5 tips to drive employee loyalty
Posted on 08 May 2023
One important thing for businesses to keep in mind is retaining their key team members, especially in a tough hiring environment. A common retention strategy is using financial incentive programs such as bonus plans or profit share arrangements. However, it's important to consider whether or not these incentives actually increase employee loyalty and productivity or if they simply end up giving away profit without any clear benefit.
Here are some insights that can help increase team loyalty and productivity:
- Employees who play to their strengths are likely to stay longer. Managers should acknowledge their core skill sets and continually build organizations that put people in the most appropriate roles.
- Team members want to see a clear career path. These should be designed so people can grow and continue playing to their strengths.
- Professional development is important for employees to learn, grow, and develop new skills. Effective learning programs should be continuous, develop relevant and valued skills, and be customized to different kinds of learners.
- Acknowledgment for good work is important to employees. Build acknowledgment for good work into your processes, get really clear on performance metrics, and reward work that matters.
- Working for an employer that is stable, reputable, and makes them proud is important to employees. This includes clarity on vision and mission, prestigious clients, and a business that is well-run and contributes to the community.
Financial incentive plans have a place, but they should incorporate metrics that directly impact important firm goals, weight metrics appropriately, and be easily tracked and reviewed periodically.
We know that retaining key team members is essential, and financial incentives can be a part of that strategy. However, it's important to consider other factors that can increase employee loyalty and productivity. By aligning employees' roles with their strengths, providing clear career paths, offering opportunities for learning and development, acknowledging good work, and building a stable and reputable organization, businesses can build a stronger organization and increase productivity and loyalty.
