The Corporate Dilemma

Because of national and world events, fear and uncertainty continue to affect employees in many companies. With the rounds of job cuts, many employees feeling afraid or insecure, will do just enough to keep their jobs, but no more. There is a major trust gap between the thinking of executives and front line employees.

It's up to the CEO and other executives to step up and take a leadership role in guiding employees through difficult times, instilling confidence, yet also being honest about economic realities. The future success of companies depends on the energy and efforts of employees. It will make or break companies. Much needs to be done to generate more employee loyalty to keep productivity high through company challenges and changing times.

Loyal Employees Impact Your Bottom Line

According to a topical book by Frederick Reichheld titled, Loyalty Rules: How Today’s Leaders Build Lasting Relationships, in a typical company only about 50% of employees believe the company deserves their loyalty. The impact is that corporations lose half their customers in five years, half their employees in four, and half their investors in less than one. In another study, Mr. Reichheld found that a positive change of 5% in retention rates could have a dramatic impact, resulting in a swing of 25% to 100% in earnings.

Only 26% of Employees Giving Their Best

According to a recent article in Fast Company magazine, a study by the Gallup Organization on the U.S. working population found that only 26% of employees are actively engaged or loyal and productive. 55% of employees are not engaged. They're just putting in their time. And, 19% are actively disengaged, unhappy, and communicating discontent. This means that only about one in four employees are giving their best!

Although these statistics may not exactly mirror your organization, consider what increasing the number of engaged workers could mean to your company. For example, in the survey, organizations with the most engaged workplaces were:

• 56% more likely to have higher-than-average customer loyalty
• 38% more likely to have above-average productivity
• 27% more likely to report higher profitability

What to Do About It

How do you increase your percentage of engaged or loyal workers? As you know, great organizations are built from the inside out. Savvy employers view their organization as more than just clusters of resources but as internal markets for enhancing the organization's knowledge and productivity. Employees need to be marketed to just as regularly and proactively as customers, especially if firms want to retain their finest employees in both the good and bad times.

We invite you to peruse our Web site to find out how we can create a positive impact on your bottom line by helping you increase the number of engaged employees in your organization.