Green HRM for Employer Branding: Evidence from ISO 14001 EMS Certified Firms

Abstract

The objective of this paper was to reveal the psychological mechanism that exist between green human resource management (GHRM) and employer branding (EB) among employees from ISO 14001 EMS certified firms. In specific terms, we proposed a moderated mediated model linking GHRM and EB using arguments borrowed from the social identity and signaling theories. In so doing, we propose an empirically tested solution to address the perennial problem of employee turnover and retention challenges. A random sample of ISO 14001 EMS certified firms was used to test our hypothesis. We developed a structural model to examine the hypothesized paths among GHRM, GEE, EB, and GPC. The results obtained indicate that there is a significant relationship between GHRM and EB and green employee empowerment (GEE) mediates this relationship. The study results further reveal that green psychological climate (GPC) moderates the relationship between GHRM and EB. In overall, the study illuminates the complex processes by which GHRM aspects influence EB. In so doing, the study promotes the understanding of the human aspect of green management and provides a framework for crafting ecologically oriented employer branding. The study therefore bears significant implications to policy makers and managers as it persuades them to adopt a new way of developing employer brand and depart from the conventional ways of building employer brand through organizational culture, remuneration and other benefits. The study suggests that engaging in GHRM is likely to offer a competitive edge in the labor market. This understanding on how GHRM influence EB through the existing employees give HR managers an important element of consideration in developing good GHRM policies and framework for attaining long term labor related goals. Moreover, the study unmasks the hidden potential in GHRM as a strategy for talent retention and hence, bears significant implications on the employee retention strategies of the firm. The study re affirms that GHRM is a reflection of the firm's environmental values, strategies and orientation. This attachment to the natural environment has a high likelihood of differentiating the organization in the labor market. The study further points out that firms can leverage on their green management while drafting talent management policies and programs.