Empirical evidence on employer branding and its impact on the formation of psychological contract

Abstract

In today's competitive environment where every organization is trying to be at the forefront it has become an obligation for all the organizations to live up to the expectations of their stakeholders specially their employees. Due to increasing global shortage of talent driven by the ageing population, increased mobility of workers, migration, technological advances and an increase in culture diversity in organizations are some of the reasons when employer branding is now high on the leadership agenda. This includes direct and indirect experiences of dealing with the firm. Employer branding is defined as a targeted long term strategy to manage awareness and perceptions of employees, potential employees and related stakeholders with regards to a particular firm. Successful employer branding impacts the building of psychological contract amongst the potential employees which helps in creating the employer value proposition for the organization. Psychological contract is an unwritten and unlike the written contract, iscontinually changing. By nature it is generally unspoken and dependent on the interpretationof all parties. This study identifies the contemporary dimensions of employer branding from the perspective of the prospective employees. This paper also studies the impact of employer branding on the formation of psychological contract in terms of elemental beliefs with respect to three major IT companies TCS, Wipro and Infosys.