Journal of Asia-Pacific Business

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Employer Branding Aids in Enhancing Employee

Attraction and Retention

Asad Ahmad, Mohammed Naved Khan & Md Asadul Haque

To cite this article: Asad Ahmad, Mohammed Naved Khan & Md Asadul Haque (2019): Employer
Branding Aids in Enhancing Employee Attraction and Retention, Journal of Asia-Pacific Business,
DOI: 10.1080/10599231.2020.1708231

To link to this article: https://doi.org/10.1080/10599231.2020.1708231

Published online: 21 Dec 2019.

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JOURNAL OF ASIA-PACIFIC BUSINESS
https://doi.org/10.1080/10599231.2020.1708231

Employer Branding Aids in Enhancing Employee Attraction

and Retention
Asad Ahmada, Mohammed Naved Khanb, and Md Asadul Haquec
a
Department of Management, Jamia Hamdard, New Delhi, India; bDepartment of Business
Administration, Faculty of Management Studies & Research, Aligarh Muslim University, Aligarh, India;
c
Amity School of Communication, Lucknow, India

ABSTRACT KEYWORDS
It has become a vital task for employers to attract and retain the Employer branding;
talented pool of human capital. The human capital of a firm has employee attraction;
proved itself a source which provides employers with employee retention
a competitive advantage. In recent years employers have
adopted certain practices aiming to attract talented employees.
Employers spend a considerable amount of their resources on
becoming an employer of choice. The researchers in the present
study have adopted a scale in an attempt to study the employer
branding factors influencing the attraction and retention of
employees working in various banks (both private and govern-
ment) in Delhi NCR, India. The study also attempts to observe the
differences (if any) with respect to gender as well as government/
private sector employees concerning employee attraction and
employee retention. The results of the present study suggest
market value and social value as the factors determining the
employee attraction, whereas, career development and image
as the factors determining employee retention.

Introduction
Recruiting employees is not just a matter of getting people on board, but
getting the right people on board is very important for any organization
(Collins, 2007). Talented employees are very advantageous for any organiza-
tion. Thus, business firms try to hire and retain skilled employees.
Organizations possessing talented employees may emerge victorious, if they
help the employees develop expertise and maximize their potential (Cascio,
2014). Factors like globalization, innovation and technology, mergers and
acquisitions, organizational restructuring, procurement of talents etc. have
significantly affected the recruitment scenario. These factors have stimulated
the employers to work on their strategies related to employee relationship,
which is assumed to be an important aspect in attracting, motivating and
retaining talents (Biswas & Suar, 2013). Employees are concerned with the
reputation of the firm they work in; thus, to attract and retain talented

CONTACT Asad Ahmad asad7babar@gmail.com Department of Management, School of Management and

Business Studies, Jamia Hamdard, New Delhi, 110062, India
© 2019 Taylor & Francis Group, LLC
2 A. AHMAD ET AL.

employees, a firm has to be an organization of repute (Turban & Cable,

2003). Attracting and retaining skilled employees have become a vital issue
for several firms which are trying hard to be an employer of choice for the
employees (Sutherland, Torricelli, & Karg, 2002). This concept of ‘employer
of choice” is nothing but the idea of employer branding (Biswas & Suar,
2013; Tüzüner & Yüksel, 2009). The concept of employer branding has been
derived from marketing which has emerged as a vital area for employers. In
the present era of competition, organizations have started using branding as
a strategic tool. Firms are busy in applying the concept of branding in several
other settings where the role of branding is prominent (Sokro, 2012).
Researchers emphasizes that a firm having effective employer branding
have a competitive advantage over other firms and helps in satisfying and
retaining employees (Backhaus & Tikoo, 2004; Ployhart, 2006; Renaud,
Morin, & Fray, 2016; Sokro, 2012).
With globalization and liberalization of the world economies, firms in
developing countries like India have become more strategic in expanding
the business using employer branding, which helps in employee retention. In
these firms, the employee value proposition distinguishes them from other
competing firms. The more importance employees get from their organiza-
tions, the more loyal they are to that respective organization. Irrespective of
the importance of employer branding in the business world, very less
research can be found related to the concept (Backhaus & Tikoo, 2004;
Davies, 2008; Sokro, 2012). Earlier researchers have come up with studies
which indicate positive and significant attributes, which helps employers in
attracting employees (Renaud et al., 2016). However several researchers have
suggested that there’s a need of empirical researches which helps in exploring
the organizational attributes which help in attracting as well as retaining the
consumers (Ehrhart & Ziegert, 2005; Lievens, Van Hoye, & Anseel, 2007;
Renaud et al., 2016). In the present era of technology and globalization, one
of the relevant questions which need a proper response from the employers
is; How to stand out the competition?

