4 Reasons You Need an Employee
Loyalty Program

Businesses will work overtime to get their customer’s loyalty, but what about their employees?

One of the best things about being a Kroger shopper is the loyalty rewards program they have. They give me special pricing so I can save more money. I earn points I can use on gas at their fuel center. I can usually earn multiple fuel points on gift cards—for places I was going to shop anyway! And—perhaps my favorite part of all—they send me customized coupons based on my shopping habits and my favorite repeat purchases.

Here’s the thing. Kroger doesn’t get my business because of all the savings they give me (although it doesn’t hurt). It’s because they pay attention to me. They create a thoughtful, beneficial experience, with elements that are completely tailored to my preferences. There’s no way saving $1.50 at Walmart can compare with the excellent service and attention Kroger provides. They’ve created the perfect loyalty program.

Businesses will work overtime to get their customer’s loyalty, but what about their employees? Companies can drastically improve their profitability simply by implementing employee loyalty programs, which can improve productivity, employee engagement, and reduce turnover. Here’s a deeper look at why you need to implement an employee loyalty program.


Employee loyalty programs help you hold onto your team members. Whether you have a small team or you’re a multinational corporation, losing some of your best and brightest can set you back—both monetarily and in reaching your business goals. Not to mention, losing employees can lower team morale.
Implementing an employee loyalty program rewards your team members for their efforts and creates a healthy, thriving company culture. This sets the standard for expectations and teaches your team members that they will be appreciated and rewarded for their contribution.

High Performance

Setting up an employee loyalty program the right way for your company’s values is imperative. For example, a program that rewards employees purely on seniority or time spent accomplishing a task basis sets your team up for reduced productivity. There would be no incentive to finish tasks early, and rewarding seniority only can make newer employees feel unseen.

Instead, create your employee loyalty program with various opportunities for rewards and recognition. If you want a high performing team, create rewards around top-notch quality work done efficiently. By focusing more on the impact your team’s work has instead of the time it takes to complete a task, you can simply incentivize them to get more done in less time, while actually enjoying the process.

Intrinsic Motivation

Have you ever had an activity or a person that you loved so much that you consistently went the extra mile? Intrinsic motivation is feeling inspired to accomplish things because you want to instead of some outside force convincing you to make it happen. Think of it like this:

  • Intrinsic motivation is eating healthy because you have your 20-year high school reunion coming up and you want to look your best.
  • Extrinsic motivation is working 20 extra hours a week because you’re afraid of your boss being upset with you if you don’t work hard enough.

See the difference?

Employee loyalty programs are built to create intrinsic motivation within your team members through positive reinforcement.


This is one of the most important, and rare, qualities you can have in an employee. Commitment isn’t just a willingness to stay at the company. Commitment is a dedication to giving the company your very best so that your contribution is meaningful.

In order to have truly committed employees, they have to feel that their contribution matters, their efforts are appreciated, and that the company has their back. Employees who are appreciated and feel supported by the companies they work for will continue to give their all, but it needs to be reciprocated by the company. This is where employee loyalty programs support the protection of their most committed employees. By showing your employees that you’re just as committed to them as they are to you, you create a balanced relationship.

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