Employee loyalty – what does it mean? 

Loyalty from the employees is presumably what every manager wants. And every employee wants a loyal employer. Which brings us to the crux of the matter: only people and organisations that are loyal to others can expect loyalty in return.

“Do not thank for loyalty. Return it!”
David Tatuljan

“Employee loyalty” is about reciprocity: the employees are committed to the success and future of the company, and the employers are committed to their employees. 

1. What does loyalty mean in detail and what impact does it have on the company?

The magazine Wirtschaftswoche sums up the findings of a study by the Sorbonne in Paris as follows:
Loyal employees have an emotional attachment to the company, share values and goals, and therefore like to stay in the company and speak well of their employers in public. The scientific consensus is therefore that loyalty has a positive impact on company results,” wrote economists Olivia Guillon and Cécile Cezanne from the Sorbonne University in Paris in a 2014 study. And the impact is measurable. If employees are loyal, they are less likely to quit. This saves companies the high costs of recruiting new staff and replacing lost knowledge

2. How does a company arrive at shared values and goals?

Shared values and goals are the bedrock of loyalty in a company. Our values development method is extremely useful in helping identify and communicate these values and goals. These values can be used to develop the corporate culture and in strategic marketing.

Values strengthen the “we”, the “why” and the corporate goals. They act as a promise; they strengthen the profile and boost credibility. They create a foundation for mutual trust between the boss and employees and ensure there is a healthy bond of trust between colleagues.

3. How to recognise loyalty on the job

Loyal employees…

  • share the corporate values.
  • are highly motivated
  • are conscientious and go above and beyond
  • actively work to achieve company goals
  • contribute their own ideas on how things can be improved 
  • project a positive image of the company to the outside world
  • voice any criticism constructively and internally
  • give proper notice if they want to leave the company. 

A quote from author and speaker Jeff Haden:
“They also know their departure will create a tremendous hole, so they let you know what they’re thinking to give you plenty of time to prepare.”

Loyal employers 

  • ensure transparent communication and an atmosphere of trust and fairness
  • convey clear goals and give constructive feedback
  • regularly show appreciation for the work of their employees
  • promote the potential of all employees, including the weaker ones
  • act fairly, even when employees make mistakes
  • reward special achievements
  • find socially acceptable solutions when redundancies have to be made. 

4. Loyalty is a matter of mindset

All these indications show that both boss and employees should at least have arrived at the self-determining confident mindset in their development. The group-centric conformist or rationalistic-functional mindsets might suffice in the earlier understanding of loyalty, but closer inspection reveals that some essential elements are missing: namely initiative and cooperation. 

We take a close look at attitudes and mindsets in our book and training courses

5. Loyalty is key to employee retention

People don’t quit organisations; they quit managers.
Dr. Reinhard K. Sprenger. 

It therefore makes sense to acknowledge loyalty as an essential component of employee retention. Because ultimately it has a significant impact on how well a job is done and can influence productivity levels. Moreover, employees who are committed to their company act as an early warning system and boost innovative power capabilities. 

6. Four signs of a truly loyal employee and a tip for the boss

Oleg Vishnepolsky, Global CTO at DailyMail Online, formulated it thus on LinkedIn:  

  • They tell you what you need to hear, not necessarily what you want to hear.
  • They are always honest with you.
  • They work for your cause, not for applause.
  • They support your vision and decisions in public.
  • They take your problems as their own, so take theirs as yours. Loyalty is a two-way street.

Jeff Haden adds:
“Be the kind of boss that earns loyalty because you are loyal — not in return, but first.”

Mindset matters for the future 

Introducing the six mindset model in our latest book: MINDSET MATTERS. It provides graphic insights into the development of leadership, teams and organisations. Real-life examples make it easy to integrate this new knowledge into your own personal practice.

The English version of the book will be published as an e-book soon!
It will be available for purchase here. Stay tuned.

Order “HALTUNG ENTSCHEIDET” (in German) now at Vahlen or Amazon.
We wish you an inspiring reading experience and welcome your feedback.

Identify and expand your skills and options for action.

Because of the feedback we keep getting about how enlightening and inspirational our six mindset model is, we are now offering a training course, starting on 30 October 2020, to deepen understanding of the model and its possible uses. It will take place over 4 weekends and finish in March 2021.
The number of participants is limited. A few places are still available.
Read more (in German)…