The Loyalty Metric: How Employee Satisfaction & Engagement Impacts Organization Loyalty

Previous research has shown that there are complex dynamics that influence employee loyalty and its outcomes. This study evaluated whether job satisfaction directly influenced employee engagement and whether employee engagement directly influenced the outcomes of employee loyalty, employee net promoter score, and positive word of mouth. The study also examined whether managerial trustworthiness moderates the relationship between job satisfaction and employee engagement. A quantitative approach was used to analyze the data collected from 400 full-time employees working in various industries in the United States. The hypotheses were tested using partial least squares path modeling. The results found a direct relationship between job satisfaction and employee engagement, which was significantly related to the outcomes of employee loyalty, employee net promoter score, and positive word-of-mouth. The results also revealed that the main effect between job satisfaction and employee engagement was significant. The study also found that the managerial trustworthiness moderator did not support the hypothesis; however, the results found that managerial trustworthiness negatively moderated the relationship between job satisfaction and employee engagement. This study enhances the literature on employee loyalty by comprehensively examining knowledge workers' perceptions of the concept. This broader perspective could also enable organizations to implement targeted strategies that foster loyalty. Such insights could assist practitioners in advancing the use of employee net promoter scores by extending their assessment beyond employees who demonstrate loyal behavior.