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How to Build Loyalty in Employees

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Employee loyalty is, for many companies, a trait that is difficult to find. If an employee is not satisfied with his or her job or feels unappreciated, he or she will walk; in fact, the average employee in the United States spends just 3 years at one job.

High turnover rates can be costly for a company. Searching for qualified applicants, posting openings on job boards, the interview process, and hiring a new employee can cost the company both time and money.

How to Build Loyalty in Employees

Building loyalty in employees is not as difficult as it may seem. Simply put, satisfied employees who feel they are being compensated fairly and treated well at work will remain on the job and loyal to the company. There are a number of ways to build employee loyalty, including:


  • Make sure the entire compensation package is adequate. Compensation is not limited to just a base or hourly salary; the entire compensation package should be taken into consideration. Employers who scrimp on benefits will not have satisfied employees. As the cost of health care rises each year, employees want comprehensive health care coverage that includes medical, dental, prescription, and life.
  • Offer wellness benefits. Stress can take a toll on employees and cause burnout. Many employers are turning to wellness benefits for their employers. This can include gym memberships, massages, and free health screenings.
  • Offer retirement benefits. As more and more employees begin thinking of their futures, good retirement benefits will keep employees satisfied with their compensation. There are a number of options you can provide employees, including 401K, Profit sharing, and SEP, that fit your needs and budget.
  • Allow flexibility in scheduling. Oftentimes, a employer that allows flexible work arrangements will experience a much lower rate of turnover. Balancing work with home life is not always easy, and employees appreciate a flexible arrangement. This could include flex-time, or allowing employees to come in a little later (say, 9-6), part-time hours, telecommuting opportunities, or compressed hours. Almost half of all employers today offer such arrangements, which allow employees more flexibility with childcare and other home situations.
  • Provide opportunities for advancement. Employees want to feel their hard work and skill are valued, so opportunities for advancement are another way to build employee loyalty. On-the-job training or the ability to lead projects are some creative ways to provide employees with opportunities to advance or hone their skills.
  • Reward high performers. One way to build employee loyalty is through incentives and bonuses. These need not be large amounts. A $200 or $300 bonus is enough to show employees their hard work is appreciated and noticed. In addition, there are other creative ways to reward employees, such as taking the department out breakfast or lunch once a month or giving gift certificates.
  • Make expectations clear. This is especially important for new employees. Make sure there is an "open door" policy and employees always have someone they can go to with questions. No one likes to be bored, so make sure the workload is adequate but not overwhelming.


Creating an environment that employees will want to remain in need not be difficult or expensive. By providing an accommodating work atmosphere, in addition to a compensation package that is difficult to walk away from, employers can build loyalty in their employees.


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