Most employees are not loyal to their company, and many organisations lose a significant number of employees every year. Hiring replacements is not only costly but takes a significant toll on team morale. Employee retention is pivotal to maintain operational efficiency and growth targets. How exactly do you achieve this? Below are some simple tips to help you retain your most valuable asset.
Understand What Employee Loyalty Is
Employee loyalty is the feeling of attachment an employee has to their current employer. This feeling makes employees less likely to seek new opportunities elsewhere. You need to find ways to make your employees feel good about their decision to stay with your company.
This can be done by increasing their positive emotions and ensuring you have an amazing Employee Value Proposition (EVP). Making your employees feel appreciated, valued, and respected will go a long way in improving their loyalty.
It can be easy to get caught up in trying to change specific behaviours that are causing problems. However, it is more effective to focus on the root emotions that are driving those behaviours. When you understand and address these feelings, the specific behaviours will often take care of themselves.
Provide Fair Compensation
Employees want to be paid what they are worth. If they feel like they are being paid less than their peers, they may try to negotiate a higher salary elsewhere.
The most effective way to establish competitive fairness is to ensure you are constantly reviewing how the roles are being compensated both internally and against external benchmarks.
Do Not Create Tension
Leaders who force their employees to behave like them unknowingly create tension. It's better to encourage employees to be themselves, embrace an entrepreneurial attitude, and build engagement through different means.
Tension starts to form when management doesn't bother communicating with the people they're leading. If leaders and managers are not empathetic towards their staff and their development then this will likely build resentment and employee disengagement. Instead, try to be more open and understanding of what your employees need. This way, they'll feel appreciated and will be more likely to do their best work.
Focus on the Positives in Every Employee
Instead of focusing on what your employees are doing wrong, try to identify what they're doing right and what they're excited about. Create a plan that uses their strengths to achieve the results you want.
Encourage your employees to find ways to contribute that work best for them and help the business achieve its goals. Don't just focus on the obvious things that need to be done, but also look for ways that employees can excel and feel fulfilled in their roles.
Ensure engagement and autonomy
The current key management concept is "engagement," which means managers should cede autonomy to employees. This is similar to the previous concepts of "delegate" and "empowerment," which also emphasised giving employees more responsibility and authority.
When employees are engaged in their work, they are more likely to make decisions that contribute to the company rather than simply following orders. As a result, companies with engaged employees have a 31 percent lower turnover rate. One way to increase employee engagement is to let employees take control of their work outcomes. This instills a culture, where employees feel empowered and therefore excited about their work environment.
Effective leadership is about creating a positive culture that fosters an environment of trust, high morale and focuses on employee engagement. Employees need to feel like their leaders have their best interests at heart and will support them through thick and thin. Leaders who are inconsistent or focus on politics will find that their employees quickly disengage.
In today’s climate, employees are especially vulnerable, not really knowing who to trust, rely upon, or follow. No one wants to follow a leader who isn't looking out for their best interests. Good leaders know they must work to keep their best employees through open and transparent communication balanced with emotional intelligence.
Are you looking for executive leadership coaching in Australia? I provide leadership coaching to support executives and business leaders drive successful initiatives while their teams consistently perform at the highest level. Schedule a call today or buy my book here.