Money doesn’t buy loyalty.

A common whinge of a lot of employers is that staff should stay loyal because “we pay them good money”.

Unfortunately, it’s a lot more complicated (and can be a lot less expensive) than that.

It’s funny that we try and build loyalty with customers so it’s not price based but we tend expect loyalty from staff based on money.

I reckon we should use similar value-add strategies on staff that we use on customers.

The desire to be loyal is part of the basic human operating system. The feeling that one is part of something, that one is enmeshed in a web of mutual obligation, is deeply satisfying. People will, given the opportunity, attach themselves to a very wide variety of things: to their family, to their pets, to their favorite sports team, to their church, to their country, to their employer, to the products they buy, to just about anything.

As a boss, I see loyalty as one of a variety of ways to get people to perform their jobs. Getting the work done (so you can make money) should be, in the end, the purpose of any company. So you need people to show up and make an effort. How do you get them to do that? First and foremost, you pay them: salary and benefits. No mystery about it. But how much pay is required to inspire real effort? Or, put another way, can feelings of loyalty be substituted for monetary compensation?

. Be a charismatic boss.

Some people inspire loyalty so that others want to be with them, want to serve them, even when it’s not to their benefit.

History is full of political leaders who inspired others to achieve great things, to make sacrifices and strive further.

In the corporate world, a strong charismatic leader can do the same thing. Be a bit more like Richard Branson or take a leaf out of the manual of great sporting coaches.

. Make your organization a prestigious place to work.

People will give up some income if they can brag to others about where they work.

Make sure your company is a good place to work and is known for it. Spread the word and encourage your staff to talk about how great it is.

. Make the work inspiring.

Volunteer organizations are all about this. They balance people’s desire to accomplish a goal against monetary compensation. People will give up some wages in order to do something they like or think is important.

Even if the work isn’t inspiring you can build these elements around it such as introducing staff community programs etc.

Employers have to think of loyalty differently. But staff are going to have to buy it which means providing a package of pay, benefits, and workplace atmosphere that’s good enough that staff can’t easily find better pastures.

Stop paying staff, and see how long they stick around.

I believe that a sufficient-to-generous pay package is the best way to ensure that people stick around. It’s the responsibility of the boss to run the business so that you can afford this.

There’s got to be a sweet spot in the middle where you pay enough to prevent defections but no more. If you remove reasons for people to leave, you are more likely to have a stable workforce.