The Effect of Employee Value Proposition (EVP) on Employees' Commitment: the Case of Ethiopian Banking Sectors
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Date
2023-06
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Addis Ababa University
Abstract
The employment market is getting highly competitive and as the war for talent continues, where employer branding (employee value proposition) can form a competitive advantage, attracting and retaining top talent is not simply a priority but a necessity. This is because, in today’s world, an array of organizations ranging in all sizes, industries, and geographies are facing problems of employee retention, engagement and talent shortage. Accordingly, the purpose of this study was to asses the nature of employee value proposition and examine the effect of employee value proposition on employee commitment in Ethiopian banking sector. In the light of research objectives and questions, only quantitative research approach was adopted and, both descriptive and explanatory research design were utilized. The study was delimited to area sampling and simple random sampling techniques. Quantitative data was collected by using self-administered questionnaire which has been developed and distributed to a sample size of 1947 employees to the selected banks with the response rate of 94.99%.The nature and availability of EVP in the Ethiopian Banking sectors was assesses based on the five parameters of Gartner model and overall it is rated as 58% for Organization Parameter, 56% for Reward Parameters,62%for Opportunity Parameters,62% for Work parameters and 60% for peoples parameters which is moderate need improvement as per the decision rule. Regression analysis was conducted to see the effect of employee value proposition on employee commitment and the findings of the study have shown that employee value proposition attributes Organization parameters show a standardized coefficient value of (0.983) with 0.000significance level, Work parameters show a standardized coefficient value of (0.039) with 0.000 significance level, Opportunity parameters show a standardized coefficient value of (-0.027) with 0.000 significance level and People parameters show a standardized coefficient value of (-0.017) with 0.001 significance level and Reward parameters show a standardized coefficient value of (0.006) with 0.162 significance level and have no significant effect on employees’ commitment. Based on the result of the study, it is recommended that to increase the commitment level of their esteemed employee and to enhance the attraction practice of talented employee from the labour market, motivate the existing employee and retain their top performers, in return to increase organizational performance, the Ethiopian banks should have to work on developing a compelling employee value proposition
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Keywords
Employee value proposition, Employee commitment