Rewarding Employee Loyalty: an Organizational Justice Approach

Research on commitment has demonstrated that maintaining high levels of commitment is important for organizational success and well-being. However, no research has addressed to what extent organizations recognize and reward those individuals who are highly committed and loyal to an organization. Therefore, the present study presents some data from employees in the US, UK, New Zealand and Germany that investigates the impact of rewarding loyalty on work attitudes. Specifically, a model is tested whereby rewarding loyalty is evaluated in terms of justice, which in turn is related to job satisfaction and organizational commitment. Using structural equation modelling, general support for the model has been found.