Engagement is the secret to building loyalty and reducing turnover. When workers feel appreciated and are excited by their work, they are less likely to seek new opportunities elsewhere.
High levels of employee turnover can negatively impact an organization. When staff members leave, team efficiency can diminish and companies lose valuable knowledge and experience. At small firms, which have fewer employees to start, losing key staff members can be even more damaging.
While it is not always possible to prevent workers from leaving, companies can take steps to increase employee loyalty. The Star Online stated that engagement is the secret to building loyalty and reducing turnover. When workers feel appreciated and are excited by their work, they are less likely to seek new opportunities elsewhere.
Employee reward and recognition programs are effective tools for engaging staff members. These initiatives allow managers to acknowledge the contributions of top performers and show the value of each employee. The source noted that positive feedback helps energize workers to ensure that companies are seeing their employees' best efforts. The recognition process can also be used as a learning experience for younger staff members by providing real examples of what businesses and customers expect. This is vital to training sessions in organizations where workers are empowered to deliver exceptional service. Workers who have the authority and ability to resolve problems directly are more likely to be engaged.
Tailor rewards to workers
To create successful incentive programs, businesses need to tailor these initiatives to their workforces. Rewards should be personalized to create meaning for each worker. Giving staff members something they will use and appreciate will provide more motivation than generic gift cards. This process requires constant communication and feedback to determine the appropriate rewards.
"You need to talk to your staff to agree a development plan and it's exactly the same with incentives," HR consultant and author Kate Russell told the Guardian. "Not everyone wants a free gym membership, so talk to your staff and see if there's something else that would incentivize them, like Spanish lessons, or whatever it happens to be."
The size of a company can often shape the type of rewards that will be most effective. The Guardian reported that small businesses are more likely to lose employees because of work-life balance issues than larger corporations. Developing firms rely heavily on each staff member, which can cause workers to feel overworked. Providing rewards like additional time off, more flexible scheduling or stress-busting massages and spa treatments could help small companies improve employee loyalty.