Employer branding and employee performance at KAI: employee retention' role as mediator
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Keywords:
employer branding, social value, economic value, employee retention, employee performance
Abstract
Today's job seekers prefer well-known companies, even though they're less likely to be accepted. The HR team must brand the company as an employer. Employer branding can be a company's image, values, and work culture. Employer branding has a greater impact on employee loyalty than non-emotional factors on employees. This study aims to explain 1) employer branding's impact on employee retention and performance, 2) employee retention's impact on employee performance, and 3) employer branding's impact on employee performance through employee retention as a mediator. 110 frontline workers from PT Kereta Api Indonesia (Persero) DAOP VII Madiun made up the research sample. The sampling was proportional random. Using SPSS and Sobel, this study uses descriptive and inferential analysis. Influence test results show that employer branding increases employee retention and performance, and employee retention increases employee performance. The results of path analysis and Sobel test of the mediator's role show that the direct effect of employer branding on employee retention after being controlled by employee retention as a mediator is not significant. Employee retention acts as a full mediator for employer branding's effect on employee performance, according to the mediator test. 2) Companies can improve employee performance by improving employee retention via career opportunities, awards, and employee relationships.
References
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Allen, D. G., Bryant, P. C., & Vardaman, J. M. (2010). Retaining Talent : Replacing Misconceptions With. Academy of Management Perspectives, 24(2), 48–64.
Alnajim, A. (2021). Impact and Application of Social Exchange Theory in Employee Retention. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3884032
Balaji, M. K., Kumar, A. A., & Mathimaran, K. B. (2017). Employee Retention Strategies – An Empirical Research. Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Inc, 17.
Barney, J., Wright, M., & Ketchen, D. J. (2001). The Resource-Based View of the Firm. Journal of Management, 27(6), 625–641. https://doi.org/10.1177/014920630102700601
Baron, R. M., & Kenny, D. A. (1986). The Moderator-Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations (Vol. 51, Issue 6). Psychological Association, Inc.
Berthon, P., Ewing, M., & Hah, L. L. (2005). Captivating company: Dimensions of attractiveness in employer branding. International Journal of Advertising, 24(2), 151–172. https://doi.org/10.1080/02650487.2005.11072912
Betaubun, K., Werang, B. R., & Rahail, E. B. (2015). Betaubun,Werang and Rahail. Journal of Educational Policy and Entrepreneurial Research (JEPER), 2(April), 1–8.
Biswas, M. (2012). Human Resources Management in India: Emerging Issues and Challenges (R. K. P. & C. K. Poddar, Ed.; First, Issue August 2012). New Century Publications.
Bowman, C., & Ambrosini, V. (2003). How the Resource-based and the Dynamic Capability Views of the Firm Inform Corporate-level Strategy. British Journal of Management, 14(4), 289–303. https://doi.org/10.1111/j.1467-8551.2003.00380.x
Bussin, M., & Mouton, H. (2019). South African Journal of Economic and Management Sciences. https://doi.org/10.4102/sajems.v22i1.2412
Chhabra, N. L., & Sharma, S. (2014). Employer branding: Strategy for improving employer attractiveness. International Journal of Organizational Analysis, 22(1), 48–60. https://doi.org/10.1108/IJOA-09-2011-0513
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21(10–11), 1105–1121. https://doi.org/10.1002/1097-0266(200010/11)21:10/11<1105::AID-SMJ133>3.0.CO;2-E
Gilani, H., & Cunningham, L. (2017). Employer branding and its influence on employee retention: A literature review. The Marketing Review, 17(2), 239–256. https://doi.org/10.1362/146934717x14909733966209
Ha Nguyen, M., Vinh Luan, N., & Thanh Khoa, B. (2021). Employer Attractiveness and Employee Performance: An Exploratory Study. Online) Journal of System and Management Sciences, 11(1), 97–123. https://doi.org/10.33168/JSMS.2021.0107
Homans, G. C. (1958). Social Behavior as Exchange. American Journal of Sociology, 63(6), 597–606. https://doi.org/10.1086/222355
John, A., & Raj, V. P. J. (2020). Employer Brand and Innovative Work Behaviour: Exploring the Mediating Role of Employee Engagement. Journal International Journal of Theory & Practice, 11(2), 93–113. https://doi.org/10.4038/cbj.v11i2.65
Johnston, K. A., & Everett, J. L. (2012). Employee perceptions of reputation: An ethnographic study. Public Relations Review, 38(4), 541–554. https://doi.org/10.1016/j.pubrev.2012.05.007
Khoshnevis, M., & Gholipour, A. (2017). Exploring the Relationship between Employer Brand and Employees’ Retention. International Journal of Scientific & Engineering Research, 8(10).
