HR 1

Download as pdf or txt
Download as pdf or txt
You are on page 1of 12

Research Article

Vision
1–12
Impact of Employer Branding on © 2021 MDI
Reprints and permissions:
Employee Commitment: Employee in.sagepub.com/journals-permissions-india
DOI: 10.1177/09722629211013608

Engagement as a Mediator journals.sagepub.com/home/vis

Aasia Yousf1 and Shabana Khurshid2

Abstract
Employer branding has fascinated human resources (HR) managers and establishments over the last two decades. This is attributed
to its practical business implications and being a strong predictor of many favourable organizational outcomes. Due to the fierce busi-
ness rivalry and market saturation in recent times, businesses are increasingly looking to engage their workforce in order to induce
employer commitment among them. Employer brand is one factor that can help organizations keep their employees involved in the job.
Employee engagement is critical for service brands, such as the banking industry, for delivering better customer service and maintaining
a motivated workforce. An engaged workforce is also more committed towards the organization, which also leads to many desirable
business outcomes. This study targeted 485 employees from two banks (one a public sector bank and the other a private bank), which
resulted in 409 functional responses. The work objective was to examine the influence of employer brand on employee engagement,
which may lead to organizational commitment. This article also examined the mediating role of employee engagement with respect
to the five dimensions of employer brand and organizational commitment. The regression analysis using structural equation modelling
(SEM) revealed that all five dimensions of employer brand influence employee engagement. Employee engagement also shares a positive
and significant association with organizational commitment. Moreover, the mediation analysis also revealed that employee engagement
partially mediates the relationship between employee engagement and organizational commitment. These study findings have impor-
tant implications for business managers, HR managers and academicians.

Key Words
Employer Brand, Employee Engagement, Organizational Commitment, Service, Banking

Introduction 2020; Martin et al., 2011). Additionally, the unstable


employment avenues and retention strategies existing in
The prospects of a good employer brand are well docu- the current work environment have made employment
mented and acknowledged in the research domain (Benraiss- branding more critical than ever (Dineen et al., 2019;
Noailles & Viot, 2020; Dineen et al., 2019; Theurer et al., Lievens & Slaughter, 2016). Employer branding actively
2018), as it can help businesses deal with the possibility of supports the realization of workers’ desires and aspirations,
a volatile future (Jiang & Iles, 2011). There has been and thus employees exhibit commitment towards their
increasing consideration towards employer branding by employer in return for the organizational help and support
establishments, which can be attributed to the deficiencies (Arasanmi & Krishna, 2019). This reciprocity implies that
in the superior workforce skills required for running busi- the employers must satisfy the workers’ aspiration for fos-
ness operations (Dögl & Holtbrügge, 2014) and aggressive tering of employee engagement (Arasanmi & Krishna,
recruitment activities by businesses (Baum & Kabst, 2013). 2019), because an engaged workforce is an essential factor
Organizations in present times consider employer branding to gain a business advantage (Bhasin et al., 2019; Hogreve
as an essential human resources (HR) means for managing et al., 2017). However, despite the growing research into
and attracting the workforce (Benraiss-Noailles & Viot, the realm of employer brand (Backhaus, 2016; Backhaus &

1 Department of Management Studies, Central University of Kashmir, Ganderbal, Jammu and Kashmir, India.
2 Department of Social Work, University of Kashmir, Hazratbal, Srinagar, Jammu and Kashmir, India.

Corresponding author:
Aasia Yousf, Department of Management Studies, Central University of Kashmir, Ganderbal, Jammu and Kashmir 191201, India.
E-mail: [email protected]
2 Vision

