Factors Influencing Employee Loyalty

The assignment provides an overview of the research on employee loyalty, highlighting the importance of understanding the factors that contribute to employees' commitment to their organizations. It draws on a range of studies from Nigeria, Pakistan, Bangladesh, and other countries to identify the key drivers of employee loyalty, including incentives, empowerment, and organizational commitment. The document aims to provide a comprehensive summary of the research in this area, highlighting the implications for HR managers and policymakers seeking to enhance employee loyalty and retention.

FACTORS THAT INFLUENCE THE LOYALTY OF THE EMPLOYEE1
The Main Factors that Influence the Loyalty ofthe Employee
Razan Aziz
Keiser University
MAN4999G3-107062020

FACTORS THAT INFLUENCE THE LOYALTY OF THE EMPLOYEE2
Table of Contents
Introduction..................................................................................................................................................5
Definition of Key Terms..............................................................................................................................6
Loyalty.......................................................................................................................................................6
Employee Loyalty......................................................................................................................................6
Organizational performance due to employee loyalty..............................................................................7
Theories related to Employee loyalty to the organization........................................................................8
Influencing factors of employees’ loyalty to the organization.................................................................9
1. Training and development.................................................................................................................9
1. Job Security......................................................................................................................................10
2. Reward and recognition...................................................................................................................10
3. Perks and benefits............................................................................................................................10
4. Work-Life Balance...........................................................................................................................11
5. Empowerment..................................................................................................................................11
Advantage of employee loyalty.................................................................................................................12
1. Employee retention..............................................................................................................................12
2. Low employee turnover rate................................................................................................................12
3. Job satisfaction.....................................................................................................................................12
4. The relationship between an Employee’s satisfaction and loyalty......................................................13
5. Sense of belonging...............................................................................................................................14
6. Conducive work environment..............................................................................................................14

FACTORS THAT INFLUENCE THE LOYALTY OF THE EMPLOYEE3
Strategies adopted by the organization to enhance employee loyalty...................................................14
The consequences of lacking employee loyalty on the organizational health.......................................15
High employee turnover..........................................................................................................................15
Lack of commitment of leadership..........................................................................................................16
Lack of confidentiality.............................................................................................................................16
Focus on personal achievements rather than company goals and targets................................................16
Employees works under a high level of pressure.....................................................................................17
Structured Dispute resolution..................................................................................................................17
Maintain Neutrality Flexibility................................................................................................................17
Discrimination..........................................................................................................................................18
How to build and encourage employee loyalty........................................................................................18
1. Improved organizational culture..........................................................................................................18
2. Manage Employee Engagement..........................................................................................................19
3. Advancement Opportunities................................................................................................................19
4. Give and Expect to Receive Respect...................................................................................................20
5. Reward Appropriately..........................................................................................................................20
Conclusion..................................................................................................................................................20
References....................................................................................................................................................23

FACTORS THAT INFLUENCE THE LOYALTY OF THE EMPLOYEE4
Abstract
Employees are considered as a foundation of an organization, the accomplishment of an output
or losses incurred by a business is usually measured by the productivity of employees. One of the
indicators to measure the employee’s efficiency and performance is his loyalty to his workplace.
Loyalty, as a general, can be explained as a human's attachment or feeling of commitment to a
job or his workplace. Employee loyalty becomes a significant challenge for the organizations in
modern times especially in American organization there is high employee turnover, one of the
reasons is employee disloyalty.
The major factors that influence employee loyalty to the organizations are training and
development, job security, reward and recognition, flexibility to have work-life balance,
empowerment. There are various advantages to have loyal employees is that it helps to retain
employees for a longer period, lower employee turnover, the employees are highly satisfied to
their jobs and workplace, it develops a sense of belonging to the organization within the
employees, the organizations promote to the conducive environment and also promotes the
diversity.
There are various strategies used by the organizations to retain the loyal employees which are
discussed in the paper. the organizations have to face severe consequences due to lack of
employee loyalty are: high employee turnover, lack of commitment of leadership, lack of
confidentiality, the employees focus on personal goals rather than organizational goals,
employees have to work in a high level of pressure, cultivated discriminated culture. The
organizations encourage employee’s loyalty through various ways like improved organizational
culture, manage employee engagement and reward them according to their performances.

