Abstract
In today’s competitive labor market, firms use employer branding strategies to engage their workforce for better performance. However, the current understanding of the role of employer branding in firm-level performance in the context of developing countries is very limited. This study aims to investigate the importance of employee retention and recruitment efficiency to strengthen the relationship between employer branding and firm-level performance. Data are collected from 316 Azerbaijani firms that are tagged by the Glassdoor and reviewed by former employees. Structural equation modeling is used to test the hypotheses. The results of the study show that employer branding can enhance firm-level performance through employee retention and recruitment efficiency. However, online employee reviews on the Glassdoor do not moderate the connection between employer branding and employee retention. Current employees feel motivated to continue working with those companies which show excellent employer strategies. Furthermore, a firm’s strategy to attract the best employee pool improves firm-level performance. It is also concluded that employees working in developing countries do not concern about online reviews on their employer, and prefer to continue working despite contrary thoughts. Acknowledgment Author acknowledges the financial support provided by Internal Grant Agency (IGA/FaME/2019/008) of FaME through Tomas Bata University in Zlin, Czech Republic.
Highlights
The main goal of human resource management is to build and engage a competent workforce for better firm performance (Collings & Mellahi, 2009; Taylor & Collins, 2000)
Results suggest that employee branding strategies are crucial in enhancing firm-level performance in developing countries like Azerbaijan
The results of the study show that employee retention and recruitment efficiency are positively associated with firm-level performance, which is consistent with existing literature
Summary
The main goal of human resource management is to build and engage a competent workforce for better firm performance (Collings & Mellahi, 2009; Taylor & Collins, 2000). Firms have started to fascinate both incumbent employees and potential applicants in this competitive labor market. This approach to attract employees is referred to as employer branding that aims to promote a clear view, internally and externally, to make a firm desirable and different as an employer (Berthon et al, 2005). Employee online reviews about the employer can be posted on platform companies like Glassdoor, Jobadvisor, and Kununu, etc. They are considered key factors in affecting employer branding and employee retention. It is yet to explore how online employee reviews affect employer branding strategies and how current employees consider such reviews for their job retention
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