The Impact of Organizational Justice on Employee Loyalty: The Mediating Roles of Hygiene and Motivators

Abstract

This study investigates the influence of organizational justice on employee loyalty, with a specific focus on the mediating roles of hygiene and motivators within H Medicine Company, recognized for having the lowest employee turnover rate in China in 2023. Employing a quantitative methodology, the research collected data via a structured survey from 514 valid respondents out of 600 distributed questionnaires among the company's employees. This comprehensive analysis included testing multiple hypotheses related to procedural, distributive, interpersonal, and informational justice. The findings reveal significant positive correlations between all forms of organizational justice and employee loyalty. Specifically, procedural justice showed a strong association with both hygiene and motivators, with standardized path coefficients of 0.213 and 0.191, respectively, indicating that fairness in decisionmaking processes significantly enhances employee satisfaction with workplace conditions and intrinsic motivational factors. Distributive justice also had a noteworthy impact on both hygiene and motivators, with coefficients of 0.258 and 0.283, suggesting that equitable distribution of resources and rewards boosts employee perceptions of fairness and satisfaction. Moreover, interpersonal and informational justice were positively linked to satisfaction with both hygiene and motivators. The mediation analysis provided evidence that hygiene factors and motivators significantly mediate the relationship between organizational justice and employee loyalty. Hygiene factors had a notable mediating effect, particularly between procedural justice and employee loyalty, while motivators played a crucial role in enhancing the impact of all justice dimensions on loyalty. These results underscore the importance of a fair, transparent, and respectful workplace in fostering employee loyalty. The study highlights the critical role that both hygiene and motivational factors play in mediating the relationship between organizational justice and loyalty, offering valuable insights for organizations aiming to improve their managerial practices and overall workplace environment. The findings suggest that enhancing organizational justice not only directly impacts employee loyalty but also does so indirectly by improving satisfaction with workplace conditions and motivational aspects. This research contributes to a deeper understanding of how organizational justice frameworks can be strategically leveraged to enhance employee retention and organizational performance.