Employee value proposition and talent retention in selected water agencies: The mediating role of job embeddedness

Abstract

This study examined the influence of the Employee Value Proposition (EVP) on talent retention in South Africa's water sector, with job embeddedness as a mediating factor. In a context of increasing staff turnover and competition for scarce skills, retaining professionals such as water engineers, scientists, process controllers, and administrative support staff is critical for operational effectiveness and efficiency in water management institutions. The study investigated how EVP components, remuneration, career development, work-life balance, organisational culture and job embeddedness dimensions link, fit, and sacrifice collectively affect employee retention. A quantitative, cross-sectional survey design was employed, targeting 75 technical core and support staff (excluding executives) across four water sector institutions in different provinces, representing functions from water research and integrated water resource management to bulk water supply. Stratified random sampling and validated measurement scales were used. Data were analysed using correlation, regression, and mediation analysis in SPSS.Findings indicated a significant positive relationship between EVP and employee retention (r = 0.432, p < 0.001), with non-monetary aspects of EVP, such as career development and organisational culture, showing the strongest effects. Job embeddedness partially mediated this relationship, accounting for 30-40% of the effect, with the "fit" and "sacrifice" dimensions being the most influential. Furthermore, differences emerged by age and occupational level: younger employees prioritised career development, while senior staff emphasised organisational fit and sacrifice considerations. The results suggest that organisations can enhance retention by offering a compelling EVP and fostering strong social and psychological ties between employees and their work environment. This study contributes to HR and talent management literature by empirically integrating Employee Value Proposition and job embeddedness within a public-sector water context where sector-specific evidence remains limited. Existing studies have largely examined these constructs in isolation and within private-sector environments, providing limited insight into the mechanisms through which EVP influences talent retention. By examining job embeddedness as a mediating variable, the study extends retention theory and offers contextually grounded evidence relevant to water-sector organisations.