Understanding What Makes Employees Loyal

Posted: 8/15/2007

As a manager, you know that employee loyalty is a big piece of what makes your organization successful because it leads to less turnover and happier, more productive employees. What makes employees loyal is a little more complicated than you might think. Naturally, liking your job, earning a good salary, and being able to move forward in your career are key factors in employee loyalty. But new research shows that much less obvious factors may actually have a bigger impact.

According to a 15-year study of employees that appeared in Current Directions in Psychological Science, some of the top reasons why employees stay with an organization are a sense of community and a social network, not just salary or the potential for advancement. “Most companies should very seriously think about the value of creating a community,” says Thomas Lee of the University of Washington, who co-directed the study.

But the top reason for employee loyalty isn’t any of these things. According to extensive research by the Gallup organization, it’s the quality of an employee’s relationship with his or her immediate manager. As a direct manager, you can help build a work force that’s loyal to your organization. That’s a lot of responsibility, but it’s also a great opportunity. Here are some tips that can help you create a team of loyal, productive employees:

Think like a coach. The best managers don’t just manage -- they coach. Your role should be to guide employees to success, not tell them what to do. Try to find challenging assignments for your employees. Clearly communicate the timing and outcomes you need, but encourage employees to think of solutions or improvements on their own. And be sure to offer regular feedback and let people know that they can always come to you if they get stuck and need more direction.
Develop personal relationships with the people on your team. You don’t have to be best friends, but you should know the name of the person’s spouse, partner, or child, what they love to do in their free time, and what some of their personal and professional goals are.
Understand what motivates your employees. Learn what kinds of rewards and recognition mean the most to them. Remember some of the best rewards for employees can be job related, such as letting someone work on a project they really enjoy or with a teammate that they like to work with.
Encourage a team atmosphere. Employees who feel like they are key members of a productive work group tend to be more loyal and dedicated than those who work in isolation. When a work group is a team, everyone understands how their work affects others and there’s a greater sense of accountability. You can foster a team atmosphere by meeting as a group regularly, doing team-building exercises, celebrating team successes, and asking for input from the whole team whenever you face a challenge or concern. All of these activities will allow you to create the positive energy that your team needs to maintain high productivity and morale for the long run.
Provide learning opportunities. You may not be able to give everyone on your team a promotion, but you can help them expand their professional skills and knowledge. Encourage employees to learn new skills, even if it’s just a new software program, and then have them train other team members. Look for ways to get team members involved in new projects. Make sure that you provide feedback that allows each team member to understand better where their talents and strengths lie.