Analyzing The Impact Of Job Satisfaction On Employee Loyalty

Abstract:

Nowadays, one of the main challenges faced by managers is job satisfaction and employee loyalty. Apparently, it seems easy, but it is one of the difficult tasks for a manager. The main objective of a manager is to satisfy their employees because they are the most valuable asset of the organization, and there will also be less chance for them to leave the organization.

In the past few years, many researchers have conducted research in which they wanted to see whether job satisfaction has any impact on employee loyalty. Employee loyalty refers to how much an individual is committed and sincere to their work. There are many factors underlying job satisfaction and employee loyalty. In order to achieve the main objective of this study, we used the survey method. Our result shows that there is no significant impact of job satisfaction on employee loyalty.

Introduction:

One of the major disputes that managers usually face is job satisfaction and employee loyalty, especially when they have to manage their employees. Much research has been done on this subject, and researchers have found that when an employee is satisfied with their work and environment, that employee tends to be more motivated towards their job. The productivity of the company depends on how much the employee is motivated, so the manager needs to make sure that the employee is motivated because it has a huge impact on the company’s performance.

Since the employees generate revenue for the company, they play an important role in the significant investments of an organization, such as locating, recruiting, and training. In order to keep their employees motivated and uplift the performance of their organization, many managers focus on benefits packages that fulfill their needs, training programs in which they train their employees for their required tasks if there is any need, performance appraisal, which is the most important factor in which they evaluate their overall performance, and the work system, in which they make sure that their organization is working with the flow. They enhance all these things by keeping the company policies in mind. One of the main reasons that managers do all of this is because they want their employees to be loyal to them, and it will lead to a longer tenure.

Job Satisfaction:

It was getting difficult for managers to handle their employees, so in 1935, Hoppock talked about job satisfaction. According to him, job satisfaction means the combination of external and internal sources that will force them to say that they are satisfied with their job.

When employees have a positive attitude toward their job, that means they are satisfied with their job and they are highly motivated to do their work. Job satisfaction is also influenced by some factors such as salary, advancement, appreciation, recognition, work environment, supervisor, colleagues, and team members.

Basically, it is the combination of positive or negative attitudes of an individual towards their job. When a company hires an individual on the basis of desires, needs, and experience, which determine the expectation of the manager from them, they must match those criteria in order to get a reward. An individual’s behavior in the workplace actually tells how much he/she is satisfied with their job (Davis et al., 1985).

Achievement can also be the source of job satisfaction. Job satisfaction has a direct connection with the performance of an employee. One can be satisfied only when they are doing work that interests them and they have a positive attitude towards their job, and whenever they do their job, they have a feeling of fulfillment, and they are also being rewarded for their efforts. The happier one is doing their work, the more satisfied they are with their job. Job satisfaction is the main element that will lead to recognition, promotion, and income (Kaliski, 2007).

The employees should also be satisfied with their rewards (Start, 2004). People can have different attitudes and feelings towards their jobs; these can be negative, which shows how much an employee is dissatisfied with their work, or positive, which shows how much an individual is satisfied with and enjoying their job (Armstrong, 2006). It is the collection of one’s beliefs and feelings about their job; it varies from one employee to another. They can also have an attitude toward their colleagues and supervisors, which will show how satisfied they are with their jobs (George et al., 2008).

Since job satisfaction has many sides, people have different meanings or opinions in their minds. People usually think that job satisfaction and motivation are one thing, but they have a vague relationship with each other. Motivation and job satisfaction are two different things; basically, motivation is a part of job satisfaction. It all depends on how much a person is intrinsically motivated about their job. The achievement of motivation or job satisfaction can be in qualitative terms or quantitative terms (Mullins, 2005).

In job satisfaction, feelings can lead to the perception of what the job is offering them, like their material and psychological needs (Air, 2008).

Employee Loyalty:

Employee loyalty shows how much employees are committed to their jobs, which further increases the level of job satisfaction. Satisfaction starts when an employee evaluates the firm or their job internally, and when their expectations are met or exceeded at a certain level, their satisfaction will automatically grow. Employees are loyal only when they attach themselves emotionally to their organization. There is a direct relationship between job satisfaction and employee loyalty because the more employees are satisfied with their jobs, the more loyal they will be to their organization.

Through the attitude of the employees, we can determine how loyal they are to their organization. Employees who are more attached to the organization are likely to have more loyal behaviors and work to achieve the organizational goals, which will increase their productivity; they will be more efficient and have a good relationship with their customers.

People usually refer to employee loyalty as the attitude of an individual towards their job, which is wrong; it basically means how committed an individual is to their organization or how loyal they are to it, so that even in times of difficulties, they don’t stop supporting their organization, which means that they will never leave their company under any circumstances (Solomon, 1992). They will prioritize their company over anything, and they will work for the interest of their company. Also, they never think about switching their job or companies (The Loyalty Research Center, 1990). The relationship of employees with their organization will reflect their image to other organizations (Bettencourt, Gwinner, and Meuter, 2001).

