An investigation into the factors
that engender employee loyalty
in 21st century businesses.
Loyal employees are essential and beneficial to successful businesses. Their value to many businesses over the last 10-15 years has, however, been seen by employers as, at best, low. Businesses, in their drive for greater market-share, globalisation and larger corporate profits, have cut resources and costs in an attempt to improve the bottom line. In doing so, firms rationalised their operations, cutting un-profitable divisions and head-count largely indiscriminately. As a consequence they disregarded many loyal and experienced workers in these attempts to make the business more streamline, proactive and profitable.
However, the resulting businesses found that they did not perform as well as anticipated and that the loss of those skilled and loyal workers had somehow damaged the firm. As a result, companies are now looking for ways (some new and some old) to repair the damage done, and to engender a new breed of loyal employees.
The dissertation investigates the factors that engender loyalty in 21st century businesses by reviewing the aspects of business that are important in this new century, and how employees fit into this new paradigm. The key factors that emerge in this paradigm lead onto the mutually beneficial factors that engender loyalty. This study is undertaken through firstly a literary review of material on employee loyalty and secondly an appreciation of 21st business & organisational requirements, the latter through use of modern organisational management and behaviour textbooks, such as those used in our MBA study programme.
The study attempts to confirm these research findings with a survey, using amongst others Laureate MBA and MSC students, which explores these (and hopefully some other) factors which this group of employees have experienced and which, in their view, promote employee loyalty in this new century. This will be compared with the literature research findings to determine how relevant the existing literary resources prove to be.
The findings will also form the core criteria of the new �loyalty contract�, and as such, may be potential use to OM and HR professionals in developing attractive �employment packages� to attract and retain skilled workers and develop that important �employer loyalty� which so benefits the business.