Monday, October 16, 2000
Job loyalty eroding across the globe
By Gregory Weaver
The Indianapolis Star
The job-hopping trend is doing a lot of globe-trotting these days.
As in the United States, many companies around the world are experiencing an erosion in worker loyalty that threatens to diminish productivity and drive many valued employees out the door.
Those are the findings of an international workplace commitment study conducted by Walker Information and the Hudson Institute, both of Indianapolis.
The study of almost 10,000 workers in 32 countries found that only a third are truly loyal to their employers, while another third are likely to leave their jobs in the next two years.
The study measured loyalty by asking workers whether they felt a strong attachment to their employers, believed employers showed genuine concern for them and whether their employers were highly ethical.
Colombia and South Korea stood out as examples of countries where employees are more loyal, while workers in Japan, Chile and Greece demonstrated very low levels of loyalty and satisfaction.
North American workers were most likely to stay at their current jobs, while Latin American and Indian employees were least likely to stay put.
While workers in the United States and North America are a little more loyal than average, it's nothing to get all excited and jump up and down about, because the average is really horrible, said Marc Drizin, vice president for business alliances at Walker Information.
He said the possibility of losing a third of a company's work force in the span of two years should be enough to scare any executive into action no matter where in the world he lives.
The reason: the cost of replacing those workers and training new ones would be astronomical, he said.
Estimates of replacement costs range from $10,000 for an assembly-line worker to $145,000 for a highly skilled nurse and even more for an information technology worker.
The international survey, with a confidence level of 95 percent, is an expansion of a U.S. study the two research groups released a year ago.
While they have no historical data with which to compare their findings, researchers said it's clear that worker loyalty is slipping.
A generation ago, workers were virtually guaranteed a job with the same company for life, they said. Mass corporate layoffs in the 1980s obliterated that security, leading to the job-hopping of today.
Now, a worldwide worker shortage and bustling economic times allow employees to quickly change jobs if employers don't meet their demands for raises, flex time and other benefits.
But while the problems are universal, so are the solutions, the study concluded.
Workers throughout the world agree that they would be more productive and loyal if their employers showed them more fairness, care, concern and trust.
In order to retain employees, the study said, the corporate world must:
Make workers feel they are receiving fair wages and job evaluations.
Show it cares about developing workers' talents for the long haul.
Give workers the freedom to make their own decisions at work, instead of having heavy-handed, top-down management.
Provide family-friendly benefits that show genuine care and concern.
2 in Tristate tied to fraud probe
Background on Wellington
Sheriff says he invested in 'couple of guys'
Divorce can split family business
ECKBERG: Wild Berry rides Cuervo name into Mexico
Promotions & new on the job
Job loyalty eroding across the globe
The Success Coach