Wondering why your employees don’t feel as passionately about your company as you do?
Company loyalty or lack of thereof is one of the major concerns of any business or organization. Employees are the backbone of any organization and a significant employee attrition rate can hamper even some of the biggest company’s reputation and performance. A study by The Predictive Index states that “Executives attribute 72% of their company’s value to their employees.”
Why do you think everyone wants to work with Google, Verizon, Microsoft and Apple? These companies have a common denominator. They are known for taking care of their employees and hence their employee attrition rate is quite low.
Here, we point out 10 common mistakes people are making that hampers company loyalty and ways to remedy it.
1.Problem – Taking Older Employees for Granted: Among the most common mistakes is when employers take older employees for granted. It is a known fact that company loyalty is stronger among older employees than recent recruits. More often than not, employers tend to put older employees in the backseat and give more responsibility and a better profile to newer recruits. Not only does this negatively impact the older employees but it may also affect the task at hand.
Remedy – Acknowledge their commitment towards the company and respect their experience. Make the best of their expertise and experience and give them the respect they deserve.
2. Problem – Not Nurturing Existing Employees: Many recruiters are obsessed with hiring people. Sure, new employees bring along a boost of much-needed energy but bypassing years of hard work put in by existing employees and hiring new employees to replace old ones at the drop of the hat, is perhaps the biggest mistake any company can make.
Remedy – Make your existing employees feel heard and valued. Routinely appreciate their work and dedication towards the company. Encourage them to enhance their skill-set and provide them with resources to do so. Nurturing existing employees will make them more dedicated towards their job and more loyal towards the company.
3. Problem – Having a Revenue-Oriented Attitude: Businesses are built to milk profits but businesses are built by employees. If you put revenue before your employees, it will reflect in your business performance, market reputation, brand credibility and eventually hamper your business as a whole.
Remedy – When you put your employees first, they are more inclined to work harder. They will make your business objectives their personal goals and help you take your business to the next level. Show them that they are valuable assets to your company. Put your employees’ happiness and wellbeing before revenue.
4. Problem – Your Human-Resources Team: A good human resources team can do wonders in boosting company loyalty. It is responsible for making sure that employees are comfortable, happy with their jobs and if not, they feel comfortable enough to communicate this to the management via the HR team. If the HR team is non-reciprocal it can create a rift between the employees and the management.
Remedy – More and more companies are empowering their HR teams and training them to treat employees more like assets than resources. According to U.S Chamber of Commerce Foundation, “This year’s top three organization human resource goals are to: retain more talent, recruit top talent, and reduce the time to hire.” Train your HR team to be intuitive, cooperative, and proactive.
5. Problem – Not Upgrading Your Technology – According to Zapier, “16% of Gen Z and Millennial employees have quit a job because their employer did not provide the proper technology for them to do their job.” It may not seem like a big deal to employers but not upgrading technology frequently has a considerable impact on business, employee efficiency and productivity. Imagine getting an upgraded system for a team that has been struggling with outdated system for years. It will not only get the work done faster but also renew enthusiasm among the employees.
Remedy – Hire a good IT team or a vendor that takes care of your company’s technology capabilities. A good vendor will routinely upgrade systems and provide the best possible resources and support to your employees to help them perform better.
6. Problem – Not Matching the Pay with the Profile – The number one, reason why employees switch companies is remuneration. According to Career Addict, “Of those who had already quit their jobs, 35% would consider returning if they were offered a better salary or a higher position.” Employees often feel underpaid especially in terms of the work they are doing and the responsibilities they are undertaking.
Remedy – Matching the pay with the job profile is a requirement every employee must fulfill. Another report by The Predictive Index states that, “On average, 47% of high-performing employees left their company in 2019.” Identify your assets – your high-performing employees, give them extra credit and deserving remuneration for their efforts. This will not only boost company loyalty but also motivate other employees to perform better.
7. Problem – Not Focusing on Engagement Activities – You cannot expect loyalty from an employee you have no connection with. Another reason why employees easily switch companies is that they feel no connection or emotional bond with the company or other employees.
Remedy – Employee engagement has become a norm in many companies across the world. To form a ‘more than just a transactional bond’ with your employee and boost company loyalty, many brands invest in engagement activities that promote comraderies and help to forge an emotional bond between the employer and the employee that boosts company loyalty.
8. Problem – Being Inhumane: Employers often lack empathy especially when dealing with their employees. Empathy and kindness play a crucial role in the principles of human relationships. When the management comes across as inconsiderate and downright inhumane, the result is reflected in the employee attrition rate.
Remedy – It is crucial to make empathy and kindness part of your company objectives. Here, management can be an inspiration to inculcate kindness by being empathetic to their employees. Listen, empathize and if possible, provide the required assistance to afflicted employees in times of need.
9. Problem – Not Investing in Corporate Gifting: How often have you heard employees complaining about receiving substandard gifts from their companies during festive seasons?
Remedy – According to Promotional Products Association International, gift-giving is proven to increase business activity and increases the return on investment. It is proven that gifting improves employee satisfaction rate thereby significantly boosting company loyalty.
10. Problem – Not Having a Loyalty or Incentives Program – Just like keeping your customers engaged and satisfied is important, the same goes for your employees. Although not having an incentive or loyalty program dedicated for employees is not a problem per se. However, having one has many great benefits. It is perhaps the most efficient and easiest way to reward, incentivize, and motivate employees to do better while also boosting company loyalty.
Remedy – Annex Cloud’s dynamic platform that help you create a bespoke incentive and loyalty program for your company based on your brand aesthetics and employee data. Click here to learn how Annex Cloud can help you.