Nowadays, employees tend to be less and less loyal to their company. Here is an interesting video about firms whose employees are the least loyal.
https://www.youtube.com/watch?v=3U5pUKoT550
In my presentation, I introduced David E. Soles's three concepts of loyalty. He gives that conclusion that employees do not have any obligation to keep loyal. However, it seems not that true in the real world. It is one of the top reasons that company lose their customers. The high turnover rate plays a negative role in firms' performance. Some economists think that if a firm cannot keep its employees long enough, it cannot keep their customers long enough too. Sometimes employees lose loyalty because they are not treated well by firms, sometimes because of other reasons. And for the firms, it is hard for them to know how loyal is their employees, it is hard to measure.
A research from Wharton analyses this problems in depth.
http://knowledge.wharton.upenn.edu/article/declining-employee-loyalty-a-casualty-of-the-new-workplace/
What do you think? Is loyalty important?
I think treatment of employees certainly reflects the over the overall success of a company. I think this is one of the main reasons that determines if an employee will stay or leave. If employees are valued and treated with respect, it is likely that they will be loyal and remain in the same place.
ReplyDeleteThis does not happen in many places. I think this is a problem, because many companies want to succeed in making profit, but ignore their employees. It's difficult to accomplish this, since employee dissatisfaction often leads to poor performance and minor progress overall.