Linking employee loyalty with job satisfaction using PLS–SEM modelling

Abstract

PurposeThe purpose of the present study is to empirically test a model that illustrates how person–job fit (PJF), person–organization fit (POF) and perceived supervisor support (PSS) as individualistic factors affect job satisfaction and employee loyalty in the Indian context.Design/methodology/approachA survey of the Indian managerial executives was conducted with a structured questionnaire to validate the proposed model. Responses of a sample of 220 have been tested using PLS–SEM modelling approach.FindingsThe factors PJF, POF and PSS are inferred to have significant impact on job satisfaction and also improve employee loyalty. In comparison to PJF and PSS, POF has emerged as the most influential determinant of the proposed model.Practical implicationsHR managers can adopt relevant practices and promote organizational policies in order to have loyal employees. This would also help organizations in increasing overall productivity at both individual and organizational levels. Recruiters could be provided with necessary tools and measures to find better and accurate means of mapping POF and PJF.Originality/valueEstablishing PJF, POF fit and PSS as individual-specific constructs, and job satisfaction as a mediator, leading to employee loyalty, is a significant contribution to research. This study finds uniqueness in the Indian context, in which these constructs have mostly been explored in isolation or as dyadic relations. Review of existing studies indicates an overlap of factors that influence both job satisfaction and employee loyalty.