AMA study: The costs of reduced employee loyalty

You get what you give. If more employers treated employees as assets and treated employees justly, employers would get more loyalty. When there is an uneven exchange, stress in exchange occurs, causing one individual to have power over another (Emerson, 1976). Stated succinctly, the organizational culture influences the behavior of its employees interpersonally and towards the organization based on positively or negatively perceived organizational support, justice, and reciprocity.

Emerson, R. M. (1976). Social exchange theory. Annual Review of Sociology, 2, 335-362.

Minding the Workplace

Reduced employee loyalty is costly to companies, but it appears that too many of them aren’t taking this seriously.

In an article for Workforce, American Management Association vice president Sam Davis reports on a new AMA research study showing that 52 percent of managers “see their employees as less loyal than five years ago.” He further notes that this perceived reduction carries negative costs: “A lack of loyalty can clearly be detrimental and result in loss of trust, higher absenteeism and turnover, shoddy work, gossiping, the formation of cliques and, in extreme cases, incite a mutiny.”

The December 2014 study included survey responses from some 1,200 North American executives, managers, and human resources professionals.

Unfortunately, the AMA study also suggests that a lot of employers aren’t taking the cultivation of employee loyalty very seriously. According to Davis, “One in five respondents said ‘yes,’ loyalty is a major focus at…

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