Finding talent is tough these days, so holding on to the employees a company has is the best way to avoid facing the most competitive hiring market in decades. To improve retention, companies need only look at the behavior of their most loyal employees. Our years of research has uncovered that employees who identify themselves as loyal to their employers are not only less likely to flee, but they are also usually the happier, more productive, and more engaged members of the team. That positive energy is contagious. Here are four ways employers can foster loyalty among more of their staff.
Compensate Fairly, Accurately & Transparently
Loyal employees are more likely to say their company compensates accurately and fairly. They do however share the perception with less loyal colleagues that their employer could do better around compensation transparency overall. If employees feel that their pay reflects their rank, tenure, ability, and work quality, there’s no need to search for better remuneration elsewhere. A clear understanding of how their employer determines compensation cultivates a level of trust between employer and worker.
Emphasize Job Security
Loyal employees tend to feel more secure in their jobs than those that said their loyalty was low. Companies can signal job security by demonstrating the financial health of the company. This can be achieved by regularly sharing the company’s performance data and future plans. Strong compensation and benefits packages along with regular comp increase reassure employees that the company is financially sound. Company-funded training and development along with formalized career pathing help employees envision a continued future with the organization.
Unlike their less loyal peers, devoted employees tend to report that their company gives constancy in return. Employers can display loyalty through pro-employee decisions, strategies and policies around healthcare, wellness, and compensation, to promotion and hiring practices, such as promoting from within and rewarding employees for referrals of family and friends for job openings.
Demonstrate Employee Value
Loyal workers are apt to say that their employer regularly makes them feel valued. Companies should aspire to make value recognition part of the culture. Demonstrations of value can come in many forms – from the smallest thoughtful gesture (handwritten thank you notes or acknowledgment of a birthday) to higher-visibility programs or systematic policies, like employee award banquets or trips, or promotion opportunities. The commonalities of loyal employees can inspire action by companies that nurture a happy workplace. And the happier the workplace, the stickier it is – making it all that much harder for the best talent to be tempted away.