There is a misconception in the corporate world and that is, if you pay your employees a good salary, they will be loyal to the company and advocate the brand. But this just isn’t the case.
Thanks to technology, today’s employees can easily search the Internet for a new job in a single afternoon. Heck, many industries now allow employees to work remotely, meaning someone in Rochester, New York can be employed by someone in Miami, Florida. This opens up even more employment opportunities for many folks.
The truth is, employees demand more from their workplace than ever before. They don’t just want a livable salary; they want to be valued and seen as important members of the team. When you value the people who come to work for you every day, they have a reason to support your goals and share your vision.
In other words, employee loyalty cannot be assumed, it must be earned.
5 Benefits of Employee Loyalty and the NUMBER ONE Way to Inspire It
5 Benefits of Employee Loyalty
Before we dive into exactly HOW you can inspire employee loyalty, let’s first take a look at some of the biggest benefits:
- Employee Loyalty Leads to Enhanced Productivity
Loyal employees are motivated to work. They work hard not because they HAVE to but because they WANT to.
- Increased Profits
Business investments generally go to one of two places: capital assets or human assets. You may assume that focusing on short-term capital gains will be the most helpful to your organization, especially during a recession. But consider this…
Researchers at the University of Pennsylvania wanted to see exactly which investment had a bigger payoff in the long run. They found that when an organization invests 10% of its revenue to improve capital, productivity increased by only 3.9%. But when they invested that same 10% into employee capital, productivity increased by 8.5%. Know what else increased? Profits!
- Employee Loyalty is Infectious
When your employees feel negative about your company, that negativity can spread to your customers. But a loyal employee, one who feels genuine pride and appreciation for the organization they work for, can spread that positivity far and wide!
- Employee Loyalty Improves the Company’s Image
Employees are not just people that help you make and sell your products and services. In reality, more than half of your company’s image is built by your employees. Your employees are your first brand ambassadors. Employee loyalty sends the signal to customers that your organization is worth investing in.
- Employee Loyalty Attracts Top Talent
When your employees are valued and there is a strong foundation of employee loyalty within the workplace, word spreads. Before you know it, you have talented professionals banging on your door wanting in on the action. Not only does employee loyalty attract top talent, it results in employee retention as well.
The Number One Way to Inspire Employee Loyalty
Now that you know some of the reasons why employee loyalty matters, it’s time to talk about the most effective way of inspiring employee loyalty, and that is through internal events.
From our experience, business leaders are often reticent to spend money on internal events, but that’s because they don’t understand the link between these events and employee loyalty, and how that translates into ROI.
Here are some reasons why internal events are worth the investment:
They Create Bonds with Your Brand
Internal events show your employees you truly care. By making it clear to your team that they matter, are valued, and have a say in the company’s culture, you create a strong bond between your brand and your employees.
They Create Bonds Between Team Members
Internal events also support interpersonal relationships within the company. To complete projects, your team must be cohesive, and for that to happen, your team members must trust, like and respect one another. That’s no easy feat. Internal events turn your company into a genuine community; one where all hands are on deck, working toward a common goal.
Internal Events Get You Critical Employee Feedback
An event gets everyone together in a fun and casual atmosphere. As cocktails and conversations flow, there is a tremendous opportunity for leaders to engage and recognize what everyone is really thinking and feeling. You may also want to incorporate some kind of mobile survey to help you collect opinions, complaints and concerns. These can then be analyzed to improve your employer branding practices.
Internal Events Improve Your Bottom Line
Don’t be fooled, there is also a definite business value of investing in these in-house events. When you gather your entire team into one place, it allows everyone to be involved in creating new product concepts, strategies, processes and more. You get all eyes and efforts pitching in and coming up with solutions that ultimately increase your bottom line.
And don’t forget the original premise here, and that is internal events result in employee loyalty, and employee loyalty leads to increased productivity and profits.
The bottom line is, internal events are worth the financial investment. Not only do they make your employees feel valued and appreciated, they inspire them to greater performance, which results in financial growth for your organization.
If you need help planning inspiring, loyalty-building internal events, click here to get in touch with an event manager!
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