
These trapped and high risk employees are 43 points less likely to do what it takes to make your company successful or to do their part to execute your company's strategy.
Too often, I have heard company executives express concern about employee loyalty only because of the direct costs incurred when employees leave and must be replaced. While the costs of advertising open positions or contracting with recruiters can add up, and the investment required to train a new employee until they are productive can be significant, the true cost of employee disloyalty is paid today, in how such employees behave before they leave, and in how much less you get from such employees as compared to your loyal staff.
This makes it more important than ever for you to conduct an employee loyalty satisfaction study and get everyone in your organization working together to ensure your success.