The economic and health benefits of employee loyalty

December 21, 2011
The economic and health benefits of employee loyalty

As more and more companies cut costs, workers are increasingly receptive to better offers from other employers. But what will that do for their health? A growing body of research shows that there are actually health benefits for people who commit to companies for the long run—and rewards for the companies that keep them around, reports the Wall Street Journal.

In industries where employee turnover happens often, such as technology and media, employees think they can win big by hopping from company to company. On the other side, employers are often eager to bring innovation into the company by bringing in “new creativity.” Kathryn Shaw, an economics professor at Stanford Business School, says these folks are doing it all wrong. According to Shaw, employees who stay with a one employer for the long haul make more money, and are more productive and creative.

And if the research about people in long-term relationship is to be believed, people who make long-term commitments to others have longer lives, and lower risk of diabetes, hypertension and heart attacks. Employees that stay with a company also reap the benefits of having deeper, supportive relationships with the people they work with.

There are significant benefits for employers as well. Another study co-authored by Shaw found that paying star employees is an effective strategy for innovation. By interviewing firms in Silicon Valley, Shaw and her colleagues found that companies that reward their best employees with exceptional pay upfront are investing well in their future successes. The companies that reward performance and loyalty kept employees who ultimately helped them to find beat out the competition in the fierce world of innovative technology.

Invest today and show that the loyalty of your workers is important to your organization. You'll ensure that both you and your employees enjoy the enticing benefits in the long run.

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