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Firm Performance, Worker Commitment and Loyalty

Author

Listed:
  • Sarah Brown

    (Department of Economics, The University of Sheffield)

  • Robert McNabb
  • Karl Taylor

    (Department of Economics, The University of Sheffield)

Abstract

Using matched employer-employee level data drawn from the UK Workplace and Employee Relations Survey, we explore the influence of worker commitment and loyalty on firm level labour productivity and financial performance. Our empirical findings suggest that worker commitment and loyalty enhance both labour productivity and financial performance at the firm level thereby highlighting a hitherto neglected conduit for improved firm performance. Using employee level data, we also explore the determinants of worker commitment and loyalty in order to ascertain how such attachments to the firm may be engendered. In general, our employee level analysis suggests that it is firm level characteristics (such as appraisal schemes, supervision, suspensions and redundancies) that influence attachments to the firm. Such findings suggest that firms may be able to exert some influence over the loyalty and commitment of its workforce, which, in turn, may affect firm performance.

Suggested Citation

  • Sarah Brown & Robert McNabb & Karl Taylor, 2006. "Firm Performance, Worker Commitment and Loyalty," Working Papers 2006005, The University of Sheffield, Department of Economics, revised Apr 2006.
    • Handle: RePEc:shf:wpaper:2006005
    as

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    File URL: http://www.shef.ac.uk/content/1/c6/05/53/54/SERP2006005.pdf
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    File URL: http://www.shef.ac.uk/content/1/c6/05/53/54/SERP2006005.pdf
    File Function: Revised version, 2006
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    References listed on IDEAS

    as
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    Cited by:

    1. Melanie K. Jones & Paul L. Latreille & Peter J. Sloane, 2016. "Job Anxiety, Work-Related Psychological Illness and Workplace Performance," British Journal of Industrial Relations, London School of Economics, vol. 54(4), pages 742-767, December.
    2. Andrew E. Clark, 2011. "The Organisational Commitment of Workers in OECD Countries," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 22(1), pages 8-27.
    3. OMISORE, Segun & Ho, Manh-Toan, 2019. "Corporate Entrepreneurship, Strategy Formulation, and the Performance of the Nigerian Manufacturing Sector," Thesis Commons u39nc, Center for Open Science.

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    More about this item

    Keywords

    Commitment; Financial Performance; Labour Productivity; Loyalty.;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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