Keeping loyal employees is indispensable in a business environment full of opportunities and uncertainties. Loyal employees can be trustworthy and dependable asset of the organization. An organization having loyal employees can do wonders. Loyal employees can build trusted work environment and vibrant culture in an organization. This can help reduce turnover and employee experience develops the organizational potential for growth. In addition, low turnover reduces hiring cost.
Why employee loyalty is important for the organization
Maintaining employee loyalty has become a challenge for modern organizations. Employee integrity is the most valuable skill which reduces numerous pains of an entrepreneur. Despite taking the pain of hiring replacements, motivating employees to keep with the organization helps gain a competitive advantage. However, if turnover is high it means your organization has been mere a training institute, it depicts that you are training the resource and losing them to your competitors. In this way, you are investing in hiring and training and giving your competitor advantage by providing skilled staff.
How to maintain employee loyalty
1. Develop managers to become leaders
According to Gallup, 70% of employee engagement is influenced by managers. When employees feel demotivated or actively disengaged a feeling of dissatisfaction develops, then they are left with no option but to switch job. When managers are unwilling to motivate, or fuel difficulties for employees consciously or unconsciously turnover rate spikes. This means the fault is with managers. To maintain employee loyalty first and foremost important task is to train managers to become leaders. Good managers communicate and engage employees so they may be valuable for organization in achieving its objectives.
2. Connect and inspire your staff
It is the inspiration that brings loyalty, being an owner if you inspire employees to work then you can engage them even with average compensation. Hence, it is encouraging for employees when you meet them being a boss. Though it is difficult to mange time for such regular connectivity however being an entrepreneur it must be part of the job. It is important to tell employees that they are useful for your business.
3. Trusted versus performers
There are many sorts of employees who engage with your organization some perform well others average; some are trusted and others are not. When the testing time come on your business you might have to choose whom to rely upon. Hence, relying on trusted employees even with average performance is more desirable then keeping good performers while they are not trusted. The entrepreneurs hire employees to take care of their business operations, they are of no use when entrepreneurs themselves need surveillance of their employees.
4. Appropriate rewards and compensation
A loyal employee contributes to the organization with his heart and mind, so he deserved to be paid appropriately if not excessively. A well-structured organization gives every employee an equal opportunity to contribute to the success of the organization, hence compensating accordingly. If at any stage organization systems miscalculate employee worth, this can result in loss of the loyal employee.
5. Training and development
When employees see their competencies are enhanced in the same organization vis-a-vis appropriate compensation they seldom leave the organization. Employees, especially young ones switch jobs to enhance their learning and experience. If an organization has a road map for the development of employee competencies and a plan for career development there will be low staff turnover.