“Train people well enough so they can leave. Treat them well so they don’t want to”.

Richard Branson

Unfortunately, many organizations don’t really pay attention to the last part. These organizations spend thousands of dollars on employee training, working hard to polish the skills of their employees (which is great, but we’ll get to that later!) but rarely focus on their employees’ loyalty. And that’s the biggest mistake any organization could make. A loyal and dedicated employee is the biggest asset a company could have. Not only are loyal employees more productive and hardworking, they are the ones who will stick by you through thick and thin. These are the employees who can lift your business off the ground and take it to the skies. On the other hand, disloyal employees can inject negativity into your business and may leave you once a better opportunity arrives.

What is employee loyalty?

Just like any human emotion or feeling loyalty doesn’t really have a strict definition. In the corporate world, employee loyalty simply refers to how faithful an employee is towards his organization. Many employers measure an employee’s loyalty by how long they have been working in the company. It’s a general misconception that the longer an employee works in an organization the more loyal that person is. There are plenty of reasons why an employee might be sticking with you: maybe it’s because of the salary, maybe they want to be associated with you because of your brand name or maybe they just don’t have any better offer yet. Loyalty may be one of the reasons why an employee stays, but it isn’t the only reason. 

A loyal employee is someone who stays with you only because they love your organization. Their ultimate goal is to serve their organization rather than themselves. They believe in your company’s core values and vision. These employees will not leave you even when a better job opportunity arrives. In short, an employee who has been working for you for less than a month may be more loyal than someone who has been working with you for 10 years. It’s all about perspective. 

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Earning employee loyalty- A Two Way Street

According to Harvey Mackay, employee loyalty begins with employer loyalty. Loyalty is something that is earned. Every employer wants loyal employees but few make an effort to earn that loyalty. Your employees will only be loyal with you if they feel that you are loyal to them. Giving your employees generous salary and training them well may give your employees an incentive to work harder and may even keep them engaged but may not earn their loyalty. It is your behavior and how you treat your employees that determine how loyal they will be with you. According to Glassdoor, salary alone isn’t a motivating factor for employees. In fact, many employees seek for other factors such as workplace culture, leadership quality and career growth opportunities, once their basic salary needs are met.

Speaking of leadership qualities, studies have shown that a large number of employees leave their jobs because they feel disrespected by their managers. In another study it was revealed that 88% of the employees leave for reasons other than their salary. Having a positive manager-employee relationship that is based on mutual respect and appreciation is the key to earning employee satisfaction, trust and loyalty. Here are some ways managers can build a strong relationship with their employees

• Appreciate your employees and acknowledge their efforts.
• Open channels of communication with them and be available to them
• Trust their abilities and believe in them.
• Provide constant feedback.
• Treat them with kindness and respect their integrity.
• Be empathetic and understanding.
• Invest in professional development to show them that their career growth is important to you.
• Give your employees a voice and be open to suggestions.
• Share your company’s core values with them and make them feel like an integral part of the organization.

On the flipside, mistreating your employees and treating them like subordinates will turn them against you and no amount of salary can reverse that. 

Why should employee loyalty matter?

Employee loyalty matters because your employees are the building blocks of your organization. It is their performance that decides the fate of your company.  Here’s why your employees’ loyalty is important for you:

Increase in employee engagement and productivity

Employees who are faithful to their companies are generally more engaged and focused. They work hard to achieve their goals and are more actively engaged. Studies have shown that employees who are happy are 12 times more productive than their counterparts.

Employee loyalty and higher profits

There is a direct relation between your employees’ loyalty and your company’s profits. The more productive your employees are, the better your work quality would be. This means more sales, greater revenue and higher profits.

Loyal employees equal loyal customers

At the end of the day, it all boils down to how happy your customers are with your organization. And your employees are the ones who are responsible for keeping your customers happy. To provide impeccable customer service, your employees need to be extremely vigilant, helpful and well versed. They must be ready to go an extra mile to help your customers to resolve their issues. Since employees work hard for the benefit of their organization, they’re willing to go that extra mile in keeping your customers happy.

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Improved reputation

In the corporate world, a good reputation is very important for your PR and sales. Once you earn a reputation of treating your employees well, more and more talented people will approach you for jobs. Also, more companies would like to collaborate with you because of your work ethic. Treating your employees fairly and with kindness will also make you popular among general masses. These days nothing stays hidden from the public and if you have earned a good reputation, more people would like to buy from you.

Loyal employees are the best thing that could happen to any organization. Not only are they more productive and innovative, they are responsible for improved customer relations, higher profits and help you earn a positive reputation. However, employee loyalty isn’t served on plate. Employers need to earn the loyalty of their employees through positive attitude, respect, appreciation and acknowledgement. Your employees will only value you if you value them as well.