The Effect of Employer Brand on Voluntary Turnover Intention with Mediating Effect of Organizational Commitment and Job Satisfaction

Abstract

Purpose - Employer brand is identified as a unique employment experience by considering the amount of tangible and intangible rewards that are given by a particular company to their employees and it can differentiate one company to its competitors. This study aims to investigate the effect of the employer brand to voluntary employee turnover intention with job satisfaction and organizational commitment as mediating variables in a life insurance company in Indonesia. In this study, researcher examines only the effect of employer brand to internal organization (impacts to existing employees), which the employer brand builds both organizational commitment and job satisfaction that useful to indicate the intention of voluntary turnover.Design/Methodology/approach - The data were collected by survey using questionnaires to 100 full time employees who have worked for more than a year in the company. Purposive sampling method was used in this study. This study use causal step approach to analyze the effect of employer brand on voluntary turnover intentions through mediating variables, organizational commitment and job satisfaction using Mediate Macro for SPSS provided by Hayes and Preacher (2008).Findings - The results show that employer brand has an influence on voluntary turnover intentions; positive employee’s perceptions lead to create positive employer brand and lower voluntary turnover intentions of the company. This relationship is partially mediated by organizational commitment, while job satisfaction is not qualified as a mediator variable in this study.