Loyal is as Loyal Does (Part 1)

Generously contributed by Koh Ching Hong, Chew Boon Hee & Michael Yin

A regular reader of this blog initiated this post. He has been thinking deeply and appreciating the value of loyalty from various perspectives and approaches. So, I interviewed three managers from around the region and they generously shared their tacit wisdom and experiences. I hope that this will serve you well. The interviewees comprised one general manager, a C-level manager and one business-owner. They are based over Singapore, China and Vietnam.

Mention loyalty these days, and employees may scoff at it. Some claim that it is dead. What is this value called loyalty? Does your staff expect loyalty after they have served a few years in the company?  As a leader, how would you show loyalty to your staff?

If staff value loyalty less these days, then which value would you promote instead at your workplace? Why is this value so elusive?

EV: What is loyalty?

CBH: Loyalty is, being faithful towards a cause. Loyalty also means devotion, dependence, and honest to one person or thing.

EV: Now, what do you think about LOYALTY?

CBH: Same as above; maybe, literally have one woman for life and staying in one job for life, maybe be a true friend, whatever the outcome.

MY: Loyalty is very important to a company. If we don't have loyal employees, then our business won't be stable, operations will be affected, core competencies and expertise won't be built!

EV: What do staff think about loyalty today?

KCH: Question we ask – how do we define loyalty? Is loyalty and security the same? Being loyal – therefore means having job security? Question we also ask – being loyal to a company? Being loyal to a team? Being loyal to a boss? I have known of people who will leave the company when their boss or team leaves – but I also know that people will stay on, being loyal to the company. Loyalty has to be built with trust over time – for both companies and leaders.
Staff, in difficult economic climate – are loyal to companies (more because of job and financial security); whilst in boom-time, more staff will trade that loyalty for better jobs, pay, or work environment.  

CBH: WIIFM (What’s in it for me)! And this cuts both ways - person to company, and company to person.

KCH: I would rather talk about engaged staff rather than loyal staff.  A loyal staff can produce X amount of work, whilst an engaged staff tends to produce X-plus amount of work.

 MY: The first issue of loyalty is retention-rate of employees. It's a huge cost to a company. Then, if employees don't quit, but stay in the company without loyalty, it could be another big problem. They may misuse work-time, steal company information and business information, and even do some unethical things for their own interest.

EV: Is the practice of loyalty vastly different in Third World countries compared to developed nations?

KCH: Probably – Japan and Korea tend to have a cradle-to-grave work ethos. China and Taiwan used to have that, too – and many traditional companies tend to be like that, too. Western, developed countries tend to be different.

CBH: In the context of the business world, my opinion is that developed countries are very capitalistic. That is, I sell my time for money. The company uses me for as long they need me! In the Third World, the behaviors of people are as capitalistic. There is a lot of emotional attachment to a leader/company and hence the loyalty to remain.

MY: So, loyalty is very important to the company. However, to employees they don't even think about loyalty. We just know only Japanese are very loyal to their company, and feel ashamed if they "betray" their employers. But this is not the case in China. Chinese may be loyal to their family, but not to others; not to mention companies.