Tikoo, 2004), there are limited studies that show its impact Hence, based on the above discussion, this work attempts
on the existing workforce in organizations (Theurer et al., to examine the influence of employer brand on employee
2018). Benraiss-Noailles and Viot (2020) believe that engagement in India’s banking industry. The role of
employer brand needs further exploration and examination employee engagement in predicting organization commit-
concerning different factors in diverse settings. There has ment is also investigated. Additionally, the mediating char-
been a recent surge in the studies exploring the association acter of employee engagement in the relationship between
between employer brand and retention in recent times employer brand and organizational commitment is exam-
(Ahmad et al., 2020; Gilani & Cunningham, 2017; Hadi & ined as well. The next section discusses the literature review
Ahmed, 2018). However, one of the employer brand’s based on the study’s variables, followed by a section on the
important outcomes, that is, employee engagement, seems research methodology. The data analysis segment is the
to be under-researched (Rana & Sharma, 2019). Employee subsequent section, followed by the last research work
engagement needs to be further researched concerning section, which includes the research discussions, implica-
employer brands, because it is an essential factor for pre- tions and conclusion and future-work recommendations.
dicting business success compared to employee retention
(Richman et al., 2008). The contemporary trade environ-
Theoretical Foundation
ment also demands firms to effectively strategize their
employer branding activities for augmenting employees’ The contemporary organizational behaviour practices are
engagement (Heger, 2007). This change in perspective is closely associated with the SET (social exchange theory)
because workforce engagement is considered as an essen- (Andrew & Sofian, 2012; Blau, 1964), which is fundamen-
tial antecedent for many positive outcomes in an organiza- tally based on forming a close and reciprocal relationship
tion, like organizational commitment (Buckingham & between employers and workers. Tsarenko et al. (2018)
Coffman, 1999), which then leads to enhanced organiza- assume that the exchange mechanism requires an invest-
tional performance (Rameshkumar, 2020). Besides, both ment on the behalf of the entities concerning a specific
employee engagement and commitment are considered as process. The social exchange procedure entails investing
essential factors in HR studies. They are both associated resources, dedication, self (entity), affection and ardour for
with workforce behaviour, which ultimately enhances some gains (Arasanmi & Krishna, 2019). The employee–
firms’ performance and employee retention (Chalofsky & organization exchange process is based on the employees’
Krishna, 2009). perception of the fairness of and conviction about their
Moreover, creating and managing a good brand is vital working establishments (Cropanzano & Mitchell, 2005).
in the service sector, as the competition in services has Some studies imply that employees exhibit an optimistic
become intense (Lee et al., 2014). Engaged employees play attitude and affection for their establishments when they
a critical role in the service delivery process by effectively believe that their employers value their dedication and
acting as the business emissaries (Bhasin et al., 2019). efforts on the job (Tsarenko et al., 2018). The development
Employee commitment is also vital in an establishment’s of favourable attitudes and emotions towards their employer
achieving its service goals and building customer trust makes them more involved in the firm and its goals.
(Wallace et al., 2013). Banking establishments have a highly Reciprocal employee behaviour in the form of enhanced
stressed organizational environment globally (Abdullah & engagement levels would occur when workers are
Ramay, 2012; Ebiringa, 2011). Even in the Indian context, content with the support provided by their employers. The
banks have to compete for talented employees because of employee engagement framework has also been explained
the increasing demand for skilled employees in other alternatively by Andrew and Sofian (2012) through the
sectors (Rana & Sharma, 2019). This challenge makes it lens of the SET. They postulate that an individual primarily
essential to keep the employees engaged and, hence, com- makes her/his decision in relation to her/his perception of
mitted to their job. Moreover, the development of Indian the advantages and costs in a given situation. This perspec-
banks is vital to counter the growing competition in this tive also applies to the social relations concerning the
sector and to meet the increasing customer expectations employees’ engagement towards their employer, which in
(Rana & Sharma, 2019). Employer brand is an essential essence is a manner of repaying the establishment by the
factor for such development. The brand of business employee (Saks, 2006). Thus, whether employees involve/
establishments is also increasingly in the spotlight since engage with the establishment or not depends on the
employer commitment can be induced among workers resources they get from the employer (Andrew & Sofian,
through the engagement route. Employer branding is being 2012; Ibrahim & Al Falasi, 2014). Employees feel the need
exhaustively explored in developing economies (Backhaus, to return the favours provided by their employers in the
2016), but most of its groundwork has been laid in the form of enhanced commitment towards the establishment
Western regions (Baum & Kabst, 2013). This fact warrants (Cropanzano & Mitchell, 2005). The SET also states that
further explorations and investigations in developing employees can exhibit affirmative and engaged work
regions, like India (Backhaus, 2016), for confirming the behaviour and express employer loyalty if they share an
generalizability of the concept (Baum & Kabst, 2013). optimistic relationship with their employers (Cole et al.,
Yousf and Khurshid 3

2002). When organizations provide their employees with needed for acquiring and managing talent (Maheshwari
appropriate monetary, psychological and group support, et al., 2017). Academicians have also been fascinated with
the latter desire to return that support (Saks, 2006). Thus, employer branding, as there is an increasing business
employee engagement is intricately dependent on the requirement for a proficient and skilled workforce
organizational support and the organizational benefits (Arasanmi & Krishna, 2019). From a strategic standpoint,
(Arasanmi & Krishna, 2019), which then leads to organiza- employer branding is an important area to work on (Edwards,
tional commitment (Cole et al., 2002). 2010). It aims to create and present a salient employer
From a psychological perspective, employee engage- identity and representation (Ahmad & Daud, 2016). Thus,
organizations are putting their efforts into branding them-
ment could be described as the worker–employer bond that
selves as being focused towards and involved with their
results in either optimistic or unconstructive employee
employees (Jones et al., 2014). Employer brand attracts the
behaviours on the job (Andrew & Sofian, 2012). Studies
skilled and proficient workforce, which augments the oper-
have further shown that employee engagement behaviour
ational efficiency of business establishments (Keefe, 2007).
could lead to other outcomes, like employee commitment Employer brand also induces more commitment in the
and fewer turnover intentions (Andrew & Sofian, 2012). employees working for the business entity (Burack et al.,
This optimistic worker behaviour occurs because employ- 1994). An employer brand’s affirmative outcomes include
ees feel connected with their work, assign more signifi- enhanced employee retention, employee engagement and
cance to their job, perceive more resources at their employee commitment (Barrow & Mosley, 2011), which
command for finishing their work and, as a consequence, are all essential for achieving a firm’s business goals.
remain devoted to their organization (Andrew & Sofian, ‘Employer branding’ can be described as ‘the set of
2012; Gruman & Saks, 2011). Hence, it can be inferred functional, economic and psychological assistances pro-
from the above discussions that the SET is pertinent in the vided by employment, and recognised with the employing
current study, which states that employer branding efforts company’ (Ambler & Barrow, 1996). Another perspective
can lead to employee engagement and, finally, to the illustrates employer brand as the course of forming a
inducement of organizational commitment (see Figure 1). specific and exclusive employer quality, and the employer
(organizational) brand is associated with the business
entity, which makes it different from other establishments
Literature Review (Backhaus & Tikoo, 2004). It is a multi-factor construct
Employer Branding (Berthon et al., 2005) and includes the following factors:

Studies suggest that employer branding is still evolving Interest value: It can be defined as the level of
and that there is a necessity for understanding the approach employer attraction exhibited through the novel and

