Employer branding: strategic implications for staff recruitment

TLDR

In many developed economies, shifting demographics and economic conditions have created highly competitive labour markets, prompting strategic investments in attracting qualified staff, with employer branding—defined as the psychological, economic, and functional benefits that potential employees associate with a company—emerging as a key strategy. The study aims to examine the nature and consequences of employer branding to help organisations create an attractive and competitive employer brand. The authors use information economics and signalling theory to analyze employer branding. Depth interviews show that job seekers assess employer attractiveness through prior experiences, clarity, credibility, and consistency of brand signals, perceptions of brand investments, and the employer’s product or service brand portfolio. Keywords: employer branding, recruitment, brand equity, signalling theory, qualitative research.

Abstract

Abstract Abstract In many developed economies, changing demographics and economic conditions have given rise to increasingly competitive labour markets, where competition for good employees is strong. Consequently, strategic investments in attracting suitably qualified and skilled employees are recommended. One such strategy is employer branding. Employer branding in the context of recruitment is the package of psychological, economic, and functional benefits that potential employees associate with employment with a particular company. Knowledge of these perceptions can help organisations to create an attractive and competitive employer brand. Utilising information economics and signalling theory, we examine the nature and consequences of employer branding. Depth interviews reveal that job seekers evaluate: the attractiveness of employers based on any previous direct work experiences with the employer or in the sector; the clarity, credibility, and consistency of the potential employers' brand signals; perceptions of the employers' brand investments; and perceptions of the employers' product or service brand portfolio. Keywords: employer brandingrecruitmentbrand equitysignalling theoryqualitative research