Loyal is as Loyal Does (Part 2)

EV: If loyalty is still important to the company, how can we as leaders enhance this value?

CBH: Yes, for the performers only as they will add value to the company with probably the lowest cost. ROI.  A leader can promote via emotive means, and appropriate compensation packages aimed at retaining key staff.

KCH: Of course, loyalty is important – that is why many good companies focus on retention of talent. However, the key question we need to ask is: Loyalty for what purpose? There are staff who are loyal because they want no change, but remain in comfortable positions. Many who just rather remain in the status quo, and can work on given tasks day in day out till the last day before retirement. But, in today’s highly competitive landscape that demands staff to be productive and efficient…

To enhance the value of engagement, leadership needs to connect (engage) with the employees. It needs to communicate and be transparent and drive a purpose, or goals, throughout the organisation.  Leaders need to have followers – and followers must feel they are being appreciated, being engaged and involved, being part of a team. There is a famous saying in leadership: “People do not care how much you know, but they want to know how much you care.”

MY: Change their mind, and let them know why loyalty is important or good. The company should show loyalty to their employees. It's a 2-way thing. Corporate culture may be important to cultivate a sense of loyalty.

EV: What can be done to promote loyalty?

KCH: A need to promote a sense of common values, common goals, and lots of empathy.

CBH: Create an appropriate workplace environment such that a worker comes to work happy and returns home even happier.

MY: I don't think Chinese employees will bear loyalty in their mind. They are very "snobbish", and we just do what is "worth" doing. If a company is not the "best place" for me, in terms of income or whatever, they will leave. Remember the old saying? "人往高出走”， “人挪活，树挪死。” Chinese are good at looking for "better" positions for themselves, so loyalty is not the first value they look to.
 
MY: So, that's why we think the professionalism of Chinese employees is a problem. The behaviors of being loyal are like that of being professional, but may be more: Loyal employees should do all their best for their company’s interests. Stay with the company even in hard times, willing to stay in the company for long time, to develop with the company, and regard the company as part of his or her life, or family.
 
EV: How can we measure loyalty?

CBH: Staff turnover, morale, and organizational effectiveness.

KCH: Many people measure employees on satisfaction, but are they satisfied in working in an organisation or team? However, being satisfied is easy – pay them right, give them less work, and just cajole and appease them.  But we should measure engagement instead. Engagement is more than being satisfied. Engaged employees lead to effective organizations. For example, in my organisation – Inchcape - we believe that our people are at the heart of who we are, how we think and how we act as an organisation.  Because of this belief, our people strategy is all about engaged employees in winning teams who will make our customer-centric vision around the world a reality.
 
To us at Inchcape, an 'engaged' employee is anyone who truly understands where the company is heading, believes in the direction, knows what it means and what is required personally, does what is needed to make it happen and thoroughly enjoys the journey. Furthermore, we know that there is a proven link between levels of employee engagement and business performance.
Engaged employees are more than just satisfied employees. They are committed to the company and proud to tell others that they work there. They feel a sense of personal accomplishment in the work they do, and are willing to provide the discretionary effort needed to help the company achieve its goals.

Certain conditions must be in place for employees to be engaged. They must have good team leaders whom they can trust. They must have the resources and training necessary to get the job done. They must have proactive, adaptive and supportive colleagues who pull together to help the company succeed.

In uncertain economic times, when margins are tight, the companies with the most engaged workforces will be the companies that will succeed in the marketplace.

EV: Thank you, gentlemen for helping us appreciate the challenges and approaches to leadership.

LEADERSHIP LESSONS:

1)    Loyalty is a value that is still worthwhile.

2)    Engaging staff may be the better way to enhance individual and collective potential.

3)    Loyalty may be transactional in its basic sense; in its expanded form, loyalty promotes trust, continuity, and a heightened sense of belonging and identity.

4)    How will you exercise loyalty in your business?