Mastering Employee Loyalty In The Tech Industry

A recipe with three essentials

In today's fiercely competitive talent landscape, technology companies recognize employee loyalty as a strategic imperative. Yet, even the most esteemed organizations often see their employees departing in less than two years. The revolving door of talent is a well-known obstacle to organizational success. So, if competitive pay and benefits alone are failing to keep tech talent loyal, what will?

I recently joined Manhattan, a supply chain technology company that boasts an unheard-of phenomenon in the industry: unwavering employee loyalty. How loyal, you may wonder? Out of 4800 global team members, over 1700 have dedicated 10-25+ years to Manhattan. It’s nothing short of remarkable. This has prompted me to ponder: What can other companies, particularly those in industries notorious for high turnover, do to retain their employees beyond a few short years?

Employee loyalty isn’t just a feel-good concept; it’s a badge of honor, and it has a direct impact on a company’s bottom line by reducing turnover, elevating productivity, and cultivating a positive brand image that supports attracting even more great talent. 

Here are my three essential ingredients to help you master employee loyalty.

1. Value Alignment: Creating a Strong Sense of Belonging and Purpose

Securing the alignment of organizational values with those of individual employees is paramount. When this harmony is achieved, it sparks motivation and nurtures a sense of belonging, purpose, and inspiration. At Manhattan, we’ve found our purpose in valuing innovation.

Now, let’s consider innovation as a core value. Innovation entails the ability to think creatively, identify novel solutions, and adapt to changing circumstances. It ignites passion, brings clarity and focus, and inspires a ‘never settle’ ethic. When a company wholeheartedly embraces innovation as a core value, it goes beyond being an occasional activity or departmental responsibility; it’s in their DNA.

Innovation as a value impacts the company's modus operandi, fosters a culture of continuous improvement, and opens doors to new opportunities, including career mobility and promotions. It also instills a profound sense of pride in the work—an essential component of a workplace that nurtures loyalty.

2. Transparent Communications: Fostering Trust and Credibility

Transparency extends beyond mere honesty; it creates an environment where information flows freely, building trust and aligning stakeholders, from leadership to front-line employees.

Transparent communication is not just about sharing information; it's about sharing the right information at the right time, ensuring that employees, management, partners, and customers grasp the company's roadmap, goals, strategies, and values. And when it is consistent, employees feel more empowered and valued, leading to increased job satisfaction and a stronger commitment to the organization's success.

Achieving this involves practices such as encouraging and facilitating employee attendance at every earnings call, open-door policies, regular town hall meetings, and one-on-one connections with executives and team members. These measures break down barriers that often exist between leadership and employees.

Communication and engagement also serve as a conduit for mentorship, especially in organizations with a multi-generational workforce. Tenured leaders become valuable mentors, fostering the exchange of knowledge and collective intelligence when hierarchy and communication barriers are removed.

3. People as a Priority: Inclusivity and Well-Being     

The last essential element to mastering employee loyalty is demonstrating the organization’s dedication to employees’ whole selves.

A committed organization regards every employee as an integral contributor and recognizes their individuality and unique wants, needs, and aspirations. It provides programs and creates opportunities that nurture people. Employee Resource Groups (ERGs), volunteerism, purpose-driven events or days of service, and recognition programs are all valuable tools that foster camaraderie and cohesion. Well-being programs that support and care for employees' physical, mental, and emotional health. In return, actively committed companies observe a profoundly committed workforce.

In the tech industry where employee loyalty can seem elusive, these three essentials offer a recipe for success. By embracing value alignment, providing transparent communication, and prioritizing people, organizations can cultivate unwavering loyalty, creating a workplace that thrives on commitment and unites on shared goals.

Suzanne Hough is the Senior Vice President and Chief People Officer at Manhattan Associates.