07. Employee Loyalty
What
is the Employee Loyalty?
Many companies are successful because of
employee’s loyalty. The organizations cannot achieve their goals, vision and
mission without employee loyalty. Loyal employee works productively, higher
excellence and professionally to achieve the organizational goals. Employee’s
commitment and belief, company success can be defined the employee loyalty.
Salary, promotions, recognition, bonuses, supervisor’s supports, environment,
process, and job security are the main factors for affect the employee loyalty.
Also they will retain on the company for longer period. It is performance
attributed of success or failure of the organization, considered the core of
company. It is of major significance the employee loyalty of the company and do
not actively search for other alternate opportunities. In same period employees
are delivered with more employment chances which draws them to change the
company often. Through the company view, there is any loss experienced as the
company has spent properties on the employee to very proficient then the
company performance is increased leading to a better output.
It is expected that
success and survival depends on the talents and loyalty of its employees for
the company (Keiningham & Aksoy 2009). The financial and economic
performance of any organization is dependent on the commitment, contribution
and loyalty of the employee. However, it will be challenging to gain loyalty of
employees as it has verified by the biggest research on loyalty. (Najafbagy
& Nasiripour 2015) “Lack of loyalty is one of the major causes of failure
in every work of life” Napoleon Hill, states that in his book of “Think and
Grow Rich” The loyalty of employee, the economic performance of the company
showing depending on every participation, more commitment and usually
(Boltansky, Rodriguez, 1999). Less preference to finding other opportunity for
job and belonging of strong sense, to service of the company of important
length. (Peretti and Igalens,2015). Employee loyalty depended on their
sensitive investment, employee profession and the their frequently commitment
of the company they are the main factors that controls of the longevity and the
performance of companies. (Bakker and Schaufeli,2008). If company not providing
the best economically benefits to force stay in the company, but they having a
strong bind to company it is the employee loyalty (Logan,1984) Employee loyalty can be divided in to two
specific scopes as internal loyalty and external loyalty (Savani 2016)
emotional attachment which positive behaviour, commitment, caring, relationship
coming under the internal loyalty. Towards the greatest position to
organization driving commitment of the employee is external loyalty.
Figure 1 – Herzberg’s Theory of Motivation loyalty.
Impact of loyalty on organization
It is easy to recognise the loyalty of employee, most of time the
particular employees are showing high performance in the organizing environment.
Due to the higher loyalty of the company this employee views the better picture
of the company. And they try giving high effort to company goals than
others. Loyal employee shows more
productivity, more contribution, and more commitment to success of the company.
If a company having many loyal employees, it will be a major asset for the
company. If analysis of successful companies around the world, there is
considerable number of organization have loyal employees. Which other side of
the impact of disloyal employee huge disadvantage for the company, company
success and profit. The Commercial
Leasing and Financial Company have recognized their current employee loyalty
with their 30 years of excellence and success in the field. Over 27% employees work to the company more
than 05 years and 9% of employees working the company more than 10 years, it is
the best measurement of the employee loyalty. Employees commitment,
contribution and productivity giving huge support to achieve the company goals
and vision.
Issues and Challenges
The identified company issues and challenges author mainly used the
discussions with sample employees with various category, different departments
and places, and based on results of questionnaire.
Same job function
doing it for a long period.
The company having most senior staff who worked in many years on
same job roles. They doing date to date same process for a long period, they
have a professional knowledge about the job role. This brings them a greater awareness
and how to handle a situation which is bit misery. Mainly operation’s staff and
tellers will have effected this kind of issue.
|
Service
Year |
No of Employees |
|
0-2 |
697 |
|
3-5 |
319 |
|
6-10 |
258 |
|
11-15 |
88 |
|
16- 20 |
29 |
|
20 and above |
14 |
|
Grand Total |
1405 |
Table 02-Years of
service (Source: HR department).
Reference
Bakker, A. B., & Schaufeli, W. B.
(2008). Positive organizational behaviour: Engaged employees in flourishing
organizations. Journal of Organizational Behaviour, 29(2): 147–154.
Boltanski, L., & Eve, C. (2001). The
New Spirit of Capitalism. French Review of Sociology, 42(1): Pg.171–176.
