Understanding the relationships between employee loyalty, job satisfaction, and commitment

The purpose of this study is to investigate the relationship between Work Satisfaction and Organizational Commitment, as well as the regulating impacts of those attributes on employee loyalty. What exactly do job satisfaction, loyalty, and dedication imply? Is there a link between the three behavioral concepts? How do these characteristics, or lack thereof, manifest themselves in an individual worker? Can they have an impact on the organization’s overall performance? What steps may be taken to improve them? The emphasis was on the service industry, which provides intangible products and services such as distribution, transportation, retail, and comparable luxuries. Scholarly articles as well as previous studies and reports written by various researchers provided the needed basis for the findings. The administrator and policy makers of service-dominated businesses and other related industries could benefit from the exploration as they get to understand how effective the management is from the perspective of personal traits. Later, efforts can be made to discover how managers perceive themselves and their obligations. Further research towards a much more complete understanding of the matter can make use of the study as a bridge for the academic endeavors.

Research paper

Introduction

While it is the desire of every profit-making organization to not only survive but also thrive, the wish should not be attained at the expense of the workers’ welfare. As a matter of fact, to make employees content does not take much extra sweat. The passing of time either has never erased the fact that the human resource is the most important in any successful entity. In fact, successful businesses the world over is well known and widely held for their proper employee compensation schemes. The more satisfied they are, the more committed they will be, and as a result, the more evident their loyalty will be perceived. In other words, employee loyalty positively and considerably affects their level of satisfaction and structural commitment. Additionally, job satisfaction is absolutely interconnected to organizational commitment. Still, job satisfaction meaningfully somewhat mediates the correlation between loyalty and administrative commitment (Fullerton, 2003).

Background Analysis

A loyal employee is one who feels that the organization has their best interest at heart, and as an outcome they carry on doing their best with no intention or even the idea of seeking an alternative job. Such employees support the organization’s strategy and objectives, feel fit and at home while at the work place and are dedicated to fulfill organization’s goals at all costs (Roehling, 2001). A worker’s commitment, on the other hand, is closely linked to their intrinsic values, their reluctance to leave office in addition to pride taken in being occupied for their employer (Maume, 2006). It explains the degree of an employer’s dedication to his job, making it the principle element in loyalty.

Closely associated to the above traits, is job satisfaction that has a tremendous impact on the employee turnover rate, absenteeism, as well as commitment to the organization. These traits can be well exhibited by the staff willingness to take part in problem-solving activities, which are even out of their job description without compromising their level of performance. When they are satisfied with their job, also, workers find it less difficult to wake up and report at their work place. It feels less of work, and more of an enjoyable experience with a more positive perspective toward work. Who would want to be disloyal or less committed while working in such an attractive environment? It is undoubtedly difficult to distinguish a loyal, a committed and a satisfied employee.

One way of enhancing this is by building a healthy working atmosphere based on trust and respect. Employees rate respectful treatment of all employees regardless of their position or status as a core element leading to contentment. Think of a private education system, a school for instance, where respect and value diversity, policies that shield against discrimination and ensure equivalent opportunities and unbiased treatment for all, regardless of age, gender or ethnic upbringing; hence the teamwork spirit and cooperation among employees are nurtured and encouraged. The teaching staff will probably be more inclined to love their job. More precisely, they will less yearn to be employed elsewhere. They will be willing to work longer hours, since they enjoy the company and association of the team. Thankfully, such commitment will be reflected on the performance of the students as well as the entity’s reputation in the education industry at large.

Athar Waqas et al., (2014) evaluated job satisfaction and loyalty, listing the factors that enhance job satisfaction and loyalty. The first being job environment and behavior. There are values that define a company, which have a direct impact on the general output and performance of a company. An employee would enjoy working for a company that has strategic goals for specific timeline within which they are accomplished. When the core values are outlined clearly and strictly govern an institution among them being honesty, trust and respect it creates a favorable working environment that satisfies employees.

Teamwork and commitment can also be built by the culture of having constructive dialogue with employee representative groups and conducting employee surveys that aim at involving employees in the decision making process, hence strengthening their sense of belonging to the company. If employees are involved in decision-making, they are likely to be cooperative, committed to their assignments, gain the spirit of teamwork and sense of responsibility. This entirely depends on employee empowerment. For efficient organizational performance, not only the management but also the subordinate staff should be familiar with facts all-round the business. This result in less absenteeism, improved work performance, and enhanced organizational commitment. For example, a healthcare facility that seeks to amend the policies related to working hours can succeed in increasing the acceptance of the regulations by involving the employees in the process. Paying close attention to not only their views but also their feelings, and putting their opinions into consideration can make them feel more wanted, needed, appreciated and valued (Fosam, et al 1998). They will in turn find serving patients and performing their secondary duties an enjoyable experience.

People also need to feel in control of their work environment. They should be able and allowed to make some changes in the appearance of their workstations to the best of their comfort. For instance, an IT corporation with employees seated on desks with their eyes glued on the screens for the better part of the day can find this strenuous and uncomfortable. To enhance their wellbeing and ultimate satisfaction, some employers have found it necessary to allow them to decide on the angle at which their seats will be inclined, the color of the walls in the office, the type of decoration to be adopted as well as the most appropriate working hours. This gave them the sense of belonging in the organization; they became more committed to their work and consequently more productive.

Performance appraisal is also related positively to job satisfaction, organizational commitment and negatively related to employee turnover targets. People crave for prominent seats and oversight positions in the workplace. Fringe benefits also have an impact on their loyalty. Bankers who are offered transport to and from the office, healthcare insurance cover, adequate and higher pay than competitors, consequently better living standards are inclined to be more committed to their current employment. The financial service provider will face a lower threat of losing its employees to other firms while enjoying high commercial returns (Hussin, 2011). This is because people talk. They communicate with their colleagues in different banks of the same industry and make a comparison. When they realize that they are actually in a better position, it is more likely that they will stick to the employer.

