Retaining employee loyalty after restructuring is a problem for all types of businesses. The major issue concerns how management and employees can establish a new, mutually acceptable "psychological contract" which ensures employee loyalty but not lifelong employment. Eighteen small businesses in Fairfield County, Connecticut were surveyed to investigate loyalty and motivation after downsizing. A significant correlation was found between loyalty and motivation. Furthermore, several motivational techniques employed were inconsistent with employee needs. Suggestions are offered on how to retain employee loyalty.
"Redefining Loyalty: Motivational Strategies and Employee Loyalty in an Era of Downsizing,"
New England Journal of Entrepreneurship:
1, Article 4.
Available at: http://digitalcommons.sacredheart.edu/neje/vol1/iss1/4