Loyalty can be the glue that holds a business together. It’s what makes employees come to work in the morning and it’s what keeps clients or customers with one company instead of the competition. Organisations typically put a lot of effort into rewarding customer loyalty and employers also expect loyalty from employees after investing in them, but loyalty is a two-way street. While companies are quick to demand it from their staff, they’re not always great at giving it back, which can be their downfall.

Employees dedicate a significant proportion of their life to their job. Virtually on call 24/7 thanks to remote access to emails and work systems, many people relocate their families for their jobs or rarely use the annual leave they are entitled to. Some may admit that there is an element of fear in these acts, but most would say it’s because they are loyal. So, surely it’s only right that employees should feel secure and supported by their employers in return?

Ex-Travelex CEO, Anthony Wagerman was a big advocate of employer loyalty – he states that it is one of the most important leadership lessons he learned from his late father. 

“For the majority of my working life I have dealt with the challenges of recruitment, retention and attrition on a large scale and on a daily basis. I look back in amazement at Dad’s surgery and wonder what his secret was for keeping good people.”

The answer he realised was his father’s loyalty to his staff.

“His secret was actually all the basic stuff that everyone talks about but in reality rarely get right. He always treated his staff with respect. And he stuck by them in their tough times; divorce, partner problems, childcare challenges – you name it, he dealt with it and did all he could to help.”

His father ran a small dental practice, but his advice led to his son becoming CEO of a £700m company. Can being loyal to your employees really have that much of an impact on your business? Here are three areas we believe it makes a difference:

Reputation

It is the employees who deliver the products or services an organisation offers, therefore they carry its reputation on their shoulders too. A disengaged workforce leads to poor performance and worse customer service, and ultimately a negative brand image or reputation, so it pays to look after them. As Richard Branson says: 

“Your employees are your company’s real competitive advantage. They’re the ones making the magic happen – so long as their needs are being met.”

Productivity

Satisfied employees are more productive and efficient. They work harder, contribute more and take fewer sick days. A number of studies have looked into employee productivity and the results sell the benefits of loyalty:

• Productivity can improve by up to 25% in organisations with connected employees
• Employees who are engaged are 27% more likely to report ‘excellent’ performance
• 57% of employees who are very stressed at work feel less productive and engaged – only 10% of low-stress employees reported feeling the same way
• Companies with engaged employees outperform those without by 202%
• Customer retention rates are on average, 18% higher when employees are highly engaged
• Disengaged workers are on average, 37% more likely to be absent from work, 49% more likely to have an accident and 60% more likely to make mistakes 

Retention

Another huge benefit of employer loyalty is retention. When staff feel appreciated they: 

• Are increasingly loyal in return and stay with a business longer 
• Speak positively about their workplace, which helps attract new talent

Both of these are invaluable in any growth plans and could save a company a considerable amount of money. 

Does your employer show loyalty its employees? Or are you an employer who believes in the above? We’d love to hear from your thoughts.

When considering a career move, one of the most overlooked considerations is the size of the company. Candidates weigh up the role and the salary, and often the type of company and location, but there are a number of differences between large and small companies, from cultural fit to career progression, that should have an impact on the decision of which size organisation to join. We’ve come up with a top three pros and cons for businesses big and small.

Large organisations: pros

• Brand name – an established, blue chip or major employer is instantly recognisable and often a seal of approval on a CV, impressing future employers in the sector. This can backfire however, when a household name publicly falls from grace or goes under. 
• Benefits packages – bigger companies tend to have better benefits because they can afford them. Their workplace environments can be better geared to employee wellbeing too, with more emphasis placed on employee satisfaction than with smaller organisations.
• Locations and opportunities – bigger companies often have international presence, sometimes with offices all over the world. For the candidate who sees him or herself working abroad at some point in the future, a large company may present this opportunity.

Large organisations: cons

• Anonymity – it can be a very large, impersonal environment if there are thousands of employees. The larger the team, the more frequent the churn too, so it’s a case of constant new faces and less team bonding.
• Bureaucracy – there are often a number of hoops to jump through in a large organisation to get certain things done. If you want to make an impact individually, this may become frustrating, as decision-making processes can be slower.
• Potentially less job satisfaction – back to the impact point, you’re less likely to see end results of your role when you’re just a small part of the machine. Seeing a project through from inception to finish is rare, as there could be multiple teams involved and your part can be minimal.

Smaller businesses: pros

• Impact – hit the ground running and make a real difference in a much smaller team, where the manager will know your name and understand your aspirations.
• Career progression – if the small business is a start up or going through a period of growth, then opportunities to progress may be frequent as the organisation expands.
• Skill set development – without dozens of people for each role, a small company is likely to want to make the best of its resources and up-skill its existing staff. Opportunities to add skills to a CV should be plentiful.

Smaller businesses: cons

• Salary/benefits – it’s unlikely that a smaller business will pay more than a larger or be able to offer the same level of benefits and perks. That said, they will always strive to be competitive, and other incentives may be available, such as profit shares.
• Accountability – there is nowhere to hide at a small organisation, so being a team player that can pull their weight is more important. However, if embraced, this environment can be more incentivising. 
• Options to move – as well as fewer international opportunities that a large firm may offer, there is often more of a loyalty bond to a smaller employer, meaning that staff may stay longer and not move on quite when their career elsewhere might.

As you can see, there are up and downsides to both large and small businesses. It doesn’t always follow that the bigger firm will be the best option, and not just from a personality or cultural fit perspective. Witness Uber’s recent failures to crack the APAC market, where the smaller, local competitor has succeeded. It may be a huge employer and a worldwide brand, but it has suffered reputation damage and a strategy fail that had nothing to do with its employees. In contrast, the smaller local organisations that forced them to retreat are now expanding and celebrating.