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Employees are a company's greatest asset - they're your competitive advantage. You want to attract and retain the best; provide them with encouragement, stimulus, and make them feel that they are an integral part of the company's mission.
Employee loyalty begins with employer loyalty. Your employees should know that if they do the job they were hired to do with a reasonable amount of competence and efficiency, you will support them.
Companies are accustomed to dismissing employees for misuse of computers at work.
If I were a capitalist I would not give my employees health insurance with no deductible, which I do, including dental, and paid pregnancy leave. That's not called capitalism, that's called being a Christian and someone who believes in democracy, so that everyone should get a fair slice of the pie.
The supermarket chain Whole Foods has quite a radical employee empowerment program, where employees get to decide whether another employee can work in their team or not. If they think this person's a slacker, doesn't have good ideas, they can vote and say, no, we don't want this person to be working with us on the vegetable aisle.