Internal marketing, perceived value and satisfied employees in South African long-term insurance

Abstract

Purpose: This study assessed the interrelationships between internal marketing, employees’ perceived value within the employment exchange and the resultant employee satisfaction. These interrelationships focused on the financial advisers in the South African long-term insurance industry.
Design/methodology/approach: Data were gathered from financial advisers across twenty registered South African long-term insurance providers. The questionnaires, using a Likert scale, were self-administered. In total, 410 financial advisers voluntarily participated in the study. The data analysis included descriptive statistical analysis, with structural equation modelling (SEM) for the measurement and structural models.
Findings/results: The findings reveal that financial advisers perceive value when internal people and internal political power elements are effectively implemented through internal marketing. The findings also show that when internal marketing is implemented effectively, it has a positive influence on financial adviser value and satisfaction.
Practical implications: In considering these findings, South African Financial Services Providers can design internal marketing framework elements that enhance the value financial advisers perceive in the employment exchange, increasing their satisfaction and in turn reducing the high turnover that is characteristic of the industry.
Originality/value: Although internal marketing is being used by Financial Services Providers in the South African market, this study provides guidance on strategic implementation to increase employee satisfaction.