Figure 1. Conceptual Framework


Source: The authors.
4 Vision

creative opportunities existing in the work environ- This efficiency can be attributed to the fact that the engaged
ment for the workforce (Ambler & Barrow, 1996; workers have more energy and eagerness and are more
Berthon et al., 2005). engrossed in their work. Involved personnel have been
Social value: It assesses the value that is found in described as a critical force in achieving business competi-
the organizational social setting and consists of a tiveness, especially in the service sector (Bhasin et al., 2019).
good relationship between employees, as well as the This aspect has gained significant consideration by service
existence of group spirit (Ambler & Barrow, 1996; brands, because an engaged workforce displays better
Berthon et al., 2005). behaviour and attitude than unengaged personnel (Lee et al.,
Economic value: It denotes the degree of employer 2014). Hence, companies should attempt to foster engage-
attractiveness concerning fair compensation, incen- ment based on a two-way relationship and interactions
tives and work-related bonuses (Ambler & Barrow, between them (employer) and their employees (Ibrahim &
1996; Berthon et al., 2005). Al Falasi, 2014).
Development value: This element evaluates the
organizational attraction for the employee in terms
of his/her career advancement opportunities from
Employer Commitment
the employer (Ambler & Barrow, 1996; Berthon Employer (organizational) commitment can be illustrated
et al., 2005). as the workers’ dedication and devotion towards a particu-
Application value: This factor assesses the estab- lar establishment (Angle & Perry, 1981; Arasanmi &
lishment’s appeal among the employees concerning Krishna, 2019). It can also be referred to as an employee’s
execution of their skills and training on the work state of mind, which demonstrates his/her affiliation with a
(Ambler & Barrow, 1996; Berthon et al., 2005). particular employer and, consequently, influences his/her
decision to continue or quit an organization. Committed
employees exhibit higher motivation levels and more likely
Employee Engagement to stay with their companies (Arasanmi & Krishna, 2019;
For a substantial time, the business establishment has con- Morgan & Hunt, 1994). A committed workforce is more
sidered the employee engagement concept a challenge (Men likely to disseminate the brand message by essentially
et al., 2020). Engagement has been illustrated as how ‘people living the brand (Boyd & Sutherland, 2006). Organizations
employ and express themselves physically, cognitively and also desire employer commitment, as a committed work-
emotionally during role performance’ (Kahn, 1990; p. 694). force is more dedicated in achieving the brand goals
The cognitive aspect relates to the feelings of the workforce (Thomson et al., 1999). Employee commitment is believed
concerning the establishment and other co-workers. to be greater in those establishments where the workforce
Emotional expression divulges the emotional attachment of is more involved and emotionally attached to the brand
the personnel to the work environment and includes their (King & Grace, 2012; Piehler, 2018). A committed work-
pessimistic and affirmative views. The third aspect is associ- force is a valuable and essential organizational asset,
ated with the employees’ physical activities for finishing because dedicated employees enhance work productivity
their work assignments (Men et al., 2020). Also, describes and thus create business advantage. Committed personnel
the ‘engagement concept’ from the perspective of a cogni- are also beneficial for a service organization as they deliver
tive function, but some academicians explain it as an a pleasing service experience to the customers during cus-
employee’s optimistic attitude concerning the establishment. tomer–service interactions (King & Grace, 2008). It is also
Employee engagement can also be illustrated as the employ- essential for bank employees to display commitment
ees’ degree of dedication and attachment towards the firm towards their establishment, especially in the wake of
and its principles (Andrew & Sofian, 2012). Alternatively, rising economic volatility and consumer dissatisfaction
employee engagement has been explained as the connection (Wallace et al., 2013). Employees’ organizational commit-
of employees with the organizational mission (intent) and its ment is also essential for building successful brands, espe-
values, and in the presence of such connection, employees cially service brands (e.g., banks) (Balmer, 2001).
experience empowerment, feel excitement and zeal, make
greater efforts on their job and also act as advocates for the Relationship between Employer Branding
firm (Ewing et al., 2019). Since the emergence of employee and Employee Engagement
engagement as a significant concept, many academicians
have hinted at the possibility of an affirmative relationship If a business establishment can cultivate a harmonious
between workforce performance and employee engagement relationship with its employees, it may result in good
towards the work, which in turn would result in firm perfor- employer behaviour in return (Chawla, 2020). Studies have
mance (Andrew & Sofian, 2012). An engaged workforce suggested that employer branding influences employee
provides business establishments with higher work produc- behaviour (Angelopoulou, 2015) and may also enhance
tivity and lower worker turnover, ultimately putting the firm employee engagement (Sartain & Schumman, 2008).
in a better and competitive market position (Vance, 2006). When an organization provides workers with adequate
Yousf and Khurshid 5

