Loyalty is defined as a strong feeling of support and allegiance; faithfulness and fidelity to someone or something. Loyalty is also defined as the state or quality of being faithful to commitments or obligations. My preferred description of loyalty is being there for someone through the highs and lows, that is, staying by their side regardless of the circumstances. Loyal friends who can be depended upon are gems and a true blessing.
Loyalty from employees
In business, executives and managers appreciate loyal employees. Reasonable stability ( of +/- 7 years) with an employer not only shows loyalty but indicates deeper experience and the ability to perform through the challenges. Long-term stability of employment with promotion(s) shows potential for advancement.
Ample research in recent years indicates that turn-over of employees, managers, and executives has accelerated rapidly in recent years and post the COVID pandemic. In reviewing resumés, it is very hard today to find people with long employment periods. The norm is for “hopping around” every two or three years. An employee finds a better salary or a shorter commute, wants to escape a demanding boss or moves on just because the grass seems greener on the other side, and bingo … let’s move. The pervasiveness of this kind of short-lived loyalty is a major concern for many managers and executives these days.
Loyalty to employees
While general supply and demand for labour in general influences turn-over rate of employees, I believe that loyalty is a two-way relationship. If corporations are not loyal to their employees, then why would employees be loyal to their employers? Only if you give loyalty, then you can expect loyalty back.
How can we recognize employers’ loyalty to their employees? A company’s culture that values employees and human resources in words and deeds is a good start. Evidence of healthy human relations includes lower employee turn-over, comprehensive training, policies that encourage internal promotions, flexible benefit plans, serious career planning, attractive compensation, very low absenteeism, absence of legal disputes, and most importantly, a corporate culture that promotes life-work balance.
Loyalty to customers
If loyalty of employees must be earned, customers’ loyalty must also be earned. Customers must be more than satisfied; they must be appreciated and rewarded for coming back.
Companies seeking high customer satisfaction must ensure that their products and services are more than competitive. Not only do they get the job done, but they also provide the highest value in a competitive marketplace. Companies also must innovate and continuously adapt their offering to changing customers’ needs and preference.
As Peter Drucker famously said, “The object is not to make a sale but to make a customer”, to which I add, “to make a customer for life”! You may think this would only apply when a relationship can be developed with the customer. That is true of course and it is called “customer intimacy” in B2B relationships. It is also true in B2C, as the relationship and loyalty are built with the brand. McDonalds, Walmart, Costco, Coca Cola, and Amazon are all good examples of loyalty to the brand.
Loyalty from partners and stakeholders
We can expand the mutual benefits of “loyalty” to other areas of business-like shareholders’ loyalty, vendors’, and suppliers’ loyalty. Gaining the trust and loyalty of shareholders encourages them to stick with you for the long term, and not only for a positive quarter. Treating vendors and suppliers as extended partners translate in stronger relationships that are not affected by supply-chain interruptions. With loyalty you have true win-win collaboration that produces success for both sides during sunny or rainy days.
Being loyal takes hard work, commitment, and discipline of execution, but the rewards of gaining loyalty from employees, customers, shareholders, vendors, and all stakeholders translates into an attractive bottom line and a strong moat around your business castle.
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