Culture of Loyalty
The other day, I overheard two gentlemen discussing a co-worker. The gist of their conversation was centered around their disappointment that their company’s leader didn’t approve a title change and salary increase for this performer, who, had been with the company for some time. Both expressed gratitude for his contributions and concern over the idea of him leaving the organization due to the lack of movement in status and pay.
Being in the “culture of loyalty” business, I waited my turn to politely interject, and after introducing myself, I posed the following questions:
Is the individual adding value to the organization?
If the individual leaves, does the company move (to a degree) from knowledge surplus to a knowledge deficit?
Will client relationships be at risk if the employee exits?
Without hesitating, both gentlemen answered “yes” to each question. Well, there’s some selling points for your company’s leader.
Over the years, I’ve seen too many quality people leave organizations because of rigid salary practices and office politics; taking their knowledge surplus with them. I’m not suggesting that companies pay significantly over market for any given role, but allowing bureaucracy to destroy employee loyalty makes little sense, is a value killer, and happens daily. If you think about it, the relationship between an employee and an employer is like a marriage with lots of moving parts that need to fit the best way possible. We all know that divorce rates are high with the average marriage in the United States lasting just over 8 years. Sound alarming? Compare that to the average worker aged 25-34 who stays married to a company only 4 years on average (not too long after they’ve established a knowledge surplus).
I know that everyone is replaceable, even the franchise players, however, when you add up the costs aligned with the cycle of recruiting, interviewing, on-boarding, and training involved with bringing replacement talent into the organization, it’s nearly impossible to recoup the internal relationships, knowledge, and momentum with clients in the near term, or ever in extreme cases.
I’m sure that I’m missing part of the story. The leader in this case may have legitimate reservations for not approving the promotion, however, why not work with the team to invest in a development plan to help the employee get to the next level? A simple sign of commitment to the employee can greatly boost loyalty…just be sure to develop the plan, stick to it, coach, and measure progress. If the employee delivers, it’s time to reciprocate and congratulate them on their promotion.
Remember, there’s only so much room at the top of a company. One CEO, limited positions on the executive team, etc. Let’s not force employees who add value in their current functional area into leaving the organization. Get creative, add titles that stratify functional areas allowing for additional upward opportunities.
One day, I hope to retire from interjecting, and simply get to hear about people doing great things in their work and feeling fulfilled in the process…great symptoms of a loyalty culture in business.