The loyalty of the employee brings a great revolution in the entire organization. This loyalty will help the organization to achieve its goal on proceeding in the right direction. Loyalty in terms of business depicts the reward points that you earn from the customer. It promotes behavioral loyalty. It also enables organizations to increase productivity and hospitable establishments with the third parties.


The concept of Employee’s Loyalty:

Loyalty means to get attached and devoted to something. It also refers to the amount of and the quality of being loyal to something.

Here at the workplace, loyalty can be defined as the money spent on the personal sacrifice to achieve and strengthen the relationship. It creates a strong link between employee satisfaction productivity, company profitability.


Cost Involved in Replacing a New Employee:

If the company wants to hire a new employee against the disloyal employee, then the cost involved in it will be calculated. They can be calculated as follows:

  • Cost spent on the person leaving
  • The cost involved in hiring a new person
  • Training is given
  • Lost productivity cost.


Two Dimensions of Loyalty:

Loyalty and trust continue to increase the quality to become harder. This helps in finding whether the employee is loyal to the company or the customer is loyal to the product that is produced by the company. It has two dimensions. They are:

  1. Internal loyalty:

Internal loyalty refers to emotional attachment towards work. It indulges caring, love, behavior etc. It also deals with the attachments towards work with the emotional background. It depicts the emotional component towards work by the person internal feeling.

  1. External loyalty:

External loyalty means manifested as the way loyalty is. The loyalty behavior the supports from the customer will be beneficial for the organization. Here the duty of the management to take care of the employee what they are trying to bring out the best of him/her.For external loyalty commitments toward work matters a lot.

The context of Employee Loyalty:

Nowadays employee does not understand what the management is trying to do. The employees make their commitment toward their work with full determination and complete their work with effort, rather than commenting only. Here are few clarifications on employee loyalty. They are:

  1. Loyalty towards the profession.
  2. Loyalty to co-workers.
  3. Loyalty to the organization.
  4. Maintaining the company’s deal as confidential.
  5. Stay back to complete the project.
  6. Following the orders.
  7. Not abusing the company’s properties.
  8. Standby and help the co-workers during their struggle.


Trends of Employee Loyalty:

The huge benefits to the organizations depend upon customer satisfaction and more important on employee loyalty. Loyalty, productivity and profitability are important elements. The relationship between profit and growth depends upon customer satisfaction.

Now the customer satisfaction depends on service value that offered to him. The service value is totally dependent on employee productivity whereas it is interrelated to employee loyalty and employee loyalty is linked with employee satisfaction.


Importance of Employee Loyalty:

In order to run the organization smoothly and profitably, currently, working employees have to be loyal and dedicate themselves to their profession. Investing in a business requires the mutual support of the employees and the company.

It is true that each and every employee is the pillars of each organization. Employee loyalty contributes to the productivity. Few techniques are:

  1. Speaking about the interest in work.
  2. Collecting information about profession.
  3. Aims at involvement in work.
  4. Independence in the assigned task.
  5. Increase in feasibility and visibility.


Ways to Build Employee Loyalty:

Customer satisfaction is largely built by the Employee It draws the attention of gaining exceptional value and gets the attention of every customer. Here are a few steps to build employee loyalty within the employees. They are as follows:


  1. Try to connect with employees.
  2. Make the employee understand why to be loyal.
  3. The organization must play a vital role.
  4. showcase the best examples for the employee.
  5. Enhance employees to enjoy the benefits.


The organizational performance with employee loyalty:

The overall performance of an organization depends upon the employee loyalty. Employee loyalty aims at producing more number of capital goods for the improvement of the resources. Motivating the employees helps in gaining loyalty. This helps in the performance of the organization which helps to gain over competitive advantages.


Pros and Cons of Loyal Employees:

Loyal employees are considered as an important asset of a firm. Though might they are loyal employees of the organization yet there are few pros and cons of having them in an organization. They are:


  • Pros of loyal employees:
  1. Lesser the personal problems, the greater the work is done will be.
  2. Stability versus turnover.
  3. More commitment towards the work.
  4. Less absenteeism.
  5. Business will be more successful.


  • Cons of having loyal employees in the organization:
  1. Costs and investments made for loyal programs.
  2. More experience makes the employee less motivated towards work.
  3. Less productive employees and no new ideas.


Signs of a Loyal Employee:

One can identify a loyal employee in the following ways. Here are few qualities that a loyal employee is:


  1. Treat the boss like a person:

The Loyal employees are known by their work for which he/she had work hard to get paid and focus more on the company’s success. Employees may leave the job someday but until the time they are there should give their 100% with full loyalty to attain the success of the organization. It’s always seen that for the employees the boss is always an enemy. But a loyal employee always tries to remember how to maintain the employer-employee relationship in the organization.


  1. They suggest the least ideas that the boss would hear:

When employees enter the organization they everyday report directly to the bosses and after few days or months, they may not. But a loyal employee always will keep in touch with the bosses every time and track of the achievements and remarks.


  1. They never gossip in front of others:

Some of the employees play rash games by using the names of others. But a loyal employee always stops the criticism, gossiping, mocking, and even from spreading rumors. There is always a respect for the hard work of the other employees and act accordingly.


  1. They open up their thoughts in private:

Debate and disagreement are healthy in the working environment to know about other thoughts but the decision made by the higher authority is important to be followed by the other employees. A loyal employee even after agreeing in the meeting keeps their positive thoughts in front as to make the environments healthy.



Thus loyalty of the employees is a key importance for the organization. The employees should be always loyal toward its work, itself, fellows and more important towards organizations.