Employee Value Proposition, Exchange Ideology, and Intention to Stay : A Conceptual Analysis

Authors

  •   Sujata Rounak Research Scholar, Jaypee Business School, Jaypee Institute of Information Technology (Deemed to be University), A -10, Sector - 62, Noida - 201 309, Uttar Pradesh
  •   Rajnish Kumar Misra Professor, Jaypee Business School, Jaypee Institute of Information Technology (Deemed to be University), A - 10, Sector - 62, Noida - 201 309, Uttar Pradesh

DOI:

https://doi.org/10.17010/pijom/2022/v15i8/171523

Keywords:

Employee value proposition

, exchange ideology, intention to stay, social exchange theory

JEL Classification Codes

,

M12

, M50, M54Paper Submission Date, June 15, 2021, Paper sent back for Revision, April 23, 2022, Paper Acceptance Date, May 10, Paper Published Online, August 16, 2022

Abstract

The purpose of this paper was to analyze the preference for EVP attributes from the exchange ideology perspective of an individual, which would, in turn, impact an individual’s intention to stay in an organization. The study extensively reviewed literature and offered a conceptual framework to explain employees’ EVP attributes preference based on their exchange ideology orientation and its impacts on their intention to stay. A literature review established that compensation and career growth are preferred by individuals having a higher exchange ideology which would, in turn, lower their intention to stay. On the other hand, attributes such as training and development, work-life balance, and work environment are preferred by individuals with low exchange ideology, which positively impacts their intention to stay. To establish the validity of the conceptual framework as well as the observations, empirical research on the proposed propositions is required. The study’s implications involved understanding the EVP attributes from employee retention and organizational context. There is a paucity of research on the issue with minimal effort to analyze the relation involving the exchange ideology of individuals and the attributes preferred by them as offered by their employers.

Downloads

Download data is not yet available.

Downloads

Published

2022-08-01

How to Cite

Rounak, S., & Misra, R. K. (2022). Employee Value Proposition, Exchange Ideology, and Intention to Stay : A Conceptual Analysis. Prabandhan: Indian Journal of Management, 15(8), 8–23. https://doi.org/10.17010/pijom/2022/v15i8/171523

Issue

Section

Articles

References

Ahmad, K. Z., & Bakar, R. A. (2003). The association between training and organizational commitment among white-collar workers in Malaysia. International Journal of Training and Development, 7(3),166–185. https://doi.org/10.1111/1468-2419.00179

Ahn, J., Lee, S., & Yun, S. (2018). Leaders' core self-evaluation, ethical leadership, and employees' job performance: The moderating role of employees' exchange ideology. Journal of Business Ethics, 148, 457 – 470. https://doi.org/10.1007/s10551-016-3030-0

Alfes, K., Shantz, A. D., Truss, C., & Soane, E. C. (2013). The link between perceived human resource management practices, engagement and employee behaviour: A moderated mediation model. The International Journal of Human Resource Management, 24(2), 330–351. https://doi.org/10.1080/09585192.2012.679950

Al-Hamdan, Z., Manojlovich, M., & Tanima, B. (2017). Jordanian nursing work environments, intent to stay, and job satisfaction. Journal of Nursing Scholarship, 49(1), 103–110. https://doi.org/10.1111/jnu.12265

Andrews, M. C., Witt, L. A., & Kacmar, K. M. (2003). The interactive effects of organizational politics and exchange ideology on manager ratings of retention. Journal of Vocational Behavior, 62(2), 357–369. https://doi.org/10.1016/S0001-8791(02)00014-3

Arasanmi, C. N., & Krishna, A. (2019). Linking the employee value proposition (EVP) to employee behavioural outcomes. Industrial and Commercial Training, 51(7/8), 387–395. https://doi.org/10.1108/ICT-05-2019-0043

Armstrong, M. (2009). Armstrong's handbook of human resource management practice (11th ed.). Kogan Page.

