Determinants of Success of Employer Branding in a Start‐up Firm in Nigeria

Abstract

This article aims at providing an understanding of factors that determine the success and failure of employer branding. An African steel‐producing start‐up company developed an employer brand image, which enabled it to effectively attract and hire talent from the labor market and inspired high engagement and productivity. A few years later, the firm lost its attractive brand image and its employer brand loyalty also declined. The study is a longitudinal investigation, and data were collected from policies and through structured interviews with the employees, ex‐employees of the organization, and prospective employees. Findings show amazing success of the employer brand in the first six years in talent attraction, hiring, engagement, and retention. Thereafter, the brand lost its potency, and its dysfunctionality significantly impacted on the future of the firm—employee dissatisfaction, decline in productivity, and increase in turnover. The reasons include a toxic organizational environment, overbranding, failure to keep promises, disconnect between employer branding and human resource strategy, shift of emphasis by senior management from people to production, and lack of a dynamic and differentiated employee value proposition. The study offers practical lessons to managers. © 2017 Wiley Periodicals, Inc.