The Effect of Corporate Reputation on Employer Brand Attractiveness: A Research in the ICT Sector

Abstract

Purpose - The purpose of this study is to examine the corporate reputation as a precursor to employer brand attractiveness in the information technology sector and to investigate whether the perceptions of employer brand attractiveness and corporate reputation vary according to the demographic characteristics of potential employees. Design/methodology/approach – The research population consists of employees in the information technology sector, where competitive advantage can be gained through highly skilled workforce with high intellectual capital. The turnover of workforce among competing businesses allows for the evaluation of information technology sector employees as potential workforce. Using the Corporate Reputation Scale developed by Fombrun et al. (2015) and the Employer Brand Attractiveness Scale developed by Berthon et al. (2005), 506 participants were asked to respond to statements by considering the "most ideal company in their sector where they work". Findings - It was found that there is a significant relationship between the perception of corporate reputation among potential employees in the information technology sector and employer brand attractiveness, and corporate reputation has a positive and moderate impact on employer brand attractiveness. In terms of demographic characteristics, it was determined that male employees have higher perceptions of corporate reputation and employer brand attractiveness compared to females, younger employees have lower perceptions of employer brand attractiveness compared to older employees, and middle-aged employees have lower perceptions of corporate reputation. It was also found that experienced employees have higher perceptions of employer brand attractiveness and corporate reputation compared to less experienced employees. Discussion - This study highlights the importance for information technology businesses aiming to gain sustainable competitive advantage through the intellectual capital contributed by talented employees to consider how their corporate reputation is perceived in the labor market in order to attract the most talented individuals to their organizations. Additionally, the research findings emphasize the working environment and governance dimension as the corporate reputation factor with the lowest relationship to employer brand attractiveness. Similarly, the identified differences in terms of demographic characteristics provide opportunities for discussing new assumptions in future studies.