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Managing People: Employee Loyalty – dead, or just in need of nourishment?

A lot has been written about companies no longer earning, and certainly not getting, the loyalty of their employees. Most managers acknowledge the lack of that loyalty lowers productivity and worker satisfaction, raises turnover and hiring costs, and generally alienates everyone in the workplace to some degree. But assuming today’s workforce has a sense of employer alienation, how does a company build loyalty when you are committed to it, without having workers take advantage of your generosity without responding in kind? We saw this list of "Seven Secrets to Building Employee Loyalty," based on interviews with some of America’s top companies, and we like it. Here it is for your consideration:

  • Set high expectations. Highly motivated people love to overcome challenges, and the like being in an environment that doesn’t tolerate mediocrity. That doesn’t mean being ruthless for the sake of power, but to encourage the best to give their best, knowing they’re among their own kind.
     
  • Communicate constantly. One CEO whose company has offices around the world sends videos of employees questioning management about company direction. Another practices Open book Management (see Cost Control Concepts in this issue). Another simply allocates time to talk informally to his employees one-on-one, listening and answering their questions personally. Each in his way is acknowledging that workers like to know what’s happening directly from management, not from the rumor mill or the newspaper.
     
  • Empower, empower, empower. Employees feel best about a company that gives them a sense of responsibility for their work not achievable any other way, according to many experts. Relying on people who are closest to the work to make sound decisions, with management guidance instead of direction, drives loyalty down to the team level, where it’s felt most strongly.
     
  • Invest in their financial security. People who don’t know the basics of investments are having to plan their own retirement these days, and it’s scary to most. Support with generous 401(k) matching, easy ownership of company stock (public companies only, of course), and other retirement-driven options, can bring big dividends without big price tags. (Ed.: Of course, you still have to match the benefit to your employees’ preferences, best determined by asking them, as noted elsewhere in this issue.)
     
  • Recognize people as often as possible. One company started a program called "I Caught You Doing Something Right" and awards $250 each week to some worker for a job well done. Some of the most driving CEOs we know don’t know how to say "Well done," but they’re quick to note performance that isn’t. By emphasizing the positive, we tend to create more of it.

Not a bad set of guidelines, in our opinion.

 

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