REVIEW OF RELATED LITERATURE

This chapter presents the literature and studies used in this study. Relevant books, journal

articles, academic research papers, and website articles from both local and foreign authors were

quoted as they provide information to the proposed research problem and correlation between

prior studies and present research.

Human Resource Management and its Importance to the Organization

Monody & Noe (2005) recognizes the importance Human Resource Management (HRM)

in the organization. Focusing more on utilizing the skills and knowledge of employees to aid the

organization in achieving their organizational goals. The Human Resource Management’s

primary goal is to search and maintain an efficient workforce, which encompasses their right as

the proletariat, their benefits and privileges, wages and salaries, etc. (Kamoche, 1997).

According to Noe et al. (2010), in the business world, competitions get tougher by day,

thus stating that HRM is vital, as it provides an organization with competitive advantage as

compared to other organizations of the same field.

The importance of HRM is rendered through workforce analytics; such is needed to

inform workforce decisions to know and understand what has the greatest impact to the business.

These, once gathered and studied, must be responded confidently and strategically by the

management, to avoid any potential risk of failure in the long run.

Furthermore, HRM is correlated with employees’ satisfaction and engagement in their

work. For as the employees produce quality work, so would it further advance the success of the

organization. Therefore, HRM plays a vital role in retaining and attracting employees through
benefits and compensation (Kalleberg and Moody, 1994) to realize success in the means of

increased people centrality (Ruona & Gibson, 2004).

Thus, as the workforce has been studied thoroughly, a direct link between the worker and

the company has been established through the lenses of compensation. Wherein, it has been

considered as the most visible component of the contract. However, overtime, the mere fact of

compensation has been largely ineffective, further proved by Hill & Tande (2006), saying that

compensation isn’t the only factor that should be focused on in maintaining employees in the

workforce.

The Concept of Employee Value Proposition

Employee Value Proposition (EVP) is defined as the balance of the rewards and benefits

that are received by employees in return for their performance at the workplace (Pawar, 2016).

Moreover, it is also the set of attributes that the proletariat and labor market through employment

in an organization (Corporate Leadership Council Research, 2006).

Hill & Tande (2006) states that the total Employee Value Proposition (EVP) is highly

important, especially in appealing and sustaining quality workforce in the organization. It gives

the sense of value, offers, and benefits towards the employees’ set of skills that they have prior to

applying and also during the duration of their work (Minchington, 2010; Minchington, 2006).

The EVP is deemed necessary by companies, as it is a statement of why the work

experience at their organization or company is much worthy than that of others. Hence,

companies are expected to invest in the following: (1) providing opportunities for employees to

grow, learn, and develop despite their length of employment; (2) developing managerial skills
and ensuring the fair and consistent implementation of the said policy; and, (3) providing

creative ways to recognize the rights, privileges, and the roles of the employee in the workforce

This approach to talent management and employee retention has the goal to identify the

policies, processes, programs, and privileges; that ensures the employee’s that there is reciprocity

to their employee investment from the organization that they have committed themselves to.

Examples of these are commitment to employee growth, ongoing employee recognition, and

continuous development of management procedures (Hill & Tande, 2006).

Employee Value Proposition and the Workforce

An Employee Value Proposition discovers a balance in the work culture among

performance of employees and their satisfaction (Goswami, 2015). Pawar & Charak (2015) sets

two scenarios for an EVP: (1) high EVP measures up to low attractive quality of development

while (2) low employee value proposition meets high allure of development.

Employee loyalty was studied to be impacted by EVP. Maznah et al. (2010) stated that to

enhance the loyalty of the workforce, the organizations’ rewards are deemed as the most

influential to boost their productivity. This leads to different approaches and additions to their

EVP to sustain challenges with other organizations.

Moreover, in a study by Turkyilmaz (2011), it had shown that there was a positive linear

relationship between rewards and employee loyalty. In addition, Hackman & Oldham (1980) and

Locke (1976) concludes that when the employees realize the recompences from the organization

that they are working for, their needs and wants are satisfied when it equates to the work that

they are executing.

