Compass needles come in all different grades and will have a bearing on how they perform in the field. Most basic needles like the one in the Blue Compass use magnetised steel mounted on a bearing. They are accurate when held still, but can take a few moments to settle and will definitely become inaccurate if used to walk on a bearing over a long distance.
The Silva NOR (Red Yellow) needle is a lighter plastic needle with a magnet mounted to it, making it faster to settle and more accurate when walking on a bearing. However the most stable needle is the Silva JET. The Silva JET needle ( Orange and Yellow) is light and uses a high strength magnet that corrects the needle even when you are running full tilt over rough ground and corners.