Kingi, R. N., Uzel, J., Monari, D., & Monari -Senior, D. (2019). Effect of Employee Retention on Employee Performance At the Five Star Hotels At the Kenyan Coast. Global Scientific Journals, 7(9), 433–465.
Koskey, MC (2019). Influence of employee retention practices on employee performance in disciplined services: case of the administration police service nyandarua county. Master Thesis.
Kristianto, N. A., & Handoyo, S. (2020). Pengaruh Employer Branding Terhadap Employee Retention Dengan Employee Engagement Sebagai Mediator Pada Generasi Milenial Di Industri E-Commerce. 11.
Madiono Sutanto, E., & Kurniawan, M. (2016). THE IMPACT OF RECRUITMENT, EMPLOYEE RETENTION AND LABOR RELATIONS TO EMPLOYEE PERFORMANCE ON BATIK INDUSTRY IN SOLO CITY, INDONESIA. In International Journal of Business and Society (Vol. 17, Issue 2).
Matongolo, A., Kasekende, F., & Mafabi, S. (2018). Employer branding and talent retention: perceptions of employees in higher education institutions in Uganda. Industrial and Commercial Training, 50(5), 217–233. https://doi.org/10.1108/ICT-03-2018-0031
Mohammad Awadh, A., & Saad, M. (n.d.). Impact of Organizational Culture on Employee Performance.
Msengeti, D. M., & Obwogi, J. (2015). Effects of Pay and Work Environment on Employee Retention: A Study of Hotel Industry in Mombasa County. International Journal of Scientific and Research Publications, 5(4).
Njoroge, M. (2019). Influence of Employee Retention Practices on Employee Performance in Disciplined Services: Case of the Administration Police Service. Kenya. International Journal of Current Aspects, 3, 83–95. https://doi.org/10.7176/ijcab.v3iIII.32
Prasetya, M., & Susilo, D. (2022). The effect of content marketing on purchase intention through customer engagement as variable mediation. Jurnal Komunikasi Profesional, 6(5), 423–434.
Purusottama, A., & Ardianto, A. (2019). the Dimension of Employer Branding: Attracting Talented Employees To Leverage Organizational Competitiveness. Jurnal Aplikasi Manajemen, 17(1), 118–126. https://doi.org/10.21776/ub.jam.2019.017.01.13
Raj, N., & Rao, Ch. B. N. (2017). Employee retention: A systematic review. International Journal of Research, 04(17), 2031–2037.
Redmond, M. V. (2015). Social Exchange Theory. In Englis Technical Reports and White Papers. Iowa State University. https://doi.org/10.4135/9781452276236.n454
Rukmani, S. (2012). Impact of Employer Branding on Employee Retention in Select It Companies in Chennai City. January, 7–12.
Shakeel, N. (2015). Journal of Resources Development and Management www.iiste.org ISSN. In An International Peer-reviewed Journal (Vol. 6).
Shelar, N. R., & Buch, G. V. (2020). the Role of Employee Retention on Job Performance: a Study of Oil & Gas Sector. Ijiris, 7(02), 1–24.
Singh, M. M., & Rokade, V. (2014). Journal of Marketing and Consumer Research www.iiste.org ISSN. In An International Peer-reviewed Journal (Vol. 5).
Sivertzen, A. M., Nilsen, E. R., & Olafsen, A. H. (2013). Employer branding: Employer attractiveness and the use of social media. Journal of Product and Brand Management, 22(7), 473–483. https://doi.org/10.1108/JPBM-09-2013-0393
Sokro, E. (2012). Impact of Employer Branding on Employee Attraction and Retention. In European Journal of Business and Management www.iiste.org ISSN (Vol. 4, Issue 18). Online.
Sumarni, M. (2020). Dampak Talent Management terhadap Employee Retention pada Millenials Workforce. Akmenika: Jurnal Akuntansi Dan Manajemen, 15(1). https://doi.org/10.31316/akmenika.v15i1.935
Susilo, D. (2022). Teori Komunikasi: Kajian Interdispliner dalam Kajian Publik dan Kajian Media. Indomedia Pustaka.
Swaroopa, D., & Sudhir, P. B. (n.d.). A Study on Employee Retention Strategies and Factors with Special Reference to IT Industry. In International Journal of Business and Management Invention (IJBMI) ISSN.
