Relationship of Employee Value Proposition on Job Satisfaction and Loyalty in a Manufacturing Company in the Philippines

Abstract

A strong Employee Value Proposition (EVP) enhances job satisfaction and loyalty by providing competitive compensation, career development opportunities, a positive work environment, work-life balance, and recognition. Previous studies have typically focused on only one component of EVP and have failed to provide a comprehensive understanding of how different aspects of EVP interact and collectively influence job satisfaction and loyalty. To address this gap, this study examined the relationship between three key components of EVP—compensation, career development, and work environment—and job satisfaction and loyalty within a manufacturing company in the Philippines, focusing on 73 employees. Employing a descriptive-correlation research design, data were gathered through printed research-made questionnaires and analyzed using frequency, percentage, weighted mean, standard deviation, and Pearson correlation coefficient as statistical tools. The study revealed that employees considered their EVP to be generally acceptable and confirmed their positive outlook on job satisfaction and loyalty. However, compensation, career development, and the work environment did not significantly impact job satisfaction and loyalty. These findings suggest that other factors, such as organizational culture, leadership, and interpersonal relationships, might play a more crucial role. Based on these findings, a strategic plan is proposed to address the identified weaknesses in the EVP, including reviewing and aligning compensation with job responsibilities, fostering an open communication culture, providing clear career development opportunities, and promoting core values within the work environment. This study can serve as a guide for enhancing job satisfaction and loyalty, ultimately leading to better employee retention and organizational performance.