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Company Loyalty and What It’s Worth by Szymon Janiak

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The post was originally published in Polish on Szymon’s LinkedIn profile. Szymon kindly agreed to republish what we think is of great value to our readers.

Loyalty to the company is often just a cheap slogan for keeping people without raises in the same position for years.

Companies love to talk about loyalty. They often emphasize it as a key value. They claim that they ‘count on long-term cooperation,’ that they ‘value people who stay with them for years,’ that ‘good employees are appreciated.’ The problem is that it is extremely one-sided. In some cases, it’s even just an excuse to keep costs in check. For example:

  • When a company has financial problems, it reduces expenses–layoffs ‘for business reasons’ are common, and employees are a significant cost. 
  • When a new, effective and cost-effective employee turns up–loyalty doesn’t matter anymore. Because suddenly it turns out that you can easily be replaced.
  • When you want a raise–loyalty only works to your disadvantage. Because if you have been loyal to the company for so many years, ‘you will probably stay without a raise for some time.’

Szymon Janiak, Co-Founder and Managing Partner at Czysta3.VC

Over the years, I’ve observed situations where loyal, conscientious employees have been left out in the cold. For example, the manager has been working in the company for 5 years, regularly delivering great results. They never changed their job, they were ‘faithful to the organization’ and regarded it as a place where they wanted to build their future. One day they got a phone call:

‘We have to thank several people, the situation is difficult. You know we value you, but… The market needs cuts. It’s nothing personal. We will write up good references for you.’

And a few weeks later, they were replaced with a less experienced person, and… for a lower salary. This turned out to be more important. There are plenty of such stories.

Outtakes:

  • Loyalty to people makes sense. If you have people in your work with whom you have built relationships over the years and you have a perspective for development, it is worth sticking to them. If it’s nothing more than an impersonal organization, it doesn’t make sense.
  • If you work well but don’t look out for your own interests, you’ll be left behind.
  • Loyalty is only valuable if it works both ways, and in most companies it doesn’t.
  • Instead of being ‘faithful,’ it is worth regularly checking your value on the market and taking care of your own professional position.

Of course, it’s not about becoming a jumping jack and changing jobs every now and then. It’s rather about not getting attached to a company that treats you only as a ‘cost’ in Excel.

Don’t get caught in the trap of ‘lifetime gratitude.’ Work where you are valued, not where they expect you to sacrifice endlessly.

The comment section had to add:

It’s the same slogan as the one saying ‘we are all one big family here,’ isn’t it?

Maciej Kosela, Chairperson of the Board of the Forum Association of Real Estate Management Companies

Disloyal companies shouldn’t be surprised when employees also happen to repay them in the same way.

Radoslaw Kraszewski, Sales Manager Eastern Europe & Nordics at Fissler

This makes sense, but on the other hand, the same applies to the behavior of employees, especially the young ones. It is often the case that they get trained after their graduation by company X for 2-3 years. Of course, during this time their efficiency is not ideal, and then, after gaining experience, they leave for company Y for a bigger buck or better benefits. As always, work is a business for both parties, and the employer here isn’t always the bad guy, although this is often the case.

Robert Parowski, Owner at iToolManagement

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