With employee loyalty, the connection between loyal employees and business success is not quite as clearly defined or generally understood.
First, let’s define what we mean by employee loyalty.
Employee loyalty can be defined as employees being committed to the success of the organization and believing that working for this organization is their best option. Not only do they plan to remain with the organization, but they do not actively search for alternative employment and are not responsive to offers.
Employee loyalty as defined above is more than just tenure with the same organization. It is about wanting to be there too. Said in this way, the leap from employee loyalty to customer loyalty and ultimately, business success should no longer be a stretch.
Why Do We Care about Employee Loyalty?
Employees are a vital resource for nearly all organizations, especially since they represent a significant investment in terms of locating, recruiting, and training let alone salaries, healthcare plans, bonuses, etc. There is considerable expense for replacing an employee whether it is the shoe salesman who sold you your last pair of cross trainers or the lawyer who wrote your will. Most managers do not realize how expensive losing workers can be. Of course, we’re talking about the expense of losing ‘good’ workers, those who do their jobs well and are productive. Anything less than a loyal, productive worker...