Employer brand management, organizational prestige and employees' word‐of‐mouth referrals in Taiwan

Abstract

Word‐of‐mouth is thought to be an effective external recruitment information source that organizations are not generally able to do much about. While a number of previous studies have suggested the effectiveness of word‐of‐mouth recruitment, few have explored the specific factors enabling organizations to manage it effectively. This study addresses the cross‐level influence of employer brand management (EBM) and organizational prestige on employees' word‐of‐mouth referrals. A total of 308 survey responses from senior managers and their employees were received from 33 firms in Taiwan. All hypotheses were supported, which suggests significant relationships between EBM, organizational prestige, and employees' word‐of‐mouth referrals. The study results also suggest that organizations are able to manage employee word‐of‐mouth referrals by enhancing EBM and reinforcing employees' perceived organizational prestige accordingly.