How to build and maintain loyalty with your team
An employer without a team is just self-employed. Whether you’re building a business, a company, or an empire, you need to have a loyal team of employees. Of course, like any relationship, it’s not just about getting them but keeping them. With today’s job market being more competitive than ever, it can be challenging to keep your employees happy and motivated. However, fostering employee loyalty is crucial to retaining your top talent and building a successful business.
According to the US Bureau of Labor Statistics, the average tenure of an employee is 4.1 years. This means that the average employee will change jobs about every four years. While turnover is natural, high turnover rates can be costly. The cost of replacing an employee can range from 16% to 213% of their salary, depending on their experience level and responsibility.
In this case, how can you foster employee loyalty and reduce turnover costs? Here are some tips to help you build a loyal team:
1. Create a Positive Work Environment
Employees spend a lot of time at work, so it’s important to create a positive work environment that fosters a sense of community and belonging. Encourage open communication, provide opportunities for professional development, and recognize your employees’ hard work and achievements. To that point, in a survey by Globoforce, 78% of employees said that being recognized motivates them to do a better job. If you’re looking to light a fire under your people, this is one of the easiest ways to do it.
2. Offer Competitive Pay and Benefits
Pay and benefits are clutch factors in attracting and keeping top talent. The US Bureau of Labor Statistics reports that the average employee earns $29.70 per hour, with benefits accounting for an additional 31% of their total compensation package (totaling $43.07). Make sure that your compensation package is competitive with industry standards. Offer health insurance, retirement plans, paid time off, and other perks that employees value. Perks that show an interest in self-improvement let your employees know you care for them in and out of the workplace. That investment can be game-changing when trying to foster employee loyalty.
3. Provide Opportunities for Growth and Development
Employee loyalty hinges on career growth and development. Offer opportunities for training, mentorship, and career advancement. Encourage employees to pursue their passions and interests by providing them with challenging projects and opportunities to take on new responsibilities. Consider that, generally, newer generations of workers especially will seek new horizons if they are not given room to grow.
4. Foster a Positive Company Culture
A positive company culture cannot be underestimated when improving employee loyalty and satisfaction. Encourage teamwork, collaboration, and a sense of community. Create a culture of respect and inclusion where everyone feels valued and appreciated. A landmark 2019 survey by Glassdoor states 77% of employees said that they would consider a company’s culture before applying for a job. Take this as a sign that money isn’t always the motive. The power of positivity is one of those intangibles that really make a difference.
5. Recognize and Reward Performance
Recognize and reward your employees’ hard work and performance. This can be in the form of bonuses, promotions, or public recognition. Acknowledge your employees’ work and let them know that their efforts are valued. Quantum Workplace notes how impactful recognition is for retention and employee engagement.
6. Provide a Work-Life Balance
Balancing work and personal life is so underrated when it comes to employee loyalty, well-being, and job satisfaction. With that in mind, provide flexible work arrangements (FWA), such as remote work or flexible schedules. Also, encourage employees to take time off when needed. Truly create a culture that supports work-life balance. The home of flex workings, FlexJobs, shows that 80% of companies offer some form of FWA. You don’t want to be on the wrong side of that 80 when trying to get the best talent, nor do you want to lose the talent you’ve already acquired.
7. Communicate Openly and Transparently
Open communication is essential for building trust and loyalty. Communicate openly and honestly with your employees about the company’s goals, challenges, and successes. Encourage feedback and suggestions then really take them seriously. Consider that the Workforce Institute’s report, “the Heards and the Heard-Nots“, says that a whopping 83% of employees feel they’re not being heard. If you want a team that will sincerely give their all, they have to feel like their words have weight. Being a part of “the machine” just doesn’t cut it anymore.
In conclusion, fostering employee loyalty is clearly needed for building a successful business. By following the points above, you can build a team that not only can help your business, but one that WANTS to. Remember, happy employees lead to happy customers, which leads to a successful business. Keep this in mind moving forward and you’ll be a titan of industry in no time!
Writer, rhymer, gamer: the easiest way to define the man known as Kenneth Medford. I’m a simple man who loves to learn and loves to help and I wander the digital world trying to find ways to sate my hunger for both. Basically, I’m Galactus but helpful.
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