resources and other amenities, employees tend to be engagement and organizational commitment (Rameshkumar,
engaged with the establishment and oriented towards their 2020). A study conducted by Maslach et al. (2001) shows
business goals (Tsai & Wu, 2010). The presence of a the mediating role of employee engagement in the relation-
favourable working environment makes employees ship between the work environment and commitment
involved in the job and elicits productive employee behav- towards the employer. Similarly, in a study conducted by
iours (Kunerth & Mosley, 2011). Thus, based on the above Lee et al. (2014) shows that the internal branding is related
discussions, the following hypotheses can be proposed: to to employee-associated outcomes likes job satisfaction
through engagement. Even the SET states that employer
H1: There is a positive association between social value branding activities makes employees’ involved in the
and employee engagement. employer establishment, leading to employer commitment
H2: There is a positive association between interest (Brunetto et al., 2013; Cole et al., 2002). In another critical
value and employee engagement. study, engagement was also found to mediate the associa-
H3: There is a positive association between develop- tion between employees’ perceived contract fulfilment and
ment value and employee engagement. its outcome variable, that is, commitment (Parzefall &
H4: There is a positive association between application Hakanen, 2010). Thus, based on the above discussions, the
value and employee engagement. following hypotheses can be proposed:
H5: There is a positive association between economic
value and employee engagement. H7: Employee engagement mediates the association
between social value and employee commitment.
H8: Employee engagement mediates the association
Relationship between Employee between interest value and employee commitment.
Engagement and Organizational H9: Employee engagement mediates the association
Commitment between development value and employee
An organizational setting that employees consider lively commitment.
and safe can lead to the enhancement of their job contribu- H10: Employee engagement mediates the association
tion and work devotion, through the investment of their between application value and employee
additional time and psychological resources (Brown & commitment.
Leigh, 1996). Schaufeli and Salanova (2007) also found an H11: Employee engagement mediates the association
optimistic association between employee engagement and between economic value and employee
organizational commitment. Other studies have also con- commitment.
firmed this relationship in different situations (Little &
Little, 2006). Workers who are more involved in the admin-
Research Method
istrative tasks feel obliged to repay their establishment
(Cohen, 2000) by exhibiting more commitment towards the This work employed a causal research design based on a
firm (Cropanzano & Mitchell, 2005). Sundaray (2011) is survey method. It involved the use of questionnaires as the
also of the opinion that employee engagement is closely research instrument for getting responses from the study
linked with employee commitment. However, additional subjects. The responses were obtained from selected
research is required to determine the impact of employee employees in two banks (one a private bank and the other a
engagement on employer (organizational) commitment public sector bank) in one region of India. The sampling
(Rasheed et al., 2013). Thus, based on the above discus- technique used in this work was convenience sampling. A
sions, the following hypothesis can be proposed: total of 433 responses were collected after targeting 485
employees. However, after data cleaning, only 409 func-
H6: There is a positive association between employee tional responses were left for the study’s data analysis.
engagement and employee commitment.
Respondents’ Profile
Employee Engagement as a Mediating The study consisted of 224 (54.7%) male respondents and
Variable 185 (45.2%) female respondents; 127 (31.05%) of the
The direct path between the employee branding variables employees belonged to the earning category of less than
and organizational commitment has been established in `500,000, 192 (46.9%) of the employees had earnings in
many studies (Kimpakorn & Tocquer, 2009; Storsten & the range of `500,000–`1,000,000, and the remaining
Ampuero, 2013; Tanwar, 2017). Studies have also pro- employees (90) had earnings of more than `1,000,000. Of
vided evidence about the constructive association between the employees, 98 (23.9%) had a work experience of fewer
employer branding and employee engagement (Bhasin than 3 years, 201 (49.1%) had a work experience in the
et al., 2019; Sartain & Schumman, 2008). In addition, range of 3–5 years, and the rest (110) had a work experi-
studies have established an association between employee ence of more than 5 years. Of the employees, 139 (33.9%)
6 Vision

were in the age group of 21–30 years, 172 (42.05%) Table 1. Standardized Regression Weights
belonged to the 30–35 age group, and the rest (98) were
above 35 years of age. Items Direction Factor Estimate
EE1 EE 0.892
EE2 EE 0.915
Measures EE3 EE 0.850
Seven items of employee engagement were adapted from EE4 EE 0.778
the work of Schaufeli et al. (2002), six items of organiza- EE5 EE 0.901
EE6 EE 0.796
tional commitment were adapted from the work conducted
EE7 EE 0.725
by Saks (2006), and 25 items of employer branding (five OC1 OC 0.966
items for each of the five factors) were adapted from the OC2 OC 0.692
work of Berthon et al. (2005). The independent and depend- OC3 OC 0.781
ent variables were measured using a 5-point Likert scale. OC4 OC 0.984
OC5 OC 0.776
OC6 OC 0.987
Factor Analysis
DV1 DV 0.850
The first step in SEM (structural equation modelling) is DV2 DV 0.936
running the CFA (confirmatory factor analysis), which was DV3 DV 0.971
performed on the data set in Amos 23.0. CFA’s objective is DV4 DV 0.920
to confirm whether the items load on their respective latent DV5 DV 0.900
IV1 IV 0.743
factors based on the proposed theory or not. The results
IV2 IV 0.758
from the CFA revealed satisfactory results. IV3 IV 0.913
IV4 IV 0.991
IV5 IV 0.997
Results AV1 AV 0.848
Measurement Model AV2 AV 0.997
AV3 AV 0.809
The results obtained from the covariate model (Figure 2) AV4 AV 0.995
show an acceptable data fit (Hair et al., 2010) as: AV5 AV 0.805
SV1 SV 0.912
CMIN/df = 2.09, GFI = 0.860, TLI = 0.973, NFI = SV2 SV 0.906
0.954, CFI = 0.976 and RMSEA = 0.05. SV3 SV 0.882
SV4 SV 0.990
SV5 SV 0.991
Validity and Reliability EV1 EV 0.809
EV2 EV 0.992
Table 1 shows that all the factor loadings are above 0.70 EV3 EV 0.688
and all average variance extracted (AVE) scores are greater EV4 EV 0.974
than 0.50 (Table 2), which suggests convergent validity of EV5 EV 0.683
the scale (Fornell & Larcker, 1981; Hair et al., 2010). Source: The authors.
Moreover, Table 2 shows that all the values of inter-factor
correlations are less than the AVE’s square root (Table 2), and statistically significant association exists between the
which implies that the measures’ discriminant validity is outcome variable, that is, employee engagement, and the
well established (Anderson & Gerbing, 1988). The values five independent factors, that is, development value
of CR (composite reliability) are greater than the threshold (b = 0.14, p = 0.001), interest value (b = 0.15, p = 0.001),
value of 0.60 (Table 2), which confirms that the instrument application value (b = 0.15, p = 0.002), social value
is reliable (Anderson & Gerbing, 1988). (b = 0.34, p = 0.003) and economic value (b = 0.22,
p = 0.001). Similarly, the associative relationship between
employee engagement and organizational commitment
Structural Model is constructive and significant (b = 0.41, p = 0.001) (see
The structural model shows a moderate fit for the data Table 3).
structure, which is as follows:
CMIN/df = 2.6, CFI = 0.961, GFI = 0.807, Mediation
NFI = 0.940 and RMSEA = 0.06.
The bootstrapping method was used to explore the indirect
The results obtained from the path analysis show that all path between the five factors of employer branding
the study hypotheses are supported (Table 3). A positive (independent variable) and organizational commitment
Yousf and Khurshid 7

Figure 2. Measurement Model


Source: The authors.

