The purpose of this paper is to examine the effects of the provision of employee services on employees' organizational commitment and their intentions to quit as well as their underlying reasons.
The paper shows that questionnaires were administered at two organizations in Singapore to evaluate employees' attitudes resulting from the provision of employee services. Mediator regression analyses and structural equation modeling were used to test the relationships between the provision of employee services with construed external image of the organization, valence for employee services, organizational identification, organizational commitment, and intentions to quit.
The paper found that positive employee attitudes arising from the provision of employee services were the result of a positive construed external image of the organization. It also shows that, when employees perceived that outsiders viewed their organization positively, their level of identification with their organization increased.
The paper did not find a significant relationship between employees' valence for employee services and organizational identification, implying that receiving tangible benefits was less important to employees than working for an organization that is viewed positively by outsiders.
The results in this paper suggest that employees' attachment to their organization is enhanced when they perceive that outsiders view their organization positively.
The results in the paper were explained in terms of social identity theory, which suggest that firms must continually invest in socially responsible activities and practices to create a positive corporate image. Employees' perceptions pertaining to how stakeholders view their organization affect their work attitudes.
