An analysis of the influence of employee value propositions on employee loyalty towards employers and unions, and its impact on employee commitment

Abstract

The purpose of this research is to examine the influence of Employee Value Proposition (EVP) on employee commitment along with the moderating effect of dual loyalty in the context of the Warehousing and storage sector in South Africa. Employee commitment is an essential part of the employer – employee relationship and to organisational success, with employers facing growing pressure to attract and retain a committed workforce, with loyalty being perceived as a critical component of commitment. This study is anchored in the Organisational Commitment Theory with the research aiming to understand what effects of an EVP have on the retaining and satisfying employee needs. Adopting a quantitative research methodology approach, the statistical results indicated that there is a positive relationship between the strength of an EVP and employee commitment. Organisational alignment, growth opportunities and reward systems identified as key variables in the EVP construct, which influence commitment. Loyalty as a moderator demonstrated a minimal impact of the relationship to commitment. The findings provide insights for organisations in the design and implementation of EVP’s. Enabling organisations to enhance employee commitment which in turn drives organisational performance. The nuanced view which dual loyalty brings to the Organisational Commitment Theory provides academia with an opportunity to expand future studies on the interplay between dual loyalty and organisational commitment.