(outcome variable) through employee engagement (media- path) to 0.09 (mediating path), which implies that this
tor; see Table 4). The results reveal that the path coefficient association is partially mediated through employee engage-
from development value to organizational commitment ment. The impact of application value on organizational
decreased from 0.16 (direct path) to 0.13 (mediating path), commitment decreased from 0.16 (direct path) to 0.13
which implies that this relationship is partially mediated by (mediating path), which implies that this association is par-
employee engagement. The influence of interest value on tially mediated through employee engagement. The influ-
organizational commitment also reduced from 0.12 (direct ence of social value on organizational commitment reduced
8 Vision

Table 2. Reliability and Validity

CR AVE SV EE OC DV IV AV EV
SV 0.975 0.888 0.942
EE 0.956 0.759 0.525 0.871
OC 0.952 0.772 0.438 0.431 0.879
DV 0.961 0.831 0.509 0.396 0.368 0.912
IV 0.949 0.790 0.330 0.367 0.308 0.306 0.889
AV 0.953 0.803 0.467 0.385 0.359 0.251 0.218 0.896
EV 0.926 0.718 0.301 0.313 0.280 0.192 0.121 0.384 0.847
Source: The authors.
Note: (a) The values in the diagonal of the above matrix are the square roots of the average variance extracted (AVE). (b) SV—Social value; EE—
employee engagement; OC—organizational commitment; DV—development value; IV—interest value; AV—application value; and EV—economic
value.

Table 3. Structural Model Estimates

Unstandard Standardized
Hypotheses From To (b) SE CR P (b) Result
H1 Social value Employee 0.349 0.049 7.18 * 0.34 Supported
engagement
H2 Interest value Employee 0.17 0.053 3.17 0.001 0.15 Supported
engagement
H3 Development Employee 0.160 0.052 3.09 0.002 0.14 Supported
value engagement
H4 Application value Employee 0.160 0.050 3.19 0.001 0.15 Supported
engagement
H5 Economic value Employee 0.293 0.063 4.62 * 0.22 Supported
engagement
H6 Employee Organizational 0.405 0.049 8.27 * 0.41 Supported
engagement commitment
Source: Data compilation by the scholar for the present study.
Note: * P < 0.05.

Table 4. Mediation Results

Relationship IV (MV) Direct without


Hypotheses DV Mediation Direct with Mediation Indirect Result(s)
H7 SV (EE) OC 0.21 (0.001) 0.15 (0.002) 0.001 Supported
H8 IV (EE)OC 0.12 (0.009) 0.09 (0.042) 0.007 Supported
H9 DV (EE) OC 0.16 (0.001) 0.13 (0.003) 0.007 Supported
H10 AV (EE) OC 0.16 (0.001) 0.13 (0.004) 0.008 Supported
H11 EV (EE) OC 0.16 (0.001) 0.12 (0.010) 0.001 Supported
Source: Data compilation by the scholar for the present study.
Note: (a) SV—Social value; EE—employee engagement; OC—organizational commitment; DV—development value; IV—interest value; AV—
application value; and EV—economic value. (b) IV—independent variable; DV—dependent variable; and MV—mediating variable.

from 0.21 (direct path) to 0.15 (mediating path), which engagement. These results are similar to those of previous
implies that this association is partially mediated through studies examining the association between employer
employee engagement. Lastly, the influence of economic branding and worker engagement (Bhasin et al., 2019).
value on organizational commitment reduced from 0.16 Establishments thus need to induce and sustain employee
(direct path) to 0.12 (mediating path), which implies that engagement for achieving their business objectives. When
this associative relationship is partially mediated through establishments provide their employees with values and
employee engagement. benefits concerning the social, economic, application,
interest and development dimensions, it can lead to
employee engagement behaviours within the organizations.
Discussion The social value has the most substantial influence in influ-
The results show that all the five dimensions of employer encing employee engagement, followed by economic
brand are vital in significantly predicting employee value, interest value, application value and development
Yousf and Khurshid 9

value. These are exciting results, as banking employees likely be engaged and involved in their work roles and
consider social values to be more important than any other assignments. This means that organizations must strategize
factor in the employer brand. These findings could be to maintain a strong employer brand to keep their employ-
attributed to the dynamic and stressful banking work envi- ees engaged with the job. Engaged employees are an inval-
ronment. The results also show that employee engagement uable asset for an organization, as they are highly committed
strongly influences organizational commitment, which has towards the firm and, therefore, its goals. Thus, business
also been corroborated by other studies in different contexts entities should ensure to promote and develop a positive
(Rameshkumar, 2020; Schaufeli & Salanova, 2007). The employer brand. The current work has revealed that
mediation analysis provided interesting results, suggesting employer brand dimensions are important predictors of
that the path from employer brand dimensions (application work engagement. These findings would assist business
value, social value, interest value, development value and planners and managers in directing their endeavours
economic value) to organizational commitment passes towards employer brand dimensions for effectively engag-
through employee engagement. The relationship between ing their personnel. Managers should create an organiza-
employer branding factors and organizational commitment tional environment that would result in a pleasing worker
is thus partially mediated by employee engagement. experience, which would then lead to the enhancement of
Moreover, the influence of social value on organizational employee engagement. The current research endeavour
commitment shows the most significant drop when medi- seeks to help organizations understand the workers’ per-
ated by employee engagement compared to the other ception of the employer branding elements that ultimately
dimensions of employer branding. Again, this is an interest- influence their engagement levels. Social value has the
ing result that suggests that social value plays a vital role in strongest influence on employee engagement, which
predicting organizational commitment directly and indi- implies that co-worker support, recognition, teamwork
rectly through employee engagement. A study conducted and supervisor support are critical factors in enhancing
by Biswas and Bhatnagar (2013) shows the mediating role employee engagement. Thus, these factors need to be at the
of employee engagement in the relationship between per- centre of employer branding strategies. The second strong-
ceived organizational support and organizational commit- est influence on employee engagement is that of economic
ment. Another research shows the mediating role of value, which suggests that when workers are suitably com-
employee engagement in the relationship between internal pensated for their work efforts, they exhibit a higher degree
branding and job satisfaction (Lee et al., 2014). However, of engagement (Rana, 2019). This means establishments
the mediating role of employee engagement in the relation- need to design an appropriate compensation structure
ship between employer branding elements and organiza- (both financial and non-financial perks) that is flexible and
tional commitment has not been studied so far, to the suitably rewards employees for their efforts. However, the
authors’ best knowledge. This contribution makes this other three factors of employer branding, that is, interest
research framework unique and also has valuable practical value, application value and development value, had a
and theoretical implications. lower effect. This means managers should also invest in
these factors for enhancing employee branding. The results
Theoretical Implications have revealed a strong association between employee
engagement and organizational commitment. This means
This framework is based on the established research in the organizations need to actively seek to engage the employ-
domain of employee branding and its outcomes. However, ees through various programmes and activities at work.
this work provides a different perspective on the relation- Employee engagement can also be enhanced by building
ship between employer brand and employee commitment and sustaining empathetic and emotional relationships
through the path mediated by employee engagement. between co-workers, team leaders and higher managerial
Earlier studies mainly studied both organizational commit- personnel. Managers need to design programmes for their
ment and employee commitment as the consequences of workers which would effectively coach and mentor them.
the employer brand. Incorporating employee engagement The end objective must be to make employees committed
as a mediator in the research framework helps in compre- to the organization in order for them to be successful.
hending the employer brand’s role in producing favourable
business outcomes.
Conclusion
Practical Implications
The current framework provides a comprehensive under-
Employer branding is an emerging and critical aspect in standing of employer branding’s role in forming employee
HR studies, because it provides insights into the formation engagement, which may then lead to organizational
of employees’ perceptions, which may result in favourable commitment among workers. Previous studies have shown
outcomes for organizations (Alshathry et al., 2017). When the relationship between the three variables without the
workers view an employer as attractive, they are more mediating role of employee engagement in the relationship
10 Vision

