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.
If companies are going to excel, they need two things: Loyal Employees and Loyal Customers.The link between employee satisfaction and productivity is long-established. Research has found that happy workers are 12% more productive than their less satisfied counterparts. Loyal employees = Loyal customers. Loyal employees are worth more than their weight in gold. They uphold your brand and ensure the sustainability of your business. They go the extra mile. They make it possible for you to win.
Give your Employees reasons to Stay
The 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%.
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.
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!
Check out my latest Bestselling Book.
Leading the Workforce of the Future provides concrete advice and best practices on how to engage and retain top talent. It addresses several areas to focus on to future proof yourself and your business. The future is no longer some far-off destination; it is already here. Don’t be caught off guard!