Impact of employer branding on employee engagement in business process outsourcing (BPO) sector in India: mediating effect of person–organization fit

Abstract

PurposeThe purpose of this paper is to investigate the impact of employer branding strategy (a mechanism used by organisations to hire and retain competent talent) on employee engagement whilst simultaneously measuring the mediating effect of person-organisation (P-O) fit.Design/methodology/approachThe study analyses a sample of 296 employees working in the BPO sector in India. The proposed model is tested with the help of structural equation modelling.FindingsThe findings of the research highlight that employer branding has an affirmative relationship with P-O fit and employee engagement. The findings also reveal that P-O effect has a partial mediating effect on the relationship between employer branding and employee engagement.Practical implicationsUnderstanding and implementing employer branding strategies provides the organisation with a tool for not only harnessing good employees but also facilitates them to engage and retain them. Employer branding strategies ensure an increase in employee’s sense of belongingness and alignment of goals. Value congruence in the form of person organisation fit also ensures that employees believe that they are valued across the organisation and may go an “extra mile” to achieve organisational objectives.Originality/valueEmployer branding is a comprehensive strategy which can be used by employers to attract and retain talented employees. In a global economy where a talented workforce is scarce and has plenty of choices available to them, firms can use employer branding as a strategic opportunity to enhance employee engagement.