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R-E-S-P-E-C-T: The Key to Employee Loyalty

Cash bonuses might make employees happy, but regular praise and communication make them loyal.
March 11, 2010
URL: http://www.entrepreneur.com/article/217869

If you've taken the plunge and hired employees, you've probably learned two hard lessons quickly:

  1. They don't come cheap.
  2. Like pets, plants, children and other living beings, you need to communicate with them. You can't just ignore them like a piece of office furniture. To function at peak performance, employees need exercise--both mental and interpersonal.

Most people have a need to be respected; we need to feel that we make a difference. Understand that, and you've got the key to developing an effective work force by communicating with your employees.

Let them know they matter to your company. Here are a few ways you can do that:

Of course, there's a fine balance between encouraging and indulging employees. If an employee isn't making the grade, look at whether that's because he lacks the skills (which can be improved with training) or exhibits the wrong character traits (like close-mindedness, which usually doesn't improve). A careful employee review process can help unearth these issues. Speak to your employment attorney to put one in place for your company.

Want more information on conducting employee reviews? Visit my website to get your free copy of my special report, "10 Steps to Effective Employee Reviews."