Linking Employer Branding and Firm Performance : Testing an Integrative Mediation Model

Abstract

Faced with competitive labor markets, firms increasingly use employer branding to strategically manage their employer image with the aim of building a talented workforce. Extant research has mostly investigated the individual-level effects of employer brand attributes but has neglected whether and how engaging in employer branding as a firm-level strategy benefits workforce characteristics and, ultimately, firm performance. Integrating brand marketing theory with strategic human resource management research, we address this research gap. We develop and test a comprehensive model linking firms’ employer branding orientation with firm performance through its positive influence on brand performance as well as external recruitment (i.e., applicant pool) and internal retention (i.e., turnover intent) outcomes. The results of a multi-source (i.e., top management, human resource managers, employees) study with N=96 firms (N=16,274 participating employees) support our hypotheses. We discuss the implications of these findings for both the emerging employer branding literature and firms’ recruitment and retention practice.