Employee Satisfaction and Employee Loyalty

Customer loyalty is a well-known part of good business practice. Companies invest countless dollars trying to ensure that their customers are happy and willing to invest a great deal of their own hard earned dollars into the company. The happier the customers, the more likely they will speak highly of the company to others.

It is also believed that customer satisfaction leads to customer loyalty – the willingness of a customer to spend their money with your company, rather than a competitor. Employee satisfaction is also well understood. Happier employees are believed to be more productive employees.

Indeed, at salaried jobs, it’s logical that unhappy employees will do the bare minimum, rather than invest all of their time and hard work in a company they don’t like. It will also help reduce turnover, which can be expensive for any company.

Reducing turnover is an important part of any business. Estimated costs are going to vary depending on the business, advertising methods, and so on, but all researchers agree that turnover is bad for the company, and can result in serious losses due to a variety of factors including, but not limited to: Cost of training a new employee. Cost of finding/interviewing the new employee.

Lost production from the position meant to be filled. These losses add up, and they add of quickly. That is one of the additional reasons that employee satisfaction is so important, because companies need to do whatever it takes to cut down on employees leaving.

Employee satisfaction is not necessarily the only thing that you should measure. You should also be concerned with employee loyalty – doing the necessary work to ensure that employees stay at their jobs. Whenever you measure employee satisfaction changes, you will need to pay attention to employee loyalty statistics.

Does it appear that your satisfaction efforts are causing employees to stay longer? Does it look like they are effective ways to reduce the likelihood an employee defects to another company or competitor? These measurements should play a role in how you read and measure employee satisfaction .

Without understanding the loyalty aspect, there is no way to know that your satisfaction efforts are playing a role. Employee satisfaction and employee loyalty need to correlate, otherwise the work you’re doing may not be enough to keep people from defecting to another company.