FACTORS THAT INFLUENCE THE LOYALTY OF THE EMPLOYEE5
The Main Factors that Influence the Loyalty of the Employee
Thesis statement
Employee loyalty is very important to keep employees more productive, motivated, and
makes the organizational environment more conductive.
Introduction
Employees are measured as the foundation of businesses and the accomplishment or
losses of the business are considered as the productivity of the employees. Generally, It is of
most significance that the in those organization where the employees are loyal and don does not
look for job switching or any other opportunities. Loyalty, as a common expression can be
defined as a human's attachment or feeling of commitment to a specific object, it may be another
human or collection of humans, a model, a job, or a reason. Loyalty itself expresses as in both
ideas and acts and struggles for the recognition of the interests of the loyal human with those of
the entity. In today’s world, the employees are given such charming appeals that attract them to
switch their organizations often. However, from the organization’s perspective, the organization
has to bear the loss incurred as the cost spent by the organization recruitments, wastage of time,
training on the employees to increase their skills and competencies so that the organizational
performance to achieve the benchmark level set by the industry. The economic performance is
more dependent on the employees’ commitment, contribution, and more commonly, the loyalty
of their employees to the organization.
Loyalty has become one of the significant challenges for organizations, particularly in the
situation of the inflation and other economic tensions related to the ‘psychological contract’
between an organization and employee (Murali, Poddar, & Seema, 2017).

FACTORS THAT INFLUENCE THE LOYALTY OF THE EMPLOYEE6
Loyalty can be defined as it is a very special bond between employees to their
organization even when it’s maybe not financially stable as much as they deserve. Employee
Loyalty is premeditated commitment to further the best interests of the organization, in any
event, while doing so may request relinquishing some part of one's personal circumstance past
what might be required by one's legitimate and other good obligations (Murali, Poddar& Seema,
2017).
Definition of loyalty can keep up a correspondence to the following terms: relation of
mutual respect, protection from the response of skillful conduct tackled with outside proposals
for employment, long term period of service in the organization, emotional attachment to the
workplace and no willingness to search for another job offers or a feeling of staying there in the
organization over the long period of the term. An employee’s loyalty to the profession or job is
an employee's emotional asset, and the reliability of his commitment to the organization, are the
main reasons that identify the long life and the performance of organizations (Murali, Poddar, &
Seema, 2017).
Definition of Key Terms
Loyalty
“It is a strong tie that binds an employee to his/her company even when it may not be
economically sound for him/her to stay there” (Aityan& Gupta, 2012)
Employee Loyalty
“It is a deliberate commitment to further the best interests of one’s employer, even when
doing so may demand to sacrifice some aspect of one’s self-interest beyond what would be
required by one’s legal and other moral duties” (Adedeji &Ugwumadu, 2018).

FACTORS THAT INFLUENCE THE LOYALTY OF THE EMPLOYEE7
Organizational performance due to employee loyalty
In explaining performance measure, some researchers pay attention to internal
organizational factors, such as goals set by the organization and strategies for accomplishment of
these goals for the employees.
Performance management of an organization is a constant progression of defining,
controlling and mounting performance and its alignment with the long term goals of the
organization whose accomplishment are only associated to the performance of employees and
that is dependent on the employee loyalty to the organization. The organization which are
inclined towards the yearning of organizations to maximize business capacity and competitive
advantage is a the main element for their inclination towards innovation, and that innovation can
help to progress the organization performance in several ways, which mostly included product
performance, product innovation, market presentation and financial improvement is only
possible when organizations are employee-oriented and they do not fear of any uncertainties or
turnover or leakage of confidentiality because they are based on a mutual trust relationship
between employee and employer.
An organization may deal with average employees but experienced and skilled
employees can drive an average organization to a better position. Similarly, disloyal employees
can be a reason fora prosperous and flourishing organization to fall down. In an employee
intensive market, sustaining loyal employees and keeping employee engage becomes
progressively more significant and a constant threat (Hatwal&Chaubey, 2014).
The lifeblood of every organization is its employees. Given this significant reality, the
observers may believe every organization has a comprehensive planning and concrete procedures
in place to make sure that the employees are engaged.The target of plotters, managers and social

