Saturday, June 21, 2008

EMPLOYEE LOYALTY

What do we mean by ‘‘employee loyalty?’’

We’re talking about employee commitment tied to an organization, one made from the first day of employment in return for guaranteed employment, with a career ladder for promotion, for those employees who show up on time and give more than a full day’s work for a full day’s pay. During the economic boom, the impact of the past economic downturn, with downsizing after downsizing, likely contributed to the job-hopping that companies experienced among their most talented employees. Past experience had given employees little reason to stay with one employer if a prospective employer had a better offer.

HR managers found themselves occupied with filling one vacancy after another. It was hard to keep employees because many chose to ‘‘go solo;’’ that is, become independent and work on a contractual or freelance basis. Called ‘‘contingent workers,’’ these individuals were used to fill workforce gaps. During boom years, many IT experts chose to become consultants and work on contract. During our economic downturn, contingent workers can save employers money, working only during peak job periods or otherwise doing short-term assignments. In the beginning, one thought only about contingent work in relationship to clerical tasks. Temp agencies provided administrative assistance when an assistant was out sick, on maternity leave, or on vacation. But today, contingent work is that and much more.

Assignments vary. Attorneys, business executives, HR professionals, software engineers, accountants, hotel workers, nurses and other medical professionals, and technical support staff – all can be contingentworkers.

The boom period also prompted companies to study their existing personnel to determine if they could take on more responsibility. It was felt an effective way to fill a vacancy, particularly since experienced workers would bring some loyalty to the company, along with past experience in the company, with them to the job. This led to creation of employee skills inventories.

Source : Recruiting & Retaining People .Florence Stone. 2002

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