INTRODUCTION
PROBLEM STATEMENTS
Human resources play a crucial role in determining the success of organizations and the broader economy, serving as both a driving force and a key development goal High-quality human resources are essential for utilizing inputs effectively to create value and gain a competitive advantage in the market They are responsible for innovating and developing both tangible products and intangible services, which are vital for organizational survival and societal progress As human needs drive production and business activities, a diverse and skilled workforce fosters continuous development, reduces unemployment, and positively impacts economic growth In the context of the Fourth Industrial Revolution, there is a significant shift towards a knowledge-based economy, making high-quality human resources increasingly scarce and leading to a competitive 'war for talent' among organizations Consequently, recognizing human resources as the most valuable asset, organizations must focus on strategies to attract and retain talented individuals to thrive in this evolving landscape.
Employee turnover rates in Vietnam have significantly increased, with a reported 24% in 2019, particularly among those earning below 10 million VND, where the resignation rate reaches 29% This trend poses a challenge for businesses, as 79% of employers cite a shortage of human resources, with 36% attributing this to high resignation rates The economic development and globalization in Vietnam have provided employees with more career opportunities, leading to a decline in employee engagement Anphabe's survey indicates that 39.3% of employees are not engaged, with a notable portion identified as "office zombies," who contribute little effort despite remaining in their positions This growing phenomenon adversely affects organizational performance, highlighting the urgent need for effective employee retention strategies and research into factors that enhance true engagement.
According to the Asian Economy and Productivity Map data from 2020, Vietnam's labor productivity in 2018 ranked 9th out of 11 ASEAN countries, at just $12,740 per worker, significantly lower than Singapore's leading rate of $149,050 per worker This stark contrast highlights that Vietnam's labor productivity is only 1/12 that of Singapore, underscoring the urgent need for effective solutions to enhance employee performance Consequently, it is critical to investigate the factors influencing employee productivity within Vietnamese enterprises and organizations.
In the past five years, Vietnamese businesses have increasingly adopted employer branding strategies to attract top talent According to a Vietnamwork survey, 24% of employee shortages can be attributed to weak employer branding (Vietnamwork, 2019) Notably, the annual 'Vietnamese Best Places to Work' award has recognized multinational corporations like Unilever and large domestic firms such as Vinamilk for their strong employer branding efforts Unilever notably won this award for three consecutive years from 2014 to 2016, while Vinamilk secured it for two consecutive years.
2017 and 2018 implies that only a few large enterprises and multinational corporations have new activities effectively for employer branding (Anphabe,
In Vietnam, small and medium enterprises (SMEs) are still in the early stages of developing effective employer branding strategies, as highlighted by a 2019 survey from Vietnamwork This lack of focus on employer branding has led to challenges in enhancing employee engagement within organizations While many SMEs prioritize attracting potential candidates, they often overlook the importance of talent retention Consequently, this research emphasizes the critical relationship between employer branding and employee engagement to foster a more committed workforce.
Understanding the factors that contribute to effective employer branding is essential for organizations from both macro and micro perspectives Additionally, it is crucial to investigate how employer branding influences employee engagement, as this relationship plays a significant role in organizational success.
Brand plays a crucial role in business, encompassing both tangible and intangible value, and serves as a key differentiator in the marketplace Today, there are three main approaches to branding: financial-based brand equity (FBBE) and customer-based brand equity.
Employer branding, rooted in employee-based brand equity (EBBE), is essential for enhancing a company's production and business efficiency This approach emphasizes the brand value derived from employees, highlighting its significance in driving organizational success.
The theory of employer branding is still in its early stages, emerging from the intersection of marketing and human resources (Ambler & Barrow, 1996) Current research primarily explores specific aspects of employer branding, defining it as a blend of economic and psychological benefits offered to employees by management (Ambler & Barrow, 1996), fostering a strong organizational culture and internal spirit (Fombrun & Wally, 1989), and enhancing the organization's reputation among stakeholders (Hlavsa et al., 2015) Additional studies have examined the role of human capital (K Backhaus & Tikoo, 2004), the characteristics of company resources (Barney, 1991), and the competitive advantages that arise from effective employer branding (Priem & Butler, 2001).
