Factors Affecting Employee Loyalty: in Case of Great Abyssinia plc. Sululeta Plant

Abstract

The objective of this study is to investigate factors affecting employee loyalty in Great Abyssinia sululeta plant. This Research had been undertaken to examine the important factors influencing employees' loyalty such as nature of work, carrier advancement and recognition, employee benefit, relationship with supervisor & colleagues, and working condition in the organization. The study used explanatory research design it studies a situation or a problem in order to explain the relationships between variables .The sample group used in this research consisted of 300 current employees of Great Abyssinia sululta plant as the target group. The sample size of this study is 171 employees only 147 employees responded. A questionnaire is used to collect data for this study, comprising closed-ended question, Likert matrix questions. The Statistical Package for Social Sciences (SPSS) version 21 program is used for validity, reliability, correlation and regression analysis to examine the relationship among dependent variable and independent variable. The findings of the study indicated that factors like Career Advancement and Recognition, Employment Benefits, Nature of the work, Relationship with their supervisors and colleagues and Working Environment have a strong relationship with Employee loyalty, from the model summary of regression analysis, the adjusted R square is 66.7 percent which indicates that Nature of the work, Relationship with their supervisors and colleagues, Working Environment, and employee benefit contribute to the variance of employee loyalty in the organization. Also the study shows that they are significant to employee loyalty. The study drawn a conclusion from research findings, Career Advancement and Recognition was found to have the better and positive influence on Employee loyalty followed by Relationship with their supervisors and colleagues, Working Environment, Nature of the work ,and employee benefit. Have significant relationship with employee loyalty. The principle recommendation of study is a greater understanding of employees’ needs will increase employee loyalty in the organization ,it will also helps to have a better business results, organizational growth, reduced employee turnover and policy development, to support employee’s motives on work effectiveness to and have greater employee loyalty.