Employee Loyalty: Measurement and Validation

Abstract

Employee loyalty is a significant attribute to gain competitive advantage in any organization. Research suggests that retaining and nurturing a loyal workforce has many benefits and protects the organization from several disadvantages. Therefore, understanding and measuring employee loyalty is very important for organizational effectiveness. The available literature on employee loyalty is scattered, and there is a shortage of available tools to measure the affective, cognitive and behavioural aspects of the construct. In this study, we developed a scale to measure employee loyalty in terms of the cognitive, affective and behavioural components. We used the mixed methodology and grounded theory approach for this purpose. Test items to measure employee loyalty were developed and data were collected to validate them. Furthermore, the data were subjected to rigorous statistical analysis. Results suggested robust psychometric properties in terms of validity and reliability. Such a scale is beneficial to HR practitioners and professionals, policymakers and other like-minded vocations desirous of measuring employee loyalty.