If you have been struggling with a high turnover rate, you know that there is something wrong with the company. There are many factors that can affect employee loyalty. People usually have various reasons for leaving their jobs. However, having a team of loyal employees is completely achievable. There are a couple of practices you can do to ensure this.
Offer fair and competitive compensation
You cannot encourage employees to stay loyal to your business if they are not even paid fairly in the first place. You can do every gig you can think of to engage with your people. However, they won’t feel valued if they know that they are shortchanged. Remember that nowadays, fair wages for almost any occupation are easy enough to look up. It’s something you can’t cheat your way through. Additionally, if you attempt to do so, your employees will certainly know.
One more thing that employees expect is sharing an equal pay with peers of the same tenure and with the same workload. This expectation directly challenges the practices of negotiation and salary confidentiality. However, there is no denying that it is a fair thing to do. One revolutionary idea is “pay transparency.” This concept aims to publicize an entire company’s compensation just as how public-held companies publish their executives’ compensation. This way, the employees are assured of fairness because it compels the company to be fair to all considering the public nature of their compensation scheme.
Nothing can turn a worker away faster than a manager constantly breathing down his neck every minute of the working day. While checking in a few times is welcome and necessary, science proves that overly-rigid rules and constant minute-by-minute monitoring saps creativity and motivation. You’ll end up with demoralized employees who won’t see the importance of working for the good of the business because they feel the need to defend their freedom first.
A couple of companies have already begun fixing this issue with flexible working hours, and options for remote work. Other entities even choose to let go of rigid work frameworks and adopt a laissez-faire type of leadership. This allows members to make decisions within their scope of responsibility, accomplish tasks at their own pace, and work in the way they see most fit. This type of set-up is preferable for groups where individuals already have the right skills to accomplish their goals.
For more tips on effective management that your employees will absolutely love, check out Management : Eight Practical Ways To Motivate And Engage Your Team.
Security is a valuable thing for many employees. Uncertainty is one thing that can urge an employee to seek other options in fear that their current job is in danger. To provide security, a company has to get rid of as much doubt and uncertainty as possible. When people feel secure with their jobs, they won’t see any reason to go looking for back-ups.
While companies can’t get rid of uncertainties in the economy, they can buffer this threat by being proactive. Provide advanced alerts, be generous with information, and practice transparency. If you have to lay somebody off, make sure that you do so fairly. Avoid firing somebody on the spot—it’s a terrible thing to do according to experts. Allow them a fair terminal period. This serves as a reassuring gesture that shows employees that they won’t lose their job with a drop of a hat.
When your employees know that you have a ready ear and an open mind, it increases their sense of security and value. Many companies achieve this through employee surveys, manager feedback, and HR appointments. However, when conducting these activities, make sure that you pair your feedback pathway with an attitude of acceptance. It is practically useless to ask for feedback if your employees feel that their honest opinion jeopardizes their jobs.
A practical way to “listen” to your constituents is online or paper surveys that assess overall employee satisfaction. You can dive into different aspects of employee satisfaction, such as work-life balance, compensation and benefits, fairness and respect, work environment, and growth opportunities. You can publish the overall results of your survey to the whole company for transparency. If you’ve identified areas for improvement, you can take things further by implementing changes or programs to improve it. Doing so shows your sincerity as an employer.
Dole out spontaneous reward
If you can, don’t wait for your top-performing employees to come knocking at your office, feeling like they have to beg for a raise, promotion, or some form of recognition. Give apt credit where it is due and don’t hold back or put things off out of greed. This connects to the issue of shortchanging employees.
If your employees feel rewarded for their efforts, they will naturally feel valued and appreciated. This fosters a strong and healthy employer-employee relationship. It is one of the most effective ways to gain and maintain employee loyalty.
Another thing that encourages employee loyalty is the presence of benefits. Many companies offer health insurance that even extends to employees’ dependents. This type of benefit reminds employees that their work is for the good of their families. It also sends the message that the company truly values its employees by not only taking care of their workers but their loved ones as well.
If your business still cannot afford very comprehensive benefits, you can research other benefit options. There are a lot of benefits you can choose from. Employee stock options, retirement funds, reduced or free membership fees, and tuition reimbursement are all good examples of benefits that require your employees to stay with you for them to avail.
Outroot toxic people
Ill manners, power-tripping, poor temper, low emotional control, putting others down—whether it’s a bad boss or a terrible employee, if someone has bad work ethics and is making everyone else’s life miserable in the office, you might have to let that person go. People are motivated to stay loyal to a company if they get along nicely with everyone on board. However, if they feel threatened, bullied, or annoyed by someone else, every working day would feel like a hell hole.
It doesn’t matter if you are looking at a high-ranking or crucial member of the business. If their presence is urging everyone else to quit, they won’t be worth keeping. As a business owner, you have to carefully evaluate each member of your crew. If you feel like you’ve ticked all other boxes and are fairly compensating everyone and your turnover rate remains high, you might have a rotten tomato in your basket. The challenge is to identify the toxic person. If your employees feel safe enough to voice out their struggles, this would be easy for you. Otherwise, you’ll first have to do a lot of snooping.