“More with less” comes at a price

The other shoe is about to drop for businesses that cut their work forces deeply and ran very lean over the last three years:  In a new survey from Metlife just 47 percent of workers feel strong loyalty for their employer, down from 59 percent three years ago.

Employers and workers need to trust each other. If a business cuts deeply to stave off bankruptcy, workers might understand the sacrifices they are making. But if those businesses are enjoying terrific profits right now while the work force runs very light, there might be a trust issue developing. Either way, businesses are at risk of losing some of the top performers.

“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. “There is no doubt that the rebounding economy will bring more opportunities for employees, especially the high performers. A well-architected benefits offering will play an increasingly important role in retaining employees and positioning organizations for future growth.”