Arthur, M. B. (2014). The boundaryless career at 20: Where do we stand, and where can we go? Career Development International, 19(6), 627–640. https://doi.org/10.1108/CDI-05-2014-0068

Avanzi, L., Fraccaroli, F., Sarchielli, G., Ullrich, J., & van Dick, R. (2014). Staying or leaving: A combined social identity and social exchange approach to predicting employee turnover intentions. International Journal of Productivity and Performance Management, 63(3), 272–289. https://doi.org/10.1108/IJPPM-02-2013-0028

Bashir, N., & Long, C. S. (2015). The relationship between training and organizational commitment among academicians in Malaysia. Journal of Management Development, 34(10),1227–1245. https://doi.org/10.1108/JMD-01-2015-0008

Binu Raj, A. (2021). Impact of employee value proposition on employees' intention to stay: Moderating role of psychological contract and social identity. South Asian Journal of Business Studies, 10(2), 203–226. https://doi.org/10.1108/SAJBS-10-2019-0183

Blau, P. M. (2017). Exchange and power in social life. Routledge. https://doi.org/10.4324/9780203792643

Bravo, J., Seibert, S. E., Kraimer, M. L., Wayne, S. J., & Liden, R. C. (2017). Measuring career orientations in the era of the boundaryless career. Journal of Career Assessment, 25(3), 502–525. https://doi.org/10.1177/1069072715616107

Briscoe, J. P., Henagan, S. C., Burton, J. P., & Murphy, W. M. (2012). Coping with an insecure employment environment: The differing roles of protean and boundaryless career orientations. Journal of Vocational Behavior, 80(2), 308–316. https://doi.org/10.1016/j.jvb.2011.12.008

Cao, L., Hirschi, A., & Deller, J. (2014). Perceived organizational support and intention to stay in host countries among self-initiated expatriates: The role of career satisfaction and networks. The International Journal of Human Resource Management, 25(14), 2013–2032. https://doi.org/10.1080/09585192.2013.870290

Chiaburu, D. S., Byrne, Z. S., & Weidert, J. (2012). Resources and transactions in the organization's underworld: Exchange content and consequences. In, K. Y. Törnblom & A. Kazemi (eds.), Handbook of social resource theory. Critical issues in social justice. Springer. https://doi.org/10.1007/978-1-4614-4175-5_21

Coyle-Shapiro, J. A.-M., & Neuman, J. H. (2004). The psychological contract and individual differences: The role of exchange and creditor ideologies. Journal of Vocational Behavior, 64(1), 150–164. https://doi.org/10.1016/S0001-8791(03)00031-9

Cropanzano, R., & Mitchell, M. S. (2005). Social exchange theory: An interdisciplinary review. Journal of Management, 31(6), 874–900. https://doi.org/10.1177/0149206305279602

Cross Walker, T. (2020). Inclusive talent management in the public sector: Theory and practice. Transnational Corporations Review, 12(2), 140–148. https://doi.org/10.1080/19186444.2020.1741296

Eisenberger, R., Huntington, R., Hutchison, S., & Sowa, D. (1986). Perceived organizational support. Journal of Applied Psychology, 71(3), 500–507. https://doi.org/10.1037/0021-9010.71.3.500

Elrehail, H., Harazneh, I., Abuhjeeleh, M., Alzghoul, A., Alnajdawi, S., & Ibrahim, H. M. (2020). Employee satisfaction, human resource management practices and competitive advantage: The case of Northern Cyprus. European Journal of Management and Business Economics, 29(2), 125–149. https://doi.org/10.1108/EJMBE-01-2019-0001

Epie, C. E. (2010). Benefits of family-responsible management in the Nigerian environment – A comparison of two breweries. Gender and Behaviour, 8(1), 12–20. https://doi.org/10.4314/gab.v8i1.54681

Erdogan, B., Bauer, T. N., Truxillo, D. M., & Mansfield, L. R. (2012). Whistle while you work: A review of the life satisfaction literature. Journal of Management, 38(4), 1038–1083. https://doi.org/10.1177/0149206311429379

