Employee loyalty is a long process that doesn’t happen by itself; it can be built or destroyed through actions.
Two major factors influence employee loyalty: workplace culture and the employer’s character, attitude, and loyalty to their team.
A 2022 Gallup study revealed that 79% of employees who quit cite “lack of appreciation” as the main reason for leaving, while 57% say they leave because of poor management.
So, it’s up to you as a manager/employer to encourage loyalty in the workplace.
But it’s easier said than done.
Building loyalty requires a lot of work and effort. You must adopt effective retention by fostering a culture of well-being, appreciation, and employee satisfaction strategies to gain employees’ loyalty and support.
The golden rule is simple: if you keep your employees happy, they will work hard to keep your business thriving.
Otherwise, studies have shown that up to 50% of employees leave due to bad managers.
And if you don’t focus on employee retention, it’s bad for the company; high employee turnover is costly, and it has its consequences.
According to SHRM, replacing an employee can cost 50% to 200% of their annual salary, depending on the role. That means high turnover isn’t just annoying; it’s quite expensive
After researching and experiencing this as a team lead, I’ve found that great leaders and managers follow mentioned 11 best practices to make employees loyal and committed:
On this page
Be loyal to your employees first:
The first and foremost step any employer can take to make employees loyal is to become loyal to them first!
As Harvey Mackay said:
“Employee loyalty begins with employer loyalty.”
So, to test how loyal your employees are, employers should see how loyal they are to them!
Employee loyalty is based on an emotional connection, and that connection is built one-on-one. When you show your employees loyalty, it inspires them to be loyal to you and the company.
However, this isn’t 100% guaranteed, as many external factors may affect employee loyalty.
For instance, you might not know the personal struggles your employees are facing. To deepen their loyalty, try to understand their life goals, purposes, and hardships. This will help you realize their potential and take the necessary actions to tap their full potential.
Value their roles:
Research suggests that humans inherently strive to feel valued. Value leads to trust, and trust fosters loyalty.
Employee satisfaction increases when employees feel that their role contributes meaningfully to the organization’s mission and goals.
If you do not value your employees or their roles, they will become less engaged and look elsewhere for more meaningful work.
83.6% of employees feel that recognition for their contributions affects their motivation to succeed at work.
For example, a manager should value every employee’s role, from the front desk to the top executives. Even the janitorial staff is important to a company’s core values and impacts employee performance.
Recognizing this value is essential. You could regularly nominate an “Employee of the Month” to show appreciation or send work anniversary messages to acknowledge their contribution.
Successful leaders integrate recognition and rewards into their company culture, attracting and retaining loyal employees.
Appreciate regularly and authentically:
We all love to be appreciated. There is no distinction. So, it’s a fundamental tool to make employees loyal. It costs nothing but can have a profound impact on employee engagement.
But here is an unfortunate thing.
According to a poll, 59% of Americans reported that their managers never appreciated them. Yet, a study found that 66% of employees would rather quit their jobs if they felt unappreciated.
This means that if you have a high turnover rate or are dealing with underperforming employees, appreciation could be a powerful, cost-free tool to improve satisfaction and build loyalty.
Even a small gesture, like a quick thank-you note, can make employees feel recognized and important. For example, you can make it a habit to say “thank you” to your team, even for the small tasks they complete.
As Kenneth Blanchard said in ‘One Minute Manager,” a minute of appreciation can make a significant difference in loyalty.
Here is what you can do regularly: Recognize milestones such as work anniversaries, project completions, or sales goals with personalized messages or small rewards. Hosting virtual or in-person team-building activities to celebrate these achievements can make employees feel appreciated.
Empower employees:
Empowerment makes employees feel authoritative and trusted. When employees are allowed to make decisions within their scope, they feel valued, which enhances their loyalty.
For instance, you might empower a customer service representative to resolve minor issues without needing manager approval. This could include offering a small discount or a free upgrade to appease a dissatisfied customer.
By giving them this autonomy, you not only build trust but also help them feel more valued and invested in the company’s success.
