Home » CEO Briefing Newsletter » Career Nomads: Business Restructuring Leads to Decrease in Employee Loyalty

Career Nomads: Business Restructuring Leads to Decrease in Employee Loyalty

Employee loyalty is at a 7-year low and 76 percent of employees say they’d leave their current employer if a …

Employee loyalty is at a 7-year low and 76 percent of employees say they’d leave their current employer if a better opportunity came their way.

Knowledge@Wharton looked at what factors are driving the increase disconnect between employees and employers.

With the increased mobility and high levels of competition, many companies have grown to look at their employees as short-term disposable assets. Here are some  issues that employees are experiencing at various companies:

  • Many employers drastically downsized during the recession without regard to length of employee service (and loyalty)
  • Employees are seeing fewer benefits
  • Employees are receiving less training
  • There are fewer opportunities for promotion internally

If there is less of a feeling that a employer is going to look out for an employee, employees feel less of a need to look out for their employer (the definition of loyalty).

In an increasingly global employment market, competition is stiff and mobility is common. Younger workers are aware of this and prepared to move. Younger workers are more fluid and expect that their career will take them various places as they “brand themselves.”

What will employee loyalty look like 20 years from now?

Read: Declining Employee Loyalty: A Casualty of the New Workplace

About Chief Executive

Chief Executive magazine (published since 1977) is the definitive source that CEOs turn to for insight and ideas that help increase their effectiveness and grow their business. Chief Executive Group also produces e-newsletters and online content at chiefexecutive.net and manages Chief Executive Network and other executive peer groups, as well as conferences and roundtables that enable top corporate officers to discuss key subjects and share their experiences within a community of peers. Chief Executive facilitates the annual “CEO of the Year,” a prestigious honor bestowed upon an outstanding corporate leader, nominated and selected by a group of peers, and is known throughout the U.S. and elsewhere for its annual ranking of Best & Worst States for Business. Visit www.chiefexecutive.net for more information.