Employee loyalty is down — and weak company culture is to blame
- Employee loyalty is declining and weak company culture is to blame, according to a new TINYpulse report.
- A recent poll of 25,000 employees across 20 industries found that 43% of workers would leave their jobs for a 10% pay increase and that a poor culture was the reason for the declining loyalty, the organization said in The 2019 Employee Engagement Report: The End of Employee Loyalty. In 2015, that number was only 23%.
- The top factors that correlated to overall employee happiness, according to the report, were employee-manager relationships, engaging work and first impressions. "How comfortable employees feel about providing upward feedback to their supervisors is a major indicator of overall happiness," TINYpulse said. Additionally, "[b]oredom wreaks havoc on engagement. Employees who feel challenged at work on a daily basis are more likely to be happy." And finally, "[f]irst impressions affect long-term happiness. Effective onboarding is a crucial part of the employee experience, and correlates to how employees feel about their companies overall."
In today's employee-driven labor market, workers can prioritize their happiness. In a 2018 Robert Half survey, a third of employee respondents said they'd pass up the perfect job if the company's culture was a bad fit. And the feeling is apparently mutual: 91% of U.S. managers in the Robert Half poll said an employee's culture fit was more important than experience or skills.
Still, the onus is largely on employers to create and maintain a strong, positive culture. HR can start with TINYpulse's recommendations, focusing on relationship management and onboarding. And when it comes to engaging work, managers may want to note that work that boosts employees' self-esteem goes a long way, according to a Chadwick Martin Bailey study released just days ago. The report identified employee psychological needs, like self-esteem, pride and a sense of belonging.
Employers also can look to those employers receiving "best places to work" awards. The awards' criteria often requires a positive culture that engages workers, which, in turn, can build commitment. Employers on Fortune's 100 Best Companies to Work For list for 2019 were chosen for their focus on "values, trust, innovation, financial growth, leadership effectiveness and maximizing the full human potential of every employee," according to the firm that decided the rankings.