Chamber Chat - Employee Loyalty

Feb 24

By Meg Moss

 

“Train people well enough so they can leave. Treat people well enough so that they don’t want to.” – Richard Branson.

 

Why should business owners and managers care about employee loyalty? Loyal employees are a major asset for a strong company.

 

According to an article from Brigette Hyacinth, author of The Future of Leadership: Rise of Automation, Robotics and Artificial Intelligence, the link between employee satisfaction and productivity is long-established. Hyacinth states in a recent article that “research has found that happy workers are 12% more productive than their less satisfied counterparts.”

 

In this era of low unemployment, it becomes a necessity for organizations to have a strategy for retaining their employees. Competitors are waiting at the door to lure away top performers. Hyacinth states that “according to data drawn from 30 case studies taken from 11 research papers on the costs of employee turnover, it costs at least 20% of their salary when an employee leaves.” These costs include the loss of productivity from the employee leaving, the cost of finding a replacement, and the reduced productivity while the new employee gets up to speed. According to Investopedia, training a new employee to the break-even point takes an average 6.2 months. That means that if an employee leaves, you'll need half a year just to get his or her replacement up to a base level.

 

But there are many ways that businesses can keep their employees longer. The following five strategies come from BusinessCollective, in an article written by Marjorie Adams:

 

First, recognize employee contributions. Tell your staff how much they are valued. Through “thank you” comments, or a shout-out at a staff meeting, you want employees to know you admire their contributions.

 

Share the company’s priorities. When the team knows what is important to the company, they make better decisions.

 

Provide productivity tools. No job is truly “easy”; that’s why they call it work. Ensuring employees have access to the tools and information they need helps ensure they can do their job more productively.

 

Provide a competitive benefits package. Businesses are competing for employees. Flex schedules, health insurance and specialty insurance, such as disability and life, can make a difference when it comes to attracting and keeping employees.

 

And lastly, ask for a commitment. Consider asking for an employee to commit to staying in their position for at least three years. There is no guarantee, even with this verbal agreement, but most people think twice before breaking their word.

 

Nowadays, three years can be a long employment track record. I remember when my parents and grandparents stayed with one company for their entire career. There is just a different culture now when it comes to employer loyalty.

 

“Ultimately”, Hyacinth states, “having a culture that promotes open communication, fairness, teamwork, camaraderie and a family atmosphere helps to retain good employees. Focus on building quality relationships. Employees with strong bonds to those they work with, are usually the most engaged and tend to stay longer.”

 



View all Chamber Blog entries
Comment on this article
map View All Maps

BLOG ARCHIVES


RECENT NEWS

Mar 19 - City Council to hear public comments on economic development

The City Council will consider modifying its incentive agreement with manufacturing company Caterpillar Inc., according to the agenda. *Article from…

Mar 16 - Raleigh Executive Jetport is our economic lifeline

Sanford has been a manufacturing community for over 100 years. *Editorial from The Sanford Herald. 

View All News
UPCOMING EVENTS

I was asked to join the Chamber Board to give back to the community, and since..." read more

Jerry Pedley
Owner of Mertek Solutions, Inc.


© Copyright 2019. All rights reserved.

YOUR CHAMBER

PROGRAMS

BUSINESS SERVICES

QUALITY OF LIFE

NEWS & MEDIA

ABOUT US