Not surprisingly, many businesses lose about a third of their workforce each year. How to increase Employees loyalty may appear to be a thing of the past with figures like these. According to research, more than half of employees at the average company (55 percent) are looking for new jobs.
A study by the Center for American Progress found that it costs around 20% of a typical employee’s compensation to replace that employee, in addition to the pain of hiring replacements. Clearly, cultivating employee loyalty is worthwhile.
But how do you go about doing that? Here are key things you can take right now to build and strengthen employee loyalty as an employer:
Understand what ‘employee loyalty’ means
Employee loyalty refers to a collection of feelings that make employees feel committed to their current company and less likely to look for better pastures elsewhere.
To enhance employee loyalty, you must increase good feelings and decrease negative emotions that your employees experience when deciding whether or not to stay.
Understanding that you’re dealing with fundamental emotions rather than the specific behaviors that those emotions drive will help you stay on track.
Offer competitive and fair compensation
Employees expect to be paid as much as they could make doing the same job elsewhere, and they feel “undervalued” if they aren’t.
Employees also expect to be paid the same as their coworkers who do the same job, regardless of whether their coworkers are better at negotiating pay. How to Increase Employees Loyalty.
The simplest method to ensure competitive fairness is to publish everyone’s compensation in the same way that publicly traded corporations do. Buffer, a social media management company, has been doing this successfully for years.
Hire more referrals
As bestselling author Bob Burg (The Go-Giver) points out: “All things being equal, people will do business with; and refer business to; those people they know, like and trust.” That’s to how to Increase Employees Loyalty.
An easy way ensure that connection between employees is to create referral bonuses; and have an employee referral program that makes it easier for employees to recommend their friends.
For example, 60% of the employees at the mobile security vendor Location Labs were hired as result of employee referrals; resulting in an astoundingly small 5% annual employee turnover rate.
Give employees more control
The fundamental management notion fifty years ago was “delegate.” It was “empowerment” twenty-five years ago. Today’s buzzword is “engagement.” The meaning of all three buzzwords is the same: management should relinquish authority to employees.
Employees who are “engaged”—that is, those who make decisions rather than just following orders—have a 31 percent lower turnover rate.
Allowing employees to choose their own work hours and select whether or not to work remotely is the simplest method to boost employee engagement.
Remove unnecessary uncertainty
There’s no question that today’s workplace contains more uncertainties than in the past. The economy changes rapidly and innovations constantly disrupt previously stable markets.
This pervasive uncertainty creates a climate of stress that can make employees miserable; according to a recent study conducted at University College London.
While no single company can fix an uncertain economy; a company can make work more predictable simply by keeping its employees briefed and giving advance warning when changes are imminent.
Jettison the jerks
Employees find it difficult, if not impossible, to remain loyal to a corporation that tolerates individuals who make the workplace unpleasant for everyone else. How to Increase Employees Loyalty.
According to a research mentioned in the bestseller book The No Asshole Rule, abusive employers and coworkers significantly raise stress (and thus turnover) even among people who aren’t immediate victims.
Publicize your talent brand
Employees want to be proud of their occupations and the environments in which they work. Companies with strong talent brands are more likely to attract and retain top talent.
Unfortunately, just like corporate and product brands, talent brands take time, effort, and money to develop and sustain. There are no shortcuts available.
If you’ve built a strong talent brand, though, putting it front and center on your website and PR materials might help you get more mileage out of it.
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You can boost your employees’ loyalty by doing these seven things. Above all, this translates to a more contented, productive, and successful workforce.
Employees that are regularly arrogant or abusive who refuse to change their attitude and behavior should be transferred or terminated.
