The impact of perceived value and culture alignment on employee retention, engagement, and job satisfaction

Abstract

This master's thesis examines how employee value gaps affect firm performance in terms of employee retention, engagement, and job satisfaction in organizational culture. The study employs quantitative analysis with two sets of four hypotheses to investigate the impact of perceived value and culture alignment on turnover intentions, work engagement, and general job satisfaction. The central findings reveal that a low alignment between claimed and perceived values and a low alignment between personal and organizational values contribute to higher turnover intentions among employees. Further, a high level of value and culture alignment in the workplace is associated with increased employee engagement and job satisfaction. Being in a managerial position significantly increases alignment for both cases. Value gaps are not strongly represented in our sample and are thus contrary to the current retention and engagement crisis in the world of work. The thesis emphasizes the significance of building a cohesive organization with a shared value set, particularly in the current business climate characterized by changing work dynamics and increasing employee disengagement. The thesis contributes to understanding the relationship between value gaps and firm performance, providing insights for organizations to improve employee retention, engagement, and job satisfaction by addressing value gaps and promoting cultural alignment.

Date of Award	26 Jun 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Peter V. Rajsingh (Supervisor)