FACTORS THAT INFLUENCE THE LOYALTY OF THE EMPLOYEE8
scientists is changing from types of equipment, structures, economics and marketplaces to people
(Hatwal&Chaubey, 2014).
Theories related to Employee loyalty to the organization
The theoretical framework related to employee loyalty was explained byZhu, Yin, Liu,
& Lai (2012)Stated a theory to describe classification in employee’s productivity at
organization.in the course offoundational theory approach, employees ‘insights on loyalty as a
constituent of employee performance indicator introduced as a theoretical model. This model
showed for the very first time, loyalty as anperception of productivity from the employees to be
future managers.The model discussed the relationship between the proposed aspects initiated
from contributors’views for the reason to evaluate both organization and employee loyalty.
The theoretical model revealed that equilibrium is required to construct a loyalty
foundation between an employee and organization loyalty that determined to improved
productivity.Particularly, contributors determined the elements of loyalty in the aspects of
integrity, flexibility, transparency support, dedication, conscientiousness, accountability, and
advocacy (Zhu, Yin, Liu, & Lai, 2012).
The researchsustains instinctivegratitude that leadershipattitude that generates employee
loyalty also get betteremployee productivity. This model can be used by researchers and human
resource practitioners to mold organizational policies(Zhu, Yin, Liu, & Lai, 2012).
In this framework has detailed focus inside the theory is given to behavior and job
occupational performance to recognize and describepersonality traits from the perception of (a)
identification (who do employees assume they are?) and (b) repute (who do managers
assumeemployees are?). Socio-analytic theory specify that self-evaluations

FACTORS THAT INFLUENCE THE LOYALTY OF THE EMPLOYEE9
revealsinnereffervescent that influence the employee’s potential behavior, and observer-
evaluations reveals the employees’ reputation and personality. Within this theory, data about
diverse yet interrelated features of the employeearemeasured(Zhu, Yin, Liu, & Lai, 2012).
Zhu, Yin, Liu, & Lai (2012)challenged that meta-analytical investigation have
displayed that personality determination are helpfulforecasters of job performance.
Zhu, Yin, Liu, & Lai (2012) also expressed that well-raised personality determines
could forecastemployee performance. Personality is often definite in expressions of attribute
theoryand the five-factor model (FFM) that influence loyalty including emotional stability,
extraversion-ambition, agreeableness, conscientiousness, and intellect-openness.
Personality from the within, as earlieraffirmed, as a person’s identification to directly
related to the loyalty. It was also critical to discuss about ethics because it is a
foundationconstituent of employee identification and the essence of ethical motivation which
helps to determine an employee’s loyalty to the organization (Zhu, Yin, Liu, & Lai, 2012).
Influencing factors of employees’ loyalty to the organization
1. Training and development
Training and development is not only investment in the employees but it is an instrument
with the help of which they feel more valued and appreciated by the organization. This is also
intact the sense of belongingness within the employees which will cultivate a loyalty culture, and
allow the organization to harvest the perks this carries, for instance, growth of work engagement,
employee referrals and recommendations, and commitment to the best interests of the
organization. This organization provide its employee’s Training and development prospect, and
also provides an employeehelp with flourishing their Skill development and training, This helps

FACTORS THAT INFLUENCE THE LOYALTY OF THE EMPLOYEE10
organization to apply Fair promotion policy by observing employees skills, also organizations
assist them to participate in decision makingwith the help of training and development
(Hatwal&Chaubey, 2014).
1. Job Security
According to findings of the research, employees have the tendency to be increased or
decreased level of commitment and loyalty to their organization when they have the feeling of
job security (Idowu, Soyebo, & Adeoye, 2019). When employees are not afraid of being laid off,
they are likely to be more efficient, productive, and satisfied with their jobs (Adedeji
&Ugwumadu, 2018). Job security is also supposed as the durability component of employee
Performance and job description are supposed as the substantive part of employee
performance(Hatwal&Chaubey, 2014).
2. Reward and recognition
If the employees are engaged with the organization, they will be capable of to develop
and sell out the brand far better way than the employees who are not loyal on behalf of which
Rewarding their performance based on hard work generates loyalty and helps the associated
teams to have the same feeling of emotional bond with the organization.
3. Perks and benefits
The study discussed that it is essential to exchange the feeling that the organization is
owned by employees, by sharing profits and option plans to grow the loyalty. It provides
employees to translate a taxable income and sharing bonuses as organizational shares (Aityan&
Gupta, 2012). It also includes medical disability, life insurance; paid vacations, free meals, usage
of company cars, childcare, company holidays, gratuity, children educations, retirement and
pension plans, and a lot more are included. (Aityan& Gupta, 2012).