Employer branding is intricately linked to human resource management, yet existing studies offer limited theoretical support for its framework The focus of employer branding theory primarily revolves around attracting potential candidates by developing brand scales, positioning the organization in the market, and fostering a strong employer brand Additionally, research on brand equity highlights its influence on both potential candidates and current employees regarding talent recruitment, selection, and retention However, there is a noticeable gap in exploring the relationship between employer branding and employee engagement, with insufficient research on its impact on current employees Consequently, investigating the effects of employer branding on employee engagement is both essential and meaningful for enhancing the overall theoretical understanding of this concept.
The theory of employee engagement, established in the 1990s, focuses on key concepts such as meaning, safety, and availability, which are essential for fostering employee engagement (Kahn, 1990) External manifestations of engagement include attitudes, behaviors, and outcomes, significantly influencing factors like labor productivity, absenteeism rates, and job fatigue (Sange, 2015) Additionally, research highlights the importance of measuring and enhancing employee engagement within organizations (Arrowsmith & Parker, 2013) However, there is a noticeable gap in the literature regarding the impact of employer branding on employee engagement, indicating a need for further exploration of this relationship.
Current literature lacks a systematic exploration of the relationship between employer branding and employee engagement Investigating this connection will enhance theoretical understanding and contribute valuable insights to both fields This research direction offers significant findings for scholars interested in employer branding and employee engagement.
Previous studies on employer branding highlight a significant issue: the lack of clarity in defining its concepts and scales Many researchers, including Ambler & Barrow (1996) and Berthon et al (2005), have concentrated their efforts on refining these definitions to enhance understanding in the field.
Recent studies highlight the significance of employer branding in enhancing human resource management (HRM) performance and its integration into sustainable development and corporate social responsibility (CSR) initiatives Research indicates that effective employer branding can significantly boost employee loyalty and engagement, thereby improving retention rates Additionally, the impact of employer branding on employee performance is crucial for enhancing overall organizational effectiveness Many scholars are also investigating how employer branding influences an organization's ability to attract potential candidates, aiming to optimize corporate recruitment strategies.
Research on employee engagement predates studies on employer branding, with significant contributions from scholars such as Buchner (2007), Chen et al (2008), English (1998), Kahn (1990), Schaufeli et al (2002), and Thomas & Oldfather (1995) The connection between leadership styles, particularly coaching, and employee engagement has been explored by Maceachern (2003), Ghuman (2016), and Meswantri & Ilyas, highlighting the importance of effective leadership in fostering employee involvement.
RESEARCH OBJECTIVE AND RESEARCH QUESTIONS
This dissertation aims to clarify the relationship and the impacts among employer branding, employer attractiveness and engagement as well as current employee performance.
The specific objectives of the study are:
• Studying the relationship between employer branding and employer attractiveness.
• Studying impacts of employer branding on employee engagement.
• Studying impacts of employer branding on employee performance.
• Studying impacts of employer attractiveness on employee engagement.
• Studying impacts of employer attractiveness on employee performance.
• Studying impacts of employee engagement on employee performance.
From these results, the study suggests suitable solutions in order to improve employee engagement and employee effectiveness in organizations in Vietnam.
In order to solve the above objectives, the dissertation answers these questions:
• How does employer branding affect employer attractiveness?
• How does employer branding affect employee engagement?
• How does employer branding affect employee performance?
• How does employer attractiveness influence employee engagement?
• How does employer attractiveness influence employee performance?
• How does employee engagement influence their performance?
RESEARCH SCOPE AND RESEARCH PARTICIPANT
Employer branding and employer attractiveness play a crucial role in attracting potential candidates and enhancing competitive advantage, as well as contributing to corporate social responsibility However, this dissertation focuses specifically on the effects of employer branding and employer attractiveness on employee engagement and effectiveness.
