With the aim to study how trust and loyalty enhances performance, three objectives were laid out in the first chapter. After extensive literature review of the theories and principle of the different HR programs that organizations adopt, a qualitative study was conducted to determine the employment relationships post economic recession 2008. The research was based on data from secondary sources as collection of primary data was not possible due to certain constraints. All the objectives have been achieved. The study concludes that open and honest communication enhances loyalty and trust, enhances the employment relationship which ultimately results in better performance. Long-term relationships between employers and employee can be established when open communication exists in the organization. The findings suggest that after the economic downturn employers realize the value of maintaining employee relationship. They also recognize that while financial incentives have limitations, during downturn, this should not be cut back as this could go against the interests of the company. This has prompted the companies to reverse their decisions. Overall, intrinsic motivation alone can lead to sustained relationships and this can happen only when the worker enjoys what he does. The study concluded by suggesting further areas of research and the limitation to the study were provided.
Internationalization and globalization have caused labor market changes as the socio-economic environment of business has changed. Labor market changes have brought about changes in the employer-employee relationship. The employer-employee relationship cannot be generalized as it would differ across nations, cultures. The interaction and communication between employer and employee would also depends upon the on the industry and the size of the organization. The economic downturn has a direct impact on the employer brand and employee loyalty.