Keiningham, T & Aksoy, L 2009, Why Loyalty Matters, Beanballs Books Inc., Suite, USA.
Nasir, S, Najafbagy, R & Nasiripour, A 2015,
‘The Impact of Employee Loyalty on the Success of Commercial Organizations: A
Case Study on the Dealerships of Heavy Equipment in Iran ‘, Journal of Human Resource Management, vol 3, no. 3, pp.
27-32.
Peretti, J.-M., & Igalens, J. (2015).
Dictionaries des resources humanise (7th ed.): 110. Vuibert
Savani 2016, ‘Employee Loyalty: Importance, Ways,
Signs, Pros & Cons’, Available from
http://content.wisestep.com/employee-loyalty-importance-ways-signs-pros-cons/.
[27 March 2017].
HR internal Reports
Yes and according to Schalk & Freese (1997), employee loyalty was a concern for the employers due to its relation with staff turnover, attendance and organizational citizenship.
ReplyDeleteFurther as per Tsui et al. (1995) as employers empower employees to exercise their interest in organizational matters, the loyalty will become a central concern.
Yes. Employee loyalty can be passive receivers of organisation communication, and can also positively influence organisations. Van Riel and Balmer (1997) assert that a company’s communications can play a critical role, for instance, in regard to corporate personality and corporate visual identity, which are recognised in the literature of corporate identity
DeleteAgreed and according to Edward L. P. (2000) employee loyalty is high when employee have strong bond with organization.
ReplyDeleteYes Employee loyalty is one of the most debated subjects in marketing (Kamran-Disfani et al., 2017; Serra-Cantallops et al., 2018; Watson et al., 2015) and has interest among academics and practitioners (The Economist, 2016) who want to understand the effect of strategy on customer loyalty and performance, given that achieving customer loyalty is a primary marketing goal (Watson et al., 2015).
DeleteAgreed. A study conducted by Matzler & Renzl (2007) reveals that interpersonal trust (trust in management and trust in peers) strongly influences employee satisfaction and, as a consequence, employee loyalty. The results of the statistical analysis of the study confirm a strong link between trust, employee satisfaction and employee loyalty.
ReplyDeleteYes. It is expected that success and survival depends on the talents and loyalty of its employees for the company (Keiningham & Aksoy 2009). The financial and economic performance of any organization is dependent on the commitment, contribution and loyalty of the employee.
DeleteAgreed. Although numerous studies have been conducted on employee turnover (why people leave), according to some scholars, limited amount of literature addresses employee job embeddedness (why people stay) (Kilburn & Kilburn, 2008; Zhao & Liu, 2010). Later, Lawler III (2005) stated that in these days organizations are competing for talent rather than counting employees loyalty.
ReplyDeleteAgreed. In the rich history of loyalty, the empirical research has mainly been undertaken on large organizations, and there is a gap concerning the role of loyalty in the management and success of small businesses (Mostajer Haghighi et al., 2014).
DeleteAgreed and One of the major elements for sustaining an organizational performance for any kind of organization is maintaining loyalty and retention of skilled and experienced employees (Sarantuya, 2019).
ReplyDeleteThe financial and economic performance of any organization is dependent on the commitment, contribution and loyalty of the employee. However, it will be challenging to gain loyalty of employees as it has verified by the biggest research on loyalty. (Najafbagy & Nasiripour 2015)
DeleteAgreed with you. Employees who are satisfied about their organization believe, being an employee of organization is their best interest. They plan to continue their career with same organization, they are not seeking alternative employment opportunities (Susan, 2020).
ReplyDeleteIt is expected that success and survival depends on the talents and loyalty of its employees for the company (Keiningham & Aksoy 2009)
DeleteStaff interested in their jobs and committed to their employers bring major competitive advantages for companies, including higher productivity and a lower turnover of workers.It is therefore not shocking that organisations of all sizes and types have made substantial improvements in policies and practices that promote participation and dedication to their employees (Vance,2006)
ReplyDeleteYes. Employee loyalty depended on their sensitive investment, employee profession and the their frequently commitment of the company they are the main factors that controls of the longevity and the performance of companies. (Bakker and Schaufeli,2008). If company not providing the best economically benefits to force stay in the company, but they having a strong bind to company it is the employee loyalty (Logan,1984)
Delete