Business Commons^™

Redefining Loyalty: Motivational Strategies And Employee Loyalty In An Era Of Downsizing, Sandra Obilade

New England Journal of Entrepreneurship

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.