Employer branding : analysis of its influence on employee attraction and retention in SMEs

Abstract

Purpose: The purpose of this study is to explore how employer branding can influence employee attraction and retention, specifically in small and medium-sized firms. By highlighting the function of employer branding for a competitive advantage in the talent market, this study aims to establish which factors most influence the perception and decisions of employees. Additionally, since it is a challenge for SMEs to attract and retain employees, this study seeks to provide insights on how they can utilise branding strategies. Design: This study adopts a quantitative approach, collecting primary data through an online questionnaire. A sample population from those working in small and medium companies was recruited using convenience sampling. Statistical analysis was conducted to examine the association between employer branding and talent attraction and retention. Moreover, to explore the difference between SMEs. Findings: The findings confirmed that employer branding significantly affects both employee attraction and retention. Work-life balance, career growth opportunities, and compensation packages emerged as critical factors. However, there was no significant difference in the impact of employer branding across small and medium companies, as a positive perception was observed in both company sizes. Practical Implications: For practice, the author suggests that SMEs should enhance their employer brand by focusing on intrinsic motivators that resonate with employees, such as work-life balance, career growth opportunities, and compensation packages. Theoretically, future research should consider focusing on a specific sector to explore more in-depth insights on specific sectors.