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EMPLOYEES’ LOYALTY IN AN ORGANISATION

 


Figure 1: https://stock.adobe.com

INTODUCTION

Employees are the most significant asset to any organisation. It is essential to find out how employees loyalty support the success of the organisation. It is important to study that what factors influence the employees’ loyalty(Ikechukwu et al., 2019).

If any organisation to be successful recruiting right person for right job is very important. The cost of hiring the “wrong” person is high. Therefore, it is essential to find the competent person who is loyal to the organisation(Jansson & Wiklund, 2019)

THEORIES RELATED TO THE EMPLOYEES LOYALTY

Social Identity Theory(SIT) and Social Exchange Theory(SET) can be used to find out the reasons for levels of loyalty by employees towards an organisation. Theory SIT identified that more motivated and committed employees are loyal to the organisation. However, level of loyalty depends on individual employees values and norms. Organisation should identify what factors are to be focus to increase the level loyalty of the employees. If the employees feel that working with the people they like most, they must be allowed to do so. 

They will form a strong working group which will be beneficial to the organisation because they will be a loyal group. If the employees like to have a strong bond with leaders, then the organisation must focus developing leadership skills of the managers(Jansson & Wiklund, 2019)

The Social Exchange Theory describe that when employees feel, there is a positive exchange between organisation and employees, they will be more loyal to the organisation.  Benefits like good wages, bonuses, promotions as well as interactions with the leaders and employees. Employees like to exchange trust, faithfulness and loyalty with their leaders.

HOW TO DEVELOP LOYALTY IN AND ORGANASATION?

    figure 2: https://stock.adobe.com

Employees’ loyalty is described as a psychological attachment to the organisation. Employees have their own expectations. They do internal evaluation on their expectation. When employees’ expectations are met or exceeded they will be satisfied. As a result, they develop emotional attitude towards the organisation. Emotional attitude towards the organisation will be develop to the behavioural component of loyalty(Thuong & Huy, 2019).

Following can be established in order to promote and enhance loyalty of employees to the organisation(NGUYEN et al., 2020)

*  Established Sound Relationship and Treatment 

Top management of the organisation must practice the positive relation with employees. This positive relationship enhances the trust on employees which sound greater then the management style. Positive relationship increases the commitment of employees and they behave with the sense of affection towards the organisation. Employees expect to be treated with respect as well as they need good communication between leaders and employees.

*  Enhance Training and development

This is a very good opportunity for employers to develop employee loyalty. Every employee wishes to improve their competency as well as achieve carrier development. The greater the development of competencies employees develop greater job satisfaction as well as they develop loyalty to the organisation


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*  Proper Income and Remuneration

This is generally expressed in monitory terms. Income refers to sum of all earning received within the given time period, such as salaries, interest payment, profits wages etc. Remuneration often refers to the total reward received by the managerial staff which includes not only the person's basic salary and other perks attached to the given job position. The expectation of every employee whether they belong to the managerial or any other category is to lead comfortable life fulfilling their personal need as well as family needs. If the employees are satisfied with the income and remuneration they are offered they will be loyal to the organisation.

*  Arrangement of Suitable Work Environment

Work environment contribute towards the employees’ loyalty to the organisation. Employees are willing to work in a good working environment. Provision of good working environment is the responsibility of the organisation. Example for Good working environment are good corporation between management, staff and subordinates, the quality air, less noise level, free child, parking facilities etc. Employees will be loyal to the organisation if good working environment is established


 

   figure 4: https://stock.adobe.com

*  Reduce Work Pressure  

Organisation must design the work for workers to enjoy engaging the given work. If employees are stressed they develop negative feeling towards the organisation. This situation is harmful to the organisation. If employees enjoy the given work, they will be satisfied and develop positive feeling and committed to the work as well as loyal to the organisation.

*  Develop Good Organizational Culture

Organisation culture can influence the employees. Most organisations have embedded the organisation culture to the “mission “statement. If the management need employees to follow the organisation culture, first of all management must adhere to the culture. Then all the people from top to bottom will follow the suit. When employees embrace the organisation culture as part of their life, they will be more committed and final outcome will be more loyal employees.

    figure 5: https://stock.adobe.com


CONCLUSION AND RECOMENDATIONS

Employees loyalty is severely concerned by organisations. Because employee loyalty reduces the cost related to the recruitments. Employee loyalty is considerably affected by the poor work environment, unacceptable organizational culture, high work pressure, poor income and remuneration, non-availability of training and development, poor relationship and treatment. It is recommended that Organizational should establish the good culture, reduce work pressure, sound income and remuneration, good training and development, acceptable relationship and treatment.

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References 

Frempong, L. N., Agbenyo, W., & Darko, P. A. (2018). The Impact of Job Satisfaction on Employees’ Loyalty and Commitment: A Comparative Study Among Some Selected Sectors in Ghana. European Journal of Business and Management.

Ikechukwu, N. P., Sopirinye, E., & Achi, K. L. (2019). EMPLOYEE LOYALTY AND ORGANIZATIONAL COMMITMENT IN PORT HARCOURT ORGANIZATIONS.

Jansson, S., & Wiklund, F. (2019). EMPLOYEE LOYALTY AND  THE FACTORS AFFECTING IT.

Javed, K., Sana, M., Siddique, W. A., & Aziz, D. A. (2020). Determining the Influences of the Employee’s Loyalty in the Organizational Setting. 1.

Mazur-Wierzbicka, E. (2021). Determinants of Employee Loyalty from the Perspective of Employees of Socially Responsible Organizations. EUROPEAN RESEARCH STUDIES JOURNAL, XXIV(Issue 4B), 713–722. https://doi.org/10.35808/ersj/2766

Ngo, Q. V., Tran, T. Q., & Luu, T. C. (2022). Corporate social responsibility and employee loyalty: Role of pride and commitment. 237–242. https://doi.org/10.15439/2021KM52

NGUYEN, H. H., NGUYEN, T. T., & NGUYEN, P. T. (2020). Factors Affecting Employee Loyalty: A Case of Small and Medium Enterprises in Tra Vinh Province, Viet Nam. The Journal of Asian Finance, Economics and Business, 7(1), 153–158. https://doi.org/10.13106/JAFEB.2020.VOL7.NO1.153

Phi, H. D., & Pham, D. H. (n.d.). THE IMPACT OF EMPLOYEE COMMITMENT AND LOYALTY ON ORGANIZATIONAL PERFORAMCE: AN EMPIRICAL STUDY FROM THE VIETNAM BANK FOR AGRICULTURE AND RURAL DEVELOPMENT.

Thuong, V. K., & Huy, V. K. (2019). FACTORS AFFECTING THE STAFF LOYALTY AT PRIVATE COMPANIES IN CAN  THO CITY. International Journal of Small Business and Entrepreneurship Research, 7(3), 15–22.

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