None of us should forget also that surprises increase stimulus to all expanses of life, the office not being excluded. Just a minor indulgence can lift people’s pleasure, especially when the pleasure was unexpected. Businesses should seek for ways to surprise staffs. For example, small gestures such as occasional special treat e.g. coffee or baked snacks show employees that their time is appreciated. A different idea is to host an office party or even consent personnel to create a break. Yet again, this does not essentially have to be costly or lavish. The goal is to put some breaks to the monotonous of the schedule, encouraging socialization, in addition to demonstrating gratitude. Correspondingly contemplate an organization give-away. The company may hold a competition or raffle aiming at inspiring workers. The award can be as artless as a voucher or as excessive as a trip. The extra exertion made may unexpectedly lead to a superior business. This is because the workforce will feel appreciated. The staff will not feel like they have been merely employed for their service delivery, but an attachment exists between them and their employer. Instead of doing less, they will be motivated to perform their best even in the absence of a watchdog.

On the contrary, though, it is observed that at times job satisfaction may depend on the economic status of employees. Financial returns have a long-lasting impression not only on loyalty and commitment but also job satisfaction. One can be treated respectfully, transported to and from work, appraised, given fringe benefits and entertained, but if they cannot get a sufficient wage maintaining their family’s life can prove to be a challenge. A bartender, for illustration, may work for long even during abnormal hours of the night sacrificing the time she could have spent with her family and friends. Her employer may try to improve the working environment, provide meals, express appreciation whether verbally or through actions, engage her in formulation of strategies; but in reality these are not all she works for. She deserves a nice compensation package with a reasonable amount of salary. For her to enjoy social facilities comprising of transportation services, consumer cooperatives, access to quality health care, housing and education whose affordability depends on the economic conditions it is necessary that she has a good pay. Insignificant wages and deficiency of status and social security adversely upset the loyalty and commitment of employees. They may opt to dump their loyalty for a better paying job.

Conclusion

It is important therefore for every employer to ensure that all key employees are adequately satisfied. A close connection exists between their loyalty and commitment, which comes as a result of job satisfaction. To enrich this, the job environment should be conducive with the required respect and trust across all levels of the organization hierarchy. Make sure that they are actively involved in policy-making activities as well as open communication on matters concerning them. Don’t miss to surprise them with inexpensive treats that exhibit your appreciation for their commitment and loyalty, while adequately compensating them for their service delivery. This will translate to higher productivity; lower turnover rates, enhanced brand image as well as attainment of growth objectives.

Literature Review

Job satisfaction has been considered as an institution’s most important aspect of performance and has no wonder been studied frequently. It has been well defined as a blend of psychological, physiological as well as environmental circumstances that ground a person to honestly and openly say that he is contented with their job (Jawahar, 2006). Anuar Bin Hussin (2011) in his study entitled The relationship between job satisfaction and job Performance among employees in trade winds Group of companies reported that job gratification contributes 17.8% increase in performance of an organization. Therefore, an organization should invest in motivating its employees by rewarding exemplary performance of individual employees.

The Employee Job Satisfaction and Engagement Report by Hussin (2011) stated that the number of workers satisfied with their present occupation took a giant jump, escalating from 81% in 2013 to 88% in 2016 (Hussin, 2011). It is also believed that the greatest number of the same employees was affectively committed to their current groups besides strongly identifying with its goals, not wanting to part with the entity. A solid devotion to the company’s success accompanied such commitment since it was the belief that it is in their best interest to remain as members of the organizations.

The ethics of a firm at large, especially in areas of customer service, is usually reflected by the attitudes of any member of its staff. Joyful teams are exceptionally important since they represent the establishment to the community. Satisfaction, loyalty and commitment, nonetheless, are not merely connected with payment (Fosam, Grimsley and Wisher, 2013). Unquestionably, an increase or benefits will in all probability expand employee contentment, at least in the meantime, but insignificant, inexpensive changes can have a lasting impact. That is why it has been suggested, but now emphasized that employers in the service industry ought to follow the science of happiness in order to enjoy the service of contented personnel (Roehling, 2001).

The most important resource in any institute, whether for profit or not, is the human resource. No matter how much assets it owns, only people make it qualified to be an organization (Fullerton, 2003). It is therefore an intrinsic duty of the management to ensure that the staff are fully satisfied to the best of their ability, make the necessary steps to enhance their loyalty, and this will automatically make them never wish to change their jobs as they will be fully committed to their present occupation.

References

Hussin A. (2011). The relationship between job satisfaction and job performance among employees in tradewinds group of companies. Diss. Open University Malaysia.

Jawahar, I. M. (2006) Correlates of satisfaction with performance appraisal feedback.

Journal of Labor research. Fairfax: Spring, Vol 27, Iss 2, p. 213.

Maume, D., and Houston, P. (2001). Job segregation and gender differences in work–

family spillover among white collar workers. Journal of Family and Economic Issues, 22

(2): 171–89

Roehling (2001) The Relationship between Work-Life Policies and Practices and Employee Loyalty: a Life Course Perspective. Journal of Family and Economic Issues, Vol. 22, 141-170

Fosam, E.B., Grimsley, M.F.J., and Wisher, S.J. (2013). Exploring models for employee

satisfaction; with particular reference to a police force. Total Quality Management, Vol.

9, No. 2 and 3, pp. 235-47

Fullerton, G. (2003), “When does commitment lead to loyalty”, Journal of Service Research, Vol. 5 No. 4, pp. 333‐44. [Google Scholar] [Crossref] [Infotrieve]

Aug 22, 2017].