Surveyed participants are current employees working in companies/ enterprises in Việt Nam.
The survey data was collected in 3 months from December 2019 to February2020.
NEW FINDINGS
Theoretically, the target of this dissertation is to find the 6 important new points as follows:
(1) Clarifying the concept and finds the relationship between employer branding and employer attractiveness.
(2) Exploring the positive impact of employer branding on employee engagement.
(3) Exploring the positive impact of employer attractiveness on employee engagement.
(4) Discovering an important new point that employer attractiveness has a positive impact on employee performance besides finding the relationship between employer attractiveness and employee engagement,
(5) Building a new employer branding scale on the basis of integrating the previous scales.
(6) Developing an employer attractiveness scale with a new factor: safety value.
The findings highlight key factors that impact employee engagement and performance within organizations Additionally, the study illustrates how employers can effectively implement employer branding strategies to foster positive perceptions among employees and enhance their attractiveness as potential employers.
STUDY SIGNIFICANCE
The dissertation's research results will help contribute to the theoretical and practical system in company management as follows:
This research aims to clarify the concepts of employer branding and employer attractiveness, addressing existing ambiguities and overlaps between them It seeks to develop a tailored scale for these concepts within the Vietnamese context and explore the impact of employer branding on employee engagement, an area previously underexplored Additionally, the study will investigate the relationship between employer attractiveness and employee engagement, as well as the effects of employer attractiveness on employee performance By confirming the influence of employee engagement on performance in Vietnam, the research will contribute to understanding these dynamics, especially as younger employees enter the labor market, potentially altering existing relationships.
Understanding the concepts and scales of employer branding enables managers to systematically identify the key factors that contribute to a successful employer branding strategy By focusing on these essential elements, organizations can enhance their employer attractiveness, fostering a positive perception among employees Additionally, research findings will offer insights into how effective employer branding strategies can improve employee engagement and performance Ultimately, this analysis will help managers evaluate the relationship between employee engagement and performance within their organizations.
THESIS STRUCTURE
The dissertation is designed into the following 5 chapters:
This chapter outlines the essential elements of the dissertation, including the rationale for the study, the problem statement, research objectives, and key research questions It also defines the research scope, identifies the participants, and details the survey timeline and research procedures Additionally, it highlights the new findings, emphasizes the significance of the study, and provides an overview of the thesis structure.
LITERATURE REVIEW
CONCEPTS
The concept of employer branding is essentially close to the three concepts of corporate culture, internal marketing and corporate reputation (Ambler & Barrow,
Employer branding is crucial for establishing a unique corporate identity and fostering a positive social and psychological work environment, as highlighted by Lipton (1996) It involves marketing activities aimed at influencing the internal employee market (Papasolomou-Doukakis, 2003) and plays a vital role in aligning perceptions among internal and external stakeholders, including employees and customers (Hatch & Schultz, 2001) Ultimately, employer branding is the process of developing a strong employer identity (K Backhaus & Tikoo, 2004).
Employer branding (EB) is defined as a combination of functional, economic, and psychological benefits that a company offers to its employees, shaping its employment characteristics compared to competitors (Ambler & Barrow, 1996) The primary objective of EB is to enhance recruitment and retain top talent (Ambler & Barrow, 1996) As noted by Backhaus & Tikoo (2004), EB is crucial for attracting potential candidates and developing a strong organizational image as a desirable employer It merges human resource management and marketing, encompassing both tangible benefits like salaries and bonuses, and intangible benefits such as corporate culture (M R Edwards, 2010; Ruch, 2002) While EB should target various audiences, including potential and current employees, many studies focus primarily on attracting potential employees (Backhaus & Tikoo, 2004; Berthon et al., 2005; Lievens & Highhouse, 2003) Ultimately, the goal of EB is to create a distinct external reputation that fosters positive employee engagement and cultural change (Backhaus & Tikoo, 2004; Love & Singh, 2011; Mosley, 2007) Recent research emphasizes an integrated approach, blending external recruitment promises with internal employee experiences, thereby aligning employer branding with the overall company brand (Mosley, 2007) The effectiveness of the employer brand lies in the seamless integration of internal trust and external messaging (Martin et al., 2005).
