Continuance commitment refers to?

Prepare for the Western Governors University (WGU) HRM5010 C202 Test. Utilize flashcards and multiple-choice questions with hints and explanations to ensure you are well-equipped for your exam!

Continuance commitment is characterized by an employee's decision to remain in an organization primarily because they perceive high costs associated with leaving. This can include various factors such as lost benefits, job security, and the challenges of finding new employment. Employees exhibiting continuance commitment may feel that leaving the organization would result in financial or personal losses, thus compelling them to stay even if their emotional attachment or satisfaction with their job is low.

This type of commitment contrasts with other forms, such as normative commitment, where employees feel a moral obligation to stay, or affective commitment, where there is a strong emotional bond with the organization. Understanding continuance commitment is vital for organizations as it highlights that some employees might not be genuinely engaged but remain due to practical considerations. Creating an environment that fosters affective commitment can help to enhance overall employee satisfaction and reduce reliance on continuance commitment as a retention strategy.

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