FACTORS THAT INFLUENCE THE LOYALTY OF THE EMPLOYEE11
4. Work-Life Balance
The research showed that the more cheerful employees emerge to be more dedicated to
job roles while pleasuring a high level of job satisfaction. As identified by the American
Psychological Association (2014), the organizations which strongly support the importance of
making employees happier, and in fact, these organizations are growing their perks for the
happiness of their employees. Likewise, with regards to Taiwan, the current yearly review of
Taiwan by Common Wealth and Cheers magazines additionally referenced the creation
representative’s glad as the essential factor that has prompted the acknowledgment of the best
business (Aityan&Gupta, 2012). Amongst practitioners and scholars, their main concern is
employee engagement the fact is the employees who have work-life balance in their life are tend
to be more relaxed, productive and job satisfied which leads to loyalty to the workplace (Iqbal,
Tufail, & Lodhi, 2015).
5. Empowerment
From a job point of view, empowerment gives employees are the authority who can
decide on their own regarding customer service. In management and organizational psychology,
empowerment is the enrichment of the employee's autonomy in their jobs or tasks or increased
participation that effects in frequent power of decisions more commonly within the wider plan
and increase in the organizational interest highlights the organizational facet of empowerment,
making it the process with the essential directions and capabilities to develop autonomous
decision making as a culture of the organization. Committed and empowered employees are
usually marked to be vital for the effective implementation of contemporary output.
Empowerment has been projected and originates to make possible an employee’s commitment to
the organization (Idowu, Soyebo, & Adeoye, 2019).

FACTORS THAT INFLUENCE THE LOYALTY OF THE EMPLOYEE12
Advantage of employee loyalty
1. Employee retention
If organizations use appropriate strategies to retain the employees and implemented by
the organizations, can help them to keep retain the employees and accomplish the organizational
goals. However, the query of how motivation should be stimulated in the employees to sustain
their loyalty to the organization remains. The researchers concluded that the problem is not about
if an employee is motivated or not, but it is vital to identify the facts that motivate employees and
fetch about loyalty and retention freely and without compulsion, getting a high level of
organizational loyalty is one of the factors that help organizations to accomplish their goals. It is
a precondition for many contemporary organizations that have employees with elevated loyalty
(Adedeji &Ugwumadu, 2018).
2.Low employee turnover rate
There are several strategies of organizations to lower the employee turnover rate, shows
that the helps the organizations to keep employees loyal and dedicated are related to perks &
benefits, Work-life balance, Organization development & image, Superior subordinate bonding,
job satisfaction, coordination, and Teamwork, conductive work Environment, Training &
Development, flexible working hours, Skill appreciation, Job Security, Performance Appraisal,
encouragement, Career Growth, Welfare measures, and Job autonomy (Islam et al., 2019).
3.Job satisfaction
The research revealed that job satisfaction is highly important to achieve employee
loyalty. Job satisfaction is an employee’s sense of completion of goals and successfully achieved
the job tasks. It is usually supposed to be directly connected to personal well-being and efficient
productivity which leads to higher employee loyalty. Job satisfactions involve employee enjoys