Employee loyalty shows how much an individual is committed to their organization and how much they are mentally and physically involved in their organizational work. It has three factors: they truly understand the goals and values of their organization, they will also go beyond their job description or exert more effort on behalf of their senior for the betterment of their organization, and their aim is to stay in the organization for a long time (Mowday, Porter, and Steers, 1979).

Literature Review:

According to Hassan et al., if the organization wants to satisfy its employees, then it must use different compensation methods because the satisfaction level varies from one employee to another, and if it wants loyalty from its employees, then it must empower them.

Hooi Lan Wan thinks that there is no such direct relationship between job satisfaction and employee loyalty; it’s not necessary that if an employee is satisfied with their job, they will also be loyal to their organization. Employee satisfaction plays a key role in the field of sales and services because employees contact customers directly, and if they show a positive attitude towards their company, then that will encourage customers to buy their product or deal with their organization (Jain and Singh, 2003). Khare and Pandey (2012) did research together to find whether employee satisfaction and organizational commitment have a direct influence on employee loyalty, and the results of their research show that these factors have a direct impact on employee loyalty. According to Kumari and Pandey (2011), the performance of the organization solely depends upon the attitudes of the employees towards their jobs. If they have a positive attitude, then their performance will be high, and if they have a negative attitude, then their performance will be low.

After testing many factors of job satisfaction, Kabir and Parveen (2011) found that managers should enhance those factors or points that will improve their company’s performance and satisfy employees more. Appreciation and rewards also play an important role in the job satisfaction of the employee. It will increase the productivity of the organization because that is natural. If anyone gets appraisal or reward for their performance, they will perform better next time (Bugs and Sarwar, 2013). Adjetey and Prako (2013) both think that there is a direct relationship between employee loyalty, performance, and commitment. They also find that personal development and creativity have a positive impact on employee loyalty. If managers involve their workers in work where they can invest their total energy, that will increase the performance of the company, and they will be more satisfied with their job (Bauer, 2004). Employees will be more satisfied with their jobs when they are working in a flexible workforce environment, and they will be more loyal when they find opportunities for themselves in their organization. According to Akbar et al. (2011), if any manager empowers their employees, then it will have a positive result on job satisfaction, and through their research, they find that male workers are more satisfied with their jobs compared to female workers.

Objectives:

• This research aims to develop a measure that can be used for the evaluation of job satisfaction along with employee loyalty.
• There are several factors that have a major impact on job satisfaction and employee loyalty, and this study aims to find out all these factors.
• The impact of job satisfaction on employee loyalty is going to be discussed among academicians. Identification of new areas for research is the last objective of the current study.

Research Methodology:

Data Collection And Measurement Scale:

The study was based on teachers in the Institute of Business Management. The main purpose was to see the impact of job satisfaction on employee loyalty. For this purpose, research was carried out in IOBM among the faculty. The data used were primary data. We carried out a questionnaire survey that consisted of 10 questions, 5 of which showed job satisfaction and the other 5 showed job loyalty. The questionnaire was based on three options: Yes, Maybe, and No. A sample of 50 teachers was used. The questionnaire is as follows:

Job Loyalty:

Please take a few minutes to tell us about your job and how the organization assists you.

1. Will you go out of your way to do something that brings benefit to your organization?

1. Do you have any idea what your organization’s vision is and how your performance is contributing to attaining that vision?

1. If you get a similar job in a different organization, will you go?

1. Do your values and the values of your organization differ?

1. Do you regret working for this organization?

Job Satisfaction:

1. Does your work give you a feeling of personal satisfaction?

1. Is your job utilizing all of your skills and abilities?

1. Does your organization embrace diversity, and do you understand why it is important for your organization?

1. Does your manager appreciate and recognize your efforts?

1. Are you satisfied with the information which is provided by the management as per your division activities?

Data Analysis And Interpretation:

Every Yes was scored as 1, Maybe as 0, and No as -1, except questions 3, 4, and 5 of job loyalty, which were scored as 1 for No, 0 for Maybe, and -1 for Yes. After the surveys were filled, we gave each answer its respective score and then made a tally graph, which made it easier to count the final result. The result was that for every 88% of people who are satisfied with their jobs, 64% of them are loyal to their jobs as well.

Hypothesis Testing:

Our hypothesis, which said there is no significant impact of job satisfaction on job loyalty, was proved wrong, as the result of our research showed a link between job satisfaction and job loyalty.

Discussion And Conclusion:

Employees are loyal when they go out of their way to do some work for their organization. They never want their organization to face any harm because of them, and they will always think about their organization’s success. Also, they never replace their organization with another organization, whereas job satisfaction means that what an individual feels towards their job can be positive or negative; the positive feeling will lead to better performance, whereas the negative feeling will decrease performance. Managers can increase the satisfaction of their employees by giving them rewards, appreciation, bonuses, perks, and advancement. Research has been conducted that shows that job satisfaction has a direct impact on employee loyalty because as employees have more authority and more power in decision-making, it is more likely that they will be loyal to their organization (Bordin, Bartram, Gian, 2007). Hence, the article in the International Journal of Learning and Development supports our hypothesis testing because, in the article, the authors say that there is a significant relationship between job satisfaction and employee loyalty.

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