Employer branding and employer brand are key concepts in human resource practice that are often confused According to Lievens & Slaughter (2016), the external employer brand reflects an organization’s image, while the internal employer brand pertains to the organization’s identity They argue that external employer branding focuses on managing the organization's image, whereas internal employer branding is aligned with managing organizational identity Ultimately, employer branding is viewed as a strategic activity aimed at effectively managing the employer brand.
Tanwar & Prasad (2017) expanded upon Ambler & Barrow's (1996) definition of employer branding, introducing a five-dimensional structure that includes training and development, ethics and corporate social responsibility (CSR), work-life balance, healthy work atmosphere, and compensation and benefits Specifically, compensation and benefits represent the economic dimension, while a healthy work atmosphere aligns with the psychological dimension Training and development, along with ethics and CSR, are categorized under the functional dimension This comprehensive approach to employer branding addresses employees' social needs through flexible work policies and reflects the employer's commitment to both their workforce and the broader community.
This study adopts the employer branding framework proposed by Tanwar & Prasad (2017), which is deemed suitable for its context Their model encompasses five key dimensions: training and development, ethics and corporate social responsibility (CSR), work-life balance, a healthy work atmosphere, and compensation and benefits.
The employer branding scale proposed by Tanwar & Prasad (2017) encompasses key dimensions such as a healthy work atmosphere, training and development, work-life balance (WLB), ethics and corporate social responsibility, and compensation and benefits However, to enhance its effectiveness, additional factors should be incorporated Specifically, the WLB dimension requires further elaboration, as it currently includes only three items, while a comprehensive understanding should address various aspects like time, strain, and behavior (Carlson et al., 2000) Furthermore, employee satisfaction (Lorys, 2017) should be acknowledged Additionally, there is a growing expectation among employees for opportunities to work remotely, travel, and gain international experience (Lievens, 2007), indicating that the employer branding scale should integrate dimensions related to tourism opportunities Finally, fostering a spirit of teamwork is essential and should be included in the scale.
Employer branding encompasses practices that uphold corporate ethical standards and social responsibility, emphasizing work-life balance through behavioral balance and satisfaction It serves as a pathway for employee career development and skill enhancement, while also offering opportunities for international experiences Additionally, employer branding fosters a culture of friendliness and teamwork, promoting an environment where all members of the organization can grow together.
Employer Attractiveness concept is discussed in various study areas:vocational behavior (Soutar & Clarke, 1983), management (Gatewood et al., 1993),psychology (Collins & Stevens, 2002; Jurgensen, 1978), communication
Employer attractiveness has emerged as a significant focus in business management, drawing attention from researchers and journalists alike (Bergstrom et al., 2002; Ambler & Barrow, 1996; Lloyd, 2002; Ritson, 2002) Defined as the perceived benefits an organization offers to potential candidates, it encompasses factors such as interesting, economic, social, developmental, and application value (Berthon et al., 2005; Jiang & Iles, 2011) This concept not only positions an organization as an ideal workplace, enhancing its competitiveness and long-term success, but also influences both current and prospective employees (Schreurs et al., 2009) Internal employer attractiveness pertains to how current employees view the organization, while external employer attractiveness reflects its appeal to potential hires (Pingle & Sharma, 2013) Furthermore, employer branding involves strategic efforts to shape perceptions among employees and stakeholders, promoting the organization as a desirable workplace (Sullivan, 2004; Ewing et al., 2002; Lloyd, 2002) Ultimately, employer attractiveness serves as a crucial tool for employee retention, impacting the overall workforce dynamics (Suikkanen, 2010).
