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Both some time it is necessary to increase the salaries to increase the loyalty and some time to make human activities depend upon the time.
Both, human activities will develop interpersonnel relationships among employees, it helps in generating good industrial relations and thus helps in retaining employee..the sense of belonging will make the employee stay. it will result in the formation of a stable & functional team, and financial measures of bonus or increment, will be yet another reason for the employee to stay and perform well.it's highly unlikely for an active employee to leave a Co-operative and productive work force and good remuneration, pay them good and provide them good work environment , they will be loyal.but from time to time employee appraisal programs should be carried out.
people's needs are never the same so try to balance all their inquires and ask for their needs through an anonymous questionnaire so that they answer frankly... Am one of the people who will choose activities, another person might be in need for higher salary.
employees loyalty can be managed by both methods, yet to determin which is better in your context, you need to analyse the existing context first and examine which will be more effective. If your employees are far below the market rates, even if they are happy and satisfied intrinstically; they still need the extrinstic characteristics of the work; salary is the key driver for emplyees well-being and to satisfy their financial needs.
I think human activities have more significance than money. Never let them feel that they are inferior and let them do what they will to do. More Pssion drives more loyality. Example about this is from APPLE, it is common preception that in apple they let them do what they are more passionate about and it makes employees more loyal and strategic.
i think both please read about maslow needs pyramid , but i believe that recognation is first piriority
Both
There are several things to keep the loyalty of the staff, including the increase of salaries and do different activities, psychological and moral support.
It can win the loyalty of staff through the good word at a critical time.
depends in each employee situation and this is why there is something called the HR department, they should be able to tell which employee needs what, and what will effect his/her performance