The ninth annual MetLife Study of Employee Benefits Trends revealed that, despite an improving economic outlook, employee loyalty is on the decline. The study reported that 47 percent of employees polled report a strong loyalty to their employers, down from 59 percent three years ago.
Employers, however, believe their employees have the same loyalty to them today – about half of employers surveyed believe their employees are still loyal. The study was conducted by MetLife Inc. in conjunction with GfK Custom Research North America.
Employers proved during the past year that they were able to do more with less, which led to increases in productivity. It also likely led to decreases in employee loyalty, the study explained. More than one-third of employees polled hope to get another job in the next year. Given the current economic recovery, that hope could become a reality for many employees, leaving companies in the lurch.
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The irony here is the study also found that employers' top three benefit objectives are to 1) control health and welfare benefit costs; 2) retain employees and 3) increase employee productivity. But in boosting productivity and controlling costs, companies are likely to lose on the employee retention side.
"Worker loyalty has been slowly ebbing over the last several years, and it is important that employers take action to turn the tide around. The short-term gains employers realized from greater productivity appear to be short-lived and now pose bottom-line challenges as key talent considers other employment opportunities that have arisen as a result of the improving economy," said Anthony J. Nugent, executive vice president, U.S. Business, MetLife in a press release that discussed the survey results.
The study reported that salary and wages continue to be huge drivers of employee loyalty, but other benefits also drive loyalty. What's interesting here is the disconnect – while 38 percent of employers surveyed believe retirement benefits are important when it comes to loyalty, 64 percent of surveyed employees consider such benefits as important. Furthermore, 37 percent of employers indicated non-medical benefits are important factors in employee loyalty, versus 59 percent of employees who said they were.
For more information, access the study at www.metlife.com/benefitstrends.
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