Company loyalty is not simply a matter of employee retention. Of course, if you have a high retention rate, you must be doing something right. But loyalty is about more than that. It concerns how an employee views and values their work, and the role it plays in their life.
With changing economic and organizational structures, turnover rates have rapidly increased as of late. And the root of it is no longer insufficient financial compensation. To nurture loyalty among employees requires extending that same value and importance to your employees that you expect of them.
Great pay and great benefits are a good start, but it shouldn’t stop there. Employee loyalty can be derived from a number of factors. Without providing for them, you cannot expect company loyalty to cultivate.
The Most Common Reasons Behind Company Loyalty Issues
Very little engagement
As essential members of an organization, employees want to feel connected. Feeling unengaged with the rest of the company fosters alienation that can further result in disillusionment with the company. This divide can, in fact, reduce motivation, and have employees actively looking for other opportunities.
Giving your employees the opportunity to engage with various aspects of the organization also opens up other avenues for them. It allows them to seek further opportunities to develop and grow within the company. Further, it fosters a sense of belonging that translates into their work performance.
Lack of constructive feedback and development
Feedback on work is an important factor in helping an employee grow. However, the nature of the feedback should be such that it encourages improvement. Feedback should be constructive for an employee. It should also show them how to fix a mistake or to avoid it in the future.
Similarly, offering training and development shows a dedication to helping an employee reach their full potential. This too encourages loyalty and trust within employees as you are committed and dedicated to their growth. In turn, you can develop a more skilled workforce, offering a major competitive edge.
Little or no mentorship and growth
Loyalty is a two-way street, and what you invest in your employees comes back to you in their dedication to their work and organization. Mentorship has been known to engender a greater sense of satisfaction from work, where employees feel actively encouraged to find avenues for growth.
A mentor is not simply offering guidance, but help, support and friendship, all of which lead to a greater sense of belonging. Research has shown that both employee well-being and engagement with work are improved with mentorship.
To employees, an investment in mentoring is an investment in them. When employees are given a chance to learn, understand and engage, they are able to better dedicate themselves to their work. Not only is it a great way to retain employees, but new employees are also attracted to such a workplace culture.
Inadequate recognition and appreciation
Where hard work goes unappreciated and unrecognized, it is likely to fizzle away. Building good relationships and a supportive culture in the workplace includes showing unbridled appreciation for a job well done. This is especially the case when employees go above and beyond for their work.
This kind of recognition is not always derived from financial incentives. They can be great motivators, but money is not the only thing that motivates employees. Recognition programs or even offering words of encouragement to recognize effort can make a difference.
This does not simply include appreciating a good job. You must recognize the quality work that has been produced, but it also involves appreciating the individual. With loyalty, it also reduces turnover rates, as a lack of recognition has been seen as twice as likely to result in a resignation.
Closed communication
Problems can arise in a workplace, but what can cause an issue is the response to the problem. Having their concerns ignored, or not even heard in the first place can create a lot of frustration. It comes down to how valued and appreciated employees feel at the workplace.
It is important to offer a reliable outlet for employees to voice their concerns. It is important to remove barriers to communication. This allows for greater engagement with the organization and employees feel heard.
Where appropriate, these concerns should be addressed as well. Whether they are regarding the work, the culture, or even a colleague, the matter should be resolved to maintain a healthy work culture. Loyalty is fostered when employees know their voice matters.
Feeling valued, appreciated and recognized pushes employees to give their best at work. Instead of doing it because they have to, they are more encouraged to make a greater effort. A culture that fosters loyalty is more easily able to attract new talent, and retain its existing workforce. Increased productivity, motivation, and worker efficiency have been seen as the result of increased loyalty, with 87% of employees less likely to leave such a job.
