Creating a Culture of Loyalty
By Joseph Marzano, Jr.

In the past, employee loyalty was assumed; people stayed in their jobs for decades. Today, employees expect to change jobs several times during their work life. The cost to employers is enormous.

According to some experts, turnover costs can total up to 200 percent of annual compensation. High turnover also disrupts customer service and the morale of remaining employees, not to mention the loss of experience, continuity and corporate momentum.

Certainly, no one expects nor desires zero turnover in an organization. But for good reason, most companies seek to limit the outbound flow. I’ve found that organizations are able to successfully manage turnover when top executives or owners make it a priority to treat people right.

How best to do that?

Sharing the vision
First, develop a clear vision, and communicate it to your employees in a way that makes sense to them. Explain the organization’s goals and also its purpose — that is the organization’s underlying values, beliefs, dreams and aspirations. When an individual's traits and values are aligned with those of the company, they are more likely to be attracted to that company and work to support its vision. When a person’s values are in conflict with those of the organization where they work, they may act in ways that are contrary to, or even sabotage, the vision.

Once people understand the vision and know what the company culture stands for, they will decide for themselves whether or not the culture is a good fit for them. Some people will choose to leave. Most will stay. As you hire new people who understand and buy into your vision, your company will repopulate with employees whose values are aligned with your company’s culture.

Your task, then, becomes acting in ways that are congruent with your vision and values. In that regard, actions speak much louder than words.

Setting an example
A recent study at Mercer University in Georgia reports that patients are less likely to listen to advice from doctors who are overweight – especially with regard to healthy lifestyles. It’s the same in business. If a company says it values customer service, it needs to demonstrate that value by treating every one well — customers, investors, suppliers and employees — if it expects to earn loyalty.

Employees trust leaders who adhere to and act on their principles. They’ll even tolerate a few flaws if they see you are trying to act in accordance with your values.

Finally, if you expect to have loyal employees you need to "share the view."

Sharing the view
In every company there are dedicated people doing mundane jobs that help your organization fulfill its vision. But they may not see how they fit into the big picture and how much they contribute.

People want to know where they’re headed, and they want some say over how to get there. Think about it. When you’re hiking on a narrow path with other people, the most interesting position to be in is the lead. It’s not much fun to stare at the back of the person in front of you. Likewise, employees want to enjoy the journey and share in the successes along the way.

When possible, move people out from the back of the pack. Let your employees help make decisions about and set goals for their own work. Acknowledge and applaud everyone’s contributions. When times are tough, rather than dwelling on problems, change the perspective. Ask people, "What could be good about this? What can we learn?"

Most importantly, celebrate small successes. If you want to encourage people to continue positive behavior, cheerlead their efforts as well as the outcome. It’s not just the end-of-the-year results that matter, but the thousands of moments that lead up to them. Have some fun along the way.

In the end, people who are fairly compensated for meaningful work and recognized for their contributions to the organization report less stress and are more motivated, satisfied — and loyal.

Joe Marzano is a speaker, facilitator and executive coach who specializes in helping corporate and nonprofit executives, business owners, and board members lead, present and market with confidence and power. He is an expert in leadership, client relations, organizational culture, market strategy, presentations and event planning.

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