3 Simple Yet Effective Tips to Retain Loyal Employees 

Letting go of a talented employee could be worth 40 - 60 percent of the said employee’s annual salary, meaning that the cost of replacing employees is enormous. This number includes loss of productivity, long interviewing, training, and onboarding processes. The replacement costs of a junior position employee might be lower but the costs of replacing professional, technical, or supervisory employees can be significantly higher. Not to mention, new hires often need time to adapt to their new roles, such that employers will need to invest more in employee orientation. 

To minimise the cost of replacement, employers should manage their retention strategy by instilling loyalty in employees. Providing better work-life balance, increasing salary, or improving work culture are among popular advice to engage employees and build loyalty. However, before ensuring loyalty, first you need to understand why your employees are emotionally connected to your business, and it is generally much more than salaries, training, or benefits. These are the most important things employers must acknowledge to instil loyalty in employees:  

1. As simple as being a good boss and a true visionary 

It takes two to tango. The same goes for the corporate world - you need to look at the people who work with and for you, and say to yourself, “I value this person because (fill in the blank)”. 

You need to develop positive thoughts and feelings towards them. Make a habit of doing this every day. It is also essential that both employer and employee know and appreciate the company’s philosophy and goals. Articulate your company’s vision clearly to everyone. Sincere conviction and confidence are contagious! If an employee finds value in the company cause, they will naturally support it.   

See also: Nepotism: Is It Good to Hire Job Seekers because of Pre-existing Relationships? 

2. Open communication from both parties 

Numerous studies show that the larger a person’s stake in a company, the greater his level of loyalty. Communication encourages loyalty. Open communication is an extremely important ingredient for instilling loyalty. 

Communication is always two-way conversation. If it is only one person expressing their ideas, then it is not a conversation but instruction. How to have a two-way conversation? You can start by giving positive feedback whenever a job is well done. It will encourage employees to keep up the good work. Other things you can do is to encourage your employees to speak up about their burdens or voice out their ideas. Treat it like a conversation with your friends but in a formal context.

3. Let them contribute more 

If an employee feels like a non-contributor, they have no perception of their worth in the company. Consequently, they might feel unappreciated, lose productivity, and only do the bare minimum of their daily work. 

On the contrary, whenever employees feel that they can contribute, their loyalty will enhance. Make the employees part of the team by letting them voice their ideas and execute those ideas for your company. Remember, emotionally connected employees are the best employees! They are engaged, productive, and appreciated. 

Loyal employees usually have the willingness to promote your business. They might not be the smartest employees but they have the capabilities to achieve business goal. Regularly nurturing your loyal employees, eventually, they could make plenty of positive outcomes, probably a lot more than you think.   

Read also: 5 Mistakes You Should NOT Make during Career Change