Empirical study of employee loyalty and satisfaction in the mining industry using structural equation modeling

Abstract

Mining is a high-risk industry and a crucial economic driver that has a crucial role in the economies of countries worldwide. The implications of the labor market on the sustainability of the mining industry have increased the importance of sustainable human resource management at the strategic level of mining and safety management. In this article, from the perspective of management research in an energy production enterprise, we investigated the relationship between employee loyalty and employee satisfaction through a survey that targets employee loyalty, work quality, and job satisfaction and the relationship between enterprise image and switching costs. Based on service profit chain theory, we established a research model for mining employee loyalty, and 500 miners in a typical extreme mining environment in China were surveyed. The study hypotheses were tested using a structural equation model and an employee loyalty model, followed by empirical testing of the models. Employee loyalty was significantly associated with enterprise image and employee satisfaction, work quality indirectly affected loyalty through satisfaction, and the impact of switching costs on employee loyalty was not significant. We provide strong empirical evidence to help enterprises improve sustainable human resource management and regulatory policies, with important implications for safety production. Our study also provides a useful reference for further studies of sustainable human resource management in mining.