between the other two variables. These studies have limited Backhaus, K. (2016). Employer branding revisited. Organization
business applications. However, the current research over- Management Journal, 13(4), 193–201.
comes the previous gaps and limitations by examining the Backhaus, K., & Tikoo, S. (2004). Conceptualizing and research-
role of employee engagement in the relationship between ing employer branding. Career Development International.
9(5), 501–517. https://doi.org/10.1108/13620430410550754
employer branding and organizational commitment.
Balmer, J. M. (2001). The three virtues and seven deadly sins of
corporate brand management. Journal of General Management,
Limitations and Future Research 27(1), 1–17.
Barrow, S., & Mosley, R. (2011). The employer brand: Bringing
Forthcoming studies may include the influence of employer the best of brand management to people at work. John Wiley
brand on more outcome factors, such as employee involve- & Sons.
ment, employee affect, employee attitude, etc. The frame- Baum, M., & Kabst, R. (2013). How to attract applicants in the
work used in this study could be further enhanced by Atlantic versus the Asia-Pacific region? A cross-national
analysis on China, India, Germany, and Hungary. Journal of
examining moderating factors, such as co-worker support,
World Business, 48(2), 175–185.
work environment and supervisor support. Future works in Benraiss-Noailles, L., & Viot, C. (2020). Employer brand equity
this domain can include larger samples and apply triangu- effects on employees well-being and loyalty. Journal of
lated research approaches to understand the concepts better. Business Research. https://doi.org/10.1016/j.jbusres.2020.02.002
Berthon, P., Ewing, M., & Hah, L. L. (2005). Captivating com-
Declaration of Conflicting Interests pany: Dimensions of attractiveness in employer branding.
International Journal of Advertising, 24(2), 151–172.
The authors declared no potential conflicts of interest with respect
Bhasin, J., Mushtaq, S., & Gupta, S. (2019). Engaging employees
to the research, authorship, and/or publication of this article.
through employer brand: An empirical evidence. Management
and Labour Studies, 44(4), 417–432.
Funding Biswas, S., & Bhatnagar, J. (2013). Mediator analysis of
The authors received no financial support for the research, author- employee engagement: Role of perceived organizational sup-
ship, and/or publication of this article. port, PO fit, organizational commitment and job satisfaction.
Vikalpa, 38(1), 27–40.
Blau, P. M. (1964). Social exchange theory (p. 62). John Wiley
References & Son.
Boyd, G., & Sutherland, M. (2006). Obtaining employee com-
Abdullah, A., & Ramay, M. I. (2012). Antecedents of organiza-
mitment to living the brand of the organisation. South African
tional commitment of banking sector employees in Pakistan.
Journal of Business Management, 37(1), 9–20.
Serbian Journal of Management, 7(1), 89–102.
Brown, S. P., & Leigh, T. W. (1996). A new look at psychologi-
Ahmad, N. A., & Daud, S. (2016). Engaging people with employer
cal climate and its relationship to job involvement, effort, and
branding. Procedia Economics and Finance, 35, 690–698.
performance. Journal of Applied Psychology, 81(4), 358.
Ahmad, A., Khan, M. N., & Haque, M. A. (2020). Employer
Brunetto, Y., Xerri, M., Shriberg, A., Farr-Wharton, R.,
branding aids in enhancing employee attraction and retention.
Shacklock, K., Newman, S., & Dienger, J. (2013). The impact
Journal of Asia-Pacific Business, 21(1), 27–38.
of workplace relationships on engagement, well-being, com-
Alshathry, S., Clarke, M., & Goodman, S. (2017). The role of employer
mitment and turnover for nurses in Australia and the USA.
brand equity in employee attraction and retention: a unified Journal of Advanced Nursing, 69(12), 2786–2799.
framework. International Journal of Organizational Analysis, Buckingham, M. C., & Coffman, C. C.(1999). First break all
25(3), 413–431. https://doi.org/10.1108/IJOA-05-2016-1025 the rules: What the worlds greatest managers do differently.
Ambler, T., & Barrow, S. (1996). The employer brand. Journal of Simon and Schuster.
Brand Management, 4(3), 185–206. Burack, E. H., Burack, M. D., Miller, D. M., & Morgan, K.
Anderson, J. C., & Gerbing, D. W. (1988). Structural equation (1994). New paradigm approaches in strategic human
modeling in practice: A review and recommended two-step resource management. Group and Organization Management,
approach. Psychological Bulletin, 103(3), 411. 19(2), 141–159.
Andrew, O. C., & Sofian, S. (2012). Individual factors and work Chalofsky, N., & Krishna, V. (2009). Meaningfulness, commit-
outcomes of employee engagement. Procedia-Social and ment, and engagement: The intersection of a deeper level
Behavioral Sciences, 40, 498–508. of intrinsic motivation. Advances in Developing Human
Angelopoulou, M. (2015). Employer branding contextualised— Resources, 11(2), 189–203.
A qualitative study in Greece during the financial crisis. Chawla, P. (2020). Impact of employer branding on employee
University of Gothenburg. engagement in BPO sector in India with the mediating
Angle, H. L., & Perry, J. L. (1981). An empirical assessment of effect of person-organisation fit. International Journal of
organizational commitment and organizational effectiveness. Human Capital and Information Technology Professionals
Administrative Science Quarterly, 26(1), 1–14. (IJHCITP), 11(3), 59–73.
Arasanmi, C. N., & Krishna, A. (2019). Employer branding: Cohen, A. (2000). The relationship between commitment forms
Perceived organisational support and employee retention— and work outcomes: A comparison of three models. Human
The mediating role of organisational commitment. Industrial Relations, 53(3), 387–417.
and Commercial Training, 51(2). https://doi.org/10.1108/ Cole, M. S., Schaninger, W. S., Jr., & Harris, S. G. (2002). The
ICT-10-2018-0086 workplace social exchange network: A multilevel, conceptual
Yousf and Khurshid 11