Literature review
Employer Branding has got a significant attention in recent times.
Researchers have testified that the importance of employer branding has
led the employers in spending a considerable amount of resources in
developing it. Employer branding is what the organizations market their
offerings to their probable as well as existing employees. Their aim is to
maintain employees’ loyalty by communicating and promoting their posi-
tive aspects both within and outside the firm. The concept is an extension
of the principles of relationship marketing. It focuses on the close rela-
tionship with the stakeholders which helps them to become an
 JOURNAL OF ASIA-PACIFIC BUSINESS 3

organization where an employee willingly join and continue to work in

(Backhaus & Tikoo, 2004; Morgan & Hunt, 1994). With the globalization
and new technological advances, the concept of employer branding has
proven itself to be a critical factor in pooling a firm with the best talents
in the economy. Employers are in dire need to work on building career
partnerships with their employees. Different firms try to attract and retain
the talented pool to work in their firms. Thus, the employers are more
committed toward aspects like work/life balance of their employees. The
employers have started reevaluating their priorities, which has reformed
the definition of a successful organization. A successful employer is
considered to be the one who has included social dimensions in the
workforce. The term “Employer Brand” was brought up by Ambler and
Barrow (1996). They explained it as the benefits, an organization offer
their employees which further helps in building a positive attitude of the
employees toward the firm (Bellou, Chaniotakis, Kehagias, & Rigopoulou,
2015). Employer branding has further been defined as “a targeted, long
term strategy to manage the awareness and perceptions of employees,
potential employees, and related stakeholders with regards to the particu-
lar firm” (Sullivan, 2004). Employer branding signifies a group of distinc-
tive associations made by employees with the firm they work or want to
work in (Biswas & Suar, 2013; Davies, 2008). It has evolved as a new
approach used by the employers, where they are concerned with attract-
ing, recruiting and more importantly retaining the best pool of talents in
their organizations. The recruiter’s task is to transform the culture, work
environment and employee experience into a valuable brand, a brand
which can meet the expectation of the employees. It has been found the
generation Y employees are different from the older generation. They ask
for flexibility, meaningfulness in their jobs, professional freedom, opti-
mum rewards, and a much better work-life balance. In the employer
brand management process, human resource personnel keep themselves
involved in working and improving the employee experience, which
further helps in building employee loyalty. The organizations through
employer branding build an image, wherein employees find it a worthy
place to work (Bellou et al., 2015).

Employee attraction and retention

The employer brand plays a vital role in building up the image of the
firm for the employees as the brand does help in building a positive
image of products and services offered by the marketers (Sokro, 2012).
All the organizations have their brand, and the value of their brand
depends on the way employees perceive it as a place to work. The
employer brand helps the organization compete effectively in this
4 A. AHMAD ET AL.

