Employee loyalty and organizational performance: a critical survey

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to clarify the relationship between employee loyalty and organizational performance. It starts with the idea that the employee loyalty creates value for the organization. This statement is widely endorsed in the literature although there is little consensus on the definition of loyalty. The paper proposes a refined synthesis of the literature on the link between employee loyalty and organizational performance. Design/methodology/approach -The paper addresses the question of whether there is a robust positive link between employee loyalty and organizational performance. The paper starts by reviewing the various, sometimes divergent, approaches to employee loyalty in the literature and then compare the different indicators of loyalty in relation to their relevance to different indicators of performance. Findings -The paper provides a critical overview of the different existing conceptions of employee loyalty. It points out ambiguity about both the theoretical contours of the concept, and practical means of making it a source of value for the organization. The paper shows that the link between employee loyalty and performance varies according to the type of indicators used.Research limitations/implications -The paper highlights a variety of indicators for employee loyalty to their firm and for organizational performance. But much research remains to be conducted, notably on the managerial levers that might consolidate or improve organizational performance. Originality/value -This paper fulfills an identified need to survey a fragmented theoretical field of analysis.

Transformational Training Programs and Quality Orientation of Employees: Does Employees’ Loyalty Matter?

“…However, some of the researchers identify two basic approaches to determine employee loyalty, namely: the attitudinal approach, and the behavioral approach. From attitudinal perspective, loyalty refers to an individual's psychological inclinations, feelings, identification, attachment or commitment to the organization [31,32]. However, the cognitive nature of attitudinal approach makes the measurement of loyalty difficult and questionable [31,33,34].…”

“…From attitudinal perspective, loyalty refers to an individual's psychological inclinations, feelings, identification, attachment or commitment to the organization [31,32]. However, the cognitive nature of attitudinal approach makes the measurement of loyalty difficult and questionable [31,33,34]. Whereas, behavioral approaches view loyalty as an observable phenomenon that is obvious and can be easily materialized in the context of employee-organization relationships [35,36].…”

Staff turnover in hotels: Exploring the quadratic and linear relationships

“…On the other hand the industry does not focus on long-term relationship (McPhail and Fisher, 2008), which impact on building workers' loyalty to the organization. Guillon and Cezanne (2014) have observed that over investment in creating employee loyalty might lead to high turnover. Loyalty to organisation may become dysfunctional, even more so when workers' loyalty to the organization is not reciprocated (Guillon and Cezanne, 2014).…”

“…Guillon and Cezanne (2014) have observed that over investment in creating employee loyalty might lead to high turnover. Loyalty to organisation may become dysfunctional, even more so when workers' loyalty to the organization is not reciprocated (Guillon and Cezanne, 2014). High levels of loyalty are not enough in retaining employees working in a turnover culture environment Then, knowing that high levels of loyalty are not enough to avoid turnover as well as may become dysfunctional in an organisation, a quadratic relationship could be explored, where higher levels of loyalty may also increase worker's' intention of turnover.…”

Assessing Employee Loyalty through Organizational Attributes in Telecom Sector: An Empirical Evidence

“…The main concern of this research study is to evaluate the effectiveness of loyal employees towards their jobs and organizations. Now employee loyalty has gone beyond than being a hypothetical construct (Guillon & Cezanne, 2014).…”