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Improving Employee Loyalty: 7 Things to Try This Week

Finding and recruiting qualified job candidates is one thing, but keeping top talent at your company is another matter entirely. In fact, an Indeed survey found that 44% of job seekers have left a job within the first six months.*

Employee loyalty can go a long way towards attracting the right candidates for your company, helping your employees feel satisfied in their careers and retaining them for longer periods of time so you don’t have to constantly find, hire and train new employees.

Whether you’re struggling with employee turnover, or want to evaluate if your company is fulfilling the needs of your employees, here are some ways you can maintain and improve employee loyalty at your business.

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What is employee loyalty?

Employee loyalty is when an employee believes in a company’s values and mission, feels valued and appreciated, and plans to stay with a company for a long period of time. When employees have loyalty to a company, they are often invested in its success, work hard to reach goals and feel like they’re making an impact. They often aren’t looking for new job opportunities.

An employee who is not loyal, however, may feel disconnected from the company’s mission, values and goals, and is almost always actively searching for a new job.

Related:How to Manage Employees

Benefits of employee loyalty

Employees who are loyal to your company can help improve workplace productivity, especially since their desire to produce good work can instill the same drive in their coworkers. Loyal employees can also be a great resource for hiring managers because they can help identify qualified candidates from inside their professional network.

Not only can workplace loyalty impact productivity, company culture and the overall success of a business, but it can also help attract more qualified candidates to your open roles. According to an Indeed survey, 23% of job seekers said the most important factor that contributes to building trust in a company once they’ve applied for a job is hearing or reading positive things about the company online or from their network.** Loyal employees are more likely to spread positive things about your company, helping you attract and hire better candidates (and possibly even more customers or clients).

Additionally, employee loyalty can save you time and money. Finding, hiring and training staff can take several weeks or months, and the average cost to hire an employee is nearly $4,700, making it costly depending on how many hires you have to make. When employees are loyal, however, they tend to stay longer, helping you spend more time and money on growing your business rather than constantly trying to fill vacant roles.

Factors that impact employee loyalty

There are a variety of factors that can influence the level of employee loyalty at your company, including:

  • Uplifting work environment:Toxic work environments often contribute to a higher employee turnover rate, whereas a work environment that is filled with passionate, loyal professionals who support one another can encourage employees to stay.
  • Feeling valued: Employees are often more loyal to companies that consistently acknowledge their work and its importance.
  • Opportunities for internal growth:If an employee sees that their career goals align with a company’s career growth opportunities, it could convince them to stay and improve company loyalty.
  • Respectful management:Everyone knows the common saying “people leave managers, not companies.” That’s why it’s important that those in managerial roles demonstrate respect, kindness and empathy toward their employees. Check out this article on seven effective skills to help you become a better leader.
  • Payscale and incentive programs: An employee might be more likely to stay with a company that offers a competitive salary or unique incentives like free fitness classes, unlimited PTO or dog-friendly offices.

Related:How to Motivate Your Employees

How to improve employee loyalty at your business

To foster company loyalty, you have to give your employees reasons to stay. Here are a number of ways you can promote employee loyalty at your company:

1. Re-evaluate your company culture and work environment

You can help promote workplace loyalty by re-evaluating your company’s culture and the daily work environment. Identify potential factors that could contribute to employee turnover, such as toxic workplace relationships, unprofessional behaviors, micromanagers, uninviting office spaces or inefficient office layouts.

Read more: How to Improve Office Ergonomics

2. Send an employee satisfaction survey

A great way to encourage employee loyalty is to directly ask your employees what they need and want. Do they need extra support from their manager? Do they feel connected to your company’s mission and values? Give them a chance to express their comments, opinions and suggestions.

Send an employee satisfaction survey that asks employees to rate different environmental factors and how they feel about your company. This can be an anonymous way to gain perspective right from the source and make employees feel like you’re listening to them.

3. Make promotion opportunities accessible

Another way to encourage employee loyalty is to openly advertise opportunities for internal promotions and leadership roles. This allows your employees to see the number of opportunities for career advancement that are available to them and could discourage them from looking for external job offers that better match their career goals.

Going hand in hand with promotion opportunities, consider offering training and development opportunities to help employees meet their career goals (without having to find a new job). Ideas include tuition reimbursement, scheduling seminars and workshops, and offering job shadowing opportunities.

4. Give bonuses or pay raises without employee initiation

By being proactive and initiating conversations about pay raises and bonuses, you can show your employees that you recognize and value their unique contributions to the company.

Related: What is a Bonus Exactly? A Guide for Team Leaders

5. Get to know employees on a more personal level

Although it’s important to maintain healthy boundaries between your work and personal life, taking an interest in your employee’s lives outside of the office can help create camaraderie and build trust. By asking an employee about their hobbies, weekend plans or family life, you acknowledge them as a person, not just an employee.

6. Offer incentives and company outings

A creative way to encourage employee loyalty is by creating a fun work environment with incentives and out-of-the-office bonding opportunities. For example, you could start a bonus program for employees with the top sales scores or you could organize a company lunch, work party or a day trip to reward work efforts. By putting an emphasis on rewarding good work ethic and achievements, employees might be more willing to stay with your company.

7. Say thanks

Regularly providing positive feedback and saying thanks for a job well done can go a long way towards making employees feel valued, appreciated and satisfied in their roles. Try sending employees an appreciation letter or trying out one of these seven ways to recognize your employees.

**Indeed survey, n=1,000
**Indeed survey, n=750

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