How to Increase Employee Loyalty

Published: 29th July 2009
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When most business minded people think of the word 'loyalty', they are actually thinking of 'customer loyalty'. They understand that the key to the success for any business venture lays in its ability to gain or sustain loyalty. While having a loyal customer base is critical, it is equally critical for any business enterprise to have an equally loyal employee base. Among the first lessons to be learned in Business, is the fact that the cost of converting new customers is far higher than the cost of keeping an existing customer. This fundamental lesson can also be applied to the employee insofar as the cost of hiring a new employee far greater than replacing those employees who have become disenfranchised.

Top Ways to Increase Employee Loyalty

• First, Measure Employee Engagement - Start measuring employees' passion about work and the work environment by issuing a survey with a few questions about job satisfaction. Surveys using a scale of agreement provide a quantitative measurement that can be combined with open-ended comments to identify opportunities to make employees happy.

• Identify What Employees Like - By gathering compliments in addition to concerns, your company can find out if its engagement efforts make a meaningful, lasting contribution to employees.

• Help Employees See the Big Picture - Employees want to feel that they are contributing and making a difference. Help your employees to see the big picture and how they contribute to a functioning whole. This will also empower employees to make decisions.

• Use Training to Increase Confidence - Managers who cut training budgets to save costs do not understand how service delivery and morale can suffer as a result. Employees need training to do their job confidently and to facilitate career advancement within the company.

• Establish Mentoring Programs - Train and encourage seasoned employees to be mentors. A mentoring program can facilitate dynamic skill growth through an organization and foster a sense of community.

• Promote Team Building - Encourage team building activities among employee groups to create trust and acceptance. Strong, loyal teams provide one level of acceptance, and teamwork between departments provides another.

• Build a Supportive Environment - Often, dissatisfaction with wages and benefits masks problems that relate back to acceptance by a team or manager. Employees may need help with coping skills, problem-solving skills, tactics for handling difficult situations, or expressing their personal feelings.

• Retrain or Get Rid of Bad Managers - One bad manager can pollute multiple layers of an organization. Poor managers bring down employee morale, which spills over into the engagement level of customers.

• Recognize Employee Contributions - Recognition from a supervisor of at least two ranks above an employee makes a meaningful, engaging difference in employee morale.

By Priti Shah

Laurent & Benon Management Consultants Ltd, a public limited company with its corporate office Gurgaon with Pan-India presence. We as an organization strive to offer the right Human Resource Solutions at the right time and enable our clients to enhance the net worth of their human resource capital.

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