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Increase Employee Loyalty And Productivity

I just read a great article over at the SlackerManager blog entitled Why Loyalty Matters. In the article the author discusses how and why loyalty among employees has a direct link with corporate productivity and profits. Sadly in the current economic climate only around 30% of employees claim to be loyal to their employers, and even fewer, around 25%, think their employer has earned that loyalty.

Layoffs are commonplace today, but research shows that in the long term layoffs don’t actually save any money and do in fact lower both employee loyalty and customer satisfaction both key predictors of future earnings. The University of Pennsylvania “found that spending 10 percent of a company‚Äôs revenue on capital improvements increased productivity by 3.9 percent. But investing that same amount in developing the employee capital more than doubles that amount, to a whopping 8.5 percent”. Research shows if companies focus more on developing their employees they are likely to increase their revenue in the long term.

Investing in your employees is not just about benefits, or training. In fact about 37% of employees who quit did so because of a lack of job fit or because of management. (Gallup 2006) To improve your employee loyalty start with management. Use a personality assessment to discover areas of incompatibility between managers and staff, and then make adjustments. Determine your corporate culture and make sure people will fit before you hire them.

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Justin Dalton

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