Employee Loyalty Moderates the Relationship Between Job Satisfaction and Other Influencing Factors of Employees’ Performance

Md.Motahar Hossain () and Md.Shajedul Islam ()
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Md.Motahar Hossain: Khwaja Yunus Ali University
Md.Shajedul Islam: North Bengal International University

Journal of the Knowledge Economy, 2025, vol. 16, issue 3, No 52, 12503 pages

Abstract: Abstract The aim of the study is to examine the relevant factors that influence employee job satisfaction and employee performance. The moderating effect of employee loyalty, or whether there is a link between job satisfaction and employee loyalty, is also an aim of this research. This study combines exploratory and descriptive research designs, enabling in-depth description and analysis of study variables. A representative sample of 300 employees from the pharmaceutical companies operating in Bangladesh was used in the study. The survey included managers, executives, supervisors, and all other types of employees. Regression analysis, correlation analysis, and reliability testing are all done to validate our theory. The present study considers employee satisfaction and organizational performance as an independent variable, while employee loyalty acts as a moderating effect. Survey results have shown that greater employee loyalty can help keep employees satisfied. According to the analysis of the study, beta (β) value of compensation and reward, leadership, and empowerment and facilitating condition is 0.366, 0.220, and 0.170, respectively, which indicates strong positive relationship with job satisfaction. More importantly, the relationship between job satisfaction and employee performance has the highest beta value (0.554) indicating a significant positive connection between the variables. In addition, the results also indicate that loyalty contributes significantly as a mediator of employee satisfaction and organizational performance. Hence, the results indicate a favorable link with numerous aspects examined in the study. Dedicated employees generally feel satisfied working for the company and make valuable contributions to its success. Maintaining and retaining the loyalty of knowledgeable and experienced employees is a major aspect for any firm to maintain organizational performance.

Keywords: Employee loyalty; Job satisfaction; Compensation; Work performance (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s13132-024-02383-0

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