April 18, 2011

 

As the U.S. economy slowly continues to improve, it seems reasonable to assume that there will be more job opportunities. But what about those who already have jobs? Will these employees maintain the status quo and remain loyal to their current employers?

It remains to be seen what actually will happen in various industries and sectors over the next several years, but a study recently published by MetLife shows some very interesting trends in employer/employee dynamics. According to the study, it seems three years ago almost 60 percent of employees felt strong loyalty to their employers as opposed to now with only 47 percent. The study asserts that 43 percent of larger employers and 38 of smaller employers saw productivity gains over the past 12 months even with "having to do more with less." Unfortunately, the same study shows that more than one-third of the employees surveyed hope to be working for a new employer in the next year. Are some employees just getting tired of the long hours, reduced salaries and lack of resources?

 

With economic improvements, undoubtedly the true high performers in most any organization will "test the waters" and potentially seek positions that offer higher wages and better benefits, suggesting employers take action to curb declining employee loyalty and strengthen retention of their best performers. Salary and wages obviously are the most important drivers of employee loyalty, but according to this study, employers and employees have differing views on the importance of other benefits. 38 percent of surveyed employers believe retirement benefits are important drivers as opposed to 64 percent of employers. In addition, 37 percent of employers said benefits such as dental, disability and life insurance are important in assessing employee loyalty, while 59% of employees say they are important – clearly sounds like a disconnect to me!

In efforts by employers to offer more value to employees and support both retention and new talent acquisition, overall benefit packages may need to be reviewed and reassessed in terms of compensation and related perks (salary level, raise structure, performance bonus, time off, holidays, comp days, retirement savings programs, etc.); health benefits including health and wellness programs; and loyalty and incentive programs. What do you think? Drop a line and let us know!

Note: The study focuses on many aspects of employment, benefits and communications. You can download and read this entire interesting study by visiting http://bit.ly/eLVldb. It definitely provides food for thought!