1. A review of the literature

1.1 Background of research

Today, we are in the knowledge economic age, in which the development of a company depends on human resource significantly. How to attract and hold employees, how to culture their loyalty and how to spur their potentials for company has become a large challenge of most companies ^[1]. Companies will keep competitive only if they pay important attention to the loyalty and achievement of employees. Actually holding the loyalty of employees means that the fate of a company is holded^[1][2].

Along with the advent of global innovation in knowledge and technology and the knowledge economic age, modern companies face a new competitive environment-continuous innovation and high uncertainty. In such environment, the key to the subsistence and sustainable development of a company is to find an optimal method of creating, diffusing and applying the knowledge by management. What’s more, the creation and application of knowledge rests with the employees who are high efficiency and high trait. From this point, the competition between companies, the creation and application of knowledge and the reasonable allocation of resource lie in the matrix of knowledge-employees ^[2].

Our employees encounter more and more inducement from foreign incorporations and the competition among em英语论文网 【http://www.51lunwen.org】ployees become more and more drastic. Our incorporations must pay significant attention to this serious and fatal challenge and adopt the measures that can enhance the loyalty of the employees, or we will fail in the new competition, losing the core competitiveness finally ^[3].