I get asked quite a bit does employee loyalty/employee engagement matter right now? My response is employee loyalty always matters, even in a recession.
Below is a link to a blog written by one of Walker's partners, Vovici. It summarizes a presentation I gave with them on the top five reasons why you should care about employee loyalty in a recession.
I have cut and pasted the five reasons from the presentation and Vovici's blog below:
1. To maintain customer loyalty. If you don’t take care of your employees, they won’t take care of your customers. Loyal employees have a positive impact on customer loyalty and retention: where 92% of loyal employees do tasks for customers “above and beyond the call of duty”, only 54% of trapped and high risk employees do so, according to Walker. Where 89% of loyal employees help coworkers who have heavy workloads, only 60% of trapped or high-risk employees do. In a recession, of course, it is more important than ever to keep existing customers loyal, because the cost of acquiring new customers is so high.
2. To keep your top talent. Because we are faced with tough decisions, we must keep our top players to help us reach the right decisions. Unfortunately, 47% of top-performing employees are actively looking for jobs, while only 18% of low performers are (Source: Leadership IQ). Having owned my own company for many years, I can tell you it is a bitter irony when the good employees leave and the bad employees stay.
3. To focus on the right things. Organizations must be efficient in times like these; avoid trying to boil the ocean. Don’t ask questions about issues that can’t be addressed. Too often the focus is given to attributes where the organization rating the lowest, rather than focusing on the attributes with the highest impact on employee perceptions and behavior.
4. To maintain morale and productivity. The economy has us all a bit twitchy and insecure. Your employees are nervous – a loyalty survey opens up the dialogue and gives you a chance to listen and respond. A recent Walker study of human-resource professionals found that three-quarters of those surveyed had seen a noticeable decline in employee morale in the past several months.
5. To emerge from the recession stronger. You want your organization to exit this downturn with an uptick in performance. When the economy improves, you want to have a stronger, more loyal staff, giving you a competitive edge over your competitors as you look to hire and grow: 92% of loyal employees will recommend your organization as a good place to work, compared to only 39% of trapped or high-risk employees.
To view the entire blog, go to: http://blog.vovici.com/vovici_blog/2008/12/five-reasons-yo.html