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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 todays
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 Americas top companies, and we like
it. Here it is for your consideration:
. Highly motivated people love to overcome
challenges, and the like being in an environment that doesnt
tolerate mediocrity. That doesnt mean being ruthless for the sake
of power, but to encourage the best to give their best, knowing theyre
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 whats 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 its felt most strongly.
Invest in their financial security. People who dont know the
basics of investments are having to plan their own retirement these
days, and its 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 dont know how to say "Well
done," but theyre quick to note performance that isnt. By
emphasizing the positive, we tend to create more of it.
Not a bad set of guidelines, in our opinion.
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