Employee Loyalty And Its Impact On Firm Growth

Employees are crucial for the achievement of internal quality and consequently for business performance of companies. The quality of employees, their competencies, loyalty and commitment are extremely important for business performance achievement. For development of employee loyalty it can be important that employees find in work, which they perform, challenge, interest and the feeling of accomplishment. The way of treatment of employees in the organization is decisive in determining if employees will indeed become an integral part of the competitive advantage of the company. The paper focuses on employee loyalty and growth of companies. The hypothesis about the relationships between employee loyalty and firm growth was developed and empirically tested. Data collection was based of responses to the structured questionnaire on the sample of Slovenian companies from service and manufacturing industries. The hypothesis was tested by using regression analysis. Findings indicate a positive relationship between employee loyalty and firm growth, particularly for manufacturing firms. Recommendations for companies are also provided.