Employer
Branding – An Empirical Study
V.
Uma1, Dr. R. Mary Metilda2
1Research Scholar, Karpagam
University.
2Professor & Head, School of Business, SNS College
of Technology,
*Corresponding Author E-mail: umavengat@gmail.com
ABSTRACT:
This study explore on the “Employer
Branding” which denotes the image of the employer as perceived by the internal
employees (which generally is denoted by researchers as Internal Employee
Image) and covers the opinion on the employer brand components namely
compensation and benefits, work environment, product/company brand strength,
work-life balance and company culture and environment. The sample of 50 collected
from a Water pump manufacturing industry at Coimbatore, Tamilnadu.
The study revealed that the mean scores for the individual dimensions of the
employer brand were confirming a moderate compatibility in the employee
expectations of the employer and the actual employment offer. Hence, further
research can be conducted to specify the components of employer branding and
its implications, to bring the organization in the rating of best employer
choice
Employer Branding is the term
coined by Ambler and Barrow in 1996. They defined it as the package of
economic, functional, psychological benefits provided by the employment and
identified with the employing organization. Argyris
C., (1993) defined it as the sum of a Company’s efforts to communicate to
existing and prospective staff that it is a desirable place to work.
According to Davies, (2008), Employer Branding is nothing but a HR
strategy borrowed from marketing to attract and retain talents. King and
Grace (2008) consider that Employer branding needs both internal and external
marketing. Internal marketing helps to develop a workforce.
Corporate leadership Council (1999) describes employer branding as the
‘employment offer” or job offer and insisted on the Internal employee brand image
is conceptualized to be the actual offer of employment or job offer that
is perceived by the employees. Collins (2006) defined it as the effect of
brand image and knowledge which potential and existing employees have about the
firm.
Wilden et al (2006), employer branding actually
tells the attitude of potential and current employees towards job and
organizational attributes which builds the employer brand image. Bernard Hodes, identified that there are two roots to the family
tree of the employee brand. The first lies in recruitment communications
linked to the growth of the power of the corporate brand and the second in
Occupational psychology and in particular, in the idea of the psychological
contract. (Employees expectations are compatible with the terms and conditions
of the Organization).This study exploring the employees' perception on the
internal employee branding image which covers the opinion on the employer brand
components namely compensation and benefits, work environment, product/company
brand strength, work-life balance and company culture and environment.
REVIEW
OF LITERATURE:
Gehrels, S.A. (2007) A study on “Employer branding
a new approach for the Hospitality industry” Employer branding has potential to
face some of the problems. It is used as a human resources management strategy
to differentiate. An employer brand is closely connected to a company’s
corporate- and customer brands. Elements are: attractiveness to outsiders,
engagement and retention of talent. For this research, 23 senior hospitality
decision makers were interviewed. The interviewees acknowledged the current problems
in the hospitality industry. The majority had heard about employer branding but
only a few had started to implement it. Some conceive employer branding as ‘job
advertisement pimping’ instead of being a strategy. Based on the interviews and
the literature a number of suggestions were formulated to implement employer
branding.
Eveliina Suikkanen (2010) “How Does
Employer Branding Increase Employee Retention?”The aim of this study was to
determine how Employer Branding influences Employee Retention. A further aim
was to study the concepts of employer branding, branding activities and
retention and how they are linked to one another. A basic research was
conducted by reviewing literature based on existing material. The concepts and
implications of employer branding, marketing and branding, turnover and
employee retention were researched and analyzed. The literature review
concluded three major hypotheses: (1) Marketing activities aim to produce
(employer) brand equity increasing (employer brand) loyalty, (2) Employer
branding is a retention management technique. influencing engagement,
organizational culture and the perceived psychological contract all positively
linked to retention and (3) The employer brand reinforces the entire employment
experience increasing retention. The review of literature resulted in the
conclusion that all of the hypotheses produced were true, hence implying that
branding efforts used in personnel management increase employee retention
Riley (2009) A study on
"Employer Branding" has gained increasing interest in the past decade
and more and more companies seek to become "the employer of choice".
Even in the current economic climate of post recession it is viewed that
employer branding still plays an important role especially in retaining top
talent. Now that the economy is starting to recover employees are gaining back
their confidence and may start looking for other opportunities. Companies that
have been managing their employer brand consistently have been able to bring
value to their employees thus leading to increased commitment and loyalty.
Tanya Bondarouk1 et al,(2012)
A study on” Employer Branding and its Effect on Organizational
Attractiveness via the World Wide Web” This study tests the relationships
between employer branding and organizational attractiveness. Employer branding
is viewed as an approach for providing organizational members and
organizational outsiders with specific (employment) information to increase
their experience with an organization. Promoting an organizations employment
brand often occurs via different media sources, of which corporate web-sites
and Social Networking Sites recently gained in popularity. Therefore,
additionally, the study assessed the moderating role of the web-sites on the
relationships between employer branding and organizational attractiveness. A
mixed-method study served to meet the goals. Eight High Tech organizations
participated in this study: interviews and document analysis functioned to
assess employer branding. Lab experiment aided in testing hypotheses. Results
showed that there was a direct relationship between employer branding and
organizational attractiveness. The moderating effect of the World Wide Web
remains unclear. The outcomes between the control group (with no interference
of corporate websites or social networking sites) and the experimental group
(with interference of corporate websites or social networking sites) did not
differ significant, although the difference between the corporate websites and
LinkedIn was significant, indicating that respondents feel more attraction to
an organization when reviewing the corporate website than reviewing their
LinkedIn profile.
