Loyalty Paying Off For Some, Survey Shows

Compiled ByJill Jusko Employees who stayed put during the recent job shortages may be reaping the reward of greater job security today, as the number of short-tenured managers losing their jobs rose by 50% in 2001, says international outplacement firm Challenger, Gray & Christmas Inc. The average tenure among the discharged fell to a record low of 4.8 years in 2001, according to the outplacement firm's Job Market Index. Until 2001 the average tenure of discharged managers was 8.5 years. "We may be witnessing a new type of recession -- a New Economy recession -- in which productivity actually increases and competition for customers remains intense. As a result, companies that want to survive must retain their best employees, and that often means the most experienced," says Challenger CEO John A. Challenger. On average in 2001, 26% of those discharged were employed fewer than 24 months, the index indicates. That is 50% higher than the previous record of 17% set in 2000 and significantly higher than any other year tracked by the Challenger firm since 1986.