Have you ever found it annoying when a service offers new clients a much better deal, despite you being a loyal customer for years? Then it might be time to think about how your employees feel when they see new hires being offered better salaries. Rewarding employee loyalty is important — not just for your team, but for your entire business.
Why Is Rewarding Employee Loyalty Important?
Let’s be clear — we’re living in a job candidate’s world. Workers are incredibly in-demand in the current climate and both job seekers and current employees know their worth. The Great Resignation has proved that UK workers have new priorities and they’re not afraid to leave their jobs to find better rewards elsewhere. In fact, one recent study showed that “not feeling valued” was the third most cited reason given by people who were quitting.
Rewarding loyalty is about more than just staff retention though. Employees who feel valued are more likely to work harder and better. The longer someone has worked for your company, the more expertise and value they bring (and the harder they’ll be to replace). Rewards can also incentivise the rest of your team.
Lastly, treating loyal employees well can have a huge impact on your company’s reputation. The best talent will want to work with you over other employers.
Simply put, you can’t afford to not reward your loyal team members.
How You Should Be Rewarding Employee Loyalty
Loyalty doesn’t necessarily mean the employee who’s been with you the longest (though longevity should be valued too!). It can also mean those who are dedicated, who understand your brand, and who embody your values. Whatever employee loyalty means to you, here’s how you should be rewarding it:
- Offer the market rate — Smart employees keep up-to-date with market rates. If you’re not updating salaries to keep in line with inflation and demand, you stand to lose your most loyal team members.
- Keep existing salaries in line with new — As a recruiter, businesses often ask us to hide salaries in job listings. They don’t want current staff to see they’re being paid less. This has to stop. Not only is it bad practise, but your team is bound to find out eventually. Then you’re left with employees who feel deceived as well as undervalued. If you’re offering new hires more, make sure your loyal team gets the same treatment.
- Keep benefits interesting — If you’ve had the same old tired benefits package for years, your employees could be tempted away by new and exciting rewards elsewhere. Refresh your offering regularly, and ensure benefits stay up-to-date with what’s important to your staff.
- Set up a rewards program — A clearly outlined rewards program is a great way to show loyal employees that they’re valued. You can tailor the program to your business and goals, and use it as an incentive for new employees too.
- Gift equipment and setups — New computers, laptops, work phones, or even company cars are a great recompense for loyalty. If you have room, then a private office or improved workspace is another good reward.
- Provide flexibility — Post-pandemic, two-thirds of workers say they value work/life balance over higher pay. All employers should be offering at least hybrid working these days, but there are other flexible working benefits you could use as a reward for loyal team members. Think four-day weekends, late starts on Mondays, or Friday afternoons off.
DB Charles Can Help
Here at DB Charles, we know what makes a great employer/employee relationship. We regularly publish valuable insights for businesses about how to find and hold onto the best talent. If you’re a candidate, we can also help you find employers who will value and reward your loyalty. Get in touch today — we’re excited to talk with you.