FACTORS THAT INFLUENCE THE LOYALTY OF THE EMPLOYEE13
doing the job, perform it perfectly, and being given benefits and rewarded for his efforts. Job
satisfaction additionally consists of interest and contentment employees’ jobs. Job satisfaction is
the input component that entails to gratitude, earnings, encouragement, and the attainment of
other objectives that entails to a feeling of accomplishment (Adedeji &Ugwumadu, 2018).
4. The relationship between an Employee’s satisfaction and loyalty
In general, it is considered that the final goal which any business required to accomplish
is that employees not only perform well, dedicate to an organization by all capabilities and
interest to attain the common purposes of the business, but it is also said to be that they have a
long-lasting affection to the workplace by their loyalty. It can be a part constituent of a
commitment in the workplace, but can also be a self-determining idea several studies on human
resource management in America concluded that employee satisfaction is optimistically
dependent on employees’ loyalty to their organizations (Omar, Jussof&Hussin, 2010).
Furthermore, related researches also stated that satisfied employees will communicate a higher
degree of loyalty to the workplaces; as a result, they do not intend to quit the workplace.
Accordingly, concluding from the results of experimental studies, clarified and revealed that
loyalty was the resultant of the main foundation that is job satisfaction. It means that the
influence of job satisfaction has a positive effect on employee loyalty (Omar, Jussof&Hussin,
2010). These realistic researches showed that the loyal employee is the signal which
demonstrates that the employee satisfaction will be the output of the job loyalty, at the same
time; it also specifies that there is a positive and direct relationship between both of these two
variables. if there is lower or no loyalty towards the job, an employee will be less or not satisfied
and will try to switch the organization (Omar, Jussof&Hussin, 2010).

FACTORS THAT INFLUENCE THE LOYALTY OF THE EMPLOYEE14
5.Sense of belonging
A sense of belongingness is a human emotional need and psychological factor which
promotes employee loyalty to the organizations. The employees are not only physically and
mentally associated with the organization but also they are bind by heart. The employees who
have a strong sense of belongingness are the most loyal to the organizations (Adedeji
&Ugwumadu, 2018).
6.Conducive work environment
The organizations which promote the learning behavior of the employees lead to have a
conducive environment, where the leaders believe in the uniformity of the employees instead of
biased or favoritism or any kind of unfair practices. They promote diverse cultures at the
workplace and teach to respect eachother’s culture which ties a strong bond between all the
employees despite their levels or designations.
Strategies adopted by the organization to enhance employee loyalty
 The organization develops a dialogue with the employees to have healthy discussions,
counseling, or in case of conflict resolution which is can be achieved as a result of open
communication.
 The organization pays Competitive compensation to the employees as compare to the
others to keep them loyal.
 The organizations understand and focus on the broader perspectives of employees’ lives.
 The organizations approach employees with a feeling of finding a creative and innovative
workforce.
 The organizations provide their employees with Good working conditions.
 The organizations provide employees with positive feedback regularly or weekly basis.

FACTORS THAT INFLUENCE THE LOYALTY OF THE EMPLOYEE15
 The organization provides good listeners in the form of leaders as listening to employees
even if you can’t always go with what they desire.
 They are always Be honest with employees to order to aware them about the real picture
of the issues.
 They liberate employee’s actions/empowerment/freedom to succeed.
 Provide Advocacy and counseling for the employees in case of their personal or
organizational issues.
 The organizations provide career plans and paths for employees / Discuss professional
growth and opportunities with employees.
 The organization always assists the employees in achieving the organization's mission
and goals.
 The organization provides employees learning environment.
 The organizations create an environment of mutual partnerships between organizations
and employees.
The consequences of lacking employee loyalty on the organizational health
Following are the few consequences which are caused by the lacking of employee loyalty
on organizational health or performance.
High employee turnover
The employees who are not satisfied to the job or disloyalty there are several reasons
behind it like stagnant career and lack of career advancement, being over burdened with tasks,
lack of feedback and recognition given by the management, no or little involvement in decision
making, these organization do not prefers to invest in employees, lack of reward and
compensation. These factors lead the organization towards adverse prospectus, the employees

FACTORS THAT INFLUENCE THE LOYALTY OF THE EMPLOYEE16
switch their jobs frequently it may cause higher cost incur to recruit new employee and the cost
incur to train them. The organization has to bear huge financial losses. Specially in America
there is very high employee turnover. (Omar, Jussof&Hussin, 2010)
Lack of commitment of leadership
In some of the organizations where leadership practices are unfair such as lack of
consideration to employee’s capabilities or to individual desires or treating organizational
employees like only means rather than ends have been distinguished by employees as examples
for dysfunctional leaders that eliminate loyalty. Leaders that come out to set their concerns
primarily greater than employees make an environment of mistrust and “organizational
terrorism” which devastates an employee’s readiness to be loyal.
Lack of confidentiality
The organization has to face issue regarding leakage of its information by the employees
who have switched to another organization. It’s probable that the employees of the organization
deal with sensitive information on a daily basis, sometimes accessing data that is critical to your
organization can be leaked out or maybe they have access to the sensitive information. (Iqbal,
Tufail, & Lodhi, 2015).
Focus on personal achievements rather than company goals and targets
The disparity in goals differentiated as rather personal or organizational specifies a
disengagement between leaders or managers and employees. This disengage generates a gap
between the definite degree of employee loyalty and a organization’s expected of it. To get better
this condition, organizations need to eliminate this disengagement and create genuine loyalty
dependent on mutual respect and trust (Aityan& Gupta,2012).

