Enhancing Sustainable Employment Relationships: An Empirical Investigation of the Influence of Trust in Employer and Subjective Value in Employment Contract Negotiations

Abstract

The article presents the results of an empirical study investigating the relationships between trust in the employer, the subjective value attained in the negotiation of the employment contract, job satisfaction and employee willingness to (re)negotiate in order to maintain long-term employment relationship. The study develops a research model, based on the existing literature, and uses the partial least-squares technique, and data collected from 373 information technology professionals, to test it. The results indicate the positive effect of the employee's trust in the employer on job satisfaction and willingness to (re)negotiate. Furthermore, the subjective value perceived by the employee in the employment contract negotiation has an increased positive influence on both employee satisfaction and employee willingness to use (re)negotiation to overcome potential issues and maintain the employment relationship long term. Overall, the results of the study bring evidence about the importance of trust and the subjective value in attaining sustainable employment relationships, and therefore sustainable human resource management (HRM). The results provide valuable insights for managers committed to the development of their organizations by promoting sustainable employment relationships. The study offers to firms a ready-to-use model for promoting sustainable employment relationships in organizations operating in knowledge-intensive sectors, such as information technology (IT).