Study On Employee Loyalty

From the perspective of human capital theory, the employees are not only the most profitable capital in the enterprises, but also the source of profit. However, the enterprises could obtain these benefits only on condition that the stable cooperative relationship between the employees and their enterprises has been founded. On the basic principles of economic theories and the practices in the enterprise management, this paper discusses the definition, value and measurement of the employee loyalty of the modern enterprise and puts forward the ways in which the enterprises can build and improve the loyalty coefficient.The understanding of loyalty has been in the Chinese traditional culture and the Western philosophy for a long time, and they both praise it highly. Corresponding to the traditional perspective of loyalty, the employee loyalty of the modern enterprise is a kind of loyalty that can be looked as a contract between employees and their employers. It is not only a sort of personal virtue, but also a part of the modern enterprise spirits. It is a kind of behavior that in the free market, which is characterized with freedom and credit, employees keep their promises which they have made with their enterprises.Traditional economists believe that in the scope of society the resources flow more freely, it can be located more effectively and efficiently. The human resources are not the exception, either. However, the latest positive and empirical analyses show that the loyal employees can bring the core competitiveness to their enterprises. The loyalty, which can cause the increase of profit and productivity and the decrease of cost, drives financial success. It also can make positive effects on the stability of customers and investors. This paper discusses three models of the employee loyalty: the Game Model, the Economic Value Model and the Exit-Voice Model, in order to analyze the value of it and prove that the enterprises can benefitfrom the loyal employees generally and especially in the tough times.The first step of the management based on the employee loyalty is to measure it scientifically and accurately. There are two kinds of measurements: the quantitative measurement and the qualitative measurement. This paper introduces and analyzes these two measurements and sets up the Employee Measurement System, which integrates the two different measurements and can display the human resources and the employee loyalty of the enterprise comprehensively and objectively.The employee loyalty can be divided into two levels: the low-level loyalty and the high-level loyalty. According to the Two-Factor Theory, the low-level loyalty is based on the hygiene factor and the high-level loyalty is founded on the motivation factor. Suggestions are presented to cultivate and consolidate both the low-level loyalty and the high-level loyalty, such as redesigning the human resources management system and building the community of benefit and emotion with employees. Finally, special suggestions are raised for the enterprises in China.