Employer brand identification influence on total reward structure

Abstract

Companies compete for employees based on their perceived employer brand value. This study investigates what influences a strong or weak employer brand has on the preference for total rewards. The results should assist remuneration agents in appropriately leveraging the company’s employer brand value, as a factor, when compiling a total rewards package for potential employees. A questionnaire was developed, asking participants to indicate their preferences relating to total rewards in the context of their current employer, with regard to stronger and weaker employer brands. Results of the study indicate that potential employees would require financial reward increases in the range of 15% - 30% in order to change employment, irrespective of whether it is perceived as a strong or weak employer brand. It was observed that a stronger employer brand could offer increases closer to the bottom of the range compared to weaker employer brands which would have to pay a premium to the top end of the range Employer brand value appears to increase the total reward costs for companies, irrespective of how the brand is perceived. It is however beneficial to be viewed as a strong employer brand, as the value of this perception translates to a smaller premium compared to weaker employer brands.