Employee loyalty and retention.

According to Mathis and Jackson (165), vertical (supervisory/management) and lateral (co-worker) relationships among the staff influences employee retention. An individual in a supervisory role may build or fail to build positive relationships through actions entailing fairness, non-discrimination, flexibility, provision of feedback, recognition of effort, provision of support and work-family balance among many other considerations. Managers have to be conscious of the importance of employee relations since they are in a position to influence these relations. For instance, horizontal and vertical violence cause higher levels of turnover in practices such as nursing (Stanley 5).

Employee relations is related to another factor of loyalty and retention. organizational/management factors influenced by employer practices and policies. Mathis and Jackson (165) argue that organizations with clearly established goals and providing employees with the necessary resources to reach their potential retain employees better than their counterparts. Noe, Hellenbeck, Gerhart and Wright (314) state that managers are the most important factor leading to employee engagement. Participative management promotes employee satisfaction, loyalty and subsequently, retention. On the other hand, management practices such as favoritism, involvement in undesirable or unethical practices and taking undue credit for employee efforts lead to low loyalty levels.

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The way a firm leverages compensation and performance for employees also influences loyalty and retention. Employees cite better pay/benefits as incentives that lead to leaving one employer for another. Conversely, employers may use better pay/benefits as a competitive tool for the attraction and retention of the best employees. Theories of employee motivation also support this view, identifying rewards as the crucial determinant of motivation, which directly relates to loyalty and retention. 

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