When it comes to the employee/employer relationship, the long-term marriage has given way to sequential dating. My Axiom colleagues, Paul Dinan and Marc Timmerman, write about this business challenge – what they call “the paradox of temporary loyalty” – in the November 2011 issue of World at Work’s Workspan magazine.
Paul and Marc warn that the impact of temporary loyalty can negatively influence a company’s profitability, performance, customer satisfaction and reputation. But while temporary loyalty certainly exists, the good news is that employees can still be a positive force if employers make the right moves. Recommendations include:
- Take a page from the marketing playbook and use segmentation schema to deeply understand the employee base.
- Create a set of employee value propositions that are based on facts about the expectations, needs and aspirations prevalent among very employee segments. For example, high-value specialists normally prefer a stable work environment, clear job objectives and support in their ongoing development. High performers, value rewards above all (particularly their bonus) and attention from the leadership team.
- Foster commitment by introducing meaning into employees’ lives. Pay and benefits are table stakes that employees quickly take for granted. Finding ways of getting employees to understand their role in executing the business strategy, to be creative and to experience a sense of worth and belonging will strengthen the psychological contract between the employees and employer.
Marc and Paul also outline an 8-point game plan for strengthening employee loyalty that’s well worth reading.
What is your company doing to build loyalty and harness the potential of a fully engaged workforce?
Add new comment