Your Employees Can Be Your Greatest Asset
Loyal employees are a major asset to your business for several reasons. Receiving a paycheck does not automatically make employees loyal. Their work must fulfill a sense of purpose and they need to work for a business that is committed to their growth and development.
So, why is employee loyalty so important?
1. Productivity in the workplace
According to data from 30 case studies in 11 research papers on the costs of employee turnover, when an employee leaves, it’ll cost your business at least 20% of their salary. These costs reflect the loss of productivity from the departure; the cost of finding a replacement; and reduced productivity whilst new employees get up to speed.
On the other hand, loyal employees are productive employees. Those employees who have a connection to their work and desire for the business to succeed will naturally be more productive than employees that do not obtain these qualities. This can include: better problem solving, higher concentration levels and higher quality outputs.
2. Customers’ experience will be sound
Happy employees are the key in creating happy customers. No matter if you’re running a service or goods-based business, if your employees are happy and passionate about their work, it will resonate with the customer. They will often receive a higher quality service and a more engaging, positive experience.
3. Improves the business image
A loyal employee is an advocate for your business. Think of a friend that loves their job and workplace; it sounds like an amazing business doesn’t it? By that employee sharing their positive experiences with their network, it is like giving a 5-star review without intending to. You never know, one of your employee’s friends could be your next customer.
So, how do you boost employee loyalty?
1. Training and development
Employees grow or they go, that is why it is paramount that workplaces create opportunities for growth, training and development. Individuals like the feeling of working toward something and they want to know the business is helping them achieve their goals.
It is important that you sit down with each employee to determine their professional goals and desires. From here, develop a plan to help them get there and implement coaching and mentorship where needed.
“Train people well enough so they can leave, treat them well enough so they don’t want to”. – Richard Branson
2. Reward good work and behaviour
The recognition of employees has been shown to increase engagement by as much as 60% and reduce voluntary turnover by 31%. Therefore, employees who are recognised for their efforts are more likely to be committed to the success of your business and will stay in their job for longer.
An employee recognition program is a great way to define what work should be rewarded, how you will reward the employee and who monitors the program.
- Start by defining the objectives of the program and the criteria to follow. This will ensure you are rewarding employees consistently and for work that you as a business have defined as exceptional.
- Choose what rewards to issue and how to issue them. The answers to these questions will determine your budget for the program and the various option to go for.
- Trial the program on employees and get their feedback.
- Monitor the program and revisit and revise as necessary.
3. Schedule regular check-ins & get to know your employees
It’s important to foster relationships with your employees. Show them you care about their professional aspirations and make it evident that you want the best for them. Through regular check-ins and getting to know them on a personal level, it will show them that they are a valued member of the business. That you and the organisation are loyal to them.
4. Create a good workplace culture
Creating a good workplace culture is paramount in retaining staff. Good corporate culture boosts engagement and morale amongst your employees which in turn leads to better work performance, productivity and results. It also encourages social interaction, teamwork and open communication which increases overall job satisfaction.
Sound culture begins at the top. The business’s values, attitudes, beliefs and overall unwritten rules are demonstrated through the behaviours of its employees. People will naturally follow and look up to those in a position of authority. Therefore, business owners and managerial staff must lead by example.
By adopting the above points in your business, you will build a group of employees who are loyal to you and the company. In doing this, your business will reap the benefits. So, what are you waiting for? Implement these practises today!