Employee Loyalty Current Trends

October 26, 2007

Technology Worker's Loyalty is Rising

A recent Report on Loyalty of over 2,500 IT workers by Walker Information found that the number of loyal employees (employees who plan on staying with their employer for 2 years) within corporate IS departments jumped nearly 30% since 2003. Additionally, the number of IS workers who feel stuck in their jobs has fallen by 33% in the past 3 years. Only 21% reported they're not committed to their companies, but feel they have no option but to stay, compared to 33% three years ago.

Corporate Diversity Policies Linked to Employee Satisfaction & Loyalty


A recent Gallop poll conducted to mark the 40th anniversary of the Civil Rights Act and the creation of the Equal Employment Opportunity Commission shows that employees' satisfaction with and loyalty to their company are highly related to the company's commitment to promoting diversity.
  • 61% of the employees who rate their company's diversity efforts in the upper third say they are extremely satisfied with the company.
  • Satisfaction drops to 34% for employees who rank their company's diversity efforts in the middle or lower third.
The study also found that employees are more likely to stay with their employer and recommend the company to others if they rate the company highly for its diversity efforts.

Corporate Social Responsibility - Linked to Employee Commitment

In the recent article "Feel Good Factories" two separate studies were reported to have found a direct link between employee commitment and an organization's commitment to social responsibility.

A recent survey by MORI, a public opinion research agency in Great Britain, found that 58% of employees in the UK thought the social and environmental responsibilities of their organization were important.

A similar study found that employees' perception of corporate social responsibility (CSR) has a major impact on organizational commitment. The study, by Dr. Andrew Millington, found CSR to be at least as important in shaping employee commitment as job satisfaction and the quality of managers. Ethical treatment of employees was found to be the most important aspect of an organization's CSR, especially by female employees. CSR is typically defined as the company's commitment to society. It comprises actions that promote social welfare beyond a firm's legal obligations.

Customer Loyalty - Linked to Employee Loyalty

A recent study by Harvard Business School found that every 1% increase in staff loyalty resulted in a % increase in customer loyalty. Loyal employees are more productive, able to propose process changes, and provide top customer service . . . clearly affecting the bottom line.

Top Drivers of Employee Loyalty

Walker's biennial Report on Loyalty in the Workplace of over 2,500 IT workers, reported the top drivers of employee loyalty are:
  • How much care and concern employers show toward their employees, both in career development and in balancing work/family
  • Fair workplace policies
  • Day-to-day satisfaction and reinforcement from managers
  • Compensation

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