 However, EVP is defined as so much more than rewards and benefits that the employees

receive from the organization. Rewards alone is not sufficient to keep the loyalty of employees;

but the benefits that they receive while working (Loquerico, 2006). Khuong and Tien (2013)

quantified that other than the high level of employee job satisfaction in terms of financial

support, good working environment and supervisor support must also be recognized by the

employees. This claim was proven true by Carraher (2011), stating that when employees are met

with poor working conditions, low rewards, and inadequate benefits, the possibility of employee

turnover in an organization will significantly increase.

ANNOTATED BIBLIOGRAPHY

Hill, B., & Tande, C. (20006, October). Total Rewards: The Employment Value

Proposition [Review of Total Rewards: The Employment Value Proposition].

Tandehill Human Capital. https://tandehill.com/wp-content/uploads/2019/12/Total-

Rewards.pdf

Do organizations really need a pay philosophy to identify how to attract, retain and

motivate employees? Or, would they be better served with an attraction philosophy,

a retention philosophy or an employment value proposition that considers the role

of compensation among the many tools that they use to attract and retain

employees? Recent surveys indicate 88 percent of employees leave organizations for

reasons other than money. In fact, the top three reasons talented employees leave

are limited opportunities for advancement (39 percent), unhappiness with manage-

ment (23 percent) and lack of recognition (17 percent). Reason No. 4 is inadequate

salary and benefits (11 percent), according to a March 2004 Robert Half Do
 organizations really need a pay philosophy to identify how to attract, retain and

motivate employees? Or, would they be better served with an attraction philosophy,

a retention philosophy or an employment value proposition that considers the role

of compensation among the many tools that they use to attract and retain

employees? Recent surveys indicate 88 percent of employees leave organizations for

reasons other than money. In fact, the top three reasons talented employees leave

are limited opportunities for advancement (39 percent), unhappiness with manage-

ment (23 percent) and lack of recognition (17 percent). Reason No. 4 is inadequate

salary and benefits (11 percent), accor- ding to a March 2004 Robert Half.

Browne, R. (n.d.). Employee Value Proposition. [online] Available at:

https://www.sibm.edu/assets/pdf/beacon3.pdf#page=37 [Accessed 4 Sep. 2021].

‌I In this study, we discuss the significant impact that Employee Value Proposition is

having on the organizations on a whole. The study starts with discussing factors that

comprise Employee Value Proposition and how these factors weigh against each

other. An attempt has been made to ascertain how these factors change with the age

of the employees. These stated factors can then be compared with the Employee

Value Proposition factors of various other companies to see how the factors stated

have been implemented. This study further discusses how along with keeping the

strategy of the company in sight and benchmarking exercises and surveys,

Employee Value Proposition for an organization can be modeled.

Minchington, B (2010) Employer Brand Leadership – A Global Perspective, Collective

Learning Australia.

Minchington, B (2006) Your Employer Brand – attract, engage, retain, Collective Learning

Australia.

Pawar, A. (2016). Employee Value Proposition: A Collaborative Methodology for

Strengthening Employer Brand Strategy [Review of Employee Value Proposition: A

Collaborative Methodology for Strengthening Employer Brand Strategy]. Journal of

Resources Development and Management.

https://www.researchgate.net/publication/339956136_Employee_Value_Proposition_A_

Collaborative_Methodology_for_Strengthening_Employer_Brand_Strategy

Corporate Leadership Council Research. (2006). Employment Value Proposition Survey.

Corporate Leadership Council Research. (2012). Employment Value Proposition Survey.

Pawar, A. (2016). Organizational Significance and Impact of Employee Value

Proposition. 2016 International Conference on Business, Economics, Socio-Culture &

Tourism. [online] Available at:

https://www.researchgate.net/publication/340081940_Organizational_Significance_a

nd_Impact_of_Employee_Value_Proposition [Accessed 5 Sep. 2021].

