| Declining loyalty coupled with an aging workforce is a challenge for organizational leaders regarding retention. The purpose of this study was to evaluate the differences displayed by four generational groups (i.e., Mature workers, Baby Boomers, Generation X, and Generation Y) regarding corporate loyalty within the manufacturing industry. A review of current, relevant literature revealed four elements of corporate loyalty: (a) compensation, (b) benefits, (c) job security, and (d) managerial effectiveness. A quantitative comparative methodology using a nonproportional sampling approach, and a self-developed survey instrument, with a 5-point Likert-type scale, was utilized to quantify participant responses. The independent variable was generational group, and respondent characteristics of (a) gender, (b) length of service, (c) level of education, and (d) type of position were included in the study to better describe the study participants. Cronbach's Alpha was calculated to determine the internal consistency reliability of the survey instrument. Nonparametric Kruskal-Wallis H tests were executed due to the ordinal nature of the Likert-type data. Post hoc Dunn's tests were performed for pairwise comparisons for significant Kruskal-Wallis results. Participants included employees working in the manufacturing base of rural Lawrence County, Tennessee (n = 336). Overall findings of the study revealed differences among the four generational groups regarding loyalty (H = 30.87, df = 3, p < .000, n = 334). Mature workers displayed the highest level of loyalty, followed by Baby Boomers and members of Generation X. Responses from members of Generation Y indicated that this generational group displayed the lowest level of loyalty in the sampling frame. The results confirmed other studies that support the theoretical framework. The overall conclusion of the study indicated that differences are present in the loyalty levels of each generational group for the four elements evaluated. Implications for management include better understanding generational differences and recognizing generational group as a type of diversity in an effort to strengthen employee loyalty. Recommendations for future research include (a) a longitudinal study to measure the effects of time, (b) a replicated study in another geographical area, (c) a different population involving larger and equal sample sizes, and (d) analyses of demographic characteristics within the generational groups. |
