My first declared major in college and loyalty to a prospective career was accounting. I had visions of being a CPA. That was so until I took my first and only cost accounting class. Shortly after completing cost accounting with a less than acceptable, yet passing, grade, I was no longer loyal to accounting; I became a finance major.
I remember plenty of accounting—debits, credits, journal entries, accounts receivable, and equity, but I am no accountant. Thank goodness for QuickBooks Pro; it makes me feel like I understand accounting these days.
Another term from accounting that I remember well is “goodwill.” Memory tells me that goodwill is a company’s intangible assets; the positive value of its reputation, brand, and or services to its loyal customers. If a company was ever sold to another entity, the new entity had to pay for this estimated goodwill. According to businessdictionary.com, goodwill is the “assumed value of the attractive force that generates sales revenue in a business, and adds value to its assets…It is built painstakingly over the years…Goodwill includes the worth of corporate identity, and is enhanced by corporate image and proper location. Its value is not recognized in account books but is realized when the business is sold.”*
My question today is, why doesn’t goodwill take into account an organization’s reputation and services to its loyal employees?
As companies have struggled to survive in recent years, as they’ve cut costs, limited wage increases, downsized, reorganized, put in place hiring freezes, etc. there has been a hit to employee loyalty, and, in turn, goodwill (especially in the eyes of employees). When employees bust their humps on the company’s behalf everyday—to make and provide the best products and services possible—it’s only natural that they expect some things in return. Respect. Appreciation. Positive validation. Loyalty.
For the employees who have been loyal to stick with your organization through these recent lean years, to show your loyalty to them and build back your employee goodwill, you will need to find creative ways to let them know you care about and are loyal to them. If not, they may take their hardworking and productive selves to another employer.
If this topic is of interest to you, join me at my free It Takes Two to Tango When It Comes to Employee Loyalty Webinar on Wednesday, November 6, 2013 at 1:30 PM.
Space is limited. Click to register today… https://employeeloyalty.eventbrite.com.