‌ Employee Value Proposition (EVP) is the balance of the rewards and benefits that

are received by employees in return for their performance at the workplace.

Organizations generally develop an EVP to provide a consistent platform for

 employer brand communication and experience management. In this

study, researcher has discussed about many aspects related to the significance

and impact that employee value Proposition creates on the organizations. The

study starts with discussing factors that comprise Employee Value Proposition

and the way these factors weigh against one another. An endeavor has been

created to determine however these factors modification happens with strategical

changes. These expressed factors will then be compared with the Employee

Value Proposition factors of assorted different firms to envision however the

factors expressed are enforced. This study any discusses however alongside keeping

the strategy of the corporate seeable and benchmark exercises and surveys for

Employee Value Proposition for a company will be sculptured.

Riaracháin, A., & O'riordan, J. (2017). THE PRACTICE OF HUMAN RESOURCE

MANAGEMENT STATE OF THE PUBLIC SERVICE SERIES.

https://www.ipa.ie/_fileUpload/Documents/THE_PRACTICE_OF_HRM.pdf

‌ This report provides an overview on human resource management (HRM or

frequently abbreviated to HR). The term first emerged in the 1980s in the United

States. Against a backdrop of increased pressure on firms because of globalisation

and technological developments, academics from a number of disciplines began to

consider people and how they are employed and managed in organisations from a

new perspective. A convergence of this thinking evolved into what became known as

human resource management.

 Drawing on the theoretical underpinnings of HRM in strategic management and

organisation behaviour, the goals of HRM have been identified as to (Armstrong

and Taylor, 2015):

 Support the organisation in achieving its objectives by developing and implementing

HR strategies that are integrated with business strategy

 Contribute to the development of a high-performance culture

 Ensure that the organisation has the talented, skilled and engaged people it needs

 Create a positive employment relationship between management and employees and

a climate of mutual trust

 Encourage the application of an ethical approach to people management.

From the 1990s, the term strategic HR became popular rather than simply HR. This

is done to emphasise the objective of aligning HR policies and practices with the

interests of the organisation more generally. However, according to some

commentators this has resulted in an imbalance across the many roles HR is

expected to perform with a greater emphasis on ‘being strategic and a ‘business

partner’ at the expense of being a ‘people partner’ that actively engages with and

listens to the needs and concerns of managers and employees in general.

A perennial challenge for HR is the importance of showing that the application of

good HR practices contributes to better organisation performance. The motivation

has been to prove that HR rather than being a cost to the organisation ‘adds value’.
 Most of the research in this area is based on the premise that good HR practices

enhance the motivation and commitment of staff which in turn impacts positively on

productivity and performance.

Ruona, W. E. A., & Gibson, S. K. (2004). The making of twenty-first-century HR: An

analysis of the convergence of HRM, HRD, and OD. Human Resource

Management, 43(1), 49–66. https://doi.org/10.1002/hrm.20002

‌Twenty-first-century HR is emerging to uniquely combine activities and processes of

human resource management (HRM), human resource development (HRD), and

organization development (OD)—three fields that “grew up” distinct from each

other. Contributing strategically to organizations demands that HRM, HRD, and

OD coordinate, partner, and think innovatively about how they relate and how what

they do impacts people and organizations. An analysis of the evolutions of these

fields helps to explain why the distinctions between them continue to blur and how

the similarities among them provide the necessary synergy for HR to be a truly

valued organizational partner. © 2004 Wiley Periodicals, Inc.

