Redefining Loyalty: Motivational Strategies and Employee Loyalty in an Era of Downsizing

Abstract

Retaining employee loyalty after restructuring is a problem for all types of businesses. The major issue concerns how management and employees can establish a new, mutually acceptable "psychological contract" which ensures employee loyalty but not lifelong employment. Eighteen small businesses in Fairfield County, Connecticut were surveyed to investigate loyalty and motivation after downsizing. A significant correlation was found between loyalty and motivation. Furthermore, several motivational techniques employed were inconsistent with employee needs. Suggestions are offered on how to retain employee loyalty.

Citation

Obilade, S. (1998), "Redefining Loyalty: Motivational Strategies and Employee Loyalty in an Era of Downsizing", New England Journal of Entrepreneurship, Vol. 1 No. 1, pp. 30-40. https://doi.org/10.1108/NEJE-01-01-1998-B004