|Suddenly Loyalty is Back in Business|
|Topic||Human Resources Management|
|Key Words||employee turnover, retention, loyalty|
The average 32-year-old worker today has worked for nine companies. Companies are recognizing that loyalty among employees is desired, and are doing something about it. In Feb. 2001, a survey of 1800 workers found that just 65% intended to stay with their organizations for the next several years. Since September 11, attitudes seem to have changed. A followup poll done in October, 2001 showed that 54% would say no to an offer of a similar job with better pay.
As companies have instituted programs to increase company loyalty, turnover has been reduced. One study found that a 5% increase in employee retention can yield profit increases of 25% or more. Loyalty describes the quality of a working relationship, and isn't bought with stock options or bonuses. Successful companies use specific strategies to cultivate and maintain loyalty among executives, employees, and customers:
|Source||Wendy Cole, "Suddenly Loyalty is Back in Business," Time, December 10, 2001.|
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