Fu, W., & Deshpande, S. P. (2014). The impact of caring climate, job satisfaction, and organizational commitment on job performance of employees in a China's insurance company. Journal of Business Ethics, 124, 339–349. https://doi.org/10.1007/s10551-013-1876-y

Graen, G. B., & Uhl-Bien, M. (1995). Relationship-based approach to leadership: Development of leader – member exchange (LMX) theory of leadership over 25 years: Applying a multi-level, multi-domain perspective. The Leadership Quarterly, 6(2), 219–247. https://doi.org/10.1016/1048-9843(95)900365

Halbesleben, J. R., & Wheeler, A. R. (2015). To invest or not? The role of coworker support and trust in daily reciprocal gain spirals of helping behavior. Journal of Management, 41(6), 1628–1650. https://doi.org/10.1177/0149206312455246

Hanaysha, J. (2016). Testing the effects of employee engagement, work environment, and organizational learning on organizational commitment. Procedia-Social and Behavioral Sciences, 229, 289–297. https://doi.org/10.1016/j.sbspro.2016.07.139

Harunavamwe, M., & Kanengoni, H. (2013). The impact of monetary and non-monetary rewards on motivation among lower level employees in selected retail shops. African Journal of Business Management, 7(38), 3929–3935. https://doi.org/10.5897/AJBM2012.1381

He, H., Pham, H. Q., Baruch, Y., & Zhu, W. (2014). Perceived organizational support and organizational identification: Joint moderating effects of employee exchange ideology and employee investment. The International Journal of Human Resource Management, 25(20), 2772–2795. https://doi.org/10.1080/09585192.2014.908315

Heger, B. K. (2007). Linking the employment value proposition (EVP) to employee engagement and business outcomes: Preliminary findings from a linkage research pilot study. Organization Development Journal, 25(2), 121–132. https://www.proquest.com/docview/197995307/fulltextPDF/A08F7802CFA542E2PQ/1?accountid=136238

Hirschi, A., & Freund, P. A. (2014). Career engagement: Investigating intraindividual predictors of weekly fluctuations in proactive career behaviors. The Career Development Quarterly, 62(1), 5–20. https://doi.org/10.1002/j.2161-0045.2014.00066.x

Hodgkinson, I. R., Hughes, P., Radnor, Z., & Glennon, R. (2018). Affective commitment within the public sector: Antecedents and performance outcomes between ownership types. Public Management Review, 20(12), 1872–1895. https://doi.org/10.1080/14719037.2018.1444193

Hom, P. W., Lee, T. W., Shaw, J. D., & Hausknecht, J. P. (2017). One hundred years of employee turnover theory and research. Journal of Applied Psychology, 102(3), 530–545. https://doi.org/10.1037/apl0000103

Jiwen Song, L., Tsui, A. S., & Law, K. S. (2009). Unpacking employee responses to organizational exchange mechanisms: The role of social and economic exchange perceptions. Journal of Management, 35(1), 56–93. https://doi.org/10.1177/0149206308321544

Jnaneswar, K. (2016). Relationship between work-life balance, turnover intention, and organizational support for work-life balance: A study in the IT industry in Kerala. Prabandhan: Indian Journal of Management, 9(5), 33–44. https://doi.org/10.17010/pijom/2016/v9i5/92569

Kashive, N., Khanna, V. T., & Bharthi, M. N. (2020). Employer branding through crowdsourcing: Understanding the sentiments of employees. Journal of Indian Business Research, 12(1), 93–111. https://doi.org/10.1108/JIBR-09-2019-0276

Kaur, D., & Batra, R. (2018). Effectiveness of training and soft skills for enhancing the performance of banking employees. Prabandhan: Indian Journal of Management, 11(9), 38–49. https://doi.org/10.17010/pijom/2018/v11i9/131614

