It was a major shock to our family when, after more than 20 years, my father resigned from a company to work for another. His generation were all about being loyal to your employer. Despite his action, his advice to me when I was looking to enter the workforce was to try and find an employer where I could stay for my entire career. But it seems sentiment has changed, and surveys and statistics indicate that most employees will now change employers (and even careers) several times during their working lives.
A recent article in the online magazine Knowledge from the Wharton Business School (find the link here) explores this issue of workplace loyalty and makes the point that “the modern workplace has become increasingly transactional”. That is, rather than being about unfettered loyalty, both parties recognise there is a relationship of exchange of give and take. When one party feels the transaction is no longer beneficial, it is ended, either by the employee choosing to leave, or being forced to leave, depending on who perceives they are “losing out” in the exchange.
Employers well know that the cost of employee turnover can be very high, and that it is typically more economical to try to retain good employees than to replace them. Not to mention the experience and institutional knowledge that goes with them.
The article traces why loyalty was so prevalent, and why it is now diminishing., It also notes the effect of the pandemic on workplace loyalty and how vulnerable organisation are right now if their employees feel less connection and trust in the organisation. While higher wages go some way to addressing these, the authors notes that it is also organizational citizenship that plays an important role. Where there is mutual trust employees feel more invested in their work and tend to have better productivity.
A worthwhile article to read to stimulate thinking about employees and how to encourage the good ones to stay.