Watson, S. (2018). Noe, R. (2017). Employee training and development . New York, NY:

McGraw Hill Education. ISBN: 978-0078112850. Human Resource Development

Quarterly. https://doi.org/10.1002/hrdq.21333

‌Kamoche, K. (1997). Knowledge creation and learning in international HRM. The

International Journal of Human Resource Management, 8(2), 213–225.

https://doi.org/10.1080/09585199700000049
 ‌Interest in international human resource management (IHRM) has seen a rapid

growth especially in the last five years. This interest has emerged from a wide range

of perspectives, some of which reflect a piecemeal approach to improving certain

aspects of the subject while neglecting to pay sufficient attention to the underlying

purpose of international assignments. For example, the dominant socio-

psychological theme is likely to give the misleading impression that IHRM is all

about looking after the welfare and social needs of expatriates. This paper argues

that the theory and practice of IHRM can be improved by bringing together the

existing wide range of activities and perspectives within a framework of knowledge

and learning.

R. W. Mondy and R. M. Noe, “Human resource management,” International Edition, 9th

Edition, Prentice Hall, 2005. - References - Scientific Research Publishing. (n.d.).

Www.scirp.org. Retrieved September 6, 2021, from

https://www.scirp.org/(S(351jmbntvnsjt1aadkozje))/reference/ReferencesPapers.aspx?

ReferenceID=2234

This study examines competencies of Human Resource (HR) professionals in the

manufacturing companies of Malaysia. The Human Resource Competency Survey

(HRCS) model is used in this study. The competencies that are examined in this

study are business knowledge, strategic contribution, HR delivery, personal

credibility and HR technology. All these competencies will be tested whether or not

they are significantly related to a firm’s performance. Furthermore, researcher

wanted to study the relationship of these competencies with variables such as

 experience, education level, firm’s size and salary of the sample. The sample

employed here consists of HR professionals from Malaysian manufac-turing

companies in Johor, the southernmost state of Malaysia.

Goswami P. (2015). “Employee value proposition: A tool for employment”, International

Journal of Scientific and Research Publications, Vol. 5, No. 12, pp. 263-264.

Employee’s value proposition refers to creating a balance between employee’s job

satisfaction and performance of the employee in work culture. Employee’s Value

Proposition can be used as an effective tool of employment branding as it outlines

the desired and desirable requisites of employees related to employment. By

creating the better recruitment objectives, identifying the needs of employment and

the positioning of the employees at the right place, and by creating the values of

existing employees in the organization.

Pawar A. and Charak K. S. (2015). “Employee value proposition leading to employer

brand: The Indian organizations outlook”,

An Employee Value Proposition (EVP) is the one of a kind arrangement of benefits

an employee gets consequently for the skills, capabilities and experience they convey

to an organization. An EVP is about characterizing the substance of your

organization and how it is special and what it remains for. Employer brand is a

mind boggling and particular mix of promises, opportunities and experience of

present and potential employees of the organization that makes a high draw for that

employer to attract, connect with and retain talent in a focused talent land scope.
 This incorporates immediate and circuitous experiences of managing the firm. The

employer brand constructs a picture affirming the organization as a decent work

environment. Today, a compelling employer brand is crucial for upper hand. With

the liberalization of the Indian economy in 1991 and ensuing monetary changes,

Indian organizations are turning out to be universally vital to create Employee

Value Proposition (EVP) and use the employer brand to attract and retain talent

which prompts extend and development of the business. In Indian organizations,

where items are getting commoditized, Employee Value Proposition (EVP) is the

element that can recognize organizations. Organizations understand that they ought

to embrace internal branding techniques to influence upon the employees. Real

changes have made it basic for companies to do profound reflection as how to meet

the difficulties of rivalry and receive fitting employee driven procedures to make

and sustain corporate favorable position. This paper gives some idea on employer

branding furthermore inspected the part of Employee Value Proposition to build up

how Indian organizations with a positive corporate notoriety can attract and retain

employees

Maznah W. O. et al. (2010). “Employee motivation and its impact on employee loyalty”,

World Applied Sciences Journal, Vol. 8, No. 7, pp. 871-873.

