One more quick story to close out the year…
I recently visited a manufacturing client and toured their facility. I wanted to see the condition of the building and equipment. I needed to assess their capacity to support growth, but the most impressive part of their operations was the employees.
Individually they proudly showed me their contribution to the process. They were engaged and excited. The collaboration between employees was evident. The air buzzed with energy!
This culture is what produces an incredible product which supports customer retention, high profit margins, and loyal employees.
When you exit your business the culture you have built can mean millions of dollars in your pocket.
As Peter Drucker would say, “Culture Eats Strategy For Breakfast!”
A business can have the best strategy in the world but if they don’t have a culture that fosters employee engagement it won’t matter.
Employee loyalty drives value and here are three reasons why:
- Increased productivity: When employees feel valued, employee loyalty increases so they are more likely to be productive and motivated to do their best work. We see this in greater efficiency which shows up in the bottom line with higher profit margins.
- Lower turnover rates: When employees feel valued and loyal to their employer, they are less likely to leave the company. Attracting, hiring and training employees cost a great deal of money so it is best to be sure you foster a culture that keep them.
- Better customer service: Loyal employees are more likely to provide excellent customer service, which will improve customer satisfaction and retention.Higher customer retention translates into future predictable cash flow which increases a business’s value.
It is essential to create a strong corporate culture by investing in building employee loyalty in order to create a sustainable growth driven business. This can be done by creating a positive work environment, providing opportunities for growth and development, recognizing and rewarding employee efforts, and fostering open communication and transparency. By prioritizing employee loyalty, businesses will reap the benefits of a motivated, engaged, and productive workforce, resulting in long-term success.
