The value of employee loyalty has been valued at almost a quarter of the average UK worker’s annual salary, according to new research.
Research published in the Loyalty Premium Report 2017 by rewards and incentives provider, One4all Rewards, investigated a number of costs involved in staff departures, and reveals the value of loyalty, based on the average UK salary of £27,645, stands at £6,335.31 per employee – or 23 per cent of the average annual wage.
Sums included were the average notice period, recruitment fees for hiring replacements and the amount of productivity that is lost once notice has been handed in.
The premium of loyalty remains at a steady 23-25 per cent of a workers’ annual wage, as salary bands increase.
And with the survey of 1,002 UK full or part time workers revealing that more than one in five (21 per cent) have been led to consider getting a new job, too, as a result of a colleague resigning, this will make for worrying reading for many UK business owners.
Declan Byrne, managing director at One4all Rewards comments, ‘Most employers know that having staff resign is not only inconvenient but also costly. But the combined total of the recruitment costs, productivity losses and more that are associated with this may come as a bit of a shock, and it is no meagre sum.
‘To avoid such costs mounting up, it is important that businesses take employee morale seriously, and actively take steps to ensure staff feel happy, motivated and appreciated. Even something as simple as an annual token of appreciation – such as a bonus – can go a long way.’
The research also reveals the aspects that play the most significant parts in workers’ decisions to stay at a company for the long term (e.g. five years or more).
A nice working environment, regular pay rises and long term benefits such as pensions and health insurance were the top three things likely to have the most significant impact on workers’ sense of loyalty.
Monetary rewards such as gift cards and cash bonuses were also key for one in three workers.
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