Happy Employees = Higher Profits
Allegiance is a company that measures loyalty. I read an article about them and it had this stat: “What they found was that every time their employee loyalty went up or down, 90 days later their customer loyalty followed the same direction and 90 days after that, their profitability followed that same direction.”
- Allegiance, Inc. CEO Adam Edmunds
This was from a case study of one company: Mountain America Credit Union (conducted in 2004). I wonder if this is similar in other industries. 90 days to see an impact. That is fast. I wonder if the inverse is true. Also, money is usually important to people - to a degree. But loyalty is about much more than salary. What I’ve seen kill loyalty really fast is to expect a lot more out of employees with no additional benefits or reward.
Fast Company did a piece on HR and how they contribute - or don’t contribute - to company culture. They probably affect loyalty also. If HR isn’t responsive or isn’t helpful that can really sour employees quickly. They can make things more difficult at work.
From limited exposure, I think Doba, which I have written a bit about recently, seems to have very high employee loyalty. The employees I know quickly defended the company and are quick to point out the benefits. And these are from two very different departments. That impresses me. At the same time, they seem to be doing well financially - they just made the Inc. 500 list.
I’d like to get your comments on what you’ve seen work for companies you’ve worked for. What have they done that has increased your loyalty? What ideas do you have that haven’t been tried but that you think would be effective?
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