examination. Group and Organization Management, 27(1), Keefe, T. J. (2007). Know thyself: Developing a strong employer
142–167. brand. Journal American Water Works Association, 99(8),
Cropanzano, R., & Mitchell, M. S. (2005). Social exchange the- 20–21.
ory: An interdisciplinary review. Journal of Management, Kimpakorn, N., & Tocquer, G. (2009). Employees’ commit-
31(6), 874–900. ment to brands in the service sector: Luxury hotel chains in
Dineen, B. R., Van Hoye, G., Lievens, F., & Rosokha, L. M. Thailand. Journal of Brand Management, 16(8), 532–544.
(2019). Third party employment branding: What are its King, C., & Grace, D. (2008). Internal branding: Exploring the
signaling dimensions, mechanisms, and sources? In M. R. employee’s perspective. Journal of Brand Management,
Buckley, A. R. Wheeler, J. E. Baur, & J. R. B. Halbesleben 15(5), 358–372.
(Eds.), Research in personnel and human resources manage- King, C., & Grace, D. (2012). Examining the antecedents of
ment. Emerald Publishing Ltd. positive employee brand-related attitudes and behaviours.
Dögl, C., & Holtbrügge, D. (2014). Corporate environmental European Journal of Marketing. 46(3/4), 469–488. https://
responsibility, employer reputation and employee com- doi.org/10.1108/03090561211202567
mitment: An empirical study in developed and emerging Kunerth, B., & Mosley, R. (2011). Applying employer brand
economies. The International Journal of Human Resource management to employee engagement. Strategic HR Review.
Management, 25(12), 1739–1762. 10(3), 19–26. https://doi.org/10.1108/14754391111121874
Ebiringa, O. T. (2011). Benchmarking incidence of distress in the Lee, Y. K., Kim, S., & Kim, S. Y. (2014). The impact of internal
Nigerian banking industry on Altman scale. Serbian Journal branding on employee engagement and outcome variables in
of Management, 6(2), 221–230. the hotel industry. Asia Pacific Journal of Tourism Research,
Edwards, M. R. (2010). An integrative review of employer brand- 19(12), 1359–1380.
ing and OB theory. Personnel Review, 39(1), 5–23. https:// Lievens, F., & Slaughter, J. E. (2016). Employer image and
doi.org/10.1108/00483481011012809 employer branding: What we know and what we need to
Ewing, M., Men, L. R., & O’Neil, J. (2019). Using social media know. Annual Review of Organizational Psychology and
to engage employees: Insights from internal communication
Organizational Behavior, 3, 407–440.
managers. International Journal of Strategic Communication,
Little, B., & Little, P. (2006). Employee engagement: Conceptual
13(2), 110–132.
issues. Journal of Organizational Culture, Communications
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equa-
and Conflict, 10(1), 111–120.
tion models with unobservable variables and measurement
Maheshwari, V., Gunesh, P., Lodorfos, G., & Konstantopoulou,
error. Journal of Marketing Research, 18(1), 39–50.
A. (2017). Exploring HR practitioners’ perspective on
Gilani, H., & Cunningham, L. (2017). Employer branding and
employer branding and its role in organisational attrac-
its influence on employee retention: A literature review. The
tiveness and talent management. International Journal of
Marketing Review, 17(2), 239–256.
Organizational Analysis, 25, 742–761. https://doi.org/10.1108/
Gruman, J. A., & Saks, A. M. (2011). Performance management
and employee engagement. Human Resource Management ijoa-03-2017-1136
Review, 21(2), 123–136. Martin, G., Gollan, P. J., & Grigg, K. (2011). Is there a bigger
Hadi, N. U., & Ahmed, S. (2018). Role of employer branding and better future for employer branding? Facing up to inno-
dimensions on employee retention: Evidence from educa- vation, corporate reputations and wicked problems in SHRM.
tional sector. Administrative Sciences, 8(3), 44. The International Journal of Human Resource Management,
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). 22(17), 3618–3637.
Multivariate data analysis (7th ed.). Pearson Prentice Hall. Maslach, C., Schaufeli, W. B., & Leiter, M. P. (2001). Job
Heger, B. K. (2007). Linking the employment value proposi- burnout. Annual Review of Psychology, 52(1), 397–422.
tion (EVP) to employee engagement and business outcomes: Men, L. R., O’Neil, J., & Ewing, M. (2020). Examining the effects
Preliminary findings from a linkage research pilot study. of internal social media usage on employee engagement.
Organization Development Journal, 25(2), 121. Public Relations Review, 101880. https://doi.org/10.1016/j.
Hogreve, J., Iseke, A., Derfuss, K., & Eller, T. (2017). The pubrev.2020.101880
service–profit chain: A meta-analytic test of a comprehensive Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust
theoretical framework. Journal of Marketing, 81(3), 41–61. theory of relationship marketing. Journal of Marketing,
Ibrahim, M., & Al Falasi, S. (2014). Employee loyalty and 58(3), 20–38.
engagement in UAE public sector. Employee Relations, Parzefall, M. R., & Hakanen, J. (2010). Psychological contract
36(5). https://doi.org/10.1108/ER-07-2013-0098 and its motivational and health-enhancing properties. Journal
Jiang, T., & Iles, P. (2011). Employer-brand equity, organiza- of Managerial Psychology, 25(1), 4–21.
tional attractiveness and talent management in the Zhejiang Piehler, R. (2018). Employees’ brand understanding, brand com-
private sector, China. Journal of Technology Management in mitment, and brand citizenship behaviour: A closer look at
China, 6(1), 97–110. the relationships among construct dimensions. Journal of
Jones, D. A., Willness, C. R., & Madey, S. (2014). Why are Brand Management, 25(3), 217–234.
job seekers attracted by corporate social performance? Rameshkumar, M. (2020). Employee engagement as an anteced-
Experimental and field tests of three signal-based mecha- ent of organizational commitment–A study on Indian seafar-
nisms. Academy of Management Journal, 57(2), 383–404. ing officers. The Asian Journal of Shipping and Logistics,
Kahn, W. A. (1990). Psychological conditions of personal engage- 36(3), 105–112.
ment and disengagement at work. Academy of Management Rana, S. (2019). Managing organizations through employee
Journal, 33(4), 692–724. engagement: An Indian perspective. In S. Rana (Ed.),
12 Vision

