How To Build Loyalty With Your New And Existing Employees
The saying “a good man is hard to find” is doubly true when coming to employees. At any point in time, as much as 55 percent of your staff may be looking for other opportunities. That’s more than half.
Studies show that you can expect to lose as much as a third of your staff every year. Replacing these lost workers and their skill sets isn’t cheap. It can cost you as much as 20 percent or a fifth of their annual salary. Just to replace one worker. Multiply this cost by several employees every year. It adds up and affects your bottom line
What this means is that it makes sense to invest in measures to hang onto employees and increase their levels of happiness at your company. You may say that you pay them a salary and this should be enough. Unfortunately, compensation is only one aspect of your relationship with your employees. If you don’t work to improve other parts of it, your company can become a revolving door.
How To Increase Employee Loyalty
Your new and existing employees deserve attention. You don’t want the employees who stuck with you through thick and thin to become discontent at what they will perceive as the better treatment of new employees.
Similarly, you don’t want new employees to think that they don’t matter, as they watch what they think is preferential treatment for employees who have logged many years with the company.
Ways That Loyalty Can Be Increased In Both Sets Of Workers
Remove Toxicity From Your Work Environment
This is a big one. Almost all the people who will leave your company will cite a toxic manager, coworker, or situation that helped push them through the door.
What is meant by “toxic“? When someone says a work environment or manager is toxic, they tend to be talking about behaviors that make them feel bullied or undervalued. If this is your work environment, you cannot reasonably expect people to subject themselves to such behavior over a long period of time. They will leave.
The only thing that will work here is getting rid of the people and situations that make the environment toxic. More work environments are toxic than not. Employees will cherish a company that goes out of its way to reduce this.
Another hard thing to ask yourself as a business owner is whether your compensation is adequate. Does it at least match similar companies within your industry, or is it significantly lower. If people have been telling you in exit interviews that pay is one of the reasons they’ve been leaving, it’s something you might want to address.
If you can afford to raise salaries across the board, then do what you can. Raising salaries and offering benefits for existing employees first is sound judgment because they have proven themselves. These offers will act as incentives to encourage new employees.
If you can increase access to benefits like medical and dental care, training and career advancement opportunities, bonuses, and the like, workers are also more likely to stick around.
If you can’t immediately increase cash salaries or benefits, you may need to become more creative with your approach.
Maybe you could come up with a profit-sharing arrangement with your staff? It creates the incentive to work harder, as they are now invested in the bottom line. Partial ownership arrangements are also good for this as well. People will work harder and be more loyal to a company they own part of.
Create An Environment Where People Can Feel Engaged
Engagement is where workers bring their whole selves to work. In contrast, disengaged workers show up to ensure that they cash their checks. They don’t contribute ideas to the company. They don’t do more than the bare minimum. Meanwhile, your company feels the lack of effort.
You have to honestly assess what you and your management team may have done to create disengagement. Do you order or talk down to people without getting their feedback on how they think their jobs should be done? People subjected to this kind of treatment tend to disengage after a while. It protects their self-esteem and sanity.
Engagement comes from nurturing a work environment where employees feel that they and their opinions matter and that they can make a difference. Work environments with high engagement tend to win the battle against high employee turnover.
As an employer, this is probably not what you want to hear. But there are no quick fixes to raising loyalty among your old and new workers. This can only be done by constantly listening to your employees and implementing feedback.