Brand Management
Employer Branding: A Strategic Tool for Employee Retention in IT Industry

Article Details
Pub. Date : March, 2020
Product Name : The IUP Journal of Brand Management
Product Type : Article
Product Code : IJBRM30320
Author Name : Vibhuti Tripathi, Rajlaxmi, Anshita Srivastava, Aastha Tripathi
Availability : YES
Subject/Domain : Marketing
Download Format : PDF Format
No. of Pages : 15



Employer branding is a strategic move for acquisition and retention of potential and existing employees in an intensely competitive market. The study is conducted on Indian IT industry described by intense competition; on its growth trajectory, the industry faces a challenge of high attrition. The human resource in IT firms is characterized by young employees who are willing to take risk and look for continual change in their jobs for better opportunities or quality of work life. The paper is empirical in nature and addresses the objective to find out the dimensions of employer branding and its influence on employees' intention to stay in an organization. A standardized scale of Berthon et al. (2005) is adapted with necessary changes in the Indian context to measure the attractiveness of employers. Convenience sampling method is used and sample size is 100 existing employees working in IT companies from Delhi and Hyderabad. Factor analysis and regression are used for data analysis. After data reduction, seven factors are extracted, namely, growth opportunities, work culture, brand image, creativity and learning, belongingness, socio-ethical responsibility, and compensation and recognition. Further, multiple regression is used to explore the relationship between dimensions of employer branding and intention to stay in an IT firm. The findings suggest that brand image and belongingness positively affect the intention of employees to stay in an organization. Suggestions based on the findings may help the employers to improve their employer branding strategies so that they can retain more talents.


In a globally competitive environment, organizations strive to acquire and retain the best talents in order to gain competitive advantage over their competitors. Indian IT industry faces the problem of high attrition as it has young employees who are willing to switch job for better opportunities more frequently. When the talented and skilled workforce starts preferring other organizations to work for, then it hinders the growth of the organization. Losing experienced employees results in discouragement and reduced productivity of other existing employees. To overcome these problems, organizations started adopting different strategies to retain talented workforce. Innovative recruitment and retention strategies lead to the emergence of organizations as brands. Organizations transited from merely being employers to becoming branded organizations which employees look forward to be a part of. "Branding was originally used to differentiate tangible products, but over the years it has been applied to differentiating people, places and firms" (Peters, 1999). The aim of branding is to make the products distinguishing and more attractive to customers compared to their competitors to gain competitive edge in market (Backhaus and Tikoo, 2004). With the help of a strong brand, an organization can attract more market share, increase awareness and loyalty by creating credibility, winning price competition and enhancing customer relations (Backhaus and Tikoo, 2004; Kotler et al., 2005; and Doyle and Stern, 2006).


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