Fostering Employee Loyalty in Tourism Sector: The Synergistic Impact of Psychological Safety, Inclusive Leadership, Ethical Climate, and Reward Recognition
DOI:
https://doi.org/10.12727/ajts.32.3Keywords:
Discriminant Analysis, Psychological Safety, Loyalty, Ethical ClimateAbstract
This study aimed to identify the key factors that differentiate employees who display unwavering loyalty from those who do not. Using linear discriminant analysis approach, we investigated several important factors, including psychological safety, inclusive leadership, ethical climate, and reward and recognition, to determine their respective influences on employee loyalty. The findings yielded valuable insights into employee loyalty determinants. Psychological safety emerged as the most influential factor among those examined. Workplace culture fostering psychological safety was positively linked to employee loyalty. Ethical climate and recognition & reward systems also played substantial roles in distinguishing loyal from less loyal employees. Moreover, organizations prioritizing ethical behaviour and effective recognition and reward mechanisms were more likely to cultivate employee loyalty. Inclusive leadership, though valuable, was a less discriminant factor in this study.
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