RESEARCH METHODOLOGY:
Therefore the primary purpose
of this quantitative study was to examine empirically, and confirm the presence
of relationship between the various components of employer brand. The influence
of personal factors including the demographic variables was also studied. Based
on the literature and in conjunction to the above mentioned study purpose, the
following research questions were framed Research questions:
The status and nature of
employer brand (Internal employee brand image) and its components as perceived
by the employees of the organization?
The effects of the
demographic factors on the variables of study?
A survey Instrument
consisting of a detailed questionnaire was prepared based on the literature
reviews. The term Employer brand in this study denotes the image of the
employer as perceived by the internal employees (which generally is denoted by
researchers as Internal Employee Image) and covers the opinion on the employer
brand components namely compensation and benefits, work environment,
product/company brand strength, work-life balance and company culture and
environment. Employer brand variable conceptualized based on The Corporate
Leadership Council dimensions were operationalised by
using a set of 5-point Likert Scale statements.
Survey Data and Sample:
A total of 50 sample
respondents were chosen from the Water pump manufacturing industry at
Coimbatore, Tamil Nadu. Descriptive statistics were used to describe the
Employees’ perception on employer brand. Weighted average technique, ranking
technique, Chi-square and cross tabulation are used for Data Analysis.
Weighted Average Method
|
Employer Branding Components |
N |
Mean |
Rank |
|
Employer ensures necessary tools |
50 |
2.12 |
16 |
|
Employer ensures comfortable work
environment |
50 |
1.9 |
19 |
|
Employer ensures health and safety |
50 |
2.12 |
17 |
|
Employer ensures learning in work place |
50 |
2.36 |
15 |
|
Employer ensures work-life balance |
50 |
2.76 |
6 |
|
Employer ensures performance reflected
compensation |
50 |
2.4 |
14 |
|
Employer ensures recognition of individual
achievements |
50 |
2.72 |
8 |
|
Employer ensures need based benefit plans |
50 |
2.78 |
5 |
|
Employer ensures recognition of team
achievements |
50 |
2.5 |
10 |
|
Employer ensures empowerment to voice
constructive opinions |
50 |
2.44 |
12 |
|
Employer guides rather than directs or
commands |
50 |
2.92 |
2 |
|
Employer ensures commitment to continuous
change |
50 |
2.98 |
1 |
|
Employer ensures mutual respect in
workplace relationships |
50 |
1.98 |
18 |
|
Employer ensures selection of the most
capable |
50 |
2.74 |
7 |
|
Employer ensures knowledge sharing |
50 |
2.6 |
9 |
|
Employer ensures to skill compatibility in
work place |
50 |
2.86 |
3 |
|
Employer ensures relevant training
opportunities |
50 |
2.48 |
11 |
|
Employer ensures access to mentoring or
coaching by seniors |
50 |
2.44 |
13 |
|
Employer ensures job rotation |
50 |
2.86 |
4 |
|
Mean
score |
|
2.52 |
|
RESULTS
AND DISCUSSION:
From the above weighted
average method, it is inferred that, with regard to the Employees' perceptions
of their employer brand, the composite mean score (M = 2.52) was
just above the scale midpoint of 2.50, indicating that there is moderate
employer brand image existing in the study area. The mean scores for the individual
dimensions of the employer brand were also moderate, confirming a moderate
compatibility in the employee expectations of the employer and the actual
employment offer. It also been inferred
that first three ranking is given to the
components of Employer ensures commitment to continuous change, Employer guides
rather than direct/command and ensures skill compatibility in work place
respectively. It implies that corporate focus on the significant growth in the
part of the employees which builds the positive employer brand image. It also
to be reconciled that mean of each components are in the mid-point of scale,
that is average. Hence, it can be suggested to improve the brand building
efforts to reach the maximum point of scale.
Hypothesis 1:
Null Hypothesis (H0): There is no relationship between
the variable Employer ensures learning at workplace and mutual respect in
workplace
Alternative Hypothesis (H1): There is relationship
between the variable Employer ensures learning at workplace and mutual respect
in workplace
Employer ensures learning at workplace Vs Employer ensures mutual respect in workplace:
Chi-Square Tests
|
. |
Value |
df |
Asymp.Sig(2-sided) |
|
Pearson Chi-square Likelihood Ratio Linerar-by-Linear Association N of Valid Cases |
20.252a 23.946 0.051 50 |
16 16 1 |
0.209 0.091 0.822 |
23 cells (92.0%) have expected countless than 5. The
minimum expected count is 0.24. The above table of Chi-square test, the
calculated value is 0.209, which is greater than table value, 0.05. Hence, Null
hypothesis is accepted and alternative hypothesis is rejected. It has been
inferred that there is no significant relationship between the learning at
workplace and mutual respect in workplace.