In this dissertation, employer branding concept introduced by Berthon et al
Employer attractiveness, as defined by Berthon et al (2005), refers to the unique benefits an organization offers to potential candidates, including interesting, economic, social, developmental, and application values This concept highlights the various factors that make an employer appealing, such as the social aspect, which addresses employees' psychological needs; the economic aspect, which fulfills their financial requirements; the developmental aspect, which emphasizes the importance of training and promotion; and the application aspect, which reflects the need to utilize acquired knowledge in the workplace Consequently, the scale developed by Berthon et al (2005) is utilized to assess the factors contributing to employer attractiveness.
Employer attractiveness significantly encompasses the crucial aspect of safety, which is a key concern for many employees This factor pertains to both the physical and psychological safety of employees in the workplace, highlighting its importance in fostering a secure work environment (Berthon et al., 2005).
The concept of engagement emerged in theoretical studies during the 1970s, particularly focusing on the issue of school dropouts, as highlighted by Finn & Zimmer (2012) and Reschly & Christenson (2012) It is suggested that students who drop out often lack a connection to their schools Early empirical research introduced key ideas such as 'time on task' to better understand this phenomenon.
Employee engagement, as defined by Anderson (1974), encompasses 'engaged time' and 'school attendance,' evolving into key organizational behavioral indicators Mosher & MacGowan (1985) introduced theoretical frameworks highlighting behavioral and emotional aspects of engagement Saks (2006) identifies three core factors: perception, emotion, and behavior, while Bridger (2014) emphasizes that engagement reflects employees' commitment and motivation to optimize their competencies within the organization Al Mehrzi & Singh (2016) describe engagement as a positive and motivational attitude characterized by vigor, dedication, and absorption (Schaufeli et al., 2002) Bakker et al (2008) connect engagement to positive psychology, focusing on the beneficial traits and behaviors of employees Leiter & Maslach (1988) view engagement as an energetic experience marked by high efficiency, while Rothbard (2001) highlights the psychological connection employees have with their work Rich et al (2010) describe engagement as a multidimensional investment encompassing physical, cognitive, and emotional elements, and Christian et al (2011) affirm it as a sustained state of personal energy investment in work performance.
The concept by Schaufeli et al (2002), based on vigour, dedication and absorption of employee, is mostly appropriate and comprehensive Therefore, this concept is selected in this research.
Employee performance is defined as the manner in which an individual conducts their job, measured against organizational criteria such as leadership, time management, and productivity (Betaubun et al., 2015) It encompasses a spectrum of worker behaviors that can either positively or negatively impact an organization's overall objectives (Harwiki, 2016) Essentially, performance relates to the outcomes of work in terms of quality, effectiveness, and alignment with organizational goals (Sok & O’Cass, 2011) Furthermore, employee performance reflects an individual’s capability to execute assigned tasks effectively (Masakure, 2016) It can be assessed by comparing an employee's work quality with that of their peers, a method supported by Bandura (1986), who emphasized the importance of self-assessment in performance evaluation This self-assessment approach has been utilized in various marketing studies (Sujan et al., 1994), and the frameworks established by Bandura and Sujan have been adapted in further research (Babin & Boles, 1996) Additionally, Welbourne et al (1998) expanded the definition of employee performance to include five key roles: Job, Career, Innovator, Team, and Organization, highlighting the multifaceted nature of performance within a corporate context.
Employee performance is a multifaceted concept that encompasses the capabilities, skills, and efforts employees contribute to an organization, as highlighted by Lawler & Porter (1967) Campbell (1990) emphasizes that performance is defined by behaviors and actions aligned with organizational goals, a view supported by Viswesvaran & Ones (2000), who describe it as the actions, behaviors, and outputs that drive organizational success Key characteristics of employee performance include behavior-based assessments rather than results, a focus on organizationally relevant behaviors, and its multidimensional nature (W Borman & Motowidlo, 1993) Ultimately, employee performance can be evaluated through perceived or tangible results, with direct management assessments providing practical insights into employee contributions.
