SmartHCM

What is Continuance Commitment?

What is continuance commitment?

Continuance commitment is a sense of loyalty to the organization because the employee perceives few alternatives or perceives the cost of leaving the organization as too high.

An example may be an older employee who feels that they will struggle to find a job with similar pay and benefits when they leave the organization. Or take an employee who invested their money in an employee stock option plan. They might feel that quitting the organization would harm their financial situation as the organization has been going through a rough patch.

The benefit of continuance commitment is primarily lower employee turnover. Employees with high continuance commitment are more likely to remain in the organization.