The Cost of Employee Loyalty and Disloyalty: Theory and Practice

Why are employees loyal? Organizational commitment--or a tendency to stay rather than leave--can be demonstrated by retention commitment, value commitment, and effort commitment. These variants on reasons for commitment--to stay with the organization, to provide value for customers, and to make the effort needed--are affected by intrinsic job satisfaction more than extrinsic elements, so leaders should pay more attention to their staff members' intrinsic needs and try to meet them. To be able to effectively manage the high rate of turnover, leaders and organizations must concentrate on enhancing their staff members' intrinsic job satisfaction. This means a focus on job interest, opportunities to learn, chances to mentor others, and making achievements--not just pay and benefits.