Participative Management Strengthens Employee Loyalty
2 December 2008
Read by 1777 persons
Working for a company is a moral commitment that demands respect and fidelity.
Too directive a management style is a source of disloyal acts.
High turnover is a sign of low involvement.
Engaged employees who give their all, respect professional secrecy, and make a long-term commitment to a company project—this is what we call loyalty, which is based more on a moral than a legal foundation. Loyalty is the basis of lasting relationships, whether commercial or emotional. But it cannot be one-sided.
That is why the company must also make efforts to gain the consideration of its employees. How? "By establishing participative management, a favorable remuneration system, and a communication policy based on listening," explains Ahmed Al Motamassik, a sociologist, who emphasizes that companies still have efforts to make in terms of loyalty.
La Vie éco: How do you define loyalty?
Ahmed Al Motamassik:
Behind this term, there are several semantic registers that do not make it easy to understand. Nevertheless, we can identify three main dimensions. First, the legal dimension.
It should be noted that the Labor Code does not explicitly mention the theme of loyalty. It is limited to a few aspects concerning the disclosure of professional secrets (manufacturing secrets, databases, or customer portfolios…) which may cause harm to the company, or abuse of trust, for example. The company can provide other restrictive clauses such as non-compete and exclusivity clauses…
The second dimension is moral. The employee cannot behave in a reprehensible manner towards their employer (deceit, impropriety…). Their collaboration implies a commitment. Some companies have codes of ethics on their value system, of which loyalty can be a part.
The company must make a communication effort about its values to maintain the loyalty of its employees. For the latter to be convinced, managers must set an example. If the company is not within a clear ethical framework, the message will not get through.
Finally, loyalty can be considered from the angle of human resources management and management style. Indeed, we always assume that loyalty is innate in some people and not in others, and that it often depends on the individual's personality and their social environment.
But let us not forget that the social body of the company can only be loyal if the management style allows it. Thus, in a company that promotes participative management, where individuals can openly express their ideas and offer criticism, loyalty will develop. Conversely, a directive style generates and multiplies disloyal acts.
How do you know if employees are loyal?
The first indicator of loyalty is turnover, a tangible and calculable factor. A high turnover rate reflects a low degree of employee loyalty, and vice versa. The company considers it a disloyal act when a person it has recruited, trained, and well-compensated leaves. But, on the other hand, the employee feels that they are not valued and leaves the company. Often, it is the feeling of marginalization that leads to disloyal acts such as denigration, lack of involvement, or even sabotage.
The second indicator is the accident or absenteeism rate. The higher this rate, the less commitment and involvement from individuals.
Does the company have means of control?
Today, the company has implemented tools to collect employee grievances. The annual interview gives employees a voice. Social climate surveys, opinion polls, annual evaluations, and informal meetings are all tools to gauge employee expectations. But these tools have their limitations. Often, employees do not dare to criticize the company too openly for fear of being sanctioned. This can worsen disloyalty.
So, what should be recommended?
Once again, a participative management style is the only way to strengthen employee loyalty and commitment. Managers must also understand that they must set an example.
To cultivate loyalty, it is possible to promote a few principles:
- An open-door policy and consistent communication are crucial to encouraging employees to stay with the company;
- Offer employees a stimulating environment by entrusting them with large-scale projects that will promote their professional development;
- Collect employee feedback, including those leaving the company; in this case, exit interviews are organized to understand the reasons for departures and see what measures could encourage employees to stay. It is necessary to ensure that the performance evaluation process is not one-sided and that it allows employees to express their opinions about the company;
- Consider offering long-term incentive plans such as profit sharing, and short-term benefits to improve employees' lives;
- Make employees understand the importance of their work to rally them to your collective project and increase their mobilization.
Is loyalty observed in our companies?
In recent years, we have seen that companies have a real problem with retaining skills. Hence the need for them to review their HR policies. If some companies have been unable to retain their employees, it is because they have not been able to keep up with market practices in terms of remuneration or have not been able to find other means of motivation…
How far can one be loyal?
One is loyal when both parties respect their obligations and duties. Loyalty is not one-sided. Loyal behaviors must be shared and respected by everyone. Loyalty ends when the management system is biased.
When can we talk about harm to the company? And how to sanction it?
When there is damage to the good atmosphere, to the image, when there is disclosure of professional secrets, defamation, gratuitous harm…, there is harm. But it is preferable to train employees on harmful behaviors rather than sanction them. Some employees are not at all aware, for example, of the seriousness of disclosing a manufacturing secret. It remains to be seen how to sanction someone if they act deliberately.
I believe that it is not by dismissing an employee to recruit another that loyalty will be obtained. Once again, it is up to the company to create a favorable framework for its reinforcement.