This dissertation centers on the concepts established by Welbourne et al (1998) to guide the research implementation Performance evaluation will be conducted by comparing the outcomes with those of peers regarding work completion levels.
MAIN THEORIES
Numerous theories and research studies explore the connection between employer branding, employee expectations, and employee engagement, interpreting this relationship through the lens of social exchange theory This theory posits that human interactions are guided by a comparison of costs and benefits, where social costs are intangible and specific to the economic sector The benefits, which include respect, honor, friendliness, and care, are grounded in mutual trust rather than formal agreements Individuals engage in exchanges when they anticipate rewards that align with their contributions, distinguishing social exchange from economic exchange by the absence of binding contracts Trust and honesty are crucial in these social interactions, as no formal sanctions guarantee equitable exchanges Consequently, without a foundation of trust, the willingness of participants to engage voluntarily diminishes.
Social exchange theory, as highlighted by Emerson (1976), has emerged as a significant framework in sociology and social psychology Key contributors to this theory include Homans, Thibaut, Kelley, and Blau Homans (1969) made notable advancements in understanding social behavior as an exchange, while Thibaut and Kelley (1959) further developed the foundational structure of this theory.
The article discusses 'The Social Psychology of Groups', highlighting the shared focus on the general exchange approach by Thibaut and Kelly, in contrast to Homans Blau's 1964 work, 'Exchange and Power', solidified the exchange approach as a significant research area, with Blau emphasizing technical and economic analysis, while Homans concentrated on the psychology of instrumental behavior, and Thibaut and Kelly explored psychological concepts Despite their differing research directions, all three authors converge on the central theme of social exchange.
Social exchange theory, as outlined by Blau (1964), posits that an individual's actions are influenced by the anticipated rewards from others Central to this theory are two key processes: contingent processes and rewarding processes, which involve transactions or exchanges Homans (1969) emphasized the relevance of behavioral psychology in understanding human social behavior, suggesting that social exchange theory leads to reactions characterized by reductionism, rationality, and tautological reasoning Homans proposed four key propositions, including three foundational propositions and one related to value, with the first proposition focusing on the concept of success.
The likelihood of a person repeating a specific action increases with the frequency of rewards received for that action Additionally, if past stimuli have led to rewards, similar present stimuli enhance the chances of the person performing the action again However, the value of a reward diminishes with repeated exposure; thus, the more often a person has been rewarded recently, the less valuable subsequent rewards become Ultimately, the perceived value of an action influences a person's motivation to engage in that action.
In the early development of exchange theory, key figures like Homans, Thibaut, Kelley, and Blau concentrated on the psychological and utility aspects of social interactions However, as the theory evolved, macro-level analysis gained prominence, with scholars like Clark (1972) and Coleman (1972) examining its broader societal implications The challenge lies in bridging the gap between the foundational processes identified by Homans and the macro perspectives introduced by later researchers Consequently, advancing exchange theory towards macro analysis represents a crucial area for future research development.
The theory of exchange networks extends beyond simple interactions between two parties, encompassing the willingness to engage in exchanges among multiple actors Developed by Emerson in 1976, this concept involves networks of three or more participants, structured in a way that maintains clarity within the group These networks play a crucial role in connecting individuals and groups as actors Notable scholars who have explored the dynamics of exchange networks include Malinowski (1922) and Lévi-Strauss (1969).
The social exchange theory, like other theories, has notable limitations, particularly in its emphasis on reciprocal exchanges between parties It suggests that one individual must provide benefits to receive what they desire, which does not account for all types of relationships, especially intimate ones In such relationships, individuals often contribute and share their values without expecting anything in return Consequently, the theory overlooks the important element of altruism in human connections.
Social exchange theory serves as a foundational framework for understanding the transfer of valuable resources within social interactions The movement of these resources occurs only when they are associated with perceived value, a concept recognized in psychology as 'reinforcement' and referred to in economics as 'return.'
