A new report uncovers some of the key features that would make employees more loyal to their company. In addition, it highlights the significant discrepancies between employers and workers’ views regarding what factors would make talent retention more likely. 

MHR Global, a global software and consultancy company, have issued a report which looks into what makes an employee loyal to their company.

Whilst around three-quarters of employers (53 per cent) felt that they understood what would make their workforce loyal to them, only half of staff (55 per cent) believed that their employers would be able to identify this.

Both sides felt that employee loyalty and good organisational culture would come from fairness and transparency about pay and rewards (53 per cent of employers and 49 per cent of employees).

In addition, employers and employees alike cited a clear and open style of management (46 per cent of employees and 50 per cent of employers) as a way to bolster employee loyalty and create a resilient organisation.

However, an area where views differed was financial rewards. Whilst over a third of bosses (38 per cent) felt that competitive pay scales would make employees more loyal, over half (55 per cent) cited this as a key factor within employee loyalty.

The same applied for bonuses and above-inflation rewards. Around 42 per cent of bosses believed these rewards would be a way to encourage employee loyalty whereas workers (55 per cent) ranked this much higher.

Additionally, there are key questions surrounding whether employers value their employees. Over four in five employees (83 per cent) responded feeling loyal to their company but over half (51 per cent) did not know whether their leadership team cares about retaining them.

Another key discrepancy was surrounding career progression. Employers surveyed gave themselves ratings that were almost a quarter higher (23 per cent) regarding providing clear career plans for employees. This highlights that this is an area which employers may need to consider more closely. The report recommends one-on-one check ins with employees to solidify this and ensure their views on this topic aligns with those of their workers.

Overall, almost six in 10 employers (57 per cent) did admit that there was more they could do to improve employee loyalty. In addition, a third of employees (33 per cent) confessed that they are looking for a new job at least once a month.

Andy Davies, Product Design Director, MHR Global, said:

Being serious about employee culture is critical now and for achievement of goals into 2021. A workforce that laughs together is more mentally resilient in the face of current challenges when everyone is working remotely. But it will also be more productive in the longer term.

Now more than ever, we need people to feel more connected by encouraging informal behaviour, as well as work and targets. In the absence of Christmas parties this year, employers must also think more creatively about how to reinject festive fun into their workplace culture, whether it’s an inexpensive virtual event or something simple like a care package in the post.

*This research was obtained from MHR Global’s report ‘The Employee Loyalty Index’ which surveyed 150 employers and 500 employees in medium to large companies.






Monica Sharma is an English Literature graduate from the University of Warwick. As Editor for HRreview, her particular interests in HR include issues concerning diversity, employment law and wellbeing in the workplace. Alongside this, she has written for student publications in both England and Canada. Monica has also presented her academic work concerning the relationship between legal systems, sexual harassment and racism at a university conference at the University of Western Ontario, Canada.