Metlife study reveals decline in employee loyalty to small businesses

Monday, 01 August 2011 16:00

News - Employee Wellness

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A recent study by Metlife investigated employee loyalty in businesses with under 500 employees. Comparing the 2007 and 2010 business years, the percentage of organizations offering employee health benefits like medical, dental and disability coverage was almost the same. In fact, the percentages were the same for prescription drug and disability benefits, and dropped less than 3 percent for medical and dental coverage.

Despite this, overall employee loyalty seems to have dropped. While 72 percent of employees satisfied with their benefits reported feeling loyal to their employer, only 44 percent of total employees surveyed said they felt strong loyalty. In 2008, the percentage of the total was 62, almost 20 percent higher.

Many employees from the baby-boomer generation have significant financial concerns, with only 16 percent feeling that they are on the path to a financially stable retirement. Many are worried about outliving their savings, while others expect to work part- or full-time instead of retiring completely.

Employers may be able to increase employee loyalty and productivity by helping alleviate stress that these employees feel due to financial concerns about their future. Many employees reported interest in education that could help their financial and retirement planning. Supports like financial assistance and employee wellness programs may reduce stress, increase loyalty and aid employee retention.