Employee Loyalty

Abstract

Abstract When examining employees’ behaviors in an organization, loyalty is one of the topics gained considerable attention. The main purpose of this paper is to study the factors that influence one’s loyalty to their job, or to their company. Specifically, we organized those factors into three levels as personal, interpersonal, and organizational. Employees’ performance is affected by their motivation toward their work, which directly impacts their job constancy. Moreover, it is easy to speculate that there is a strong causal link between employee loyalty and wages, which would be connected to the motivation of employees, but it has rarely been examined. By reviewing related research, we found out that employee loyalty is negatively associated with wages (Masakure, 2016). Beside the wages, interpersonal trust has been identified as the fundamental cornerstone for trustful organization behavior and dynamic collaboration in the workplace (Dirks & Ferrin, 2001). Kurt and Birgit (2007) argued that interpersonal trust strongly influences employee satisfaction and, as a consequence, employee loyalty. In sum, we purported that job satisfaction connected motivation, effect of wages, and interpersonal trust to employee loyalty. Furthermore, relevant data revealed that the loyalty of the boss itself has an important influence on the loyalty of employees, such as Kodak. Its reputation for high employee loyalty is still well-known in the business world. On the contrary, some international companies are large in scale, but their employee loyalty is the least in the ranking, such as Google and Amazon. Based on the above analysis, it helps us to have a further understanding and exploration of employee loyalty.