Decades-long employment are no longer common, but that doesn’t mean employees aren’t loyal anymore. It’s just that the nature of employee loyalty has evolved.
One thing that hasn’t changed, though, is how important employee loyalty is.
In this article, we look at what employee loyalty looks like. You’ll also learn what metrics to use to gauge loyalty and ways to boost loyalty at your company.
What is employee loyalty?
Employee loyalty is the commitment and dedication an employee has for their organization. It shows as an employee’s willingness to stay with the company, and going above and beyond to act in the best interest of the business.
Loyal employees typically feel a strong sense of belonging. They are aligned with the company's values and goals.
How has loyalty at work changed?
In the past, employee loyalty came from long-term job security and steady career progression. Today, employee loyalty is less about tenure. Most workers won’t stick at a single organization for decades. Rather, loyalty has become more about engagement and satisfaction.
Employees seek workplaces that offer meaningful work. They want growth opportunities and a supportive culture. When employees find a workplace that keeps them engaged, they’ll show loyalty through productivity and retention.
Reason for change in employee loyalty
People have different workplace expectations compared to previous generations. Employees want the flexibility to work from home and adapt their schedule. They also expect employers to support their personal well-being and work-life balance. For example, a job seeker today may not select a job offer with the highest salary, and instead go with a job that offers them flexible work.
Companies need to adapt to employee's shifting expectations. The organizations that embrace change are the ones that will benefit through more loyal employees.
Why is employee loyalty important?
Companies have to work harder to win over workers. Here’s why employee loyalty is so important for companies:
Engagement and productivity
Loyal employees take pride in what they do, and are more engaged in their work. Their productivity goes up as they complete their tasks with greater enthusiasm. A majority of companies experience positive return on investment when they create programs to engage employees.
Think about someone on the marketing team. If they’re loyal, they’ll seek out new marketing trends and apply them for your company. That leads to innovative campaigns and can lift long-term success.
Employee retention
The top three reasons why employees leave is a lack of meaningful work, genuine connections, and career development at their work. A loyal, engaged workforce will stay with your organization when you have a healthy work culture and offer opportunities to grow.
When you retain loyal employees, your business preserves valuable experience and knowledge. It saves the organization time and money by reducing resources for recruitment and training.
Strengthen team dynamics
Loyal employees contribute to a stronger, more consistent work culture. Their commitment to the organization often translates into better collaboration and support among team members. That’s particularly important when managing remote and global teams, where physical separation is the standard.
Create a positive brand
Over time, loyal employees become brand ambassadors. They defend your company name internally and to the outside world. Their trust in the organization attracts talented candidates and potential customers. Strong organizations have almost three-quarters of engaged employees, while the average elsewhere is just over twenty percent.
How do you measure employee loyalty?
You can’t know if you’re improving loyalty if you don’t have data telling you where you’ve been and where you’re heading. Determine loyalty through these key indicators and metrics:
Employee net promoter score (eNPS)
The eNPS measures the likelihood of employees recommending their workplace to others. You can gather this information through surveys asking employees how likely they are to recommend their company to others on a scale of one to 10.
Retention rates
Retention rates track the percentage of employees who remain with the company each year. Calculate your retention rate by comparing the number of employees at the start and end of any period.
Turnover rates
Your turnover is the rate at which employees leave the company. Determine it by dividing the number of employees who leave by the average number of employees in a set period.
Employee engagement scores
Use employee engagement scores to assess the level of involvement employees have with their work. You can gather this information through engagement surveys that measure enthusiasm, commitment, and emotional connection to the company.
Productivity metrics
These evaluate the output of employees. You can collect data on productivity through performance reviews, output tracking, and goal completion rates.
Absenteeism rates
Monitoring absenteeism can reveal changes in dissatisfaction or disengagement. You can look through attendance records or track the data over time.
Internal mobility rates
Internal mobility rates reflect opportunities for growth and satisfaction. Measure the amount of promotions, lateral moves , and departmental transfers to gain insights into how easily employees move within your organization.
