Ignite Digital Talent

Employee Loyalty. Why it matters and how you can improve it.

Pinpointing employee loyalty is difficult. Perhaps because it is so tricky to measure accurately in a real-world setting. Despite its seemingly ambiguous nature, what is without question is how crucial employee loyalty is to the success of your organisation.

Nurturing and fostering employee loyalty is dependent on culture, environment, and leadership; a triad of factors that can make or break how devoted your team is to you, the business, and their place within it.

This piece tries to define what employee loyalty is and how you can spot it.  If it’s lacking, we can offer advice to help improve employee loyalty within your organisation.

What is Employee Loyalty?

Employee loyalty is hard to define. It doesn’t fit neatly into any one box because it wears many hats. It means different things to different people depending on the values of that individual. Of course, this is made harder if the boss and employee place different values on behaviours or attitudes.

To help qualify the concept a little, there are 2 overarching characteristics of Employee Loyalty.

These are;

These concepts have two key themes. Firstly, that loyal employees have bought into the company mission, and are committed to its success. The second is how loyal employees feel about the business and their place within it.

In its most simple form…if that feeling is positive and strong, then they are more likely to be loyal.

Why is employee loyalty important?

It is without question that there are many benefits to having a loyal workforce.

Here’s why.

More productive employees.

An employee who feels a strong sense of belonging has a natural desire to see that organisation succeed. They will drive stronger innovation, want to problem solve, and offer more valuable outputs. The desire to succeed has significant implications both now and in the future. Loyal individuals will have the drive to improve personally. This quality naturally manifests these employees into future leadership roles.

Once in positions of influence, these now leaders have a ripple effect. Their attitudes and behaviours set a standard and permeate the team.

Better corporate image and employer brand.

Corporate Image and Employer Brand are both formed by what employees say about working at an organisation.  Loyal employees are the best advertising a company can have.

They’re more likely to talk about and promote your brand on their own channels and at events. They are also more likely to recommend your company to job seekers.

Long-term growth.

Loyal employees tend to stay with the company longer, contributing to the growth and success of the organization.  In turn, long-term loyalty helps you create an office full of top performers and helps you retain valuable company knowledge for the long term.

This longevity of service means that loyal employees are continuously able to push your organisation forward without the disruption of mass key player resignations.

Improved retention rates.

Loyal employees are much less likely to leave. A cohort of loyal players will greatly reduce company turnover, prevent lost knowledge and limit productivity disruptions.

High revenues and outputs.

A base of loyal employees will help the bottom line. Almost without exception, a loyal organisation is a high-performing one.  Better client relationships coupled with better growth ultimately equal better revenue results.

Detecting Employee Loyalty.

As we suggested earlier, detecting employee loyalty is tricky. That being said, there are common behaviours to look out for.

Loyal employees –

Are your employees displaying multiple qualities listed above? If you can answer ‘yes!’, it is likely you can classify them as loyal employees.

Employee Loyalty vs. Employee Retention.

The concepts of loyalty and retention are often confused.  Despite their close relationship, they are different.

Employee retention is a statistics-drive concept. A KPI that addresses the ability of an organisation to be able to retain its team and the rate at which staff leave and join.

In contrast, employee loyalty is the feelings and attitudes that are held toward the organisation. It is the underlying causes of whether employees choose to leave or stay.

This direct relationship means that employee loyalty can be a powerful way to improve employee retention rates.

For advice on retaining your MVPs read our guide here.

Improving Employee Loyalty.

It’s important to recognise that improving employee loyalty starts with leadership.  The leadership team must create an environment in which employees feel supported and included. One where management structures are transparent, and teams feel that they are part of the bigger company mission.

Leaders must also give their employees a chance to develop professionally. Resources must be offered to facilitate learning, with training being a priority.

Here are some specific examples of how you can foster employee loyalty within your team.

1. Be loyal to your employees.

2. Nurture potential.

Personal and professional growth is a major priority for many employees. Your team want to know that time spent at work doesn’t just mean a salary. It should also be an opportunity to improve their skill set.

Managers should help employees meet their potential by providing learning and growth opportunities.

Here are some ideas of how you improve employee loyalty through can nurturing your employees.

3. Be their champion.

One of the key responsibilities of the leadership team is to be an advocate for their co-workers. Being their champion involves fighting for their best interests, and doing everything possible to make sure they are looked after, paid fairly and given the recognition they deserve.

If a team can see a manager going to bat for them it will make it clear they are valued. Your employee loyalty will thrive as a result.

4. Make employee role and impact clear.

Clarity of role and responsibility is critical if an employee is to feel a true sense of belonging at an organization.

This level of transparency means that leaders should work to create clear goals and KPIs that support the wider company mandate.  In line with this, company leadership should make the strategic vision for the organization clear, and demonstrate how each department contributes to that overall goal.

In doing this, employees are made to feel part of something; integral to the future of the business, and are valued team members along the way.

5. Listen to feedback.

Candor between employees, managers, and senior leaders is critical to the formulation of trusting relationships and loyal employees.  Everyone at the organisation, no matter of position, should feel empowered to provide feedback about what is working and what isn’t.

It isn’t enough to just ask for it though. True employee loyalty comes when your team feel that their feedback has been listened to – and that means acting on it.

The more you do this, the more employees will realise they have a voice within the business, and that voice is heard.

6. Prioritise recognition.

Recognising a job well done should be at the top of your To-Do list when it comes to boosting employee loyalty.  You could try implementing a company recognition program that can scale across your organisation to ensure that good work is celebrated when it happens.

Recognition goes to the heart of why employees go the extra mile for a company.   The more they are rewarded, and the more the impact of their work is seen, the more this trend will continue.

7. Transparency.

Trust is a major factor in employee loyalty.  Employees want to trust that what you say and what you do align. Strong communication – especially in times of change are critical in creating an atmosphere of transparency and a loyal team of employees.

If your business is navigating change, and you are struggling with how to manage this successfully for your team, read our blog on Managing Change here.

8. Invest in training and development.

Growth, training, and development are all critical to the long-term happiness and loyalty of your employees.

Employees want to know that they are working toward something greater than their current position or title, and they want to know that their employer is helping to get them there.

Everyone should have a defined development plan tailored to meet their individual growth goals, and coaching should be given as needed to help them get there.

Employee loyalty takes time.

Creating a truly loyal employee base takes time.  New employees won’t feel the same about the company as established ones, so you must be prepared to put time and effort into cultivating an environment that invites employee loyalty.

Takeaways.

Are you looking to grow your tech, digital or data teams? Let us help. Get in touch today.