How to Build Employee Loyalty


For the most part, the days when an employee would spend 30 years with a company are long gone. Today’s millennial workforce, for example, do not hesitate to change roles if they are unhappy and an opportunity presents itself. What can an organization do to increase employee loyalty and keep their top performers on board?

Why Loyalty Matters
When people feel fulfilled in their role they’re more productive. This fulfillment is fueled, in large part, by a feeling that an organization values them and their work. This, in turn, is more likely to encourage them to stay with an organization, allowing a firm to grow its future leaders and invest in its talent. Constantly replacing top performers is a costly endeavor. Turnover impacts team morale, the departing employee takes their knowledge with them, and the financial cost to recruit and train someone new can equal a full year’s salary. Overall, it makes sense for an organization to build employee loyalty.

According to this article from the Harvard Business Review, “Autonomy may be the single most important element for creating engagement in a company.” Specifically, employee loyalty and engagement are increased by giving employees a sense of control. Balance this with accountability, and you have a winning combination for employee productivity

Confidence in Leadership
Employee loyalty increases when people have confidence in their leaders. Ensure that management communicates regularly with their direct reports and connects decisions to larger organizational objectives.

Individual Attention
Loyalty is greatly improved when employees receive individual attention designed to further their career goals and skill set. A strong mentoring program can be a great way, therefore, to keep your best talent. In fact, the relationship with a manager is a number one predictor of whether or not an individual will stay in the role, so make sure your managers regularly schedule one-on-one’s and that they are trained to inspire and share their expertise with their employees.

Fairness and Dispute Resolution
Managers must respond to concerns immediately with fairness. There should be a formal dispute resolution mechanism in place which is followed consistently. This fosters a sense of mutual respect, and makes employees more likely to accept the outcome of the resolution process.

Education and Equipment
One of the most common sources of employee frustration is the feeling that there is a lack of training or proper equipment to get a job done well. Make sure that employees feel supported, that adequate training measures are in place, and that they have the proper equipment or software to excel in their role. Employees who feel adequately supported by their company are much more likely to remain with an organization.

Paths to Promotion
If an employee understands the path to promotion they are more likely to stay on board. Allow employees to gain cross-functional experience. The more they understand the business, and all its moving parts, the more invested they will feel.

Tailor Benefits
A one-size-fits-all approach to benefits and compensation, isn’t always the most effective way to build employee loyalty. Individualize your benefits as best as you can to suit an employee’s personal drivers. While one person may value increased flexibility, another may be more financially driven. One option is to create choice within your benefits package. For example, employees can be offered a fitness stipend to spend as they wish.

Read: To learn more about how companies are using progressive strategies, including customizing benefits, to increase employee loyalty and retention, read “How to Retain Top Finance and Accounting Talent.

Key Takeaways
The more loyal your employees are, the more likely they are to stay and grow with your organization. Invest in your managers and ensure that they are trained to inspire and share their expertise. Make sure that employees understand the path to promotion and how their work connects to the larger picture. Balance autonomy with accountability and customize benefits to reflect an individual’s specific needs. Have a fair dispute resolution in place and provide your team with the education and equipment they need to do their job well. 

Your Next Step
No one should walk the job search or hiring road alone. At Clarity Recruitment we help others realize their success through a process that marries proprietary technology with unwavering commitment. Contact us today to take control of your career, or to partner with us to hire well.

Clarity Recruitment, connecting exceptional people with remarkable companies.

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