Skip to content
Join our Newsletter

Downturn hurting employee loyalty, according to Ipsos Reid survey

Companies cutting staff or freezing salaries during the recession are eroding staff loyalty, according to results of an Ipsos Reid survey released Tuesday.

Companies cutting staff or freezing salaries during the recession are eroding staff loyalty, according to results of an Ipsos Reid survey released Tuesday.

The survey found in organizations where staff cuts were made, 36% of employees felt less loyal. About 31% felt less loyal if their employer had frozen salaries.

That compares with the general average of 22% of Canadian employees who have less loyalty to their employers.

"Loyalty to one's employer is very dependent on recognition," said JB Aloy, the author of the Ipsos study. "Staff who feel their involvement is not acknowledged are more likely to become disloyal."

The results are not just among blue-collar workers. A quarter of executives and managers also said their loyalty was decreasing. Across industry sectors, employees in manufacturing and financial services had particularly negative results.

The study suggested employers should take action now to hold on to their key performers until economic conditions improve. Aloy said employers should realize is that loyalty is earned.

"An organization's leadership can't just simply expect loyalty."