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Employee Loyalty Framework

Any organisation’s success depends on establishing employee loyalty within the first six months of their employment. Employees build their initial opinions of the firm and its culture during the crucial first few months of new employment. Employees may be more inclined to quit the firm if they feel underappreciated or disengaged during this period, resulting in higher turnover costs and less productivity. On the other hand, if workers have a feeling of loyalty and commitment to the business throughout this period, they are more likely to stay with the organisation over the long term, be productive, and help the company succeed.

We understand that charting out an employee’s journey can be a challenging task. It requires HR professionals to plan and execute a well-defined process that can help build trust and loyalty with employees right from the start. To help with this process, we have curated a step-by-step approach that can make the task less cumbersome and more effective. The below also encapsulates the solutions to the possible challenges that the HR professionals can face while incorporating the steps.

Six factors to gain employee loyalty in the first 6 months:

1. Effective onboarding

  • When designing an orientation program, ensure it covers both the practical aspects of the job and the broader understanding of the organisation. Provide an overview of the company’s mission, vision, and values to align new hires with the organisation’s purpose.
  • Facilitate early connections by introducing new hires to their immediate team members, managers, and other relevant colleagues. This can be done through in-person meetings or virtual introductions.
  • Assigning a buddy or mentor to new hires can help them navigate the organisation more smoothly and foster a sense of support and guidance. The buddy or mentor can provide insights, answer questions, and serve as a go-to person for the new employee.

How can you do the above?

Utilise communication platforms. Create an organisational chart or employee directory which can provide new hires with a visual representation of the company’s structure and key point of contacts.

2. Clear job expectations

  • Provide new hires with detailed job descriptions that outline their roles, responsibilities, and key objectives. Clearly define performance expectations, including specific tasks, deliverables, and deadlines.
  • Establish a goal-setting process that aligns individual objectives with the organisation’s overall goals. Set clear performance targets and Key Performance Indicators (KPIs) that new hires can strive to achieve.

How can you do the above?

You can integrate the individual and organisational OKRs with the ATS to set clear expectations with the team members. You shall also setup a Performance Management System to streamline the performance related communication. We understand that setting up a Performance Management System can be a daunting task. We are here to help.
You can reach out to our Talent Branding Team at trishla@metamorph.work or akash@metamorph.work to help you out. You can also know more about the essentials to deploy Performance Management System here.

3. Promote autonomy and discourage micromanagement

  • Delegate tasks and projects that are aligned with the new employee’s skills and interests, allowing them to take ownership and make meaningful contributions.
  • Provide autonomy within defined parameters to make decisions and take ownership of their work. However, it’s essential to provide guidelines and clear expectations to ensure that their decisions align with the company’s goals and values.

4. transparent communication

  • Establish open lines of communication from the beginning, providing clear and timely information about the company’s vision, goals, and expectations.
  • Conduct regular check-ins and one-on-one meetings to address any concerns or questions that new employees may have.
  • Encourage a feedback culture where employees feel comfortable expressing their opinions and ideas.

How can you do the above?

Regular town hall meetings or virtual all-hands meetings can also be conducted to ensure transparent communication from leadership. Townhalls and weekly meetings can also be used as a space to discuss the short term and long term goals for the teams.

5. Recognition and timely feedback

  • Implement a recognition program that celebrates achievements and milestones.
  • Acknowledge the efforts and accomplishments of new employees to boost morale and build confidence.
  • Provide regular feedback and constructive recognition to show appreciation for their contributions.

How can you do the above?

You can create an organisation wide Slack channel to appreciate exemplary contributions or behaviour of the employees to make them feel appreciated and valued.

6. industry based compensation analysis

  • Offer a salary that is competitive within the industry and reflects the employee’s skills, experience, and market value. Conduct market research to understand the salary ranges for similar roles in the market and adjust compensation accordingly.

  • Provide a comprehensive benefits package that includes health insurance, retirement plans, paid time off, and other perks. Consider employee preferences and needs when designing the benefits package to ensure it aligns with their expectations.

How can you do the above?

Conduct regular salary surveys and market research to stay updated on industry standards and ensure competitive compensation. You can also reach out to us at yashna@metamorph.work to review our Annual Benchmarking Report, 2023-24 to understand more about salary and competency benchmarking in the Indian Startup Ecosystem.

