Kissing Off Employee Loyalty


I have to hand it to a lot of companies that have decided to kiss off any chance of employee loyalty for when these economic times improve.  The extra work loads, reducing salaries and the lack of training development in order to save expenses has severed any chance of using this time as a way to engage or renew employee loyalty in the company.

Most will deny this is the intent of their cost cutting efforts, but the reality is it will become a bonus that no senior manager in their right mind would do on purpose.  I mean, can you see a corporate strategic planning meeting where management sits around and says, “Let’s do everything in our power to destroy employee loyalty, so when the economy turns around they all quit and work somewhere else.”  Followed by the strategic aspect that says, “yeah, and then we can declare bankruptcy and close down everything and sell our worthless stock!”

What board of directors would sign off on this plan?  Yet, why have so many companies designed this outcome into their day to day activities?

I believe it is an unconscious act that is producing these results.  I think that if more companies realized that what they are doing is short sighted and will only get them through temporarily month to month they would stop.  I really think they are not in touch with what their actions are doing.

Employee development is something that costs money (investment) and is best to do when work is slow.  With so many companies cutting back on employee development they are not only losing out on the perfect time to increase skill development, they are demonstrating that they are not too concerned about if their employees will have the necessary skills to perform in the future.

Not every company is taking this narrow view.  In the September issue of Training & Development Magazine, Michelle Burns, the CEO of Mercer, said, “Learning plays a key role in strategy.  You have to reply on the functional ability to execute change and to prepare the organization to change continuously, whether it’s required today or tomorrow.”  Now this is a leader that gets it!  My compliments to Mercer for employing a CEO of this caliber!

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