Recent studies have utilized social exchange theory to explore the impact of organizational politics on job dissatisfaction and turnover intention, particularly in small and medium-sized enterprises in Zimbabwe (Chinomona & Mofokeng, 2016) This theory posits that fair exchange processes foster satisfaction, trust, and mutual value, ultimately leading to stable relationships (J J Lee et al., 2014; Blau, 1964) However, organizational politics often negatively affects employees, as they may perceive unfair treatment, leading to dissatisfaction and a higher likelihood of turnover (Saleem, 2015; Ross, 2006) From this perspective, if employees feel they gain no benefits from their relationship with the organization, they are more inclined to leave, highlighting the risks associated with inequity in the workplace (Lai et al., 2014) Consequently, the relationship between organizational politics, job dissatisfaction, and employee turnover intention is critical, as it underscores the potential threats to ongoing employee-employer exchanges.
Zhang et al (2016) explored the connection between work stressors and the desire for organizational development, emphasizing the role of leader-member exchange as an intermediary Their research, which combines social exchange theory and uncertainty management theory, highlights that social exchange involves reciprocal relationships between organizations and employees, fostering trust and emotional engagement (Ng & Feldman, 2012) Consequently, employees who exhibit higher satisfaction and commitment to their organization are more likely to contribute positively to its development (Burris et al., 2008; Ng).
Work stressors such as overload, time pressure, and additional responsibilities can yield benefits for employees, leading to positive emotions that enhance job satisfaction and organizational commitment According to social exchange theory, employees facing these challenge stressors often feel gratitude towards their organization, which positively influences their desire for organizational development This study underscores the importance of understanding the implications of both social exchange theory and uncertainty management theory, aiding managers in addressing the negative relationship between employee treatment and their commitment to organizational growth.
Pepple et al (2017) explore social exchange theory within the context of multi-ethnic bureaucracies, highlighting its impact on psychological ownership perceptions Their research establishes a connection between ethnic representation and employees' sense of ownership, emphasizing the importance of understanding relationships among employees, colleagues, and supervisors Ultimately, the study underscores that fostering employee ownership perception relies on the dynamics of trade-offs among all organizational members.
Leaders play a crucial role in fostering a positive work environment that encourages open communication and values employee contributions for organizational growth Simultaneously, colleagues must cultivate a supportive atmosphere that enhances teamwork and collaboration The application of social exchange theory serves as a valuable framework for understanding the dynamics of employee relationships and their impact on organizational roles.
Social exchange theory elucidates the connection between perceived ethnic representation and employee ownership perception, highlighting the influence of leader-member dynamics (D Wang et al., 2016) It further clarifies how these interactions affect employee perceptions, as noted by Dennis et al (2017), who introduced the significance of member-member relationships in this context Through leader-member exchanges characterized by mutual trust, respect, and loyalty, a sense of obligation develops among individuals (D Wang et al., 2016) Ultimately, Dennis et al (2017) adapted social exchange theory to illustrate how psychological ownership can arise within organizational representation.
RESEARCH HYPOTHESIS AND STUDY MODEL
2.3.1 Impact of employer branding on employer attractiveness
Organizational branding significantly affects a company's appeal to stakeholders, especially in attracting potential candidates The influence of a strong brand and its associated beliefs positively enhances employer attractiveness, making it crucial for companies to cultivate a compelling brand image.
Research by Leekha Chhabra and Sharma (2014) highlights strategies and communication channels that enhance an organization's brand image, significantly impacting employer attractiveness Their study developed a model illustrating how organizational attributes—such as compensation, culture, training, and empowerment—shape the organization's image through various media, including newspapers and websites This positive branding influences employer attractiveness, improving brand strength, attracting high-quality candidates, and reducing recruitment costs Additionally, social media plays a crucial role in enhancing employer branding, which in turn affects talent management by improving both attraction and employee engagement, ultimately leading to better recruitment and retention of talent (Kaur et al., 2015).
