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Companies invest a lot in employees, whether intentionally or not. According to Columbia University, replacing a lost employee can cost 150% of that person’s annual salary, showing the high cost of employee turnover and the monetary savings of loyal employees. The value of employee retention also reaches beyond finances into intangible benefits. Often, employee development that encourages employee loyalty also yields amazing return-on-investment. From regular training to leadership workshops, employees who are engaged in their jobs often remain satisfied and are more likely to work harder to give customers a good experience, encouraging customer satisfaction and return business. Loyal employees are also likely to be more devoted to their jobs, and therefore more productive.
Companies can encourage employee loyalty through a number of ways. For example, an employee who feels his or her company is invested in their employees’ development is more likely to stay with the company, even when looking for opportunities for advancement. Companies that encourage passion often breed innovative and dedicated workers, and employees who feel secure and valued in their positions are more likely to stay.
“Research shows that emotionally connected employees are the best employees because they are engaged and productive, and they feel validated and appreciated.” – Kyle LaMalfa, Top 11 Ways to Increase Your Employee Loyalty
Since employing a loyal workforce is beneficial to the company’s reputation and efficiency, and losing employees hurts a company’s bottom line, it is important to hire individuals that your company is willing to invest in. Cultivate loyalty and hire selectively for positions and company fit, instead of just hiring bodies to fill chairs.