Earning Employees’ Loyalty
Why are employees referred to by companies as being the greatest asset? The answer is simple, machines, equipment, tools etc no matter how automated they are still need human beings to operate them. A seasoned human resources manager understands that the success of the company is dependent more on the loyalty of the workforce to the vision of the company. One of my colleagues who will fondly call Bossman, gave me a write-up he photocopied from a Nigerian daily. After reading it, I was prompted to write this article, Earning Employees’ Loyalty.
A business survival is dependent on getting customers who will patronize her goods or services. Growth is dependent on how loyal the customers become to the product or service of the company. Getting the right customer is a critical step in building a loyalty based business system, but it is only the first critical step. Once a company has loyal customers and it begins to enjoy steady supply of revenue, it is time to put a strategy in place to re-invest a good portion of the surplus to getting and retaining loyal employees.
Just as it takes quite some effort to build personal relationship with customers, so also it takes effort to build relationship with employees. Loyal employees have greater potential to learn and increase job performance.
Why Earn Employees’ Loyalty
Loyal employee will save you money. They save you money by reducing recruiting and induction costs. That money can then be use for some other productive ventures.
Seasoned Human Resource Managers do not like high rate of employee turnover because it is counter productive. It is not just about the financial cost of induction and training, but the distruption that constant changing in the workforce can have on the growth of the organization.
Even though some organizations claim that people are their greates asset, few actually act it. It is important not just to know the cost of your employee, overhead cost, but also the worth of your employee, their potential, the value they add to the organization.
As an entrepreneur going places, your business must learn to attract the best possible employees, hold the employees, recognize them, motivate and reward them.
Earning Employees’ Loyalty Requires Planning
You can’t earn employee loyalty just by sitting back and wishing it will happen. You must have the right mindset about the value of employee. You must define in definite terms what you consider as loyalty. Then you need to put in place strategies, tactics, practices and policies that will enhance measurement of employee performance and degree of loyalty to the organization. All these require effort and determination. If you don’t have a good Human Resource Manager, you may need to outsource to a competent Human Resource consultant.
The right place to start is during recruitment. Ensure that you recruit peole who share the organizations philosophy. Employees who personal goals and visions are in agreement with the vision of your business. Never recruit base on cost or professional competence alone. A happy employee will always be more committed and loyal than one that hates the job he/she is doing.
Treating people fairly should be the hallmark of your corporate loyalty system. If you follow the Golden Rule: Treat Your Employee The Way You Would Like To Be Treated. Let your fairness extends to employee compensation. Never feel that extra compensation to employee is undue overhead burden on the business. Look at your workforce as your partners in progress. Align Employees interest with that of the business and strike a balance that will be win-win for both the business and the employee. If you consciously work on strategies to ensure that employees earn more compensation, they will get committed to the business.
Finally, ensure that your compensation system is not lopsided in favor of the executives only. Your compensation plan should be fair ensuring that non-executive employee get adequate compensation. Nothing wanes employees’ loyalty like the feeling that your business is operating like the Animal Farm. A situation where some employee are considered and treated as being more important than the others. Let the process of career growth be plain for all to see and understand. Promotion should be based on merit and performance not personal sentiments.
Just as customers’ loyalty will keep your business revenue flowing, so also employees’ loyalty will keep the engine room of your business working smoothly and at lower maintenance cost. Even if you forget all that have been said in this article, Earning Employees’ Loyalty, don’t forget the Golden Rule – Treat your employees the way you will like to be treated.
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Tags: Business Growth, Employees, Entrepreneur, loyalty, small bsuiness, Successful Entrepreneur, workforce
customers are important ,so are employees ..i totally agree with you with treating employees as we would love to be treated…employees can make or mar a business..if they are not treated right ,they will not treat the customers right…if the are annoyed ,they will transfer the aggression to customers.
for growth of any business,good employees are important and that happens when they are treated well…
cheerz
Great post. I agree with winning employees loyalty and the benefits it can bring.
Business and the public sector are into a phase of creative disassembly where reinvention and adjustments are constant. Hundreds of thousands of jobs are being shed by United Technologies, GE, Chevron, Sam’s Club, Wells Fargo Bank, HP, Starbucks etc. and the state, counties and cities. Even solid world class institutions like the University of California Berkeley under the leadership of Chancellor Birgeneau & Provost Breslauer are firing staff, faculty and part-time lecturers. Yet many employees, professionals and faculty cling to old assumptions about one of the most critical relationship of all: the implied, unwritten contract between employer and employee.
Until recently, loyalty was the cornerstone of that relationship. Employers promised job security and a steady progress up the hierarchy in return for employees fitting in, performing in prescribed ways and sticking around. Longevity was a sign of employeer-employee relations; turnover was a sign of dysfunction. None of these assumptions apply today. Organizations can no longer guarantee employment and lifetime careers, even if they want to.
Organizations that paralyzed themselves with an attachment to “success brings success’ rather than “success brings failure’ are now forced to break the implied contract with employees – a contract nurtured by management that the future can be controlled.
Jettisoned employees are finding that the hard won knowledge, skills and capabilities earned while being loyal are no longer valuable in the employment market place.
What kind of a contract can employers and employees make with each other? The central idea is both simple and powerful: the job or position is a shared situation. Employers and employees face market and financial conditions together, and the longevity of the partnership depends on how well the for-profit or not-for-profit continues to meet the needs of customers and constituencies. Neither employer nor employee has a future obligation to the other. Organizations train people. Employees develop the kind of security they really need – skills, knowledge and capabilities that enhance future employability.
The partnership can be dissolved without either party considering the other a traitor.
Regardless of whether you run a small business with a handful of employees, or a corporation that employs thousands, one of your greatest assets will be the loyalty and devotion of your employees. However, employee loyalty is not something that will endure unless there are some specific efforts made to keep it alive and thriving. Here are a few ideas on how you can inspire and grow employee loyalty in your company. I fully agree with you with treating employees as we would love to be treated. In developing any business, good employees are important and that happens when they are treated well. Thanks for sharing.
I believe this is the best time to pay more attention to the issue of Employees’ loyalty. The cost of high employee turnover is not one that any management will be willing to incur frequently. It is actually cheaper to invest in employees’ loyalty thereby keeping them for a longer time than to be investing constantly in recruitment, training and severance expenses. Thanks for adding your thought.
While employees are being loyal they are not gaining skills that will make them employable in the constantly evolving employment marketplace. The skills earned by being loyal do not necessarly prepare individuals for the employment market.
Loyalty in the 21st century is a two way street. The comments above suggest that loyalty is just for management.