Saturday, July 7, 2012

“Is Loyalty a Liability for Employees?” - Professor M.S.Rao


“Compensation is only one of many factors in the recruitment/retention equation.” - Paul Schwartz


Presently most of the employees are not loyal to their organizations.  They often job hop for better career opportunities elsewhere. Previously employee loyalty was treated as an asset.  Presently employees feel that if they stay for a longer time within the organization they are treated as liability by the employers as employers may perceive that the employees are not getting better opportunities elsewhere.

Attrition is high despite recession currently especially in IT and ITeS sectors. Employees leave companies due to various reasons such as better career opportunities or compensation or promotion or bad bosses or due to various other reasons. Studies show that the employees who stay longer time within the organizations have better chances to reach senior positions quickly.  Hence, loyalty is not a liability but an asset for employees as it pays in tons at the end.  



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