Kaur, S., & Bedi, A. (2017). Role of perceived organizational support in the relationship of procedural justice with organizational commitment. Prabandhan: Indian Journal of Management, 10(9), 28–38. https://doi.org/10.17010/pijom/2017/v10i9/118240

Kim, S. L., Han, S., Son, S. Y., & Yun, S. (2017). Exchange ideology in supervisor-subordinate dyads, LMX, and knowledge sharing: A social exchange perspective. Asia Pacific Journal of Management, 34, 147–172. https://doi.org/10.1007/s10490-016-9483-y

Kramar, R., & Steane, P. (2012). Emerging HRM skills in Australia. Asia-Pacific Journal of Business Administration, 4(2), 139–157. https://doi.org/10.1108/17574321211269289

Kundu, S. C., & Lata, K. (2017). Effects of supportive work environment on employee retention: Mediating role of organizational engagement. International Journal of Organizational Analysis, 25(4), 703–722. https://doi.org/10.1108/IJOA-12-2016-1100

Kuntz, J. R., Malinen, S., & Näswall, K. (2017). Employee resilience: Directions for resilience development. Consulting Psychology Journal: Practice and Research, 69(3), 223–242. https://doi.org/10.1037/cpb0000097

Lin, Y.-C. (2015). Are you a protean talent? The influence of protean career attitude, learning-goal orientation and perceived internal and external employability. Career Development International, 20(7), 753–772. https://doi.org/10.1108/CDI-04-2015-0056

Ling, L., Qing, T., & Shen, P. (2014). Can training promote employee organizational commitment? The effect of employability and expectation value. Nankai Business Review International, 5(2),162–186. https://doi.org/10.1108/NBRI-09-2013-0034

Lochab, A., & Nath, V. (2020). Proactive personality, goal orientation and meta-skills as predictors of protean and boundaryless career attitudes. South Asian Journal of Business Studies, 9(1), 130–143. https://doi.org/10.1108/SAJBS-01-2019-0014

Love, L. F., & Singh, P. (2011). Workplace branding: Leveraging human resources management practices for competitive advantage through “best employer†surveys. Journal of Business and Psychology, 26(2), 175–181. https://doi.org/10.1007/s10869-011-9226-5

Lyons, P., & Bandura, R. (2020). Employee turnover: Features and perspectives. Development and Learning in Organizations, 34(1), 1–4. https://doi.org/10.1108/DLO-02-2019-0048

Madden, L., Mathias, B. D., & Madden, T. M. (2015). In good company: The impact of perceived organizational support and positive relationships at work on turnover intentions. Management Research Review, 38(3), 242–263. https://doi.org/10.1108/MRR-09-2013-0228

Mafini, C., & Dlodlo, N. (2014). The relationship between extrinsic motivation, job satisfaction and life satisfaction amongst employees in a public organisation. SA Journal of Industrial Psychology, 40(1), 1–13. https://doi.org/10.4102/sajip.v40i1.1166

Mariappanadar, S. (2013). A conceptual framework for cost measures of harm of HRM practices. Asia-Pacific Journal of Business Administration, 5(2), 103–114. https://doi.org/10.1108/17574321311321595

Mascarenhas, B. G. (2019). Employer branding, employee value proposition, and employee experience: New approaches for people management in organizations. In, G. Thornton, V. Mansi, B. Carramenha, & T. Cappellano (eds) Strategic employee communication (pp. 97–103). Palgrave Macmillan. https://doi.org/10.1007/978-3-319-97894-9_8

Matthijs Bal, P., Chiaburu, D. S., & Jansen, P. G. (2010). Psychological contract breach and work performance: Is social exchange a buffer or an intensifier? Journal of Managerial Psychology, 25(3), 252–273. https://doi.org/10.1108/02683941011023730

Maurya, K. K., & Agarwal, M. (2018). Organisational talent management and perceived employer branding. International Journal of Organizational Analysis, 26(2), 312–330. https://doi.org/10.1108/IJOA-04-2017-1147

