1 out of 3 employees expect to leave their jobs by the end of the year. Even though your employees might not be actively searching, 76% of them are ready to switch jobs should the occasion arise. That’s bad news. But there is good news as well: employees are loyal to their team.
The cost of non-engaged, unhappy employees is significant. Think thousands of dollars in lost productivity and lower sales. If a key employee leaves, replacement is expensive as well. Estimates start with 6 months of salary and can easily double that for highly qualified people.
So, investing in employee loyalty should pay off, right? Well, only if you do it in a smart way. The dynamics between company and employee are largely defined by the company. Employees can only count on their job as long as they are useful. Companies nowadays aren’t very loyal to employees, so it’s hard to expect loyalty to be reciprocated. The effects of financial benefits on employee loyalty are very limited and easy to copy by your competitors. But there is one thing employees feel really connected and loyal to: their team and their manager.
Empowering managers and their teams is the way to go for companies that understand that engaging employees is a key driver in success. Provide managers the tools to build great teams, including reward programs that makes sense for that team and resources that allow for team building outings and activities. Cost will go down, revenue up, and employees won’t feel the need to look for greener pastures.