Employer Brand as a Strategic Weapon to Reduce Organizational Turnover in Family Business

Abstract

This study examines the impact of employer brand on organizational turnover in family firms with the family involvement in management. In this research, employer brand is operationalized by using two proxies including corporate governance evaluation ranking system (CGER) and the number of negative news about company's violations. Drawing on the resource-based view and employer brand equity perspective, we hypothesize that CGER positively while negative news negatively affect organizational turnover. Besides, the extent of family member presence in the board moderates the influence of employer brand on organizational turnover. Using longitudinal data from Taiwan Economic Journal over a 5-year period of more than 1.000 publicly family firms to test the proposed model, the findings indicated that CGER is marginally positively significant with organizational turnover while negative news significantly positively affects organizational turnover. Moreover, this study found that the low level of family presence in the board may enhance the negative impact of CGER on organizational turnover while the high level of family presence in the board mitigates the effect of negative news on organizational turnover. These findings enhance the literature on both employer brand in the organizational behavior field and the heterogeneity within the family business.