Abstract

This paper aims to ascertain theoretically and empirically if there is any impact of demographic variables on the relationship between HRM best practices and employee loyalty. This paper discussed specific demographic variables namely gender, age, nationality, job experience, and job level. Theoretically, a meta-analysis review was used to cross validated literature review in the area of research. Number of relevant articles derived from several databases were reviewed to validate the impact. Based on extensive meta-analysis approach, the majority of prior literature illustrated that demographic variables had a significant impact on the relationship between HRM practices and employee loyalty. Previous literatures as well explained that, there are no differences between male and female employee in terms of loyalty, the older employees are more loyal than the younger employees, and the citizens are more loyal than the expatriates. Furthermore, literature pointed that, the longer the employee's years of experience, the more loyalty to the organization as well as the higher the level of the employees’ career, the more loyal they have. Empirically, to check the results achieved in meta-analysis review, a quantitative approach was adopted through the questionnaires that were distributed to 52 employees in the largest 14 logistics companies in Oman. Data were analysed using SPSS, as the regression analysis was used to find whether there is any impact of demographic variables on the relationship between HRM practices and employee loyalty. The results illustrated that gender had no impact on the relationship between HRM practices and employee loyalty. While, age, nationality, job experience, and job level had a significant impact on the relationship between HRM practices and employee loyalty. As past studies depicted the impact of demographic variables on HRM practices and employee loyalty, this paper recommends future research to investigate the impact of demographic variables as moderating variables on the relationship between HRM practices and employee loyalty.

Highlights

  • One of the most important roles and functions of HRM in modern organizations is to make employees loyal to the company and increase their retention

  • To check the results achieved in meta-analysis review, a quantitative approach was adopted through the questionnaires that were distributed to 52 employees in the largest 14 logistics companies in Oman

  • The results illustrated that gender had no impact on the relationship between HRM practices and employee loyalty

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Summary

Introduction

One of the most important roles and functions of HRM in modern organizations is to make employees loyal to the company and increase their retention. Loyalty is an approach for organizations to establish a solid base with their employees. This is the standard that reveals the true level of performance of an organization. Employee loyalty is an important factor that active organizations want to gain from their employees. Employee loyalty is related to the level of overall job performance and, ; it is one of the key elements in measuring the degree of compatibility between employees on one hand and organizations on the other. The literature indicates that employee loyalty has interrelated characteristics, as a psychological state that describes the relationship between the employee and the organization, as it possesses a property of influence on employees’ decision in relation to their survival or departure (Prabhakar, 2016)

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