When change and restructuring in an organization becomes inevitable, employee

loyalty and their motivation becomes one of the major challenges currently facing

most companies in the present world of business. On top of the ongoing focus on

recruiting new talent, a further challenge lies in ensuring existing staff are focused,
 engaged and thus retained. Good organizations understand that loyal employee will

result in a better business performance, so many are placing greater emphasis on

measuring employee loyalty and how to motivate them in order to keep their staff

happy. The purpose of this study is to identify the factors influencing employee

motivation which will leads to employee loyalty towards their organization. The

methodology uses in this research is through the distribution of a set of

questionnaire to one hundred and eighty five respondents. Results from this study

will be practically significant to practitioners and academicians in providing them

with information on the most effective ways on how to manage their employees.

Turkyilmaz, A., Akman, G., Ozkan, C. and Pastuszak, Z. (2011), "Empirical study of public

sector employee loyalty and satisfaction", Industrial Management & Data Systems,

Vol. 111 No. 5, pp. 675-696. https://doi.org/10.1108/02635571111137250

The purpose of this paper is to identify the factors which determine the level of

public employees' job satisfaction and as result help to have effective and efficient

management system in the public sector, in developing countries such as Turkey.

Based on theoretical considerations, a model was proposed linking the employee

satisfaction and loyalty (ESL) constructs. The paper exhibits the findings of a

satisfaction and loyalty survey of employment factors within the Turkish public

sector. The survey was conducted in 2009 and covered 220 employees within the

Istanbul Branch of a Social Security Institution in Turkey. A model was developed

by including effecting factors of employee satisfaction, their relations and effects of

 employee satisfaction on employee loyalty. Partial least squares structural equation

model was employed to test the model in the public insurance sector in Turkey.

The paper reveals the relationship between the employee satisfaction and affecting

factors in the public sector in Turkey. These factors are developed only incidentally

in the public sector in Turkey. Human resource management (HRM) applications

such as measuring employee satisfaction, performance development are widely used

in private sector. Specifically, in developing countries such as Turkey, these

applications are rarely used in the public sector. Therefore, the paper advocates the

use of HRM applications in the public sector in a developing country.

Hackman J. R. and Oldham G. R. (1980). Work Redesign, Addison-Wesley, Reading, MA.

The redesign of jobs and work systems is frequently carried out to increase

organizational productivity and/or to improve the quality of the work experiences of

organization members. Four theoretical approaches to work redesign (activation

theory, motivation–hygiene theory, job characteristics theory, and the sociotechnical

theory) are reviewed and compared, and the kinds of personal and work outcomes

that can reasonably be expected from restructuring jobs are discussed. A number of

unanswered questions (e.g., the role of individual differences, diagnostic and

evaluation methodologies, and the job of the supervisor) about the strategy and

tactics of redesigning jobs are presented, and some problems in installing work
 redesign programs in existing organizations are outlined. (47 ref) (PsycINFO

Database Record (c) 2016 APA, all rights reserved)

Locke E. E. (1976). “The nature and causes of job satisfaction”, in: Dunnette M. D. (Ed.),

Handbook of Industrial and Organizational Psychology, pp. 1297-349.

This article investigates the potential mediating role of work engagement/job burnout in

the relationships of leader’s verbal communication style and job satisfaction. Results

suggest that autocratic verbal communication style leads to low job satisfaction. To

the contrary, supportive verbal communication style results in high job satisfaction.

Furthermore, work engagement plays an intermediating role between leader’s

verbal communication style and job satisfaction. Although job burnout plays a

mediation role between autocratic verbal communication style and job satisfaction,

the mechanism is non-existent between supportive verbal communication style and

job satisfaction. The article revealed the significance of leader’s verbal

communication style, as well as the diversities, which affected job satisfaction and

thus influenced job performance.

Loquercio D. (2006). Turnover and Retention: A Summary of Current Literature, pp. 1-23.

This summary of current literature on turnover and retention is largely based on

the literature
review document that was simultaneously prepared for People in Aid. This

summary tries to

organize issues in a more systematic way, mixing concerns from the

humanitarian sector

together with practice from the corporate sect

or when it seemed relevant. This document is

not meant to propose new ways forward, as it is mainly a review of existing

literature, but it is

hoped that the way it is presented will help in

highlighting and identifying key issues in

retaining staff for the humanitarian sector.