Mercer. (2018). Strengthening your employee value proposition: Unlock the potential of your workforce with an expanded view of total rewards [White Paper]. https://www.imercer.com/uploads/common/HTML/LandingPages/AnalyticalHub/july-2018-spotlight-career-strengthening-your-employee-value-proposition.pdf

Mittal, K., Singh, K., & Sharma, G. (2017). Work-life balance and employee health: A cross-sectional analysis of manufacturing and service sectors. Prabandhan: Indian Journal of Management, 10(7), 34–49. https://doi.org/10.17010/pijom/2017/v10i7/116493

Natarajan, S., & Babu, S. (2018). A study on talent management practices for succession planning with reference to selected IT/ITES organizations in Coimbatore, Tamil Nadu. Prabandhan: Indian Journal of Management, 11(10), 54–62. https://doi.org/10.17010/pijom/2018/v11i10/132511

Newman, A., Thanacoody, R., & Hui, W. (2011). The impact of employee perceptions of training on organizational commitment and turnover intentions: A study of multinationals in the Chinese service sector. The International Journal of Human Resource Management, 22(8), 1765–1787. https://doi.org/10.1080/09585192.2011.565667

Paillé, P., & Meija-Morelos, J. H. (2019). Organisational support is not always enough to encourage employee environmental performance. The moderating role of exchange ideology. Journal of Cleaner Production, 220, 1061–1070. https://doi.org/10.1016/j.jclepro.2019.02.192

Pandita, D., & Ray, S. (2018). Talent management and employee engagement–a meta-analysis of their impact on talent retention. Industrial and Commercial Training, 50(4), 185–199. https://doi.org/10.1108/ICT-09-2017-0073

Parkes, L. P., & Langford, P. H. (2008). Work–life balance or work–life alignment? A test of the importance of work-life balance for employee engagement and intention to stay in organisations. Journal of Management & Organization, 14(3), 267–284. https://doi.org/10.5172/jmo.837.14.3.267

Patra, Y., & Tripathi, S. (2019). Contriving human capital practices which influence organizational commitment: Reimagine future skills of HR. Prabandhan: Indian Journal of Management, 12(10), 20–32. https://doi.org/10.17010/pijom/2019/v12i10/147814

Pattnaik, S. K., & Misra, R. K. (2016). Employer value proposition: A conceptual framework and scale development for Indian information technology professionals. International Journal of Human Capital and Information Technology Professionals (IJHCITP), 7(4), 15–32. https://doi.org/10.4018/IJHCITP.2016100102

Pawirosumarto, S., Sarjana, P. K., & Gunawan, R. (2017). The effect of work environment, leadership style, and organizational culture towards job satisfaction and its implication towards employee performance in Parador Hotels and Resorts, Indonesia. International Journal of Law and Management, 59(6), 1337–1358. https://doi.org/10.1108/IJLMA-10-2016-0085

Pfeffer, J. (2010). Building sustainable organizations: The human factor. Academy of Management Perspectives, 24(1), 34–45. https://doi.org/10.5465/amp.24.1.34

Phungula, N., Dhanpat, N., & Braine, R. de. (2022). The effect of employee value proposition on normative commitment. EUREKA: Social and Humanities, 2, 46–57. https://doi.org/10.21303/2504-5571.2022.002322

Pichler, F. (2009). Determinants of work-life balance: Shortcomings in the contemporary measurement of WLB in large-scale surveys. Social Indicators Research, 92, Article 449. https://doi.org/10.1007/s11205-008-9297-5

Ramaprasad, B. S., Nandan Prabhu, K. P., Lakshminarayanan, S., & Pai, Y. P. (2017). Human resource management practices and organizational commitment: A comprehensive review (2001-2016). Prabandhan: Indian Journal of Management, 10(10), 7–23. https://doi.org/10.17010/pijom/2017/v10i10/118810

Rodrigues, R., Guest, D., & Budjanovcanin, A. (2016). Bounded or boundaryless? An empirical investigation of career boundaries and boundary crossing. Work, Employment and Society, 30(4), 669–686. https://doi.org/10.1177/0950017015570726

