#8: True Gains (not Loyalty Taxes)

Last week, the FT published an article that flexible WFH arrangements are costing companies loyalty. It says that attachment to an organisation diminishes employee loyalty as businesses are now competing with time spent with family and friends.

Should an organisation be perturbed by this displaced loyalty, it may have unhealthy boundaries and suffer from loyalty taxes.

What are Loyalty Taxes?

Here is a short list of outcomes of what loyalty has bred for us through the decades. What I call the Loyalty Taxes:

1. Employees toeing the corporate line and accepting "how things are done here". Don't speak up, don't question/risk questioning. Keep your head down.
2. Whistleblower policies that lack teeth. Likewise with employment law in some countries and the debate over minimum wage.
3. Workplace bullying, assault & harassment that stretch up the chain of command. Toxic workplaces.
4. Ill-managed corporate wealth and pension funds
5. Inappropriate & mishandling of complaints internally and publicly.
6. Corporate insurance on the rise.
7. Endless hours of sexual, discrimination et al training for little effect. Honestly.
8. Corporate, religious & political scandals robbing our headlines: corrupt, sexist, harassment, assault, racist, discrimination, pollution, supply chain slavery and other dubious double standards.
9. Public reports on decades of such practices with current CEOs apologising for past & current behaviours.

The writer of the FT article isn't wrong. Loyalty has dipped. Given these results, what motivation is there for an employee to remain loyal to a business that's not consistent with the values that they are professing? The ones we see touted on their websites and in recruitment postings.

What's the alternative?

Organisations must focus on creating a greater sense of belonging instead. Employees want to feel that they are connected and as close to the source as possible. The drivers for belonging are the values & standards that produce your organisational culture and behaviour. Goodbye subvert culture.

What your employees care about is feeling a sense of belonging, being able to contribute to something that's significant and getting appreciated for their contributions to the business. Contrary to popular belief, this is not limited to the Millenials and the generations after. They are prepared to leave if they sense that there is a gap in any of those levels. Most are weary-thin from the constant reports on Loyalty Taxes.

Let's start over!

Healthy boundaries create stronger belonging. True Gains are made in your business as healthy boundaries result in:

i) People speaking up when things are not right or in alignment (without fearing blowback). Deletes the need for a toothless whistleblower policy.

ii) Responsibilities and priorities are clear & clarified.

iii) Sick days & mental health days are encouraged, not the exception. Workplace issues and challenges are dealt with in a manner that's fitting.

iv) Team players say No too!

iv) Functioning autonomy helps them get their jobs done. After all, you have hired smart, neurally diverse people.

v) Help is sought and readily supported.

vi) DEI policies are transparent and effective. Hiring & talent management practices are in alignment.

vii) Employees are happy to seek external opportunities for their growth knowing that when the opportunity is right, they will come back to work with you again.

Imagine this:

Let's flirt with this idea where, in the near future, a business releases NFTs tied to its stock prices (i.e. quarterly and annual performances) AND welded with corporate responsibility, an index that determines your ranking in matters of climate change, social responsibility, DEI and overall moral accountability. What would it mean for your business? Read more here.

#corporateresponsibility #millenials #benefits #belonging #onepercentbetter #everyday #leadership #healthyboundaries