Loyalty is one of the most important factor in the employee retention and and customer satisfaction.
A loyal employee develop loyal customers and loyal customers means better sales and profitability.
4. Employee Loyalty
Employee loyalty can be
defined as employees who
are devoted to the success
of their organization and
believe that being
an employee of this
organization is in their best
interest. Not only do they
plan to remain with the
organization, but they do
not actively seek for
alternative employment
opportunities.
5. Importance of Loyalty
1. Loyalty of the employee
brings a great revolution
in entire organization.
2. This loyalty will help
the organization to
achieve its goal on
proceeding in right
direction.
3. Loyalty in terms of
business depicts the
reward points from the
customer. It promotes
behavioral loyalty.
4. It improves
organizational
productivity and profit
by customer retention
6. Context of Employee Loyalty
1. Nowadays employee loyalty is disabled because the
employee does not understand what the management is
trying to do. Rather than commenting, the employee
should try to show their commitment towards their work
through the efforts. Here are few clarifications on
employee loyalty.
a. Loyalty towards profession.
b. Loyalty to co-workers.
c. Loyalty to the organization.
d. Maintaining the company’s deal as confidential.
e. Stay back to complete the project.
f. Following the orders.
g. Not abusing the company’s properties.
h. Standby and help the co-workers during their struggle.
7. Employee Loyalty and Productivity
In order to run the organization
smoothly and profitably, currently
working employees has to be loyal
and dedicate themselves to their
profession. Investing on a business
requires the mutual support of the
employees and the company.
As mentioned earlier employees
are the pillars of each
organization. Employee loyalty
contributes to the productivity in
each regulated system. The
company has to unite all its
employees to build a bigger image
in the corporate world
8. Employee Loyalty & customer Satisfaction
1. Customer satisfaction and employee
loyalty brings huge benefits to the
organization. There is a strong bond
between loyalty, productivity and
profitability. The relationship
between profit and growth can be
handled by adjusting customer
loyalty which depends on customer
satisfaction.
2. Now the customer satisfaction
depends on service value whereas
the service value is totally dependent
on employee productivity. Here the
employee productivity is
interrelated to employee loyalty.
Again the employee loyalty is linked
with employee satisfaction. This
provides:
3. Business value.
4. Helps in attaining success of the
company.
5. Positive image about the company
can be maintained.
9. Techniques to build Employee Loyalty
1. Try to connect with employees .
2. Motivate & Make the employee
understand the reasons to be loyal.
3. Acts and present yourself as a best
example for the employees
4. Manager must play a vital role
5. Avoid promoting backbiters and
poor performers/promote merit
culture
6. Develop & engage employees to
enjoy the benefits
7. Work load balance and
independence in assigned tasks.
8. Avoid micro management and
perfectionism
10. Try to connect with employees
The organization must connect
with the employee through
communication. This
communication should be in a
clear and concise manner and it
should also be done periodically.
Even if an employee fails to attend
the meetings, the conductor of the
meeting should ensure that the
message discussed in the meeting
has reached that particular
employee as discussed. This
method enhances bonding
between the employees and the
organization
11. Employee Motivation & Empowerment
The organization must focus on
the empowerment of employee
loyalty. Each enterprise should
come up with a new idea that
will make the employee
understand the management
care for them. Most followed way
to make the employee
understand is providing them
stress free working environment.
Employee should understand the
gesture of the welfare that the
organization is providing.
12. Acts as a best example for Employees:
Few of the employees will
understand and learns to be a
loyal employee. Here loyalty aims
at taking efforts to achieve the
success of the company.
The Managers must stop
criticizing employees in front of
third parties.
The Managers must understand
the importance of acting as role
models.
Gossips and rumors should be
avoided to attain a peaceful
working environment.
13. Manager as Loyalty Builder
Manager should counsel
the employees about
loyalty and the outcome
of it. Employee should
be trained to take right
decision even at the
toughest situation. Once
the employee gains trust
about the organization
then it will be easy for
the organization to
make them understand
the counseling given
14. Fair Treatment & Merit
It is the responsibility of
manager to avoid
promoting backbiters and
poor performers.
Note. poor performers and less
competent employees tend to be
backbiters.
While taking decision keep
company first.
Always extend benefit to
performers rather than
informers.
15. Enhance Employees to enjoy the benefits
An organization must focus
mainly on giving support to
the existing employees
(internal promotions)rather
than recruiting new employees
and spending money on
training them. For certain
tasks right person should be
allotted. This confidence has
to be given by each
organization to the employee
so that employee loyalty will
be built automatically.
Employees training and
development program.
16. Keeping The Employees Enthusiastic
The organization has to
maintain the enthusiasm of the
employee so as to maintain the
employee loyalty. The
organization must
provide bonus to the employees.
There should be an amount of
investment in the ongoing
training of the employee. The
work schedule must be flexible
for all the employees. The
working environment should be
friendly for the employees to
share their internal loyalty and
to explore new ideas with the
consultation of higher
authorities
17. Employee loyalty with Positive
Management
A positive management will
consists of manager with
a positive attitude. The
commitment towards work
makes the employees raise
the moral values and self-
esteem. And there will be
reduction in turnover. All
these will enhance the
employee service and
customer satisfaction. It
enhances the bottom line
and reduces the conflicts.
18. Organizational performance with
Employee Loyalty
Employee loyalty plays a major role
in increasing the overall
performance of an organization.
From the facts it has been proved
that employee loyalty aims at
producing more number of capital
goods for the improvement of the
resources. This clarifies the
economic recession of the
company. Motivating the
employees helps in gaining loyalty.
In fact loyal business can be
dictated by the management. This
helps in the performance of the
organization that will help in
gaining competitive advantage.
.
19. Signs of a Loyal Employee
One can identify a remarkably loyal
employee in the following ways. Here are
few qualities that a loyal employee
possesses
1. They keep company as priority over personal interest .
2. They high light and propagate company’s good points
3. They suggest the least ideas that the boss would hear :
4. They never gossip/back biting in front of others.
5. They open up their thoughts in private.
6.They totally support the boss and his decisions
7. Asks permission while leaving even if the work is done
20. Pros & Cons of Loyal Employees
Pros Cons
1. Lesser the personal
problems, greater the work
done will be
2. Stability versus turnover
3. More commitment towards
the work
4. Less absenteeism
5. Business will be more
successful.
1. Costs and investments
made for loyal programs.
2. More experience will make
the employee less
motivated.
3. Less productive employees
and no new ideas.
21. Conclusion
Thus loyalty of the employees is more essential for
the success of the business. A loyal employee will try
to support even the customers, which will help the
management to produce proper evidence.
If the employees aren’t satisfied with the management
then the management has to take the responsibility to
bring the effect of loyalty in each employee. Even if the
higher authority doesn’t then the managers of the
department can do it.