competitive world (Ployhart, 2006; Renaud et al., 2016). Employer

Branding helps to transform the management framework of the organi-
zations, which further facilitate the process of recruitment and retention.
It also improves the commitment of the employees toward their
employee, which leads to increased productivity (Elving, 2013).
Prominent players of the economy have recognized the importance of
employer branding, and have worked toward assessing and updating
their employee value proposition. An employer must analyze the critical
role an employer brand plays in recruiting and retaining talented human
resource (Cascio, 2014). There are various elements, i.e. globalization,
need for innovation, mergers and acquisitions, privatization, etc., which
directly or indirectly influences the employment scenario. The employ-
ers to succeed have started reviewing their employee relation strategies
concerning to attract, motivate and retain the pool of talents, which
makes them successful in the market (Zivnuska, Ketchen, & Snow,
2001). The success of an organization not only depends on hiring but
retaining the hired employees also have a significant role in the success
of the firm. Attracting talent and retaining them has become an essential
factor for the competing organizations. Employers strive to become
“employer of choice”, which is beneficial in employer branding (Biswas
& Suar, 2013; Sutherland et al., 2002; Tüzüner & Yüksel, 2009). The
recruitment communication, as well as the recruitment process, carves
the way for the employers to gain competitive advantage and to emerge
as winners of the battle for talent pool (Bhatnagar & Srivastava, 2008). It
is crucial for employers to attract and retain high-quality employees,
which helps them in gaining organizational reputation (Gotsi & Wilson,
2001). The perception regarding the characteristics of the job as well as
that of the organizations plays a significant role in alluring the employ-
ees. This perception also acts as a catalyst for potential employees to
decide between working with a particular employer (Ehrhart & Ziegert,
2005). It has been recommended that there should be a match between
personal and fundamental organizational values. Person-organization
(P-O) fit helps in attracting more talented employees to work for the
organizations (Cable & Edwards, 2004). The positive P-O fit helps in
building a positive image of the employers and thus, helps in attracting
a higher number of qualified personnel to add to the workforce of the
organization (Elving, 2013; Turban & Cable, 2003). Employee consigns
attributes like imagery and trait inferences to the organizations, and
these attributes play a significant role in making the organization an
attractive place to work in (Lievens et al., 2007). Corporate image, as
well as the employer image, are an important factor in attracting
employees (Cable & Turban, 2003). Enabling organizations with features
liked by the employees will help the employers in attracting new
 JOURNAL OF ASIA-PACIFIC BUSINESS 5

talented employees as well as in retaining their existing pool of talent

(Arachchige & Robertson, 2011). With high rates of voluntary turnover,
employers are more concerned with the retention of their top employ-
ees. To retain the existing employees, Cascio (2014) has suggested that
employers must work on three strategies viz. positive employer brand,
performance management and innovation. With the dynamic change in
the employment environment, employee retention has become very
important. The demand for talented employees have gained momentum,
but the supply is not adequate. Thus, organizations have made several
changes in their strategies to attract and retain an ample amount of
talent (Biswas & Suar, 2013). Retention of employees is equally essential
for an organization as is the attraction for employers.

Research objective
The growing importance of employer brand in the success of an orga-
nization and lack of academic research led the researchers of the pre-
sent study in focusing the factors which employees ponder over while
choosing or continuing with an employer. The researchers in the pre-
sent study aimed to address the following two questions: What are the
attributes which attract the employees? And, what are the attributes
which make the employees continue in a firm? The researchers have
taken a cue from and tried to extend the work of Sokro (2012), to
determine the factors which help in attracting employees and also in
retaining their talent pools. The researchers in the present study have
also tried to explore the relevance of employer branding on the employ-
ees of private as well as government bank. Thus, the following hypoth-
eses were formulated:

H01: No significant difference exists in why respondents opt to work in an

organization with respect to Gender.

H02: No significant difference exists in why respondents opt to continue to

work in an organization with respect to Gender.

H03: No significant difference exists in why respondents opt to work in an

organization with respect to the type of organization (Public/Private).

H04: No significant difference exists in why respondents opt to continue

working in an organization with respect to the type of organization (Public/
Private).
6 A. AHMAD ET AL.

Research methodology
The researchers in the present study have taken a cue from the scale used by
Sokro (2012). The research instrument comprised seven items related to
employee attraction and five items related to employee retention. The
research items were rephrased, keeping in mind the Indian participants of
the study. The responses were generated using a five-point Likert scale
(where 1 = strongly disagree & 5 = strongly agree). The target population
for the study consisted of employees of the banking sector in Delhi and
surrounding areas. The researchers have conveniently selected employees of
the leading private as well as government banks (i.e. SBI, PNB, ICICI, HDFC,
and Syndicate) located in the Delhi NCR.
The refined questionnaire was administered on a researcher controlled
sample comprising 100 employees of the banking sector. The authors per-
sonally administered the questionnaires to the respective employees in dif-
ferent banks. The presence of researchers and clearing any doubts of the
respondents help in getting a high-quality response (Ahmad & Khan, 2017;
Dornyei & Taguchi, 2010). Out of the collected responses, only 75 responses
were found relevant for further analysis. The other 25 responses were dis-
carded because they were not complete in certain aspects. Table 1 provides
a summary profile of the respondents.

