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An Evaluation of the Effects of Corporate Reputation on Employee Engagement: The Case of a Major Bank in South Africa

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  • Artyom Shirin
  • Nicola Kleyn

Abstract

Employee engagement and corporate reputation are both scarce organizational resources that have been shown to influence competitive performance and profitability. This study explores the impact of employee perceptions of corporate reputation on employee engagement. The study was designed to measure the impact of employees’ perceptions of corporate reputation on their engagement with the corporation, while controlling for the state of their psychological contract with the organization. Following the development of a theoretical model, data gathered via a survey of 509 employees of a large South African Bank was analyzed using Structural Equation Modelling. The results of the model confirmed that corporate reputation perceptions are an important predictor of employee engagement. It was also found that psychological contract breach is negatively related to employee perceptions of reputation and to their engagement. The results of the study demonstrate the importance of managing employee perceptions of corporate reputation both directly and indirectly through the management of the psychological contract.

Suggested Citation

  • Artyom Shirin & Nicola Kleyn, 2017. "An Evaluation of the Effects of Corporate Reputation on Employee Engagement: The Case of a Major Bank in South Africa," International Studies of Management & Organization, Taylor & Francis Journals, vol. 47(3), pages 276-292, July.
    • Handle: RePEc:taf:mimoxx:v:47:y:2017:i:3:p:276-292
    DOI: 10.1080/00208825.2017.1318023
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    Cited by:

    1. Orlando E. Contreras-Pacheco, 2021. "Reputación, satisfacción y vínculo afectivo en el marco de la tercerización laboral en Colombia," Revista CEA, Instituto Tecnológico Metropolitano, vol. 7(15), pages 1-26, September.
    2. Haryanto Haryanto & Harry Suharman & Poppy Sofia Koeswayo & Haryono Umar, 2022. "Enhancing Employee Engagement in Indonesian Logistics and Forwarders Industry: The Moderating Role of a Democratic Leadership Style," Economies, MDPI, vol. 10(11), pages 1-23, November.
    3. Schaarschmidt, Mario & Walsh, Gianfranco, 2020. "Social media-driven antecedents and consequences of employees' awareness of their impact on corporate reputation," Journal of Business Research, Elsevier, vol. 117(C), pages 718-726.
    4. Ali, Imran & Ali, Murad & Grigore, Georgiana & Molesworth, Mike & Jin, Zhongqi, 2020. "The moderating role of corporate reputation and employee-company identification on the work-related outcomes of job insecurity resulting from workforce localization policies," Journal of Business Research, Elsevier, vol. 117(C), pages 825-838.
    5. Habiba Akter & Ilham Sentosa & Sheikh Muhamad Hizam & Waqas Ahmed & Arifa Akter, 2021. "Finding the Contextual Gap Towards Employee Engagement in Financial Sector: A Review Study," Papers 2106.06436, arXiv.org.
    6. Svobodova, Kamila & Vojar, Jiri & Yellishetty, Mohan & Janeckova Molnarova, Kristina, 2020. "A multi-component approach to conceptualizing the reputation of the mining industry from a stakeholder perspective," Resources Policy, Elsevier, vol. 68(C).

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