Return to Previous Page

The Cost of Employee Loyalty at Bikanervala

ET Cases, 32.46 minutes
PUBLISHED DATE: 17/02/2015
Product code: CASE SPOT-1

The cost of employee loyalty in the backdrop of a company where the average tenure of an employee is about 15 years


This case spot can be used for discussing and debating the cost of employee loyalty in the backdrop of a company where the average tenure of an employee is about 15 years. It is generally argued that, 'my loyalty to the company is contingent on my firm's loyalty to me'. When viewed from the nature of industry and nature of business that the featured company - Bikanervala Foods Private Limited (Bikanervala) - is in, the learning outcomes can be quite pronouncing. Set in the backdrop of Hyderabad's outlet of Bikanervala, the century-old Indian manufacturer of traditional sweets and savories' this case spot rummages through what it takes to command employee loyalty and also the unseen costs (if at all there are any) of employee loyalty. With over 42 successful outlets across India with a global presence spanning across Nepal, UAE, UK, New Zealand and Singapore, Bikanervala transformed a traditional and highly geographic-centric business into a scalable and growth-driven business with its unique business and people practices. While every company wishes to celebrate its high employee loyalty factor, the contrarian perspectives would offer some intriguing and interesting insights into employee loyalty to have a balanced view on high employee loyalty. What are the costs of high employee loyalty - for the employers as well as the employees? What is the relationship between high employee loyalty, innovation, business sustenance, growth, etc.?

Pedagogical Objectives

  • To understand the concept of employee loyalty and its importance for an organization’s sustained and superior performance
  • To understand the contributing factors of very high employee loyalty at Bikanervala
  • To understand and discuss the relationship between the nature of industry, nature of business, nature of job, employee loyalty factor and an organization’s sustained and superior performance
  • To discuss and debate on the cost of employee loyalty (i.e., is high employee loyalty an asset or a liability?) at Bikanervala (Hyderabad), given fairly longer tenures of employees
  • To discuss and debate on whether family businesses foster and command relatively better employee loyalty

Positioning and Setting

This case spot can be used under multiple settings. It can be equally effective either in general, people management courses (like HRM/People Management, etc.) or specific modules in any customized program. Accordingly, this case spot can be used for the following:

  • Human Resources Management Course in - (a) 'Managing the Employment Relationship' Module or (b) 'Employee Engagement' Module (c) 'Sustaining High Performance Teams' Module - to discuss what it takes for a company to nurture and sustain high performance and purposeoriented individuals
  • Talent Management and Employee Retention' Module - to discuss on the specific factors that ;contribute to higher employee retention
  • Employee Loyalty in Family Businesses' Module - to discuss and debate on whether family businesses nurture relatively better employee-loyalty enhancing practices than the professional corporates

This case spot was used for discussing the factors that were instrumental in creating and sustaining high employee loyalty levels in the HRM course for students in the second semester of PGDBM/MBA program.

This Case Pack Includes:
 - Abstract
- Case Spot (Video Case Study)
- Case Response (Video Case Response)
- Teaching Note
Rs 0

Related products

Request for an Inspection Copy

(Strictly for Review Purpose, Not to be Used for Classroom Discussion/Trainings)