The Effect of Organizational Reputation on Public Employees’ Retention: How to Win the “War for Talent” in Constitutional Autonomous Agencies in Mexico

Abstract

Retaining valuable employees is a critical task for public organizations to present themselves as competent and efficient to their multiple audiences. However, despite the importance of staff mobility dynamics for public organizations, retention is an issue that has not been thoroughly studied in human resource management research. In the case of Mexico, retaining the most valuable staff is becoming more difficult because its public administration is characterized by corruption and patronage. The article argues that reputation sustains a reciprocity exchange between employees and employers, which is reflected in longterm labor relationships. Using a survey of employees of five Constitutional Autonomous Agencies in Mexico, the article shows that having a positive reputation is a crucial factor for public employees when deciding whether to stay or leave their jobs. The findings imply that building and maintaining a positive reputation must be relevant for public managers because of its implications for HRM.