Factors That Can Increase Employee Loyalty
Human Resources Management Research Paper Outline
Objective: Apply theories of Human resources management to real-life context.
Learning Keys: Investigation, Communication
Using extensive research, you will choose one of the following topics and write a short
paper about it.
Points to consider in your paper:
– Your essay cannot be less than 500 words, and not more than 1000.
– Make sure you use the steps of scientific research; you have to have a question, hypothesis,
results, and conclusion. Connect to the lessons you learned and portray your own opinion,
while supporting it with evidence.
– In any of the paper you choose, you will need to support your point with at least two real-life
cases.
– Your in-text citation and referencing will highly affect your grade.
– The use of “gonna”, “won’t”, etc. will affect your grade.
– You will submit your paper on Turnitin.
– The learning keys being assessed in this essay are investigation and communication.
Research Topics:
1. What are the main factors that can increase employee loyalty?
2. Recruiting from universities: Pros and cons.
3. Should a company pay for its employees’ education and development? (courses, etc.)
4. Risks and opportunities for recruiting new team members.
5. Overqualified employees: What should an HR manager do with an overqualified
employee?
6. Character types: How do they affect team building in a company?
7. The impact of planning on organizational performance. How much does planning for
training and development affect performance?
8. Motivation: How much effect can non-financial incentives have on productivity and
employee performance?
Solution
Introduction
Lumsden (2019, Par. 1) indicates that most modern companies are more focused on
building customer loyalty forgetting that employee loyalty is an important aspect as well.
Increased retention of employees in an organization creates a highly skilled workforce that helps
in improving the performance and production of a company. Most companies that have had
immense success in the past few years have greatly invested on building their employees loyalty
enhancing the quality performance of duties among them which creates customer satisfaction.
Increased rate of competition among major industries in the country has forced HR practitioners
to think of better ways in which they can support their employees and increase their satisfaction
and engagement automatically enhancing employee loyalty to the company. This paper looks at
some of the measures that HR practitioners can adopt to enhance employee loyalty and retention
which helps an organization save on hiring costs.
Offer Competitive and Fair Compensation
HR practitioners can improve the rate of competitiveness among employees in a positive
way to increase their knowledge and skills on the performance of their duties. One of the main
factors that lead to employee turnover is increased stress on the performance of a job if an
employee is unable to perform their duties and tasks well due to a lack of proper knowledge and
training. Compensation is another factor that is most likely to lead to employee turnover, other
than career development most employees are motivated by the financial compensation they get
from their work. When employees feel misused and underpaid their rate of loyalty reduces and
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most employees end up leaving their employment posts forcing the HR to start the process of
hiring new employees all over again (Lumsden, 2019, Par. 5).
Give Employees More Control
Organizations that tend to use stricter and stringent measures of control leave no room of
employee participation in major events and when employees feel unheard they are more likely to
quit their job showing a lack of loyalty to the organization. Autocratic and dictatorial types of
leadership involve less participation of employees while democratic leadership style is more
involving, most organizations today use the latter to increase the rate of employee involvement
in organizations' operations which reduces the rate of employee turnover. Ongori (2007, P. 52)
indicates that employee involvement means that employees are rather making their own
decisions with supervision from their seniors rather than just follow instruction, this type of
engagement helps employees feel comfortable with their operations making it easier for them to
work productively and improve the quality of their services and products.
Remove Unnecessary Uncertainties
Employees are often faced with a lot of uncertainties while working as the health risks,
probability of accidents, delay wages and salaries, or working in an unconducive work
environment. Cullen et al., (2014, P. 271) points out that these uncertainties make it hard for
employees to fully concentrate on their work which leads to poor performance and reduced
production of goods and services, the uncertainties have been shown to increase the rate of
employee turnover an indication of reduced employee loyalty to an organization. The HR should
ensure that all employees are well taken care of and are in the right state of mind to perform their
duties, the only way to do this is to ensure that employees are provided with a safe working
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environment. When employees feel safe in their working areas and about their jobs they feel
obligated to provide the best services to the company and give their all to their duties this
enhances satisfaction on employment creating an aspect of loyalty.
Appreciation and Respect
According to James (2016, Par. 4), respect and appreciation between employees and the
management are very important as it helps in creating a favorable working condition for both the
employees and the management. Respect works both ways some organizations tend to only
demand respect from their employees but fail to reciprocate the same, this affects the relationship
between employees, and the management made it hard for both groups to work together to
improve the overall performance of the organization. Appreciation even in the smallest manner is
very important, employees often feel motivated to work harder and give their best when they are
appreciated. Appreciation can be in the form of bonuses, public recognition, or awards, different
organizations have their own ways of recognizing their most hardworking employees and
appreciating their efforts. Maintenance of a respectable work environment enhances employee
loyalty which reduces the rate of employee turnover in organizations.
Conclusion
Increased employee turnover is mostly enhanced by unfavorable working conditions that
make it hard for an employee to fully concentrate on their duties, lack of employee loyalty in an
organization can be very disadvantageous to an organization as it will be forced to hire new
employees after short periods of time. The cost of hiring a new employee to an organization is
high and a continuous hiring process affects the financial stability of an organization which
might affect the overall operational process of the company. Khuong and Tien (2013, P. 85)
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indicate that employee loyalty is an important factor that needs to be fully taken care of in
organizations as it will help in enhancing quality products and increasing the rate of success
within the company. HR practitioners need to adopt some of the measures recommended to
improve the rate of employee loyalty in their organizations and increase their market share
externally.
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References
Cullen, K. L., Edwards, B. D., Casper, W. C., & Gue, K. R. (2014). Employees’ adaptability and
perceptions of change-related uncertainty: Implications for perceived organizational
support, job satisfaction, and performance. Journal of Business and Psychology, 29(2),
269-280.
https://www.researchgate.net/profile/Kristin_CullenLester/publication/257584582_Empl
oyees%27_Adaptability_and_Perceptions_of_ChangeRelated_Uncertainty_Implications_
for_Perceived_Organizational_Support_Job_Satisfaction_and_Performance/links/55b7ef
5c08aed621de05b219/Employees-Adaptability-and-Perceptions-of-Change-Related-
Uncertainty-Implications-for-Perceived-Organizational-Support-Job-Satisfaction-and-
Performance.pdf
James, G. (2016). 7 simple ways to increase employee loyalty. Business Solutions on LinkedIn |
LinkedIn Business. https://business.linkedin.com/talent-solutions/blog/employee-
retention/2016/7-simple-ways-to-increase-employee-loyalty
Lumsden, D. (2019, October 14). Which factors influence employee loyalty. Oculus
HR. https://oculus-hr.co.uk/blog/employee-benefits/which-factors-influence-employee-
loyalty/
Khuong, M. N., & Tien, B. D. (2013). Factors influencing employee loyalty directly and
indirectly through job satisfaction–A study of the banking sector in Ho Chi Minh City.
International Journal of current research and academic review, 1(4), 81-95.
http://www.ijcrar.com/vol4/Mai%20Ngoc%20Khuong%20and%20Bui%20Diem%20Tie
n.pdf
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Ongori, H. (2007). A review of the literature on employee turnover.
http://ithuteng.ub.bw/bitstream/handle/10311/1154/Ongori_AJBM_2007.pdf?sequence=1
&isAllowed=y
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