Diversity on Employee Loyalty: Is it Sustainable?

Abstract

Organizational goals are mainly concerned about the level of efficiency and effectiveness. This is not surprising as the higher levels on efficiency and effectiveness lead to bulkier bottom-line. With the hefty income, organizations can have more retained earnings and dividends. Higher retained earnings means that future development becomes feasible. This pushes up the organizational market values. Dividends satisfy shareholders. Employees are loyal. If this is so, organizations should all have continued to exist in the market. However, the market shows also that organizations failed. This study attempts to seek possible causes on failure to reach the higher levels on efficiency and effectiveness through the lens on diversity management and employee loyalty. As Indonesia is an archipelago country that consists of people of multiple differences, it becomes important to evaluate the likelihood impact of diversity toward employee loyalty to reveal the influential impacts to organizations. The incorporated variables in this study includes; employee diversity, employee loyalty, quality of human resources, and productivity to represent the level of managerial efficiency and effectiveness. Relying on the previous network and acquaintances, this study includes respondents of Indonesian expatriates in other countries. The results are expected to show positive relationships among variables. The results provide the foundation for educational institutions and educators to start relaying the message on the importance of diversity.

Keywords: Diversity, managerial efficiency, managerial effectiveness, employee loyalty, quality of human resources, employee productivity