Recently there was a post on Linked-In about the concept of employee loyalty and whether the notion is outdated or not. Given the shift towards fewer full-time positions in companies and a growing market of time-defined contract employment, the expectation of company loyalty seems unrealistic and outdated. Still, there is much to be said for efforts toward employee retention in many large companies. Keeping reliable, creative workers engaged, trained, and appreciated makes for a more productive work environment and saves the employer money spent to hire and train new staff. On the other hand, there is a fine balance to be struck.

It’s not always prudent to have a company primarily filled with life time employees. This goes for both employees and employers.  We’ve seen it happen with star players on sports teams, where a change of scenery reinvigorates them. Sometimes people need to move on from a company.  And, like a championship team that includes a diverse blend of cagey veterans and young, talented energetic players, the workforce benefits from this complimentary mix. This kind of diversity can drive innovation which stokes productivity.

Loyalty based on current realities takes on a different context. Becoming less relevant is the traditional definition, which was driven by a sense of life-time security. Layoffs, downsizings, off-shoring, and mergers have shattered this psychological contract.

“Old school” ways are gradually being replaced with a more balanced, mutually beneficial relationship.  Some employers still expect blind loyalty and consider it an affront when employees hedge their occupational bets by continually exploring other opportunities in the job market.

The best employers understand the new paradigm and work hard to connect with employees, not around a nebulous notion of corporate loyalty, but around meaningful work, flexible terms, professional and personal growth opportunities, and consistent expression of appreciation. These are what compose a value proposition for an employee. An employee who is fortunate enough to work for a value-minded employer may still take their skills elsewhere, but are more likely to stay, when their services are valued.

Should employee loyalty be laid to rest? Never! Although the concept itself is changing, loyalty will be attained by companies who understand and fill the needs of their staff consistently.