Hypothesis 2:
Null Hypothesis (H0): There
is no relationship between Income variable and Employer ensures comfortable
work environment
Alternative Hypothesis (H1):
There is relationship between Income variable and Employer ensures comfortable
work environment.
|
Chi-Square Tests |
|||
|
|
Value |
df |
Asymp. Sig. (2-sided) |
|
Pearson
Chi-Square |
21.368a |
12 |
.045 |
|
Likelihood Ratio |
20.745 |
12 |
.054 |
|
Linear-by-Linear
Association |
.140 |
1 |
.709 |
|
N of Valid Cases |
50 |
|
|
|
a. 16 cells (80.0%) have expected count less than
5. The minimum expected count is .02. |
|||
The above table is framed to find out the
relationship between income and employer ensures comfortable work environment.
As the p=0.045, less than level of significance of 0.05, Null hypothesis is
rejected and concluded that there is significant relationship between the
income and comfortable work environment.
FINDINGS:
1.
28% of
the respondents’ age between 20-30 years of age, 48% of the respondents’ age is
between 30 and 40.
2.
66% of
the respondents are male and 34% of the respondents are female
3.
44% of
the respondents' salary ranges between Rs.5000-Rs.10, 000 per month. 42% of the
respondents ranges between Rs.10,000 to 15,000 per month
4.
48% of
the respondents' agreeing that employer ensures necessary tools.
5.
72% of
the respondents' agreeing that employer ensures comfortable work environment.
6.
74% of
the respondents agreeing that employer ensure health and safety.
7.
76% of
the respondents agreeing that employer ensure learning at workplace.
8.
54% of
the respondents' agreeing that employee ensures performance reflected
compensation
9.
58% of
the respondents' agreeing that employer ensures recognition of individual
achievement.
10. 66% of the respondents' ensures that
employer give importance to voice constructive opinions
11. 42% of the respondents' felt that employer
guide rather than direct and command. Other half of the respondents disagreeing
is also insignificant
12. 74% of the respondents' felt that there is
mutual respect at workplace.
13. 44% of the respondents felt that employer
ensures selection of the most capable.
14. 48% of the respondents' agreeing that
employer ensures knowledge sharing.
15. 56% of the respondents' felt that the
employer ensures relevant training opportunities.
16. 54% of the respondents’ felt that the
employer ensures job rotation
CONCLUSION:
It can be inferred
that only half of the respondents agreeing that employer ensures necessary
tools, performance reflected compensation, employer guide rather than direct,
employer give importance to voice constructive opinions, employer ensures for
job rotation and training opportunities. It proves that employer ensures
moderate employer branding compatibility. Hence, further research can be
conducted to specify the components of employer branding and its implications,
to bring the organization in the rating of best employer choice.
REFERENCES:
1.
Ambler, T. and S. Barrow, 1996. The employer brand.
Journal of Brand Management, 4(3): 185-206.
2.
Argyris, C. (1993). On
organizational learning. Cambridge, MA: Blackwell Publishers.Argyris,
C. (1995). Action science and organizational learning, Journal of Managerial
Psychology, 10(6), 20–2
3.
Collins, C. J. and C. K. Stevens, 2002. The
relationship between early recruitment-related activities
4.
Corporate Leadership Council. (1999). The employer
brand: building competitive advantage in the labour
market. Corporate Leadership Council: Washington, D. C.
5.
Davies, G., 2008. Employer branding and its influence
on managers. European Journal of Marketing, 42(5/6): 667-681.
6.
Gehrels, S.A. (2007) The
influence of Hospitality Industry Managers Characteristics on Hospitality
Management Curricula, Leeuwarden: CHN International Hospitality Management
7.
Helen Rosethorn, Bernard Hodes group, The
Employer Brand Keeping Faith with the Deal Origins – Two Roots to the Family
Tree
8.
King, C. and Grace, D. (2008), Internal branding:
exploring the employees perspective, The Journal of Brand Management, Vol. 15
No. 5, pp. 358-72
9.
Riley, C. (2009) Employment brands to protect against
increased staff churn in recovery. Keeping good companies, 01/12.
10.
Eveliina Suikkanen, 2010, How does Employer Branding increase
Employee Retention? Degree Programme: BBA (hons): European Management Bachelor of Arts (hons) Human resource management and Marketing
11.
Tanya Bondaroukl, Paper
presented at the 4th International e-HRM Conference “Innovation, Creativity and
e-HRM,Department of Operations, Organization and
Human Resources,University of Twente
School of Management and Governance, Nottingham Trent University, UK
12.
Vaijayanthi P(2011), Employer
Branding as an Antecedent to Organisation Commitment:
An Empirical Study, International Journal of Global Business, 4 (2), 91-106
13. Wilden,R., Gudergan, S. And Lings, I.N.(2006), “Employee Based brand
equity” proceedings of the Australia, New Zealand Marketing Academy Conference
Brisbane, Australia .
Received on 18.04.2012
Accepted
on 12.05.2012
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Asian J. Management 3(2): April-June, 2012 page 86-89