Loyalty Is A Two-Way Street

by Anthony S. Horwath

Loyalty is defined as dedicated, devoted, an allegiance. What else could an individual or company ask for?

Every company wants loyalty from its customers and employees, and every employee wants loyalty from his or her employer. If loyalty is what everyone wants, why is it so difficult to obtain?

Over the past 10 years several changes have taken place that have negatively affected employee loyalty. For example, the technology industry, including information technology, has been growing exponentially. To enter a new market, to gain industry expertise or to meet the demands of stockholders, technology companies have implemented very aggressive acquisition strategies. The original owners may be satisfied with the money they make from the sale of their company, but what happens to their employees? This demonstrated lack of commitment on the part of the employer has, in turn, created a new generation of employees who withhold loyalty from their employer.

You can't just blame the companies. Over the past two decades, salaries for IT professionals have grown to astonishing levels. Engineers used to worry about the latest technology or what positive impact they might have on a company, but as huge salary increases have been thrown their way, priorities have changed. Sales professionals in the IT market have an average employment span of six to 18 months per company. Loyalty is less of a priority than is upward progress on the pay scale.

America is the land of opportunity and more people than ever are leaving the corporate culture to start their own companies. Al Visco, manager with MRI McLean stated, “A nagging sense of stagnation and boredom is the primary reason for talented people to seek greener pastures. Autonomy is also a very powerful lure for highly skilled individuals. After the promise of greater challenge and autonomy, salary is usually next on the list.”

So what can companies do to recruit and retain high quality professionals? Build a culture that focuses not only on financial success, but also on individual success and growth. Invoke positive attitudes about education, training, morals and ethics. It's predicted that over the next five years people will consider quality of life issues rather than the almighty dollar when choosing a career.

Companies that will be successful into the next millennium need loyalty from their employees and their customers. High growth startup companies need to look at alternative methods of growth. The successful companies of the millennium will be focused only on their core competencies and outsource everything else.

Companies need flexibility to grow and shrink depending on the market cycle. If they hire and build internally, they will not be able to adapt quickly to market demands and employees will suffer with reorganizations and layoffs. They need to review and monitor the company culture and develop a positive, constructive environment. With the advancement of the Internet, many people can work from home. The virtual office is a viable solution. A company reduces overhead expense and increases employee morale.

The virtual company is a viable alternative in today's market. The emergence of business process outsourcing (BPO) has allowed organizations to focus only on what they do best and let someone else do the accounting, sales, marketing and resource management. BPO companies allow employees flexibility, high growth opportunities and education. Companies are relieved of the time and cost of recruiting, training and managing.

Mergers and acquisitions won't end anytime soon, but if quality of life issues continue to shape people's employment decisions, then small organizations that adapt quickly can lure the most qualified individuals. Employees need to decide what is the most important aspect of their jobs. Money and security are always important. However, if you can make a difference to a company and be part of their growth and success while maintaining a balanced life, job contentment will lead to employee loyalty.

When companies and employees both recognize that loyalty is two-way street they will find it lined with opportunity, success and growth. Loyalty should be an avenue for personal development and organizational prosperity that can be shared by all. Everyone wants loyalty, so if your company can develop a culture based around this virtue you will have customers and employees running to your company to share in your success.

Anthony S. Horwath is president and founder of Sales Focus Incorporated. He can be reached at 410-730-0500.