FACTORS THAT INFLUENCE THE LOYALTY OF THE EMPLOYEE17
Employees works under a high level of pressure
If organizations do not treat their employees the way they are expected to be treated, for
example in terms of not taking care and with no flexibility, then the employee will also do not
care. Also, they have to work under high level of pressure to complete the tasks or assignments
on time.so if employees are not happy in the organization, they would easily switch to another
organization where they would be happier. “It’s like a self-serving.” (Zhu, Yin, Liu, &
Lai,2012).
Structured Dispute resolution
The organizations provide structured dispute resolution strategies either among
employees or between the management and employees. The concerned organizations to the
employees help to resolve the conflicts between them. The organization offers lots of mentoring
and counseling sessions in order to identify and resolve the conflicts. Provides terms or options
for negotiations between the parties. Employees want to believe that they are assets not liabilities
(Zhu, Yin, Liu, & amp; Lai, 2012).
Maintain Neutrality Flexibility
As contributors revealed, flexibility could be reviewed and foundational base on only
some aspects such as, the degree to which error tolerance is sustained in the organization. It
could also be observed through the subordinate level of inflexibility an organization could
harmony the employee in relation to regularity to the extent that the deliverables are met. Lastly
through mutual trust when dedicating an employee to make own decisions as long as the points
explained in the job performance are met (Zhu, Yin, Liu, & Lai, 2012).

FACTORS THAT INFLUENCE THE LOYALTY OF THE EMPLOYEE18
Discrimination
Many factors unswervingly influence job tension which is usually caused by
discrimination at workplace and connected characteristics of employee well-being. For example,
organizational impoliteness, lack of respect or dysfunctional employees’ behavior. Such
behaviors can direct an adverse impact to the employees includes anxiety, stress, negative
thoughts, depression. Discriminated attitudes by the employer or manager can leads to turnover
intentions, dissatisfaction, lack of commitment, suspicion, perceived injustice by the employees,
after the persistence of negative or discriminated attitudes the employees may take actions such
as leaving the job, absenteeism, and continuation of dysfunctional behaviors. Organizational
distinctiveness and cultural discrimination at the organizational level can have considerable
influence on job tension (Rice et al., 2017).
How to build and encourage employee loyalty
1. Improved organizational culture
The organization can improve its culture in order to keep its employees loyal. If the
organization creates a culture of helping other employees, fascination for empathizing others;
helping others less competitive or less-skilled employees, providing equal employment
opportunities to the disabled peoples, helping employees with disabilities; giving back;
organization promotes integration and coordination with the team members; promoting dealing
with the stakeholders; developing faith in the mission of the organization. Employees feel like a
family within the workplace; trusting the decision of leadership; providing supportive
administrators; generates great employees; develops happy and respectful environment; the
organization gives its employees environment of participative decision making and allows to
raise the voice to give opinions; they create great bosses; coworkers who are prepared to assist;

