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COMPANY LOYALTY NEAR-DEAD, SAID "INDUSTRY WEEK" MAGAZINE

 CLEVELAND, Feb. 26 /PRNewswire/ -- Anger, frustration and resentment have replaced loyalty in American industry, said "Industry Week" (IW) magazine in its March 1 issue. Regardless of the methods tried by management -- participative management, employee involvement, empowerment -- IW readers in a magazine survey suggest there will be a continuing decline in loyalty between companies and their employees.
 More than 96 percent of 2,185 respondents to the survey consider loyalty an "important factor" in a company's success or failure, yet an overwhelming number no longer think there is such an implicit or explicit social contract between themselves and their employers. Asked if there is more or less loyalty between companies and employees than five years ago, 87.3 percent of IW readers say there is less, and only 12 percent say there is more. Two years ago, a slightly smaller percentage -- 86.7 percent -- thought there was less loyalty than five years earlier.
 Almost to a person, surveyed readers think loyalty is earned through mutual respect. "Employees are neither blind nor stupid," said one reader. "Loyalty is a two-way street. Where is our company's loyalty to our people and their products? What should we feel when we bear the burdens of another cost-reduction program?" asked another reader. "When the executive suite doubles the workload but does not add to the staff, it's hard to remain loyal."
 Readers think company loyalty to them has declined, yet ironically, their own loyalty to their companies hasn't fallen as much. Nearly 77 percent said their company is less loyal to them today, and only 21 percent think their company is more loyal now than five years ago. When the question is reversed -- are you more loyal or less loyal to your company than five years ago? -- 60 percent admit they are less loyal today, while 35 percent said their loyalty has increased since 1988.
 "Employees are less loyal today because companies are showing less regard for their experience and loyalty. Companies would rather have new, cheap blood than older, more highly paid employees," said one reader.
 In the survey, IW asked respondents to rank six factors that foster loyalty in order of importance. Recognition for a job well done is most mentioned (by 79.5 percent) as either the first or second most important means of fostering loyalty. Challenging work was the second major reason -- mentioned by 52.2 percent of readers as either a first or second choice -- followed by increased pay (19.6 percent), promotions (18.1 percent), a dynamic boss (14.9 percent) and years of service (7.5 percent). Readers also added their own personal views of what fosters loyal employees. Honesty, open communications, the chance to be a part of the decision-making process and management vision are some of the most-mentioned ways IW readers suggest to nurture loyalty.
 What, exactly, is loyalty? An overwhelming 98 percent of IW readers define being loyal as supporting company objectives and 91 percent mention hard work as a sign of loyalty. Only 2 percent believe loyalty is shown by "blindly following orders," though one-third still think spending a career with one company shows loyalty.
 Do IW readers ever see loyalty returning? The overwhelming view is summed up by one manager: "Loyalty will return only when management discovers that employees are a valuable resource -- more valuable than capital equipment -- and begin to treat employees accordingly."
 "Industry Week" is the management magazine for industry published by Penton Publishing.
 -0- 2/26/93
 /CONTACT: Chuck Day of Industry Week, 216-696-7000, or 216-521-3861 after hours/


CO: Industry Week ST: Ohio IN: PUB SU:

KK -- CLFNS1 -- 0687 02/26/93 07:30 EST
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Date:Feb 26, 1993
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