India Employer Forum

World of Work

How Employee Loyalty Can Have Negative Effects On Organization’s Culture

  • By: India Employer Forum
  • Date: 05 February 2020

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While it might appear to be a virtue, employee loyalty is a tendency that can have undesirable implications for organizations. It can have a negative impact on workplace ethics as it often makes followers as well as leaders to ignore flaws and rationalize toxic behavior. This tendency, can not only have adverse effects on the organizational culture but can also reduce employee engagement, drastically.

While loyalty is a way in which people identify with a peer group and confirm to authority, studies show that being in a group also makes people less likely to help a victim. They are more likely to give into social pressure than to help someone who has faced discrimination or unfair treatment of any kind. Extreme employee loyalty towards a supervisor or even the organization can often make employees resort to unfair practices as a demonstration of their loyal behavior.

It is important for organizations and managers to explicitly state that irrespective of the context, certain behaviors are not acceptable like fudging data, threatening people etc. Such behaviors, if displayed, must be questioned as it can lead to bigger malpractices in the future. Employee loyalty must not be the reason for not reporting misconduct. When employees have a very high level of loyalty towards the organization, they tend to turn a blind eye to uncomfortable truths. However, it can often lead to dissent in the organization especially when a larger section of employees can sense a lack of fairness. Even the best employee engagement initiatives will not work if the organization is perceived to be unfair.

You might also be interested to read: Managing Employee Recognition Programs

Fairness must be prioritized over employee loyalty to ensure promotion of fair and principled practices in organizations. This can be encouraged with simple practices like assessing fairness and employee engagement levels through employee questionnaires. Also, a secure digital space can be incorporated to help employees report workplace wrongdoing without jeopardizing their position. The significance of fair practices must be inculcated in all managers and supervisors. They must encourage all team members and colleagues to speak up openly in case of any misdemeanors. Unacceptable behaviors must be clearly defined and considered objectionable irrespective of the context or the individual involved.

A fair workplace must make their expectation and evaluation criteria known to everyone in the organization. Having common rules and being transparent about them is a must to promote fairness in the organization especially in relation to promotions, appraisals, disciplinary actions etc. Each employee must be given an equal chance to be heard and to express their grievances which must then be addressed fairly. Due credit must be given to employees for their ideas. When someone else is given credit for ideas due to the employee loyalty, the flow of creativity in the organization reduces and dissent among quality talent increases.

You might also be interested to read: 5 KPIs To Measure Employee Experience Effectively

It is the responsibility of the managers and top leaders to promote fairness over employee loyalty. They must acknowledge employees for their ideas and principles and make sure that employee satisfaction arises from performance linked incentives and not from undeserved favors. If it is not prioritized by leaders at the top, it cannot be cultivated in the organizational culture. Good leaders must strive to inspire principled behavior and not loyalty in order to ensure a positive work culture.

References:

  • Too much loyalty does neither the company nor the employee much good- Alicia Clegg, 08 August, 2019
  • Loyalty Isn’t A Virtue, It’s The Enemy of Workplace Ethics- Rob Asghar, 03 July 2018
  • 6 Ways To tell If Your Workplace Is Fair- Gwen Moran, 09 April, 2014

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