FACTORS THAT INFLUENCE THE LOYALTY OF THE EMPLOYEE19
gives freedom to be innovative to the employees; a friendship between colleagues; the strong
relationship between employees and management (Omar, Jussof&Hussin, 2010).
2. Manage Employee Engagement.
The employees tend to be more loyal when there is increased employee morale,
engagement, and commitment to the organization can be attained by work-life balance, litheness
to meet family necessitates, personal commitments, and managing life errands conveniently.
Minimize consumption of employee travel time and fuel costs. Avoid engaging in activities
which keep employees under the pressure of traveling during rush hours, give the employees
flexibility in working hours, and give them a cheerful and care-free working environment.
Reduce the pressure to employee suffer exhaustion due to overload. Permits employees to work
when they achieve most, feel fresh, and the employees start losing their jobs.
3. Advancement Opportunities
An organization which desires to keep employees should provide room to progress and
advance; development prospective; more chances to grow, sharing career path developments,
advancement opportunities, provides a learning environment, training and development, career
support, offering enrichment programs for employees for their growth (Omar, Jussof&Hussin,
2010).
4. Give and Expect to Receive Respect
Doing valuable or impactful work; making an impact; rewarding work; pride in doing a
good job; passion for work; fulfilling job; enjoyed the work; job satisfaction; went from a job to
a career (Omar, Jussof&Hussin, 2010). Respect is one of the most essential traits of an
organization. Mutual respect means improved communication between employees and employer,

FACTORS THAT INFLUENCE THE LOYALTY OF THE EMPLOYEE20
higher self-esteem, and greater coordination to teamwork and better professional relationships.
Without respect, no employees can retain for a longer period of time with the organization
(Omar, Jussof&Hussin, 2010).
5. Reward Appropriately
Financial security; security blanket; good benefits; good salary and benefits package;
paid time off; pension; competitive salaries; commission pay; financial stability; the cost of
living increase; pay raises given; having seniority status. Organizations prefer to do well to
properly identify an employee’s loyalty, and most significantly, make employees realize the fact
that their organization recognizes their loyalty and values them as well. Whether or not an
organization can pay the cost to reward the employees or remuneration scheme depends on an
employee’s loyalty that can completely rely upon the organization’s exceptional
parameters(Murali, Poddar, & Seema, 2017). This usually represents a constructive workplace
culture more conducive which promotes increasing the organizational performance.
Conclusion
Loyalty within the organization in general achieved from the connection and the bonding
between an employee and the organization. It is to assure employees, motivating employees to
take part in the job security, decision-making process, equality treatment, teamwork, training,
development, and reward and compensation policies are a few of the strategies that influence
employee loyalty. The factors are comprised of Human Resource Management practices which
effect on employee loyalty. Human Resource Management practices tend to elevate employee
job satisfaction, help the employees to seek and acquire skills, and provide limit alternative job
choices which will influence the employee’s loyalty to the company. Organizations require to

FACTORS THAT INFLUENCE THE LOYALTY OF THE EMPLOYEE21
deliberately and systematically developing human resource practices that are designed to entirely
accomplish loyalty (Iqbal, Tufail, & Lodhi, 2015).
In order to compete in this competitive environment, organizations really want to focus
on employee loyalty. To enlarge and promote an authentic and affirmative association of the
organization with the employees, organizations must first identify and eliminate the factors that
are reasons behind disloyalty employees and be organized to their indulgence them with loyalty
primarily. The organizations have to bridge the gap in this employee-employer relationship that
can help American corporate to improve their productivity and competitive advantages in order
to maintain their position in the international economy (Aityan& Gupta, 2012).
Specially attaining organizational loyalty that make active in the internal environment
and is so important and vital. The influence of employee’s empowerment on organizational
loyalty in American organizations. It is extremely suggested that American organizations that
particularly stimulated for getting fineness to the empowerment of employees in a suitable form.
Empowerment facilitates both employees and management to acquiring efficient information and
capabilities to feel the loyalty in their workplace (Boussalem, 2014).
The economic performance is more interdependent on the employees’ commitment,
contribution, and more generally, the loyalty of their employees to the organization (Murali,
Poddar, & Seema, 2017). In a labor-intensive market, supporting loyal employees and keeping
employees engaged becomes increasingly more momentous and a constant threat
(Hatwal&Chaubey, 2014).
There are consequences which may cause due to lack of employee loyalty on the
organizational health are high turnover of employees especially in American organizations, loss
of sensitive information, lack of commitment of employees, the focus of employees maybe only

FACTORS THAT INFLUENCE THE LOYALTY OF THE EMPLOYEE22
to attain personal goals rather than organizational goals. The lifeblood of every organization is its
employees. Given this significant reality, the observers may believe every organization has a
comprehensive planning and concrete procedures in place to make sure that the employees are
engaged. The target of plotters, managers, and social scientists is changing from types of
equipment, structures, economics, and marketplaces to people.
References
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