Rousseau, D. M. (1989). Psychological and implied contracts in organizations. Employee Responsibilities and Rights Journal, 2, 121 - 139. https://doi.org/10.1007/BF01384942

Schmitz, C., Lee, Y.-C., & Lilien, G. L. (2014). Cross-selling performance in complex selling contexts: An examination of supervisory- and compensation-based controls. Journal of Marketing, 78(3), 1–19. https://doi.org/10.1509/jm.12.0421

Sengupta, A., Bamel, U., & Singh, P. (2015). Value proposition framework: Implications for employer branding. Decision, 42, 307–323. https://doi.org/10.1007/S40622-015-0097-X

Shore, L. M., Tetrick, L. E., Lynch, P., & Barksdale, K. (2006). Social and economic exchange: Construct development and validation. Journal of Applied Social Psychology, 36(4), 837–867. https://doi.org/10.1111/j.0021-9029.2006.00046.x

Song, Z., & Gu, Q. (2020). Exchange ideology and employee creativity: A moderated mediation analysis. Management Decision, 58(7), 1375–1395. https://doi.org/10.1108/MD-09-2017-0866

Staniec, I., & Kalińska-Kula, M. (2021). Internal employer branding as a way to improve employee engagement. Problems and Perspectives in Management, 19(3), 33–45. http://doi.org/10.21511/ppm.19(3).2021.04

Stringer, C., Didham, J., & Theivananthampillai, P. (2011). Motivation, pay satisfaction, and job satisfaction of front-line employees. Qualitative Research in Accounting & Management, 8(2), 161–179. https://doi.org/10.1108/11766091111137564

Suazo, M. M., & Stone-Romero, E. F. (2011). Implications of psychological contract breach: A perceived organizational support perspective. Journal of Managerial Psychology, 26(5), 366–382. https://doi.org/10.1108/02683941111138994

Supeli, A., & Creed, P. A. (2016). The longitudinal relationship between protean career orientation and job satisfaction, organizational commitment, and intention-to-quit. Journal of Career Development, 43(1), 66–80. https://doi.org/10.1177/0894845315581686

Takeuchi, R., Yun, S., & Wong, K. F. (2011). Social influence of a coworker: A test of the effect of employee and coworker exchange ideologies on employees' exchange qualities. Organizational Behavior and Human Decision Processes, 115(2), 226–237. https://doi.org/10.1016/j.obhdp.2011.02.004

Takwate, K. T. (2021). Psychosocial effect of motivational incentives on senior secondary schools teachers' work effectiveness in Adamawa State, Nigeria. Britain International of Linguistics Arts and Education (BIoLAE) Journal, 3(3), 165–174. https://doi.org/10.33258/biolae.v3i3.520

Thibault Landry, A., Schweyer, A., & Whillans, A. (2017). Winning the war for talent: Modern motivational methods for attracting and retaining employees. Compensation & Benefits Review, 49(4), 230–246. https://doi.org/10.1177/0886368718808152

Tokay, Ö., & Eyupoglu, S. (2018). Employee perceptions of organisational democracy and its influence on organisational citizenship behaviour. South African Journal of Business Management, 49(1), Article a397, 1–9. https://doi.org/10.4102/sajbm.v49i1.397

Uhl-Bien, M., & Maslyn, J. M. (2003). Reciprocity in manager-subordinate relationships: Components, configurations, and outcomes. Journal of Management, 29(4), 511–532. https://doi.org/10.1016/S0149-2063_03_00023-0

Vala, M. (2015). Expected and experienced employee value proposition in a South African professional service firm (University of the Witwatersrand). http://wiredspace.wits.ac.za/handle/10539/19984

Zojceska, A. (2018, February 27). Employee value proposition: Magnet for attracting candidates. TalenLyft Blog. https://www.talentlyft.com/en/blog/article/105/employee-value-proposition-magnet-for-attracting-candidates