Abstract:
This research shows that employer branding could be used to retain employees and reduce compensation levels, whilst providing a practical model to execute a successful employer branding strategy. Employer branding was defined as a set of tangible and intangible benefits offered by an organisation to attract and retain employees from a targeted audience. A quantitative study was performed and data was collected by means of an electronic questionnaire, which was distributed to employees of five South African insurers. Analysis of variance tests, correlation tests and a t-test were used to test the hypotheses.
The study showed that employer branding increases staff retention, which could provide a competitive edge for businesses. An excellent employer brand can reduce the compensation expectations of employees, increasing the overall financial performance of a company. The study also showed that age, education level and employment duration have an impact on employer branding, findings which could assist organisations to define their target group. Lastly, employer branding efforts by organisations are recognised by their employees, providing evidence to support the cost of an employer branding strategy.
A practical model, the employer branding control cycle (EBCC), was developed to assist organisations to successfully execute an employer branding strategy. This model considers the design, implementation and monitoring phases of such a strategy.
