Validation and initial test of the employee equity model for predicting employee retention
The purpose of this study was twofold: (1) to provide evidence of the construct validity of the employee equity construct by testing the factor structure of the employee equity measure and establishing convergent and discriminant validity, and (2) to examine the usefulness of the employee equity construct for explaining employee retention. Utilizing two samples of employees from a large public agency located in the Southwest United States, two studies were conducted. The first study tested the factor structure of the employee equity measure, and found support for the proposed three-factor model. Moreover, this study also provided evidence of convergent and discriminant validity as hypothesized. The second study examined the usefulness of the employee equity construct for predicting employee retention. Based on the observations of this study there is evidence that employee equity is a significant determinant of retention.