There is a common misconception in workplaces that if you pay employees a good salary, they will be loyal to their employers and become advocates of the business. But that is not always the case.
What employers don’t know is that feeding their employees with money with the hope that they will be loyal to them can do so much damage to the business. And thanks to technology, a few clicks on the computer can land your precious employee a new job somewhere else. Let’s add that many industries these days encourage remote work, meaning a company can employ a worker in New York from Hawaii. In other terms, there are countless opportunities out there for people, and you may lose several good employees if you don’t nurture loyalty.
Let’s be blunt; employees don’t just want good salaries. They now demand more from the workplace: to be seen and valued as vital members of the organization. Showing your employees how much you appreciate them motivates them to share your vision and support your goals.
In short, employee loyalty is not something you can demand. It should be earned.
The Benefits of Employee Loyalty
Before we talk about how you can nurture loyalty in your employees, let us first determine the benefits you will reap when you earn their loyalty. Here are the five advantages of having loyal employees:
Enhanced Productivity
When employees are loyal, they are motivated to work and perform better. They do not work hard because they need to but because they want to.
Increased Revenue
In many cases, investments usually go in two different assets: human and capital. You may think that a considerable part of your investment should go to capital assets. Still, research suggests that investing 10% of your revenue to employee capital can increase your business income by 8.5%.
Improved Business Image
Your employees don’t just help you generate income. They play a vital role in creating your company’s image. The loyalty of your employees sends your customers a message that the entire organization is trustworthy.
Building employee loyalty is particularly critical in small-sized businesses like brain injury law firms or family-owned restaurants as each member is knowledgeable of all the details about the organization. Without commitment, they might share sensitive information about the company with your competitors.
Loyalty Is Infectious
When employees don’t feel happy about the organization, negativity can spread in the workplace like a virus. On the contrary, a loyal employee can encourage his colleagues to feel appreciation and pride for the organization he belongs to.
How to Build Employee Loyalty
So how exactly can you nurture loyal employees? Here are some tips.
- Implement strong leadership. The most effective way to nurture loyalty is by showing your team that you are loyal to them. During difficult times, showcasing commitment can help your team overcome challenging situations, the foundation of long-term success.
- Connect with the team. Don’t just act like a boss; make sure to build a relationship with your teammates. By doing so, you are showing them that you are one with them and that they can always count on you.
- Trust your people. Trust should be mutual. If you want your employees to trust that you will take care of them, you need to show them first that you trust them too. Besides, being trusted is an essential factor in employment. It boosts their confidence. If possible, allow your employees to make tough decisions connected to their work so that they can have a sense of freedom and responsibility.
- Provide open communication. Like any other organization, honest and two-way communication are pivotal in building solid relationships. Talk to your employees and let them know how you feel about their performance. On the other hand, ask for feedback to know which areas you need to improve. It’s all about growing together and taking the necessary actions to become a better team.
- Develop a different mindset, a millennial one if possible. Many new employees nowadays prefer the right work-life balance to high salaries. According to studies, employees would rather work in a small office with a positive environment than in big enterprises with toxic surroundings. Develop a mindset like millennials so that you can understand them more.
- Give them rewards. Everybody loves rewards. Employers must always consider providing rewards to their best-performing employees to boost employee loyalty. Rewards will encourage them to work harder and influence other employees to do the same.
The key to nurturing employee loyalty is building good relationships with your employees. Be one of them. Show them that you are not just their boss but also someone they can talk to when they have issues at work. Your employees will become more loyal to you if they know that you value them as employees and vital company members.