Management techniques for employee engagement in con- Theurer, C. P., Tumasjan, A., Welpe, I. M., & Lievens, F. (2018).
temporary organizations (pp. 256–267). IGI Global. Employer branding: A brand equity-based literature review
Rana, G., & Sharma, R. (2019). Assessing impact of employer and research agenda. International Journal of Management
branding on job engagement: A study of banking sector. Reviews, 20(1), 155–179.
Emerging Economy Studies, 5(1), 7–21. Thomson, K., De Chernatony, L., Arganbright, L., & Khan, S.
Rasheed, A., Khan, S., & Ramzan, M. (2013). Antecedents and (1999). The buy-in benchmark: How staff understanding
consequences of employee engagement: The case of Pakistan. and commitment impact brand and business performance.
Journal of Business Studies Quarterly, 4(4), 183. Journal of Marketing Management, 15(8), 819–835.
Richman, A. L., Civian, J. T., Shannon, L. L., Hill, E. J., & Tsai, Y., & Wu, S. W. (2010). The relationships between
Brennan, R. T. (2008). The relationship of perceived flexibil-
organisational citizenship behaviour, job satisfaction and
ity, supportive work–life policies, and use of formal flexible
turnover intention. Journal of Clinical Nursing, 19(23–24),
arrangements and occasional flexibility to employee engage-
3564–3574.
ment and expected retention. Community, Work and Family,
Tsarenko, Y., Leo, C., & Herman, H. M. (2018). When and why
11(2), 183–197.
Saks, A. M. (2006). Antecedents and consequences of employee do social resources influence employee advocacy? The role
engagement. Journal of Managerial Psychology, 21(7), of personal investment and perceived recognition. Journal of
600–619. Business Research, 82, 260–268.
Sartain, L., & Schumann, M. (2008). Brand from the inside: Eight Vance, R. J. (2006). Employee engagement and commitment
essentials to emotionally connect your employees to your (pp. 1–53). SHRM Foundation.
business. John Wiley & Sons. Wallace, E., de Chernatony, L., & Buil, I. (2013). Building
Schaufeli, W., & Salanova, M. (2007). Work engagement. bank brands: How leadership behavior influences employee
Managing Social and Ethical Issues in Organizations, 135, 177. commitment. Journal of Business Research, 66(2).
Schaufeli, W. B., Salanova, M., González-Romá, V., & Bakker,
A. B. (2002). The measurement of engagement and burnout:
A two sample confirmatory factor analytic approach. Journal About the Authors
of Happiness Studies, 3(1), 71–92. Aasia Yousf ([email protected]) is a doctoral
Storsten, H., & Ampuero, D. (2013). Who are we? A quantitative
fellow in the Department of Management Studies, Central
study on the employer brand of Lycksele municipality. http://
www.diva-portal.org/smash/record.jsf?pid=diva2%3A63626
University of Kashmir, Ganderbal. She has an MBA (HR
0&dswid=-5692 [human resources]) and an MPhil (HR). Her work focuses
Sundaray, B. K. (2011). Employee engagement: A driver of on employer branding and talent management strategies.
organizational effectiveness. European Journal of Business
and Management, 3(8), 53–59.
Tanwar, K. (2017, July). Creating employee engagement in
Shabana Khurshid ([email protected]) is
India: The role of employer branding. In Proceedings of a doctoral fellow in the Department of Social Work,
International Conference on Strategies in Volatile and University of Kashmir, Hazratbal, Srinagar. She has a
Uncertain Environment for Emerging Markets. Indian master’s degree in social work, and her published work is
Institute of Technology. related to social issues and engagement behaviour on the job.

You might also like