9 tips to boost loyalty in a remote and global workplace
Here's a list of tips to help improve employee loyalty in your business:
1. Lead with values
M illennials now make up the majority of the workforce, and Gen Z is taking up a larger share. Both of these groups report that a sense of purpose is important to their job, and they’re willing to walk away from a job that doesn’t champion their values.
Create a work culture that embraces what your employees value. Empower your employees with opportunities for growth, collaboration, and meaningful contributions. By doing so, you’ll not only attract top talent but also foster loyalty and long-term engagement.
2. Empower your team
Employees thrive when they feel a sense of agency, and they’ll reward companies that foster it. To retain top talent, empower your staff to make decisions independently and take ownership of their work. This not only boosts their confidence but also cultivates a sense of accountability and pride in their contributions.
Provide robust support for employees who take initiative, ensuring they have the resources needed to succeed. Additionally, encourage cross-department collaboration to tackle complex challenges, fostering innovation and teamwork across your organization.
3. Provide autonomy over schedules
77% of employees say flexible work is more important than a pay raise. To attract top talent, create a culture of trust where employees can reach goals in the way they see fit.
You can offer flexible work schedules where employees set their own schedules and balance work with their personal lives. Alternatively, offer compressed workweeks that offer longer weekends. Flexible work increases employee satisfaction and increase loyal employees.
4. Offer competitive pay and benefits
Competitive pay and benefits is fundamental to retaining loyal employees. Regularly benchmark salaries against industry standards in the specific countries you operate in. Remote's Global Compensation guide helps you stand out as a competitive employer in your industry.
If you want to build a loyal workforce, you have to offer ample growth opportunities for your employees. Set up a leadership development program for high-potential employees. It’ll create a pipeline for future people managers.
Comprehensive training offers skills to your workforce now and prepares them for their future. Peer mentoring is also a great way to improve career advancement and team cohesion. You can also sponsor courses and certifications for your team.
6. Implement stay interviews
Never assume you understand what your staff wants or needs. Real understanding comes from active listening, and stay interviews are a great way to hear what your employees have to say.
Stay interviews helps you identify employee needs, concerns, and what motivates your staff. You can then use this feedback to improve your company policies and culture.
7. Make your virtual onboarding top-notch
Onboarding is even more important for remote hires because it’s your best shot at early integration into the culture and workflow. The goal is to make the virtual experience as warm and personal as an in-office introduction. Present the company’s values and vision, and show how the organizational culture supports your new hires.
A buddy system pairs new hires with experienced employees to offer guidance and mentorship. You can even send a welcome package to your new employees’ homes for a personal touch.
8. Prioritize work-life balance
Promote policies that support work-life balance and give staff a reason to be loyal to your company. For example, you can offer mental health support through:
Access to counseling services
Wellness programs
Mental health days
Don't forget to set clear boundaries on communication channels and personal hours to make sure employees rest and recharge.
9. Promote social bonds
Having friends at work is strongly linked to positive outcomes including job satisfaction and reduced turnover . Organize virtual social events and team-building activities among remote team members. Encourage informal interactions — like virtual coffee breaks or happy hours — to create a sense of community and camaraderie.
Build a loyal workforce with Remote
Implementing strategies to enhance employee loyalty is not an overnight task — it’s a gradual, long-term commitment to fostering a supportive and engaging work environment. Focus on making meaningful and consistent improvements. Over time, you’ll see happier employees.
To build a loyal workforce, you need the right tools and support. Remote HR Management is designed to empower remote and international teams by simplifying payroll, compliance, and team management from a single platform. With Remote , you can streamline operations and create a seamless experience for your employees, no matter where they’re located.
Take the first step toward building a stronger, more loyal team. Create your free account today and discover how Remote can help you achieve your goals.
Subscribe for the latest updates
Sign up for our newsletter to get the inside scoop on all things remote work and global employment.
