Employee loyalty rises during global recession, says survey

The survey, conducted from early October 2009 to the end of January 2010, finds that organisations with positive management, strong morale and active communications have succeeded in making their workforce more engaged in spite of the uncertainty caused by falling profits and layoffs.

The most ‘engaged’ employees are in North America, where 52 per cent say they are ‘totally committed’ to their job, compared with 47 per cent in Asia Pacific and 36 per cent in Europe. The findings are part of the Kelly Global Workforce Index, which obtained the views of approximately 134,000 people in 29 countries across North America, Europe, and Asia Pacific.

A total of 27 per cent of respondents worldwide say the economic recession made them feel more loyal to their employer, while only 10 percent feel less loyal and 63 per cent say it has made no difference. For younger workers, experiencing their first major economic downturn, Gen Y (aged 18-29) have emerged somewhat more loyal than Gen X (aged 30-47) and baby boomers (aged 48-65).

“Many organisations have been through an extremely difficult period but some have managed the challenges in a positive way and have emerged with a new level of trust among the workforce,” says Kelly Services Executive Vice President and Chief Operating Officer, George Corona.

Key generational findings of the survey reveal that:

* 28 per cent of Gen Y say that as a result of the recession, they are now more loyal to their employers, compared with 27 per cent of baby boomers and 26 per cent of Gen X.

*43 per cent of employees say they feel ‘totally committed’ and 26 per cent ‘somewhat committed’ to their current employer.

*All generations cite ‘more interesting or challenging work’ as the main thing that would make them more engaged with their job, ahead of ‘higher salary or benefits.’

*Lack of advancement is the main cause of job turnover among Gen Y and Gen X, while poor management is the leading cause for baby boomers.

*Corporate reputation is considered a critical factor in job choice and job retention by almost half (47 per cent) of baby boomers, but by only 39 per cent of Gen X and 34 per cent of Gen Y.

*All generations agree that the most important factor in a company’s reputation is the quality of its products and services, followed by the quality of its management.

*Telecommuting or working from home is considered ‘extremely important’ by only 12 per cent of respondents. 

*When considering whether to remain in or quit their job, younger workers have a much greater interest in the possibility of career advancement, while more mature workers predominantly focus on the quality of management.

The issue of salary and benefits is of secondary importance for all generations. The survey also found that all generations are watching closely how organisations manage their corporate reputation and they rely upon this in making decisions about current and future employment.

“Attracting employees and keeping them productively engaged is constantly among the most challenging tasks for employers. The survey shows the complex array of issues that impact and motivate employees of different ages. A multi-generational strategy is vital to attracting not only the best talent, but also to fostering a climate that encourages creativity and learning for all workers,” Corona concludes.