Analysis and results

Exploratory factor analysis (EFA)
Exploratory Factor Analysis (EFA) was performed on the items of both
employee attraction (EA) as well as employee retention (ER) using SPSS
19. The Bartlett’s Test of Sphericity (BTS) confirmed that the variables
of both EA and ER are correlated. The Kaiser-Meyer-Olkin (KMO)

Table 1. Profile of respondent.

CHARACTERISTIC FREQUENCY
ORGANIZATION TYPE
Public 40
Private 35
AGE
Upto 30 Years 29
31 to 40 Years 34
Above 40 Years 12
GENDER
Male 37
Female 38
EXPERIENCE
Less than 2 Years 9
2–4 Years 18
More than 4 Years 48
 JOURNAL OF ASIA-PACIFIC BUSINESS 7

Table 2. Factor analysis.

Factor Loadings
Statements Factor 1 Factor 2
Employee Attraction
The organization provides good service conditions. EA1 .850
I find the organization a means of career development. EA2 .499
Guiding principles of the organization are satisfactory EA3 .703
Organization offers good rewards and opportunities EA4 .867
Behavior of the organization toward employees is ethical EA5 .834
The organizations offers quality services EA6 .789
The information provided by us to the organization is kept confidential EA7 .903
Organization also carries out activities for the benefit of society at large EA8 .710
Employee Retention
There are lot of opportunities for my career growth in this organization ER1 .836
The organization provides us with job security ER2 .927
The image of the organization is satisfactory ER3 .714
The organization recognizes our performances ER4 .850
The organization has good quality management practices ER5 .863
The organization provides equal opportunities to all employees ER6 .907

measure of sampling adequacy showed a practical level of common

variance (KMO = 0.785 and 0.722 respectively) for both EA as well as
ER (Table 2). As per the suggestion of Hair, Anderson, Tatham, and
Black (1995) and Herington and Weaven (2007), for the KMO measure
of sampling adequacy more than 0.6 and significant value of Bartlett’s
Test of Sphericity (p < .005), the sample size of 75 can be considered
adequate for this study.
The factor analysis matrix resulted in the extraction of four underlying
factors (Table 3). The extracted factors for employee attraction were named
as Market Value (EA1, EA2, EA6, & EA7) and Social Value (EA3, EA4, EA5,
& EA8), whereas, the two factors resulting from the factor analysis of the

Table 3. Factor analysis matrix.

Factor Loadings
Factors Item Code Cronbach Alpha Factor 1 Factor 2
Employee Attraction
Market Value EA1 0.834 .850
EA2 .499
EA6 .789
EA7 .903
Social Value EA3 .841 .703
EA4 .867
EA5 .834
EA8 .710
Employee Retention
Career Development ER1 .893 .836
ER4 .850
ER5 .863
ER6 .907
Image ER2 0.670 .927
ER3 .714
8 A. AHMAD ET AL.

Employee retention variable were named as Career Development (ER1,

ER4, ER5, & ER6) and Image (ER2, & ER3). The Cronbach Alpha values
for all the four factors were found to be within a satisfactory range (0.670–-
0.893). Except for the image factor (0.670), all the three factors had had
reliability values of more than 0.7, which signified the scale to be reliable
with Alpha values of more than 0.6 for all the four factors (Khan & Adil,
2013).

Independent samples t-Test

Differences in response patterns of both the genders vis-à-vis the factors
involving employee attraction and employee retention were determined
by employing independent samples t-Test, and inferences were drawn
based on the outcome. It is clear from the level of significance (Table 4),
both the genders do not exhibit significant differences with respect to
both the variables. Thus, H01 and H02 could not be rejected.
Differences in response patterns of both the public as well as private
sector employees vis-à-vis the factors of employee attraction and
employee retention were determined by employing independent sample
t-Test, and inferences were drawn. It is clear from the level of signifi-
cance (Table 5), both the groups do not exhibit significant differences
with respect to employee attraction, but they posit significant difference
concerning employee retention. Thus, H03 could not be rejected, and
H04 could not be accepted. The mean value also suggests that govern-
ment employees are more positive toward the employee retention
variable.

Table 4. t-Test (Gender).

