Loyalty

I read with great interest an article on CNN’s MONEY website, “Keep your job for  five years, get  $50,000”

CNNMONEY NEW YORK (CNNMoney) — One small business owner is putting his money where his mouth is when it comes to valuing his employees.

Dan Schneider, founder and CEO of SIB Development and Consulting in Charleston, S.C., is offering $50,000 bonuses to any of his full-time employees who stay with his company for five years.

“In this day and age, there is nothing that makes people loyal to companies anymore,” said Schneider. However, a $50,000 retention incentive can change that, he said… Read More

via CNN/MONEY.com

Cart. Horse.

The problem was never employees not being loyal to companies, at least not until companies stopped being loyal to their employees first.

Employees used to spend the majority of their working lives with one company. The company rewarded their loyalty with a pension, an annual bonus for the rest of their lives, an amount that was often more than a mere $250,000.

Don’t get me wrong… it is admirable that the company is rewarding loyalty. But there is no reciprocal loyalty agreement, and I guarantee you that the moment money becomes tight, the first to get laid off are those with 24 years and nine months with the company, and the next to go will be those with 4 years, 11 months and 29 days.

“Aww, jeez, you didn’t make it 5 years. Sorry, no bonus.”

How can I be so sure of this? It happened before. Employees approaching pension age were the first to go, cutting the costs of paying the pensions. Breaking that social contract led to disillusionment that is reported as a “lack of loyalty”. Those that do not learn from history yadda yadda yadda.

I would be truly impressed if the company had set aside $250,000 per employee and promised it to any employee it had to lay off, presuming they would have stayed with the company if they had been allowed to.

Cart. Horse.

The order matters.

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