Published May 16, 2008
Posted online May 21, 2008
lavieeco.com
Too directive a management style is a source of disloyal acts.
High turnover is a sign of low involvement.
Engaged employees who give their all, respect professional secrecy, and make a long-term commitment to a company project—this is what we call loyalty, which is based more on a moral than a legal foundation. Loyalty is the basis of lasting relationships, whether commercial or emotional. But it cannot be one-sided.
That is why the company must also make efforts to gain the consideration of its employees. How? "By establishing participative management, a favorable remuneration system, and a communication policy based on listening," explains Ahmed Al Motamassik, a sociologist, who emphasizes that companies still have efforts to make in terms of loyalty.
La Vie éco: How do you define loyalty?
Ahmed Al Motamassik:
Behind this term, there are several semantic registers that do not make it easy to understand. Nevertheless, we can identify three main dimensions. First, the legal dimension.
It should be noted that the Labor Code does not explicitly mention the theme of loyalty. It is limited to a few aspects concerning the disclosure of professional secrets (manufacturing secrets, databases, or customer portfolios…) which may cause harm to the company, or abuse of trust, for example. The company can provide other restrictive clauses such as non-compete and exclusivity clauses…
The second dimension is moral. The employee cannot behave in a reprehensible manner towards their employer (deceit, impropriety…). Their collaboration implies a commitment. Some companies have codes of ethics on their value system, of which loyalty can be a part.
The company must make a communication effort about its values to maintain the loyalty of its employees. For the latter to be convinced, managers must set an example. If the company is not within a clear ethical framework, the message will not get through.
Finally, loyalty can be considered from the angle of human resources management and management style. Indeed, we always assume that loyalty is innate in some people and not in others, and that it often depends on the individual's personality and their social environment.
But let us not forget that the social body of the company can only be loyal if the management style allows it. Thus, in a company that promotes participative management, where individuals can openly express their ideas and offer criticism, loyalty will develop. Conversely, a directive style generates and multiplies disloyal acts.
How do you know if employees are loyal?
The first indicator of loyalty is turnover, a tangible and calculable factor. A high turnover rate reflects a low degree of employee loyalty, and vice versa. The company considers it a disloyal act when a person it has recruited, trained, and well-compensated leaves. But, on the other hand, the employee feels that they are not valued and leaves the company. Often, it is the feeling of marginalization that leads to disloyal acts such as denigration, lack of involvement, or even sabotage.
The second indicator is the accident or absenteeism rate. The higher this rate, the less commitment and involvement from individuals.
Does the company have means of control?
Today, the company has implemented tools to collect employee grievances. The annual interview gives employees a voice. Social climate surveys, opinion polls, annual evaluations, and informal meetings are all tools to gauge employee expectations. But these tools have their limitations. Often, employees do not dare to criticize the company too openly for fear of being sanctioned. This can worsen disloyalty.
So, what should be recommended?
Once again, a participative management style is the only way to strengthen employee loyalty and commitment. Managers must also understand that they must set an example.
To cultivate loyalty, it is possible to promote a few principles:
- An open-door policy and consistent communication are crucial to encouraging employees to stay with the company;
- Offer employees a stimulating environment by entrusting them with large-scale projects that will promote their professional development;
- Collect employee feedback, including those leaving the company; in this case, exit interviews are organized to understand the reasons for departures and see what measures could encourage employees to stay. It is necessary to ensure that the performance evaluation process is not one-sided and that it allows employees to express their opinions about the company;
- Consider offering long-term incentive plans such as profit sharing, and short-term benefits to improve employees' lives;
- Make employees understand the importance of their work to rally them to your collective project and increase their mobilization.
Is loyalty observed in our companies?
In recent years, we have seen that companies have a real problem with retaining skills. Hence the need for them to review their HR policies. If some companies have been unable to retain their employees, it is because they have not been able to keep up with market practices in terms of remuneration or have not been able to find other means of motivation…
How far can one be loyal?
One is loyal when both parties respect their obligations and duties. Loyalty is not one-sided. Loyal behaviors must be shared and respected by everyone. Loyalty ends when the management system is biased.
When can we talk about harm to the company? And how to sanction it?
When there is damage to the good atmosphere, to the image, when there is disclosure of professional secrets, defamation, gratuitous harm…, there is harm. But it is preferable to train employees on harmful behaviors rather than sanction them. Some employees are not at all aware, for example, of the seriousness of disclosing a manufacturing secret. It remains to be seen how to sanction someone if they act deliberately.
I believe that it is not by dismissing an employee to recruit another that loyalty will be obtained. Once again, it is up to the company to create a favorable framework for its reinforcement.
Published May 16, 2008
Posted online May 21, 2008
lavieeco.com