Levene’s test
Construct Gender N Mean F value Sig. Sig. (2-tailed)
Attraction Male 37 3.8953 4.454 .038 .695
Female 38 4.0164
Retention Male 37 3.8604 2.868 .095 .375
Female 38 3.9254

Table 5. t-Test (Organization type).

Levene’s test
Construct Type of Organization N Mean F value Sig. Sig. (2-tailed)
Attraction Private 35 3.9929 22.082 .000 .621
Govt 40 3.9250
Retention Private 35 3.6714 1.408 .239 .011
Govt 40 4.0875
 JOURNAL OF ASIA-PACIFIC BUSINESS 9

Discussion
The rapid growth in technology, globalization, and the rising power of
international brands have revolutionized the entire marketing system. To
have a competitive edge, marketers compete to hire a pool of talented
employees (Priyadarshi, 2011). The present-day marketers must make
a radical shift from traditional thinking and need to promise diverse career
opportunities to their employees to get a competitive edge over their con-
tenders. In the current labor market, employees ponder over career develop-
ment much more than the salary offered by employers. They have started
including work-life balance as well as the social responsibility shown by the
employers as a critical aspect provided to them by their employers.
The researchers in the present study have tried to examine the determi-
nants which play a vital role in attracting as well as retaining a pool of talents.
For this purpose, the researchers have adapted a 12-item scale used by Sokro
(2012) to explore the dimensions which impact in attracting and retaining
employees. The EFA yielded two factors, each for employee attraction
(Market Value and Social Value) and employee retention (Career
Development and Image). The results of the study produced a small scale
representing both the employee attraction as well as employee retention
issues of the present world scenario. These factors are similar to the factors
derived in earlier works in different parts of the world (Alnıaçık & Alnıaçık,
2012; Berthon, Ewing, & Hah, 2005; Biswas & Suar, 2013; Sivertzen, Nilsen,
& Olafsen, 2013).
Results of the independent samples t-Test signified that there exists no
significant difference between male and female respondents on both the
employee attraction as well as employee retention factor. The t-Test results
also connoted that there was no difference between the government and
private sector respondents concerning employee attraction, but, both the
groups had a significant difference concerning the employee retention factor.
Wherein the government employees showed a more positive mean to the
factor in comparison to the mean of the private sector employees.

Conclusion and recommendations

A significant outcome of the present research work suggests a small and
refined scale, which enables us in assessing the factors which lead to
employer attraction and employer retention in the banking sector in India.
The factor analysis of the collected responses yielded four factors, two factors,
each for employee attraction and employee retention. Keeping in view the
type of cut-throat competition in the present age, and the importance of
hiring and retaining a talented pool of employees in a firm. It is essential for
the employers first to hire a gang of bright minds, and their second job is to
10 A. AHMAD ET AL.

retain the brilliant minds in their firm as much as they can. With the
independent samples t-Test, it has also been empirically established that
the two genders do not differ significantly concerning both the factors, i.e.
employee attraction and employee retention. But the result also signified that
there exists a significant difference between the public and private sector
employees concerning employee retention. As the mean value of private
sector employees was a bit less than that of the government sector employees,
the private sector employers need to emphasize on the employee retention
factors for their desired growth results. Overall, both the public as well as
private sector employers need to focus on all the four factors, i.e. market
value, social value, career development, and image for making their think
tank a powerful weapon for their success and growth. This is one of the
weapons which enables an employer to get a competitive edge over other
players in the market. The results of the present study are also likely to
provide valuable insights to the academicians. It is expected that the present
study will help them in better conceptualizing the factors of employee
attraction and employee retention. At the same time, it is expected that it
will also be a help for the employers in better implementing their strategies
related to hiring and retaining in both the sectors.

Limitations and future research suggestion

The researchers have employed a researcher controlled sampling. Thus, the
findings of the study may have a limitation of generalizability. Future
researchers may use a more representative sample to validate the findings
of the present study. The respondents in the present study were limited to the
banking sector only, which may have again hampered the generalizability of
the findings. Thus, future researchers may extend this study with a broader
sample comprising different sectors of the economy. Furthermore, research-
ers can extend and improve the proposed scale by including other relevant
factors derived from the literature, which may also help employers in attract-
ing and retaining employees.

Disclosure statement
No potential conflict of interest was reported by the authors.

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