Magnetic Stars: Enhancing Organizational Recruitment Efforts Through Star Signaling

Abstract

Organizations—particularly those in human capital-intensive industries—that have fought the talent war with star employees, may have received less than they bargained for (Groysberg, Lee, & Nanda, 2008; Terry & McGee, 2016). Consequently, firms may seek other ways in which a star employee can contribute to organizational productivity and effectiveness. We suggest that organizations can leverage their star talent within the recruitment process—one of the most urgent problems faced by organizations today (Ployhart, 2006). The current study seeks to examine if and how stars may enhance organizational recruitment efforts. In a 2 (star present versus absent) × 2 (average salary or above average salary) factorial research design (n = 184), we find that the presence of a star employee signals organizational reputation to potential applicants in the external labor market which, in turn, increases applicants’ attraction to the firm and the likelihood they will pursue the application process further. These results provide evidence that star employees can trigger signaling-based mechanisms early on in the recruitment process, leading to desirable organizational-level recruitment outcomes.