The Loyalty Factor
By Bryn Meredith

In the December edition of "The Point" we talked about the growing demands being placed on Human Resource Professionals to devote more time and energy towards both Talent Retention and Talent Acquisition.

A number of people responded with some great feedback, and one common thread was the need to improve the "Loyalty Factor" within their organization as a key to helping both with retention and acquisition. Loyalty may be seen, at first, as only benefiting retention, but reputation travels fast and it travels far.

A loyal culture reputation - where people want to work, prosper, and further their career - also attracts talent. A variety of articles and surveys have been published since December that examine loyalty and its ramifications. The data seems to confirm that a life long career with one company is a rare thing. Shifting among employers and careers is no longer viewed as abnormal or unethical.

A survey by the Society for Human Resource Management (SHRM) recently indicated "that at any given time, 75% of employees are looking for other opportunities, and under these conditions, retention has to be a key concern."

A Loyalty Factor of 100% may be unattainable, and perhaps undesirable, but HR must do better than 25%. Loyalty is a two-way affair. We cannot expect employees to be loyal to the company if the company does not demonstrate loyalty to them. Downsizing during the 70's and 80's caused individuals to develop a "fend for myself" attitude. When the booming, rampant talent market of the 90's rolled in, this mindset fueled by signing bonuses and stock options created a type of "I'm going to get back what you took from me with interest and penalties" type of behavior.

Loyalty was for losers. The tech bust, market downturn, and now market growth has moderated those mood swings. Working for a good, stable company is seen as desirable once again. The major tension many workers now feel is between the future opportunities that may open up as baby boomers leave vacancies versus the corporate trend towards outsourcing. These aren't the best conditions for the Loyalty Factor, but they are better than we have seen in a decade. What can we do to stimulate this two-way loyalty exchange?

There is no better place to start than to look at the recent "Hewitt Associates" annual survey that identifies the 50 Best Employers in Canada. These companies are judged by their employees to be great places to work, companies that create exceptional employee engagement and where employees feel a connection between their daily contribution and the success of their organization.

The survey identifies how these companies do this two-way exchange best.

Leadership Direction: -
They were clear about where the organization is going and what it is going to take to get there. - They display passion and enthusiasm about the future.
- They build trust with employees by making commitments and consistently delivering on them. - They focus most of their time and energy on coaching employees to be successful.
- They create personal connections with employees.
- They listen to what the front line is saying and take corrective action quickly.

Career Development:
- They constantly talk about the importance of growth and development and ensure that resources are available to support career development programs.
- Their leaders are properly equipped and trained to proactively coach employees through career development discussions on an ongoing basis.
- They ensure that the human resources function has the expertise and resources to support managers and employees as they pursue their development plans.
- Their leaders are truly excited at the prospect of grooming their successors and helping employees reach their potential.

Recognition:
- They tailor recognition to the unique situation and the individual involved.
- They notice extra work.
- Their leaders deliver recognition sincerely and with an _expression of true appreciation. -

Their leaders act as role models and demonstrate what recognition looks like, particularly toward new hires within the organization.

If you worked for a company that did all these things, wouldn't you feel the Loyalty Factor kick in?

Learning and development are the Loyalty Factor's traveling companions. Investing in employees' futures and career growth opportunities are key predictors of employee loyalty. Another predictor is brand pride. If you want to create an emotional connection with your employees, then they need to be proud of where they work, what they do, and the knowledge that they work for an ethical, socially responsible organization.

A sense of ownership of the company's future goes a long way to creating loyalty. The Loyalty Factor cannot be built overnight.
Consistency, patience, and visible executive team support are required. Look closely at some of the practices of your own organization and ask yourself if there is anything your organization could be doing that would help to improve the Loyalty Factor.

The results can be well worth it. What are you doing to improve loyalty in your organization? We'd love to hear your stories. We will publish any helpful tips in a future edition of The Point.

Bryn Meredith is President of Bluepoint Canada. You may contact him by email at brynmeredith@bluepointleadership.com