What is Employee loyalty? Why Employees Loyalty to the Employer is fading into the past ?

What is Employee loyalty?

Employees are considered the core of an organization and the success or failure of the organization is attributed to the performance of the employees. It is of prime importance that the employees must be loyal to the organization and don’t actively search for other alternative opportunities.

Loyalty, as a general term can be defined as a person's devotion or sentiment of attachment to a particular organization. In recent times, employees are provided with many employment opportunities which attracts them to shift jobs often. However, from the organization’s point of view, there is a loss incurred as the organization has spent resources on the employees to make them more competent so that the organizational performance is enhanced thus leading to a better gross output.

Why Employees Loyalty to the Employer is fading into the past:

It was a very old fashion of retiring after 45 years with one company, taking home a Pension, Gratuity and a Gold watch, is fading into the past. For many reasons, more Indians are changing jobs several times throughout their careers these days.

Now-a-days, employees may find it too expensive to be committed to one Employer for years on end. Raises have been hovering around 3% on average, leading some employees to jump to a new job for a more significant pay increase. Staying at the same place over the long haul can cost workers loss of new opportunities and huge money with no real reward in terms of job security.

It can be difficult to determine the number of times people should change jobs throughout their working lives, due in part that there is no current consensus on what is considered a career change. For some, an internal transfer or a promotion may be considered a change, while others only consider it a job change if there is a jump to a new company with different salary.

Not only is the definition of a Job change in and of itself complicated, but even seemingly minute details like the duration of time a person must stay in a role for it to be considered a career are up for debate.