Sustaining Employee Loyalty:

Establishing employee loyalty is not a one-time event, but a continuous process that requires effort and dedication from both the employees and the organisation. While the first six months of employment are critical for building a strong foundation of loyalty, it is equally important to sustain this loyalty over the next two years and beyond. Following are some of the factors to consider:

1. Challenging tasks

  • Assign employees tasks or projects that are slightly outside their comfort zone or require them to develop new skills. These stretch assignments push employees to expand their capabilities and provide opportunities for growth.
  • Ask employees to explore innovative solutions and exercise their problem-solving skills.

How can you do the above?

Create channels or platforms for employees to contribute innovative ideas or solutions. Encourage them to think creatively and explore new ways to improve processes, products, or services. Implement a task rotation system where employees have the opportunity to work on different projects or tasks periodically. This keeps their work fresh and challenging, preventing monotony and promoting continuous growth.

2. Leadership development

  • Invest in leadership development programs to cultivate and nurture future leaders within the organisation.
  • Provide opportunities for employees to take on leadership roles or lead cross-functional projects.
  • Offer mentorship and coaching programs to help employees enhance their leadership skills.

How can you do the above?

You can conduct leadership development programs and workshops on a regular basis and leverage leadership assessment surveys by integrating it with either Google forms or the softwares available in the market.

3. Career Development Opportunities

  • Offer growth opportunities through training programs, mentorship, and career advancement paths.
  • Provide ongoing feedback and guidance on areas of improvement and potential career paths.
  • Support employees in setting and achieving personal and professional goals.

How can you do the above

Learning Management Systems (LMS) can be utilised to provide access to online courses, webinars, or training materials. Career development platforms like Udemy for Business, Coursera for Business, or LinkedIn Learning can also be integrated into the organisation’s learning ecosystem.

4. Employee well-being initiative

  • Implement initiatives that prioritise employee well-being, such as flexible work arrangements, wellness programs, and work-life balance support.
  • Conduct regular employee surveys to assess satisfaction levels and identify areas for improvement in work-life integration.
  • Promote a healthy work environment that supports mental and physical well-being.

How can you do the above?

Well-being platforms or apps can provide resources for stress management, mindfulness, and mental health support. Employee feedback platforms can be used to assess well-being needs and gather feedback on work-life balance initiatives.

5. Employee engagement and involvement

  • Foster a culture of employee engagement by involving employees in decision-making processes and seeking their input on important matters.
  • Encourage cross-functional collaboration, knowledge-sharing, and participation in company-wide initiatives.
  • Recognise and reward innovative ideas and contributions from employees.

How can you do the above?

Engaging and conducting activities out of the office can help team members interact with the cross-functional teams. Organise social events and team-building activities to foster camaraderie and strengthen relationships among employees. This can include team outings, virtual social gatherings, or community service initiatives. Such activities contribute to a positive work environment and promote employee engagement. We advise you to create a monthly engagement calendar which will ensure a conscientious movement of increasing culture and communication between teams.

To write a report on how employee loyalty looks like in startups in India, you can focus
on the following topics:

  1. Employee sentiment towards employers/startups: According to a survey by Indeed and Forrester Consulting, only 24% of employees in Indian organizations experience high levels of well-being at their workplaces2. This indicates that there is a need for startups to prioritize employee well-being and create a supportive work environment. Additionally, Indian employees seek purpose-driven work, intimacy and connection with colleagues, investment in their well-being, and innovation and growth opportunities134.
  2. Attrition rate in Indian startups: Indian startups have a high attrition rate, as high as 54.38%3. The high attrition rate in startups is due to factors such as better pay packages offered by larger corporations, concerns over job security in a startup, lack of clarity around career progression, and credibility3. Startups should focus on retaining their employees by providing a supportive work environment, investing in employee well-being, and offering opportunities for growth and development.
  3. Strategies to build trust in startups: Startups in India need to prioritize company culture from the very beginning, establish clear values and goals, communicate them to employees, and ensure that all employees are aligned with the company’s culture4. Startups also need to foster a work-life balance and ensure that employees have the resources and support they need to perform their best4. Building trust is also important, and startups can leverage ‘trust’, the most vital human emotion, to give employees more freedom and responsibility to deliver results8.
  4. Trust issues employees face in startups: Reports suggest that 71% of people leave their jobs seeking higher compensation while 47% of respondents say that they do it to look for better working conditions14. Over 40% of startups in India shut down within two years of founding, owing to unprofitability and funding crunches, among other reasons for the higher attrition rate14. Startups should focus on building a positive and supportive culture, investing in employee well-being, and offering opportunities for growth and development to retain their employees35.

In conclusion, startups in India need to prioritize employee well-being, establish a supportive work environment, and offer opportunities for growth and development to retain their employees. Building trust and fostering a positive and supportive culture is also important to retain employees and create a loyal workforce.

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