This Week's Herman Trend Alert

Leadership in Normal 2.0

  The Herman Trend Alert

November 16, 2011

Employee Loyalty Declines Worldwide

Several recent studies have reinforced our belief---that employee loyalty is declining---around the world. The most recent evidence comes from the well-respected consultancy Mercer in their 2011 "What's Working" survey---released just last week.

This statistically valid research, conducted with nearly 30,000 employees shows that the percentage of workers seriously considering leaving their organizations has risen significantly, since the last time the survey was conducted. Mercer conducted the previous surveys between 2003 and 2006, prior to the economic downturn.

In many of the 17 geographic markets, the increase in workers considering leaving is 10 percentage points or more. In the United States, the increase was 9 points, from 23 percent in 2005 to 32 percent in 2010. (Not all markets were polled in each survey.)

According to Mindy Fox, a senior partner at Mercer, ". . .lackluster engagement is no longer just a US phenomenon." In the face of companies looking to drive productivity and efficiencies, this kind of widespread apathy and high turnover can be seriously detrimental to an organization's business performance, especially given the current economic environment.

Interestingly, there were variations of employee motivators by region:

In the Americas, on top of the global top five non-financial factors---respect, work-life balance, type of work, quality of co-workers and quality of leadership---working in an environment where employees can provide good service to others ranks highly in importance in North and South America. Base pay ranks as "the" most influential financial factor.

In the US, the importance of financial and non-financial factors correlated with the global findings. The two areas that scored higher than the global average were "benefits" and "working in an environment where you can provide good service to others".

In the Asia Pacific region, results are less consistent by market compared to the Americas and Europe. "Being treated with respect" and "quality of leadership" are cited by employees as most influential to their motivation and engagement at work. Career-related factors are much more influential in China, compared to other markets in the region and globally.*

Expect employee loyalty worldwide to continue to drop, driving employers to seek to be Employers of Choice® in an attempt to counter the trend. #### *Editorís Note: We believe that grouping Australia with less-well-developed countries to be ill advised. People in subsistence economies have different values and attitudes.

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