The Walker Loyalty Report for Loyalty in the Workplace

Fifth national study of employee loyalty and ethics among U.S. workers highlights commitment, loyalty, and related behaviors and identifies employee perceptions of workplace ethics

FOR IMMEDIATE RELEASE
September 3, 2007

National Overview

The 2007 installment of The Walker Loyalty Report for Loyalty in the Workplace, the fifth in a biennial series of studies on employee loyalty and ethics, reveals insightful information about the commitment, loyalty, and related behaviors of today’s workforce.  It also includes details about employee perceptions of company ethics and the ethical conduct of senior leaders.

According to this year’s study, disloyalty among U.S. employees is on the rise.  Although the percentage of truly loyal employees (34 percent) is unchanged from 2005, the percentage of employees categorized as high risk outnumbers those who are loyal, creating a widening gap for employers struggling to improve retention.

In analyzing worker loyalty by generation, Generation Y employees are the most loyal, although as a group they are very dichotomous with 78 percent classified as either truly loyal or high risk.  Baby Boomers ranked lower in loyalty (32 percent) and followed Gen Y in the number of high-risk employees with 37 percent.

Loyalty impacts how employees behave and perform on the job.  Ninety-two percent of the loyal indicate they work to make the company successful, compared to just 49 percent of those in the high-risk and trapped categories.

Employees’ perceptions of ethics in the workplace remain largely unchanged from 2005, halting the upward trend seen in Walker’s past studies. 

Method

• Data for this survey was collected from 2,950 people, 18 years and older, working in companies with at least 50 employees.  The surveys were completed on line. 
  
• Survey respondents were full- and part-time employees, representing business, non-profit, and government organizations. 
  
• The loyalty report results were weighted according to the June 2007 release from the U.S. Bureau of Labor Statistics. 

Key 2007 Loyalty Results

• Although the percentage of truly loyal employees – 34 percent – is unchanged from 2005, the percentage of high-risk employees (36 percent) now outnumbers those who are truly loyal.  (High-risk employees plan to leave their current employer within the next two years.)  The number of trapped employees (feeling as if they have no other option but to stay) decreased by the same margin. 
  
• Since 2005 employers have made some strides in experience areas tied to loyalty.  Fifty-eight percent of those surveyed said their employers show care and concern for them, up from 54 percent two years ago.
  
•  “Trust in Employees” emerged for the first time as one of the top five drivers of loyalty.
  
• Generation Y workers are more dichotomous when it comes to loyalty.  Seventy-eight percent are classified as either truly loyal or high risk.
  
• Loyalty affects behavior.  Ninety-two percent of loyal employees (those in the truly loyal or accessible categories) will work to make the company successful, compared to just 49 percent of disloyal workers (those classified as high risk or trapped).
  
• Similarly, 89 percent of loyal employees will help colleagues with heavy workloads, while just 60 percent of disloyal employees are likely to do the same.
  
• More than 80 percent of loyal employees say they execute the company’s strategy, while just 38 percent of disloyal workers indicate this tendency.
  
• Fifty-eight percent of respondents said their company shows care and concern for employees.  This represents a four percentage-point increase from 2005. 
  
• Sixty-three percent of employees agree their company is highly ethical.  Fifty-seven percent believe their senior leaders are ethical.
  
• There is a link between employee loyalty and employees’ perception of company ethics.  For example, 91 percent of truly loyal employees believe their organization is ethical, while just 35 percent of high-risk employees feel the same.

Loyalty Drivers

The top five experience-based factors driving employee loyalty include:

1. Fairness at work
2. Care and concern
3. Trust in employees (first time as top driver of loyalty)
4. Feelings of accomplishment
5. Satisfaction day-to-day

Key 2007 Ethics Results

• Sixty-four percent of employees believe their company is highly ethical. 
• Fifty-seven percent of workers agree their senior leaders are ethical.
• One-quarter of employees had knowledge of or suspected a violation of policies or ethics in the past two years.
• Of those who knew of such an ethical violation, 60 percent reported the behavior, compared to just 54 percent in 2005.
• Among those who witnessed or suspected an ethical violation, the top violations reported were lying to supervisors (42 percent); unfair treatment of employees (37 percent); conflicts of interest (34 percent); lying on reports (32 percent); and sexual harassment (29 percent).

Walker Spokesperson

Chris Woolard
Senior Consultant
8 years at Walker Information

As Walker Information’s leading employee loyalty specialist, Chris is responsible for the design, implementation, account management, and analysis of his clients’ employee and customer assessment programs. He focuses his skills and experience on employee and customer projects in the high-tech, service, and manufacturing industries. Chris was the lead researcher on The Walker Loyalty Report for Loyalty in the Workplace, which covers employee loyalty and business ethics trends and issues.