Employee loyalty falling: Study

Layoffs and salary freezes in response to recession contribute to decline

Canadian employees are becoming less loyal to their employers and how organizations handle the economic downturn can make it worse, according to a new study by Ipsos Reid.

Build a Better Workplace, based on an online poll of 1,128 workers, found 22 per cent of Canadian employees are expressing decreased loyalty to their employer. The sentiment extends beyond the rank and file, with one-quarter of executives and managers saying their loyalty is decreasing.

How organizations have responded to the economic downturn is affecting employee loyalty. In organizations where layoffs occurred, 36 per cent of employees feel less loyal. In organizations where salaries were frozen, that figure is 31 per cent.

Across the country, the figures are consistent, with the exception of Quebec, where only 10 per cent of the workforce shares this attitude.

“Because these results are quite consistent across sectors, they strongly suggest that employers ought to be considering what they should be doing now in order to hold on to their key performers when economic conditions improve,” said JB Aloy, author of the Ipsos Reid study.

“Loyalty to one’s employer is very dependant on recognition. Staff who feel their involvement is not acknowledged are more likely to become disloyal.”

Some comments in the survey indicate that the organization’s leadership can’t just simply expect loyalty, it must be earned.

“Anything I do that is 'above and beyond the call' is accepted but never reciprocated by management or the employer,” said one respondent.

Latest stories