ASSESSING THE IMPACT OF EMPLOYEE SATISFACTION ON LOYALTY IN THE GARMENT SECTOR.A STUDY OF BANGALORE - BASED INDUSTRIES.

Abstract

This study investigates the factors influencing employee satisfaction and its effect on loyalty within the garment industries in Bangalore. Primary data was collected using a structured questionnaire with a 5-point rating scale from employees in five key areas—Bagalur, Yelahanka, Yeswanthapura, Electronic City, and Peenya—yielding 530 responses, with 430 valid samples used for analysis. Descriptive statistics indicated moderate to high levels of satisfaction and loyalty among respondents. Correlation analysis revealed strong positive associations among employee satisfaction, organizational commitment, and retention intent, with coefficients ranging from 0.62 to 0.68. Further, regression analysis showed that employee satisfaction significantly predicts employee loyalty (B = 0.45, p < 0.001), along with organizational commitment (B = 0.35, p < 0.001) and retention intent (B = 0.30, p < 0.001), with the model explaining 62% of the variance in loyalty. A review of relevant literature on working conditions in Bangalore’s garment factories provided additional secondary insights to contextualize the findings. Overall, the results underscore the critical role of employee satisfaction in driving loyalty and highlight the potential benefits of targeted human resource interventions for enhancing organizational performance in the garment sector in Bangalore.