To clarify the scope of this summary - it focuses on expatriates or international

cadres for two

reasons:

1) Most of the available literature and inform

ation available relates to this category of

staff, and,

2) Many key management posts within INGO

s (and elsewhere) are currently filled by

this category of staff, and it is these posts where the problems of staff

turnover or
 retention issues are felt most acutely

Khuong M. N. and Tien B. D. (2013). “Factors influencing employee loyalty directly and

indirectly though job satisfaction a study of banking sector in Ho Chi Minh City”,

International Journal of Current Research and Academic Review, Vol. 1, No. 4.

This study attempted to identify the relationship between job satisfaction and

organizational loyalty of employees who are working in banking industry in Ho Chi

Minh City (HCMC). In addition, this study also elicited employee s views on the

different factors contributing to their loyalty toward their current banks.

Quantitative approach was the major method used, with statistical techniques

applied, including factor, multiple regression, and path analyses. The unit of

analysis was at individual level with the sample size of 201 employees of eleven

banks operating in HCMC. The findings of this study indicated that the higher

levels of satisfaction, supervisor support, fringe benefits, teamwork, working

environment, and training were positively associated with the higher level of

organizational loyalty. The factors of satisfaction, supervisor support, teamwork,

and working environment play crucial roles and significantly affect employees

loyalty. Based on the results of the path analysis, this study argued that in order to

achieve high employee loyalty, companies in banking industry should achieve high

level of employee job satisfaction, enhance supervisor support and teamwork among

employees, and provide good working environment.

Carraher S. (2011). “Turnover prediction using attitudes towards benefits, pay and pay

satisfaction among employees and entrepreneurs in Estonia, Latvia, and Lithuania”,

Journal of Management, Vol. 6, No. 1, pp. 25-52.

Purpose ‐ This paper seeks to examine the efficacy of predicting turnover for

employees and entrepreneurs from Estonia, Latvia, and Lithuania using attitudes

towards benefits, pay satisfaction, pay, gender, and age across a four-year time

frame. 

Design/methodology/approach ‐ A survey that included information on attitudes

towards benefits and pay satisfaction was used to collect data from 153 Estonian,

157 Latvian, and 146 Lithuanian employees and 243 Latvian, 103 Estonian, and 109

Lithuanian entrepreneurs. The turnover of the employees and business owners was

then followed over a four-year time period with assessments done each year

allowing for an examination of temporal variations in the relationships over time.

Actual salary/income data was also obtained from organizational records. 

Findings ‐ It was found that for the employee samples the classification rates

increased slightly as compared to base rates over time (e.g. did better the longer the

time period included), while for the employers the classification rates and R2 values

were relatively flat as compared to base rates. For the employee samples

the R2 values decreased over time. Attitudes towards benefits were generally

significant predictors of turnover for employees and entrepreneurs over a four-year

time period while satisfaction with pay was typically significant for employees but
not for entrepreneurs. It was also found that for the employees both equity and

expectancy considerations were able to explain differences in turnover rates while

for entrepreneurs expectancy theory considerations were more powerful than equity

theory explanations. 

Research limitations/implications ‐ The research is limited both by geography, job

types, and the theoretical construct of turnover. Few studies have examined

turnover among both employees and business owners, and few studies have explored

the similarities and differences between the two. 

Practical implications ‐ Pay and benefits are important for employees. Pay seems to

be important for attracting employees while benefits are important for retaining

them. 

Originality/value ‐ This study examines turnover for both employees and

entrepreneurs with a four-year longitudinal design with data from three different

countries ‐ Estonia, Latvia, and Lithuania. Temporal variations in the relationships

are also examined on a year by year basis. As employee retention has been an

important factor in the Baltic region over the last two decades it is vital to

understand how to retain employees.

‌

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