Impact of Employee Value Proposition on Employee Retention: A conceptual paper

Abstract

Apparel export that brings larger export income to Sri Lanka, facing a challenge of the highest employee turnover within industries that have led to high-level replacement cost, training cost as well as low productivity, low quality, and customer dissatisfactions. In this Context, Employer Branding has been a strategic reaction towards attracting prospective employees and retaining them, through managing ‘Employee Value Proposition’ (EVP). This study aimed to develop a conceptual model to show how EVP contributes to employees’ Intention to Retention (IR) through Employer Brand Equity (EBE) in leading empirical research. A targeted literature review was used as the methodology. As findings, this study established relationships between the EVP and the EBE, EBE, and IR, and EVP and IR, with the consideration of demographic factors as moderators. The findings implicate in conducting empirical research that contributes to explain reasons for higher-level employee turnover and find effective solutions. It is recommended to implement solutions for higher employee turnover issues in the apparel manufacturing sector in Sri Lanka, not just based on monetary rewards, but the overall value proposition, that employees expect, based on scientific research.