The long-term success of any company depends on the quality and loyalty of it’s employees. In this fast-paced, rapidly changing business environment in which corporate growth and profitability are critical, companies need to revamp their strategy for finding and retaining the best talent. According to research by Gallup less than 30 percent of employees say they are loyal to their company. Frequent turnover has a negative impact on employee morale, productivity and company revenue. Every time a business loses and replaces a salaried employee, it can costs up to 6 to 9 months’ salary. A lack of loyalty isn’t just employees who are leaving. In many cases, they stay on and show disloyalty through attitudes. In a way, that’s worse than if they left.
Give your Employees reasons to Stay
he reality is that employees are only as loyal to the company as they believe the company is loyal to them. So in the end, building an organization of committed, loyal employees ultimately comes down to demonstrating to employees that the company deserves their loyalty. You need to provide a reason for your employees to be loyal. Employees want challenging work, recognition and respect, opportunities for advancement, professional growth and development, and a flexible work environment. Studies abound that show when your employees are connected and engaged (i.e. loyal), business booms.
Don't just focus on the bottom line. Invest in the people responsible for the bottom line.
There is true profitability involved when you cultivate employee loyalty. At the University of Pennsylvania, researchers discovered that businesses that spent 10% of their revenue on capital improvements saw a 3.9% productivity increase. But get this—when that same 10% was invested in employees, productivity went up 8.5%.
Many managers assume once an employee is receiving a salary they should be loyal. Little do they realize pay is just a satisfier. It is not a motivator. It all comes down to how you treat people. Employees want to be treated like human beings. They have feelings, emotions and personal lives. When an organization treats its employee like an object, they feel disrespected. When, on the other hand, an organization appreciates it employees, shows empathy and is flexible, this will make them think twice about leaving.
Loyalty is a two-way street. It's just like a relationship. For a relationship to last, there must be mutual respect, love, trust, understanding and appreciation. Without these, the foundation is shaky. Loyal employees show up, deliver results and consistently go above and beyond to support the company. In the end, people make companies successful. Any strategy or business plan relies on motivated and engaged people to make it happen! This is why the most successful companies focus on people and relationships, and make sure both are not just managed but lead and cared for. Want Loyal Employees? Treat your people well!