Everyone today is talking about employer branding. Employees are becoming savvier about their workplace brand, thanks to the increasing use of social media and Internet. Various websites like Glassdoor.com, Salary.com and PayScale.com enable employees to compare salary and company ratings. Such an environment has created challenges for an organisation to attract and retain its workforce.
Organisations have realised the importance of brand as an asset. Employer branding is a contemporary research topic in HR literature and has captured a lot of attention in recent years. With the growing competition, it has become difficult for organisations to manage their human resources effectively. In order to attract and retain the right candidate organisations have opted for employer branding strategy. Employer branding helps an organisation in identifying the important attributes that are embraced by potential and existing employees. These attributes are termed as ‘package of benefits’ which are marketed both internally and externally in order to earn the label of ‘most attractive employer’. Thus, employer branding offers a unique employment experience to existing and potential employees (Edwards, 2009).
In order to analyse the effect of employer branding dimensions on organisational commitment, the present study has selected IT sector as a case study because Indian IT industry is facing the biggest challenge of retention of employees. Most of the large IT firms started reporting rise in employee turnover since January–March 2013. Since then the trend is continuing till date. TCS, Infosys and Accenture are a few companies where employee attrition has become a major concern. This article aims to examine the relationship between employer branding dimensions and organisational commitment. In other words, the present study tries to bridge the gap by analyzing whether a branded organisation is able to create commitment among employees.
The purpose of the present research is to explore the relationships between employer branding dimensions and organisational commitment. The reliability and validity of the model has been addressed through confirmatory factor analysis. Structural equation modelling has been used to determine the contribution of employer branding through organisational commitment. The results demonstrate that two dimensions of employer branding, namely development value and social value act as critical predictors of organisational commitment. The study understands the role of employer branding from existing employees’ perspective in a developing nation like India.
The Effect of Employer Brand Dimensions on Organisational Commitment: Evidence from Indian IT Industry
First Published October 9, 2017
Asia-Pacific Journal of Management Research and Innovation