Employer branding, as outlined by Lievens (2007), involves three key stages: building, shaping affirmations about the brand's value to employees, and implementing the strategy This process communicates the benefits of the brand to potential workers The employer branding strategy leverages brand equity theory to highlight the attributes that attract talent, focusing on perceptions and beliefs about the organization's products and services.
Brand equity plays a crucial role in recruitment, influencing candidates' choices based on the attributes and reference information they receive about organizations (Turban, 2001) Effective employer branding strategies are essential for enhancing an organization's attractiveness by promoting and maintaining its positive qualities (Collins & Kanar, 2014; M R Edwards, 2010) Furthermore, a study conducted by Trybou et al (2014) in a hospital setting indicates that factors such as economic benefits, interpersonal relationships, and professionalism significantly impact organizational attraction for potential employees.
Social value refers to the degree to which an employee is drawn to an employer by the promise of an enjoyable and positive workplace, characterized by strong interpersonal relationships and a collaborative team atmosphere (Berthon et al., 2005).
Social identity theory, proposed by H Tajfel and colleagues in 1979, suggests that individuals inherently seek to associate themselves with social groups, which play a crucial role in shaping their identity as employees.
The theory posits that individuals often identify with their organization, highlighting the significance of a strong reputation and positive brand image in attracting employees A compelling employer brand fosters social value, which is crucial for employee satisfaction and engagement Consequently, effective branding enhances the organization's reputation and identity, ultimately leading to a positive social impact.
In today's competitive landscape, the success and sustainability of organizations hinge on their ability to engage and motivate both current employees and prospective candidates in the organization's growth and development.
Corporate social responsibility (CSR), employer branding, and reputation are interconnected elements that significantly influence each other Research by Verčič and Ćorić (2018) highlights this relationship, indicating that students are increasingly aware of CSR and employer branding practices in reputable companies.
Employer branding plays a crucial role in addressing the emotional well-being of employees, leading to enhanced performance and a positive work environment When employees feel valued and supported, they are more likely to foster strong relationships with colleagues who share similar values, promoting teamwork and a cohesive organizational culture However, not all companies excel in this area; a business may be successful yet fail to provide a supportive environment for its employees Thus, effective employer branding can significantly boost a company's social attractiveness (Dabirian et al., 2017).
In the realm of human resource management, workplace attraction is a vital component of an employer's brand, encompassing factors such as organizational stability, work-life balance, and job security The appeal of a workplace hinges on the mutual understanding between employers and employees regarding these attributes (Jain & Bhatt, 2015) Consequently, the strategic design of an employer's brand plays a crucial role in enhancing its attractiveness and establishing a competitive advantage in the market (App et al., 2012).
Developmental value is a crucial factor that indicates how much an individual is drawn to an employer, as it encompasses recognition, confidence, engagement in professional experiences, and a solid foundation for future growth (Berthon et al., 2005).
The first stage of the employer branding value chain model emphasizes the company's role in employee development, comprising three key steps: creating an Employer Value Proposition (EVP) with essential branding messages, marketing these values externally to target groups, and engaging current employees through internal marketing aligned with business goals Each EVP serves as a crucial identifier of employer attractiveness, shaping employees' perceptions The second stage shifts focus to the interactive elements of the employer brand, exploring employees' awareness, feelings, and experiences with the brand While the first step centers on establishing knowledge of the employer, the second step delves into employees' understanding of the employer brand.
Chhabra & Sharma (2014) emphasized the importance of employer attractiveness components, particularly career development opportunities, in building a strong brand that attracts and retains talent, ultimately achieving the 'employer of choice' status Supporting this, a Talent Solution (2016) survey of talent managers revealed that 75% of employers utilize employer branding to recruit and develop their workforce, while 65% focus on enhancing training and development through effective employer branding strategies.
The application value of a job reflects how appealing an employer is to potential employees by offering opportunities to utilize their knowledge and skills in a customer-focused and humanitarian environment, allowing them to teach others (Berthon et al., 2005).