In business, loyalty, and competence are two important traits often sought in employees.  While loyalty and competence have benefits, there is often a debate over which characteristic is more important.  Some argue that loyalty is more important as it fosters a sense of commitment and dedication to the company.  In contrast, others believe that competence should take precedence as it directly impacts the success and productivity of a business.

In this article, I will explore the leadership differences between loyalty and competence, the advantages and disadvantages of each trait, and explain why choosing competence over loyalty is smarter for businesses.

Loyalty vs. Competence: What’s the difference?

Loyalty is a trait that refers to the sense of commitment, faithfulness, and allegiance that an employee has toward their employer.  Loyalty is built through positive company culture, good management, and fair treatment of employees.  Loyalty is often demonstrated through the willingness to go above and beyond for the company, to put in extra effort, and to remain with the company for a more extended period.  Loyalty can also be built on fear, threats, bullying, and reprisals.

On the other hand, competence refers to the ability of an employee to perform their job duties effectively.  Competence is demonstrated through a strong skillset, knowledge, and expertise in their field.  Competence is often achieved through positive support, training, education, and experience.

Advantages of Loyalty in Business

Loyalty has its benefits in business, and many companies strive to cultivate a sense of loyalty among their employees.  Here are some of the advantages of loyalty in business:

• Increased Employee Retention – Loyal employees are more likely to stay with the company for a more extended period.  This reduces the costs of recruiting and training new employees, saving the company time and money.
• Improved company Culture – Employees who feel a sense of loyalty to their company are more likely to work collaboratively with their colleagues and management, creating a positive and productive work environment.
• Higher Employee Morale – When employees feel valued and appreciated by their employer, they are more likely to have a positive attitude towards their work, resulting in higher morale and motivation.
• Increased Productivity – Loyal employees are often more committed to the company and its goals, leading to increased productivity and efficiency in the workplace.

Disadvantages of Loyalty in Business

While loyalty has its advantages, there are also disadvantages to consider.  Here are some of the potential drawbacks of placing too much emphasis on loyalty in business:

• Blind Loyalty – Loyalty can sometimes lead employees to blindly follow the company, even when it may not be in their best interest.  This can result in the employee making poor decisions or compromising their values.
• Complacency – Loyal employees may become complacent in their roles and not feel the need to improve or grow their skills, leading to a lack of innovation and stagnation within the company.
• Resistance to Change – Loyal employees may resist change, hindering the company’s ability to adapt and evolve in a rapidly changing business environment.
• Mediocrity – Focusing too much on loyalty can lead to a culture of mediocrity, where employees are not encouraged to strive for excellence and settle for the status quo.
• Standards – The presence of complacency leads to a lack of accountability and an erosion of ethical standards.  This may be the most robust case against promoting loyalty, at all costs. 

Advantages of Competence in Business

Competence is a valuable trait in business; hiring competent employees can positively impact a company’s success.  Here are some of the advantages of competence in business:

• Increased Efficiency – Competent employees can complete tasks more efficiently and effectively, leading to increased productivity and cost savings for the company.
• Innovation and Creativity – Competent employees are often more innovative and creative in their work, leading to new ideas and processes that can help the company to grow and evolve.

CONCLUSION

While loyalty can be a valuable trait in business, there are several compelling reasons why competence should be prioritized over loyalty.  Here are some of the strongest arguments for choosing competence over loyalty in business:

• Competence Drives Results – The primary goal of any business is to achieve results, whether it be increased revenue, higher profits, or greater market share.  Competent employees are more likely to drive these results through their expertise, skills, and knowledge.  In contrast, loyal employees may be committed to the company but lack the necessary skills and experience to contribute to the company’s success.  Ultimately, competence drives results and helps a business achieve its goals.
• Competence Promotes Innovation – Innovation is essential to the success of any business, as it enables the company to adapt to changing market conditions and stay ahead of the competition.  Competent employees are more likely to bring new ideas and perspectives, promoting innovation within the company.  Loyalty, on the other hand, may lead to complacency and resistance to change, hindering the company’s ability to innovate and evolve.
• Competence Enhances Customer Satisfaction – Customer satisfaction is critical to any successful business, as it leads to repeat business, positive word-of-mouth referrals, and a strong reputation.  Competent employees are better equipped to provide high-quality products and services that meet or exceed customer expectations, leading to greater customer satisfaction.  In contrast, loyal employees who lack the necessary skills and knowledge may struggle to deliver the same level of quality, potentially damaging the company’s reputation and customer base.
• Competence Improves Employee Morale – While loyalty can contribute to employee morale, competence is essential for creating a positive and productive work environment.  Competent employees are more likely to feel confident and empowered, increasing job satisfaction and motivation.  Additionally, competent employees are often more likely to receive recognition and growth opportunities, further enhancing their morale and commitment to the company.
• Competence Fosters a Culture of Excellence – Finally, choosing competence over loyalty can help to foster a culture of excellence within the company.  When competence is prioritized, employees are encouraged to strive for excellence and continuously improve their skills and knowledge.  This creates a company culture that values innovation, growth, and success, which can attract top talent and position the company as a leader in its industry.

In conclusion, while loyalty is a valuable trait in business, it should not be prioritized at the expense of competence. Businesses can position themselves for long-term success and growth by choosing competence over loyalty. Competent employees are essential for driving results, promoting innovation, enhancing customer satisfaction, improving employee morale, and fostering a culture of excellence.

In an ideal world, you want a loyal and competent staff.  However, when push comes to shove, you have to go with competence.