Modeling the Effects of Value-Congruence on Employee Retention and Human Resource Costs in Eswatini Entities

Aaron Siboniso Gwebu, Austin Musundire and Md. Humayun Kabir
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Aaron Siboniso Gwebu: Eswatini National Administration, Eswatini
Austin Musundire: University of Limpopo, South Africa
Md. Humayun Kabir: Sol Plaatje University, South Africa

in ABEM Conference Proceedings from Academy of Business and Emerging Markets (ABEM), Canada, currently edited by Satyendra Singh

Abstract: Organizational values have become useful in developing human resource models, which serve as a framework for articulating strategies ideal for reducing human resource (HR) costs. The lack of an HR model to guide strategy for saving organizational costs by retaining employees with value congruent and person-organizational fit (P-O fit) remains one of the challenges faced by business entities. This study investigates a quantitative model that embraces the relationship between retaining P-O fit employees and reducing HR costs. It adopts the positivist view and uses the survey research method. The study was conducted in three strata: government, parastatals, and private sector entities of the Kingdom of Eswatini (Swaziland), utilizing a paper-based, self-administered questionnaire and stratified sampling for data collection. Using a descriptive correlational research design aided by the R Statistical Software, data were analyzed both descriptively and inferentially. Pearson's correlation, regression, and structural equation modeling revealed a statistically significant positive correlation between P-O value congruence, employee retention, and HR costs. The conclusion drawn was that the inculcation of organizational values enhances the alignment of employees' values. In contrast, employees with aligned values (P-O fit) are more likely to be retained for a longer period. Ultimately, retaining P-O fit employees serves as a cost saving mechanism. This finding represents a valuable theoretical advancement in the P-O fit theory. Since its initial discovery as a foundation and subsequent development into a theory, it has yet to predict consistent outcomes. The drafting of guidelines that encourage organizations to adopt value-based HRM practices is the main recommendation directed to policymakers in Eswatini. The main suggestions for future research include the use of longitudinal studies and cross-cultural comparisons, particularly because Eswatini is a unique and representative cultural governance economy.

Keywords: Value-Congruence; Employee; Retention; Human Resource; Costs; Eswatini; Entities (search for similar items in EconPapers)
Date: 2025
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