What does "company loyalty" mean to the new workforce?

Harvard Business School's publication Working Knowledge examines the meaning of "company loyalty", a concept that many feel went out the window at the end of the 20th century:

The very nature of the relationship between employers and employees has undergone a fundamental shift: Today, workers not only don't expect to work for decades on end for the same company, but they don't want to. They are largely disillusioned with the very idea of loyalty to organizations. But, at the same time, they don't really want to shift employers every two to three years for their entire careers. Similarly, companies would grind to a halt if they had to replace large portions of the workforce on a similar schedule.

So where does this leave us? Is there a way for both employers and employees to strike a brand-new balance when it comes to loyalty—one that gives organizations the focus and expertise they need to compete and employees the career development opportunities they demand?

These are exactly the right questions, and they are addressed via a proposed new paradigm for loyalty on both sides of the employment equation: 1) Align career growth with company goals; 2) Design work with variety and autonomy; 3) Focus on relationships; and 4) Highlight the link between employees' values and the company mission.

The workforce philosophy underlying this perceptive article is very similar to the core concepts of New Equities. On the one hand, we are managing a workforce of consultants, who by their nature are independent-minded people who think in terms of their own career path rather than any one employer. Given that New Equities is in the business of placing consultants on projects that have built-in end dates, what is the rationale for loyalty beyond the end of any one project?

This is not a casual question. Our mission is to build a strong talent pool with skills that match the needs of our clients. To earn the loyalty of the consultants who work for us, and will be there to work for us project after project, we have to do more than call when we need them for a specific contract. We have to take the time to know them as professionals and understand their career goals, so we can seek out assignments that play to core strengths and also move the consultant's career forward.

To accomplish this, we have chosen to turn the traditional client-centric approach on its head and instead focus on being consultant-centric. It's important to understand how consultants want to develop as professionals, what kind of work environment or management style they prefer, and what kind of role they play most effectively. For example, some people thrive when they can take a leadership role in a project, others prefer to work as team contributors. Getting all that right is key to helping consultants connect with the work they love to do, which in turn means top quality service to our clients.

Another aspect of loyalty is the confidence of being able to keep working. In the traditional staffing model, consultants roll off one project and if nothing else is available, they are on their own. In the New Equities model, our Community Agents work hard to start looking for the next assignment several weeks before the end of the current one. We frequently go out to our own community to market individual consultants and make connections that could lead to the next project.

Most importantly, we believe in playing it straight with the consultants in our extended workforce. Our business transaction is an open book - we disclose how much we are billing client companies, how much we are paying the consultant, and what our costs are for benefits, taxes and overhead. We also disclose our profit margin. Both the consultants and hiring managers know exactly where every dollar goes.

That openness, combined with our consultant-centric approach, doesn't guarantee loyalty - but it sends a clear message that we are serious about maintaining a long-term relationship with the people who work for us. We want to deliver by keeping them working on interesting, challenging projects that not only take full advantage of their skills but map to their preferred work style and support their long-term goals for professional growth. If we get this aspect of it right, we will demonstrate that our business goals of providing top talent to our clients, and the career goals of the consultants in our community are in alignment - in essence, that it's a win-win-win for all parties involved. Loyalty comes a lot easier when you as a consultant have the genuine conviction that you are working with people who put your priorities first.