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The Use of Employer Branding When Attracting and Retaining Employees

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Bachelor Thesis


Business Administration>Human Resources




Bachelor Thesis: Brand The American Marketing Association defines a brand as "name, term, logo, symbol or design, or a combination of them, designed to identify the goods and services of a seller or a group of sellers and distinguish them from those of other sellers Come on" (Lake, 2013). The goal of having a strong brand is not to distinguish the organization from its competitors, but to be the only organization that provides the solutions that customers are looking for (Lake, 2013). From the beginning, branding has been used to distinguish tangible products from competitors, but for many years it has also been used to distinguish people from organizations (Peters, 1999). "The package of functions, economic and psychological benefits provided by employment is consistent with the employment company" (Ambler & Barrow, 1996). Ambler and Barrow (1996) gave the first definition of employer brand in a field study on the subject (Schlager et al., 2011). This paper aims to evaluate the "possible application of brand management technology in human resource management" (Ambler & Barrow, 1996). In order to achieve maximum performance within the organization, it is necessary to cultivate the intangible assets "employee's corporate image and reputation" (Ambler & Barrow, 1996). Ambler and Barrow (1996) further wrote that this intangible asset is an organization’s brand equity in the minds of employees, just like the organization’s product attitude towards customers. Backhaus and Tikoo (2004) pointed out that “employer brand equity is the expected result of employer brand activities”. Employer brand promotion activities should lead to an increase in employee motivation and employee performance, and then should lead to improved relationships with potential employees and strengthen brand equity (Ambler and Barrow, 1996). The brand equity in the employer brand refers to the result of the organization's current and potential employees' understanding of the brand (Backhaus & Tikoo, 2004; Davies 2008). Backhaus and Tikoo (2004) further wrote that strong brand equity will drive potential employees to apply for jobs. The more attractive an organization is to potential applicants, the stronger the organization’s employer brand equity (Berthon, Ewing, and Hah, 2005). Brand equity mainly includes two factors, namely, the visibility considered when attracting potential employees and attention to the image of existing employees (Davis, 2008). Keller (1993) explained that brand awareness is composed of brand memory and recognition, and brand image is composed of a series of associations of an organization, for example. Strength and uniqueness. Brand equity must not only attract potential employees, but also retain existing employees (Ambler & Barrow, 1996). 2.2 The goal of the employer brand Sullivan (2004) defines the employer brand as "a targeted long-term strategy for managing employees, potential employees, and related stakeholders' awareness and views of a specific company." The result of successful employer branding provides organizations with, for example, increasing reputation and exposure, consistency among employees, and a large number of applicants will be described as an ideal workplace (Sullivan, 2004). These definitions show that clear brand management and employer brand building are essential when retaining existing employees and attracting new employees. The employer brand is developed strategically by managers, consistent with deliberate actions and values ​​(Sullivan, 2004). The more attractive an organization is to potential employees, the stronger its employer brand (Berthon et al., 2005). In order to formulate and create the most successful strategy for an employer brand, organizations need to use the largest asset they have within the organization, namely existing employees (Schlager et al., 2011). If an organization’s employer brand personality occupies a strong position in the market, it will help increase employee loyalty (Davis, 2008), because employees will have more reasons not to leave the organization. Davies (2008) put forward the following hypothesis; “The stronger one or more aspects of the employer’s brand personality, the greater the employer’s perception of difference”, which also explains that a strong employer brand will help increase employee value and create The desire to stay in the organization. As mentioned earlier, this means that organizations do not need to replace any employees, so they can reduce recruitment costs (Barrow & Mosley, 2005). Organizations that practice the employer brand will have a competitive advantage in recruiting and retaining employees, as competition for skills, experience, and knowledge becomes more important (Moroko & Uncles, 2008). After attracting and retaining the employees you want to have in your organization, you must determine the values ​​of people so that they will come to work for you instead of going to another organization (McKinsey, 1998). Brand management is a key activity for many organizations because the brand is one of their most valuable assets (Backhaus & Tikoo, 2004). By making brand management one of the most important goals of the organization, they can become the leading corporate brand among potential employees and existing employees (McKinsey, 1998). A manager who is developing a long-term marketing strategy for his brand. Read Less