PayScale Releases New Study Assessing Employee Loyalty

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Report highlights the impacts that Geography, Age, and Mergers & Acquisitions have on employee loyalty.

PayScale, Inc. today released the special report “Companies with the Most & Least Loyal Employees.” PayScale utilized data collected from employees who have worked at a Fortune 500 company over the last year (July 1, 2012 to July 1, 2013), which resulted in a sample size of 250,000 profiles.

The report includes the following data for Fortune 500 companies:

  •     Median Employee Age
  •     Median Tenure with Employer
  •     Median Pay of Employees
  •     Percentage of Employees with Low Stress
  •     Percentage of Employees with High Satisfaction
  •     Industry

“As the economy continues to improve, jobs will become more plentiful,” said Katie Bardaro, lead economist for PayScale. “This creates options for people with in-demand skills, and the chance that top performers will jump ship increases. In this environment, companies will need to evaluate what causes employees to leave and improve these areas, such as pay, work environment, vacation policies, etc., before loyalty reduces further.”

Highlights from the PayScale report on the Companies with the Most & Least Loyal Employees include:

Location and History - Many of the companies with the longest median employee tenure are those based in a non-major metro area (e.g., Aleris Rolled Products), those with a long history (e.g., GM) or those that are a combination of both (e.g., Kodak).

Mergers & Acquisitions - Some of the companies with long median employee tenure have experienced several mergers and carried workers over from each (e.g., Aleris Rolled Products and United Continental Holdings)

Manufacturing Makes Loyalty - Manufacturing firms dominate the list of companies with the most loyal workers, with an average tenure of nine years.

Loyalty Does Not Always Equal Job Satisfaction - Only 45 percent of Kodak employees report high job satisfaction, but the median tenure at this company is 20 years. In comparison, the median tenure at AFLAC is one year, but 70 percent of its workforce reports high job satisfaction.

Tenure Track? - The industry with the shortest median employee tenure is Retail Trade (2.8 years), while the industry with the longest median employee tenure is Transportation and Warehousing (5.6 years).

Adds Bardaro: “Overall, employee loyalty is not what it used to be. Numerous studies have put employee loyalty to companies at an all-time low and we see this in our data. Less than 10 firms on the list have employees with tenure of 10 years or more. The typical tenure across the list of firms is less than four years. Many reasons are cited for this declining loyalty; among them, layoffs during the recession of long-term employees, limited opportunities for advancement, reduced benefits, differences in expectations from Gen Y workers compared to earlier generations, and companies treating workers as short-term resources rather than long-term investments.”

About PayScale

Creator of the largest database of individual compensation profiles in the world, PayScale, Inc. provides an immediate and precise snapshot of current market salaries to employees and employers through its online tools and software. PayScale's products are powered by innovative search and query algorithms that dynamically acquire, analyze and aggregate compensation information for millions of individuals in real time. Publisher of the quarterly PayScale Index™, PayScale's subscription software products for employers include PayScale MarketRate™ and PayScale Insight™. Among PayScale's 2,500 corporate customers are organizations small and large across industries including Mozilla, Tully’s Coffee, Clemson University and the United States Postal Service. For more information, visit

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