There are obvious costs to organizations of both employee disloyalty and employee loyalty. Employee disloyalty is exhibited in negative comments and attitudes about one’s colleagues and one’s organization, low quantity and quality of job performance, and high levels of withdrawal behaviors such as absenteeism, tardiness and turnover. Employee loyalty is reflected in positive attitudes and comments about one’s organization, “good soldier” behaviors such as helping others and “going the extra mile” for one’s employer, high levels of job performance, and both caring and investing in making one’s organization better.
The costs of employee disloyalty are obvious and reflected in the negative attitudes and behaviors mentioned above. The costs of employee loyalty are less evident however and reside in efforts by managers and their workplaces to better meet the needs of their workforces. These costs are embedded in organizational investments in sound human resource management policies and practices that increase the satisfaction and health of its employees. A healthy and loyal workforce is likely associated with a healthy, effective and successful organization. Thus, loyalty and disloyalty are concepts that are assessed based on more tangible employee attitudes and behaviors.
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