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Business and Finance

Business Practices and Employee Loyalty

If one talks about the long term success of the organization, then it depends on multitudes of factors. For instance, the extent to which the customers are loyal to the organization as well as the overall quality of the workforces goes a long way towards the determination of the success of the organization. At times, there are certain corporate executives who do not buy into this idea of the how the employees and the workplace quality determine the extent to which customer loyalty is depending on (Grayson & Hodges, 2017). Looking closely at the way most successful organizations are working today, it would be hard to refute though that how the workplace management plays its part in bringing the organization its succes s (Grayson & Hodges, 2017).

Benefit of the Employee Loyalty

In this day and age, it is very important that the organizations inculcate the sense of loyality among their people (Grayson & Hodges, 2017). To make sure that it happens, it must be the organizations’ key objective to ensure that they are looking at the way recuiretment cost are being managed as well as bringing about the consistency in the business performance. If there is lot of chopping and changing is going on in terms of the turnover, it implies that either the employees are not happy at the current practices, or the business is not able to ensure that they are retaining the top talent across the board (Grayson & Hodges, 2017). The job market these days is changing at a very rapid pace and the organizations are always yearning for the employee who is willing to stay (Grayson & Hodges, 2017).

What it has done is that it has created with regards to the employee loyality contract is going to be carried out as well as making sure that the demands of the modern workplace is going to be done. The other aspect that is very crucial is that how in the long run the organization is going to ensure that they keep facilitating the new talent as well as ensuring that the fairness across the board for every employee is going to be done. In the workplaces that one gets to see these days, they downsizing and the restructuring is something that is always going in the organizations (Grayson & Hodges, 2017). Despite this fact, if there is a major organization that has started to lay off people, this PR driven age, such a strategy is always going to work to your disadvantage (Grayson & Hodges, 2017). Despite the fact that financial market might be approving such a move as it seems that the organization wants to sort its financial leverage out, in the long run, such a strategy is not going to pay dividends. As a matter of fact, there is significant linkage between the positive financial results of the organization and employee loyalty (Ortiz‐de‐Mandojana & Bansal, 2016). Even though at times it it difficult to quantify these outcomes to the say (Grayson & Hodges, 2017). What happens is that it creates goodwilll on the part of the organization and it goes a long way towards making sure that whatever the implcatiosn for the business are, they are being looked after in the right manner (Grayson & Hodges, 2017).

Measuring the Employee Loyalty in the Organization

One of the key thing that the business should be asking themselves is that the extent to which the employees are loyal to the organization (Grayson & Hodges, 2017). When this exercise is going to be carried out, it is going to mean that the solicited feedback from all the stakeholders and employees is going to be needed (Ortiz‐de‐Mandojana & Bansal, 2016). At the same time, the management must be in the mood that they are asking tought questions to the employees as well as the organization itself (Grayson & Hodges, 2017). For instance, it should be seen that how the relationship that the managers share with each other is going to effect the communication in the organization (Grayson & Hodges, 2017). Or does the organization has the necessary tools at their disposal to make sure that they are training people in an appropriate manner (Grayson & Hodges, 2017). The discussion about the reward system is also an important part of the way organization is operating at any given point of time (Grayson & Hodges, 2017).

Loyalty of the Employee and Profitability

One of the key thing that is needed to be noted is that how the cost benefits and the profit maxmization is going to be carried out while aslo making sure that the employee loyalty is being taken care off (Epstein & Buhovac, 2014). If the downsizing and high turnover is witnessed in any organization, the incinvenience that it causes to the customer is something that increases with the passage of time (Grayson & Hodges, 2017). The research from the American Customer Satisfaction shows that the firms that are engaged in the downsizing for a considerable amount of time showed decine in the level of customer satisfaction (Epstein & Buhovac, 2014).

Change in the Relationship Dynamic between Employees and Organization

One of the key changes that have happened across the world is that there is now a change. In the past, the organizations were in a much more dominant position as far as their decision making was concerned; now days, the ground is clear and there are higher paying options for the employees to make sure that they are in the able paying ground. It is one of the main reasons that while in the past; the employees were more than happy to stay in one organization for a considerable amount of time (Epstein & Buhovac, 2014). That does not happen. It does not necessarily means that the extent of the loyalty that people have towards the organization is not there (Grayson & Hodges, 2017). The organizations that are devising new ways to retain the talent are still doing well in terms of the way turnaround is supposed to be managed (Epstein & Buhovac, 2014).

Business Practices and Employee Loyalty

As the workplace dynamic has changed, the employees these days are not any more interested in their own reimbursement (Epstein & Buhovac, 2014). They are more inclined about the fact that how the ideas are working as well as the sort of creative freedom that they are enjoying at any place (Grayson & Hodges, 2017). The key point of today’s workforce is that they need an environment where they are allowed to express themselves in a better manner (Ortiz‐de‐Mandojana & Bansal, 2016). The idea is that as they are being provided value by the organization, and conversely they want to contribute to the organization in a valuable manner as well (Epstein & Buhovac, 2014).

Corporate Practices and Employee Loyalty

The ways corporate practices are carried out by the organization are pretty much the business practices that they have done (Trevino & Nelson, 2016). These days, when the corporate environment is being talked about, the important thing is to ensure that how the overall corporate guidelines that the organization is following. It all depends on the value preposition of the business as well as the culture (McMurrian & Matulich, 2016). If the culture that one gets to see in the organization allows the extension of the set of skills of the employee, then they are in the position to expect some loyalty in return (Ortiz‐de‐Mandojana & Bansal, 2016). Then comes the fact that how the practices are carried out in the manner that allow greater involvement of the employees in the decision making process (Epstein & Buhovac, 2014). Then there are some other dimensions of the corporate decision making that is needed to be looked at. The employees are inclined towards making sure that how these values are being measured (Epstein & Buhovac, 2014). There is conscious effort by the businesses these days to make sure that how loyalty of the customer can be measured in an appropriate manner (McMurrian & Matulich, 2016). Again, aggregation of the employee data would towards the determination of the loyalty as well as ensuring best practices to sustain good employees (Ortiz‐de‐Mandojana & Bansal, 2016).


These days, the managers and the decision makers have to make sure that they are looking after all the stakeholders in the appropriate manner (Ortiz‐de‐Mandojana & Bansal, 2016). Employees are one of the most valuable assets of the organization and in order for them to make sure that they execute their duties in the right manner, it is very important that they are being provided with the decent working environment (Ortiz‐de‐Mandojana & Bansal, 2016). It means that whatever the business practices that is carried out in the organization, they are likely to have a huge impact over the amount of loyalty that is being showed by the employees. If the business practices are carried out in the manner that make sure that employees are being valued in the entity and their input is important, it goes a long way towards making sure that they are going to be staying loyal to the company (Ortiz‐de‐Mandojana & Bansal, 2016).


Epstein, M. J., & Buhovac, A. R. (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers.

Grayson, D., & Hodges, A. (2017). Corporate social opportunity!: Seven steps to make corporate social responsibility work for your business. Routledge.

McMurrian, R. C., & Matulich, E. (2016). Building customer value and profitability with business ethics. Journal of Business & Economics Research (Online), 14(3), 83.

Ortiz‐de‐Mandojana, N., & Bansal, P. (2016). The long‐term benefits of organizational resilience through sustainable business practices. Strategic Management Journal, 37(8), 1615-1631.

Trevino, L. K., & Nelson, K. A. (2016). Managing business ethics: Straight talk about how to do it right. John Wiley & Sons.



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