CHICAGO—Credit unions like to embrace the idea of loyalty, believing both members and employees are loyal to their organizations. But there are some “painful” truths about employee loyalty that need to be confronted, according to one person.
Writing on Inc.com, Peter Gasca, an entrepreneur, author and consultant, said advancing technologies, evolving industries and changing expectations have meant the skills of the past are needed less and less every day.
“Moreover, we see skills learned today becoming obsolete in a few years, creating a need for employees to "upskill" just to stay relevant,” observed Gasca. “Changing jobs and careers these days is not only expected, it is needed.”
Financial Incentives
And it may not be that employees aren’t loyal to the credit union as it is they simply have a financial incentive to switch jobs, according to Gasca, who cited a study released by The Federal Reserve Bank of Atlanta’s Wage Growth Tracker that showed that income increased 4.5% for job switchers compared to those who remained in their position. A separate study by ADP also showed a 5.3% increase in compensation for job-switchers compared to 4% for those who stayed with their company.
“This is important for a couple of reasons,” said Gasca. “First, as more Millennials and Z Generation workers enter the workforce, companies need to curb the expectation that they will stay in their jobs. While employers can still expect to find loyal employees, they will have to work harder to create and maintain loyalty.
Greener Pastures
“And while this focus clearly assumes an increase in time and cost, managers can rest assured knowing that the cost to retain employees is less than the cost of employee turnover,” continued Gasca. “Second, as larger companies more aggressively position themselves to attract top talent, smaller business will suffer. It is already difficult and expensive to start and grow a business, and having to worry about employees leaving at the first sign of greener pastures will be a lingering struggle and anxiety for entrepreneurs.”
Finally, Gasca observed, “The good news is that every generation before us has managed to survive, adapt and do better than the previous. Like or hate job-switchers and career-changers, companies and entrepreneurs need to embrace this new norm -- and perhaps learn from and adopt some of the same practices.”