Employee value proposition: Which factors matter? A Swiss case study on motivational factors

Abstract

Companies are developing strategies to attract and retain talented workforce in an always more effervescent labor market. The ones that relate to attracting talents are usually referred to as employer branding, and the ones related to retaining talents are usually referred to as employee value propositions. This study aims to investigate the motivational factors in the employee value proposition model and suggest an extension of the common models. A questionnaire was elaborated to check the validity of the hypothetical model. The sample includes a large Swiss financial institution that decided to remain anonymous. 517 employees have provided valid observations; the multivariate analysis conducted under the lenses of structural equation modeling confirms the validity of the hypothetical model. In particular, the study illustrates that extrinsic (salary, benefits, career) and intrinsic (work environment, work purpose, and job strain) motivational factors must be considered in the employee value proposition model. The intrinsic motivational factors contribute slightly more than the extrinsic motivational factors; the salary factor contributes the most among the extrinsic motivation variables, and the working environment factor contributes the most among the intrinsic motivation variables. The elaborated model has practical application for corporations who want to govern their employee value proposition and align their employer branding identity. It extends the theoretical foundations to support further research in this domain.