Job loyalty rises, troubles remain

INDIANAPOLIS -- Workers' job loyalty has jumped 10 percentage points in the past four years, according to new report that also hints at potential bad news for employers.\nWalker Information surveyed more than 2,500 workers nationwide and found that about one-third of employees -- 34 percent -- are so devoted to their job they would be willing to turn down any job offer that might come their way.\nIn 2001, the Indianapolis company found that 24 percent of workers were loyal.\nBut the Walker Loyalty Report, slated for release Nov. 21, also found that three in 10 workers are ready to quit their job at any time.\n"At first glance these new loyalty numbers sound good," Chris Woolard, an employee loyalty specialist at Walker, told The Indianapolis Star. "At second glance, it doesn't sound so good. Not many employers would be happy with this."\nThe report found that nearly 70 percent of workers are dissatisfied and feel trapped in their job. And even employees who do decide to stay may not be doing their best work if they're unhappy with their employer and feel trapped, the survey found.\nCreating a work climate where employees feel happy -- and productive -- can save companies money.\nJeff Smulyan, the chairman and chief executive officer of Emmis Communications Corp., said employee devotion is one of his top concerns.\n"The most important thing is to know if you want people to go through walls for you, you have to show them you'll go through more walls for them," Smulyan said. "Create a culture where people know they will be treated fairly and want to stay."\nHis company and many others try to create an environment that helps employees balance their personal and work lives, values employee input and lets them know their contributions matter.\nSome companies offer flexible schedules that permit employees to arrive at work early on some days in order to leave early enough to attend a child's sporting event or take care of other needs.\nIndianapolis-based WellPoint Inc., the nation's largest health insurer, recently relaxed its dress code to allow business casual attire five days a week because employees expressed a strong desire for the change in an annual survey.\nBut at some companies, such approaches either aren't working or are nonexistent.\nOne of the top drivers of employee loyalty, according to the Walker study, is workers believing what they do matters to the company. Other factors include the company having a good reputation and a workplace where development and training are encouraged.\nTurnover is a costly part of running a business.\nExperts say the average cost of replacing an employee is 1.5 times the worker's salary.\nFor example, a hospital with 84 nurses leaving each year, at an average replacement cost of $58,500 each, would lose $4.9 million a year, or more than $18,000 each workday.\n"When it comes to loyalty from an expense standpoint, you're lowering your cost," said Dave Hickman with Hire Pursuit, an Indianapolis consulting and recruitment firm.