Build workplace trust:
Workplace trust is foundational to employee satisfaction and long-term loyalty. Trust is not built overnight. It requires consistency in actions and transparency. When employees feel trusted, they are more likely to put in their best efforts and stay loyal.
Suppose you trust your employees with flexible work hours or the option to work remotely. By allowing them to manage their schedules and trusting them to meet deadlines without micromanagement, you demonstrate confidence in their abilities.
This level of trust can significantly boost employee morale, productivity, and long-term commitment to the company.
Provide fair compensation:
Money plays a crucial role in employee loyalty. While recognition, empowerment, and value are important, competitive compensation is often a deciding factor for employee retention.
Make sure you pay at least the industry average to keep your team satisfied.
A survey by eLearning Industry found that 60% of employees see fair compensation as a key part of feeling satisfied with their jobs.
If you’re a startup and can’t afford to pay top salaries, be transparent with your employees. Let them know that as the business grows, so will their compensation. Mostly, employees understand and strive hard to help you win!
Focus on career development:
Train people well enough so they can leave; treat them well enough so they don’t want to. – Richard Branson
Opportunities for career growth are one of the most effective employee retention strategies. Employees who see a clear path for their future within your organization are more likely to stay.
Invest in training, mentorship, and growth opportunities to help them advance.
Data gathered from the LinkedIn platform also shows positive outcomes for organizations that prioritize career development
Encourage Employee Engagement:
An engaged employee is a loyal employee. Engagement starts with creating an environment where employees feel heard, valued, and part of something bigger.
According to Delloite insights, engaged workers and those who said they trust their leaders were over 2.5 times more likely to say their company is advancing human sustainability, compared to disengaged workers and those who don’t trust their leadership.
Here are some actionable ways to foster engagement:
- Involve them in decision-making: Invite employees to contribute ideas during team meetings or brainstorming sessions. Establish cross-functional teams for special projects to give them ownership of new initiatives. This shows that their opinions matter and can shape the company’s future.
- Ensure engagement across remote and in-person teams: For remote teams, use virtual tools to maintain engagement, like video calls, virtual coffee breaks, or interactive digital workspaces. For in-person teams, focus on fostering a collaborative and inclusive environment through regular team activities and open-door policies.
- Align work with purpose: Help employees see the connection between their roles and the company’s larger mission. Share success stories and customer testimonials that highlight how their work contributes to the organization’s impact.
By actively implementing these strategies, you build a workplace culture where employees feel connected, motivated, and genuinely engaged, leading to greater loyalty and lower turnover.
Listen to your employees:
Employee feedback is vital for improving both business operations and employee satisfaction. Listening to your employees shows that you care about their opinions and well-being, which strengthens their loyalty to the organization.
Create a culture where employees feel safe sharing their thoughts and concerns. Use anonymous surveys or feedback tools to understand their needs better, and act on this feedback to show you’re listening.
Create a positive company culture:
A strong company culture aligns employees with the organization’s values and mission, fostering loyalty.
You should always make sure that your culture promotes fairness, transparency, and employee-centered policies.
Studies have found that creating a positive work culture drastically reduces work stress among employees.
Practice transparency:
Transparency helps build trust and reduce resistance to change. When employees understand the reasons behind decisions, they are more likely to support them.
So, it’s better to communicate openly about challenges and successes and involve your team in problem-solving efforts.
Action Steps:
- Develop an unbiased ‘People Experience’ team: Create a dedicated team to focus on employee experience and engagement. Ensure this team operates with transparency and fairness, promoting an inclusive culture that values diversity and equity.
- Conduct regular surveys: To measure employee satisfaction and identify areas for improvement.
- Recognize and reward: Implement an employee recognition program.
- Invest in training: Provide opportunities for personal and professional growth.
- Encourage open communication: Hold regular one-on-one meetings with employees.
- Foster a positive culture: Align company values with daily practices.
By incorporating these best practices, you can significantly improve employee loyalty and reduce turnover, ultimately fostering a more committed and productive workforce.