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Employee Loyalty and Organizational Performance: A Critical Survey

Author

Listed:
  • Olivia Guillon
  • Cécile Cézanne

    (CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique)

Abstract

Purpose – The paper aims 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. We start 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 fulfils an identified need to survey a fragmented theoretical field of analysis.

Suggested Citation

  • Olivia Guillon & Cécile Cézanne, 2014. "Employee Loyalty and Organizational Performance: A Critical Survey," Post-Print halshs-01340477, HAL.
  • Handle: RePEc:hal:journl:halshs-01340477
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    Citations

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    Cited by:

    1. Rana Muhammad Shahid Yaqub & Nazim Hussain & Shanayyara Mahmood & Zahra Farooq, 2021. "Linking Compensation, Employee Engagement, Employee Loyalty And Organizational Performance: The Mediating Role Of Organization Commitment," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(3), pages 17-32.
    2. Filippo Ferrari, 2019. "Gestione dei collaboratori ed evidenze scientifiche: uno studio sulle convinzioni dei coordinatori sanitari italiani," MECOSAN, FrancoAngeli Editore, vol. 2019(111), pages 57-82.
    3. Tai-Wei Chang & Yu-Shan Chen & Chun-Yu Lin, 2022. "The Myth of Organizational Change Process: A Study of Uniting Organizational Identity, Promoting Organizational Performance, and Member Behavior," SAGE Open, , vol. 12(1), pages 21582440221, March.
    4. Nina Pološki Vokić & Tomislav Hernaus, 2015. "The triad of job satisfaction, work engagement and employee loyalty – The interplay among the concepts," EFZG Working Papers Series 1507, Faculty of Economics and Business, University of Zagreb.
    5. Nguyen Ngoc Mai & Vo Hoang Ngoc Thuy, 2021. "Talent Retention at Commercial Banks in Vietnam," International Review of Management and Marketing, Econjournals, vol. 11(1), pages 48-59.
    6. Nadežda Jankelová & Zuzana Skorková & Zuzana Joniaková & Ildikó Némethová, 2021. "A Diverse Organizational Culture and Its Impact on Innovative Work Behavior of Municipal Employees," Sustainability, MDPI, vol. 13(6), pages 1-16, March.
    7. Nidal Fawwaz Al Qudah & Yang Yang & Muhammad Adeel Anjum, 2018. "Transformational Training Programs and Quality Orientation of Employees: Does Employees’ Loyalty Matter?," Sustainability, MDPI, vol. 10(2), pages 1-13, February.
    8. Dotun Adebanjo & Pei-Lee Teh & Pervaiz K Ahmed & Erhan Atay & Peter Ractham, 2020. "Competitive Priorities, Employee Management and Development and Sustainable Manufacturing Performance in Asian Organizations," Sustainability, MDPI, vol. 12(13), pages 1-22, July.
    9. Hareendrakumar V. R. & Suresh Subramoniam & Nizar Hussain M., 2020. "Redesigning Rewards for Improved Fairness Perception and Loyalty," Vision, , vol. 24(4), pages 481-495, December.
    10. Grace Orinda & Dr. Patrick Limo & Joel Chepkwony, 2020. "Organizational Learning and employee performance. An Indirect Effect Model of Employee Loyalty," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(9), pages 75-84, September.
    11. Mohsin, Asad & Lengler, Jorge & Aguzzoli, Roberta, 2015. "Staff turnover in hotels: Exploring the quadratic and linear relationships," Tourism Management, Elsevier, vol. 51(C), pages 35-48.
    12. Nadežda Jankelová & Juraj Mišún, 2021. "Key Competencies of Agricultural Managers in the Acute Stage of the COVID-19 Crisis," Agriculture, MDPI, vol. 11(1), pages 1-17, January.
    13. Sidra Riaz & Yusen Xu & Shahid Hussain, 2019. "Workplace Ostracism and Knowledge Hiding: The Mediating Role of Job Tension," Sustainability, MDPI, vol. 11(20), pages 1-16, October.
    14. Ewa Mazur-Wierzbicka, 2021. "Determinants of Employee Loyalty from the Perspective of Employees of Socially Responsible Organizations," European Research Studies Journal, European Research Studies Journal, vol. 0(4B), pages 713-722.
    15. OSHO, Olayinka Kayode PhD, 2023. "Employee Loyalty And Organizational Performance," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(1), pages 552-567, January.
    16. Ahmed Ebrahim Mousa, 2021. "The Level of Workplace Bullying and Its Impact on Employee Loyalty: Applied Study on the Members of the Nursing Staff at Menoufia University Hospitals," International Business Research, Canadian Center of Science and Education, vol. 14(3), pages 1-1, March.
    17. Gabriel Cachón‐Rodríguez & Alicia Blanco‐González & Camilo Prado‐Román & Francisco Diez‐Martin, 2021. "Sustainability actions, employee loyalty, and the awareness: The mediating effect of organization legitimacy," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(7), pages 1730-1739, October.

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