Salary 'critical aspect' for employee loyalty, finds survey

'Employees who feel valued through fair compensation, job fit, and career opportunities are more inclined to feel engaged in their workplace'

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File Photo. Image used for illustrative purpose
by

Sahim Salim

Published: Mon 29 Jul 2024, 12:44 PM

Last updated: Mon 29 Jul 2024, 10:01 PM

A new survey has highlighted the connection between employee loyalty and pay, with more than half (54 per cent) of the respondents saying basic salary is a critical aspect. This is followed by employee-job fit at 36 per cent, and additional benefits from the company at 32 per cent.

This came in the latest ‘employee loyalty in the Mena’ survey by job site Bayt and YouGov. The study surveyed respondents from multiple Mena countries including the UAE.

The respondents have listed factors that could increase employee loyalty. About 60 per cent of the respondents advised employers to focus on increased recognition and rewards, while 52 per cent want the creation of growth opportunities. About 50 per cent want the facilitation of regular discussion forums to understand and address employee grievances.

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Zafar Shah, account director at YouGov, said: “As the data suggests, employees who feel valued through fair compensation, job fit, and career opportunities are more inclined to feel more engaged in their workplace … It is this sense of belonging and purpose that distinguishes highly loyal employees from the rest.”

A majority of the survey participants — 55 per cent — have been with their current companies for over four years. About 38 per cent will choose to stay for the long term, even in the face of “potentially more lucrative offers” elsewhere.

“This stability is paralleled by workplace satisfaction, as nearly three out of five employees indicate satisfaction with their current employers. Results depict that 33 per cent of current employees categorise themselves as ‘very loyal’ to their organisations, with an additional 23 per cent feeling ‘somewhat loyal’,” Bayt said as it revealed the survey results on Monday.

A vast majority of employees — 81 per cent — are “highly engaged” with their work.

Nearly half (48 per cent), however, said a prominent reason for employees not feeling entirely loyal is due to a lack of trust in their organisation's management. About 39 per cent pointed to lack of job security as a concern.

Ola Haddad, general manager at Bayt, said: "Understanding and nurturing employee loyalty is critical in navigating the dynamic landscapes of the Mena workforce. Our survey reveals a powerful correlation between trust in leadership and employee allegiance. As workplaces strive for excellence, it becomes increasingly clear that management's transparency and recognition of their workforce's contributions serve as the cornerstone of building a loyal and engaged team.”

Benefits

Loyal employees bring a diverse set of benefits, including enhancement of work quality (74 per cent), the willingness of employees to go the extra mile (67 per cent), and a spread of positive word-of-mouth about the company (65 per cent).

A significant 54 per cent of employees view their company positively enough to recommend it as a respectable place to work to others. Furthermore, 68 per cent of employees express pride in discussing their company’s products and services, which can have a positive impact on the organization's reputation.

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Sahim Salim

Published: Mon 29 Jul 2024, 12:44 PM

Last updated: Mon 29 Jul 2024, 10:01 PM

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