Syahreza, D. S., Lumbanraja, P., Dalimunthe, R. F., & Absah, Y. (2017). Compensation, employee performance, and mediating role of retention: A study of differential semantic scales. European Research Studies Journal, 20(4), 151–159. https://doi.org/10.35808/ersj/825
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1176/appi.psychotherapy.2009.63.1.13
Thelen, P. D. (2020). Internal communicators’ understanding of the definition and importance of employee advocacy. Public Relations Review, 46(4), 101946. https://doi.org/10.1016/j.pubrev.2020.101946
Tkalac Verčič, A. (2021). The impact of employee engagement, organisational support and employer branding on internal communication satisfaction. Public Relations Review, 47(1), 102009. https://doi.org/10.1016/j.pubrev.2021.102009
Tkalac Verčič, A., & Sinčić Ćorić, D. (2018). The relationship between reputation, employer branding and corporate social responsibility. Public Relations Review, 44(4), 444–452. https://doi.org/10.1016/j.pubrev.2018.06.005
Uppal, A., Wadhwa, B., & Vashisht, A. (2017). Magnitudes of attractiveness in employer branding: Generation Z. International Journal of Applied Business and Economic Research, 15(23), 1–8.
Vasantham, T. (2016). Importance of Employee Retention in the Overall Performance of an Organization. International Journal of Business Economics and Management Reaserach, 7(11), 16–18.
Wernerflet, B. (1984). A Resource-based View of the Firm. Journal of Management, 5(2), 171–180.
Wong, H. C. Y. (2015). The Influence of Employer Branding on Employee Performance. Indian Journal of Applied Research, 5(8), 211–213.
Xuecheng, W., Iqbal, Q., & Saina, B. (2022). Factors Affecting Employee’s Retention: Integration of Situational Leadership With Social Exchange Theory. Frontiers in Psychology, 13(July), 0–13. https://doi.org/10.3389/fpsyg.2022.872105
Yusliza, M. Y., Noor Faezah, J., Ali, N., Mohamad Noor, N. M., Ramayah, T., Tanveer, M. I., & Fawehinmi, O. (2020). Effects of supportive work environment on employee retention: the mediating role of person–organisation fit. Industrial and Commercial Training. https://doi.org/10.1108/ICT-12-2019-0111
Zareen, M., Razzaq, K., Mujtaba, B. G., & Wayne, H. (n.d.). Job Design and Employee Performance: the Moderating Role of Employee Psychological Perception.
Allen, D., Bryant, P., & Vardaman, J. (2010). Retaining Talent: Replacing misconceptions with evidence-based strategies. Academy of Management Perspectives, 24(2), 48–64. https://doi.org/10.5465/AMP.2010.51827775
Allen, D. G., Bryant, P. C., & Vardaman, J. M. (2010). Retaining Talent : Replacing Misconceptions With. Academy of Management Perspectives, 24(2), 48–64.
Alnajim, A. (2021). Impact and Application of Social Exchange Theory in Employee Retention. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3884032
Balaji, M. K., Kumar, A. A., & Mathimaran, K. B. (2017). Employee Retention Strategies – An Empirical Research. Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Inc, 17.
Barney, J., Wright, M., & Ketchen, D. J. (2001). The Resource-Based View of the Firm. Journal of Management, 27(6), 625–641. https://doi.org/10.1177/014920630102700601
Baron, R. M., & Kenny, D. A. (1986). The Moderator-Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations (Vol. 51, Issue 6). Psychological Association, Inc.
Berthon, P., Ewing, M., & Hah, L. L. (2005). Captivating company: Dimensions of attractiveness in employer branding. International Journal of Advertising, 24(2), 151–172. https://doi.org/10.1080/02650487.2005.11072912
Betaubun, K., Werang, B. R., & Rahail, E. B. (2015). Betaubun,Werang and Rahail. Journal of Educational Policy and Entrepreneurial Research (JEPER), 2(April), 1–8.
Biswas, M. (2012). Human Resources Management in India: Emerging Issues and Challenges (R. K. P. & C. K. Poddar, Ed.; First, Issue August 2012). New Century Publications.
Bowman, C., & Ambrosini, V. (2003). How the Resource-based and the Dynamic Capability Views of the Firm Inform Corporate-level Strategy. British Journal of Management, 14(4), 289–303. https://doi.org/10.1111/j.1467-8551.2003.00380.x
Bussin, M., & Mouton, H. (2019). South African Journal of Economic and Management Sciences. https://doi.org/10.4102/sajems.v22i1.2412
Chhabra, N. L., & Sharma, S. (2014). Employer branding: Strategy for improving employer attractiveness. International Journal of Organizational Analysis, 22(1), 48–60. https://doi.org/10.1108/IJOA-09-2011-0513
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21(10–11), 1105–1121. https://doi.org/10.1002/1097-0266(200010/11)21:10/11<1105::AID-SMJ133>3.0.CO;2-E
Gilani, H., & Cunningham, L. (2017). Employer branding and its influence on employee retention: A literature review. The Marketing Review, 17(2), 239–256. https://doi.org/10.1362/146934717x14909733966209
Ha Nguyen, M., Vinh Luan, N., & Thanh Khoa, B. (2021). Employer Attractiveness and Employee Performance: An Exploratory Study. Online) Journal of System and Management Sciences, 11(1), 97–123. https://doi.org/10.33168/JSMS.2021.0107
Homans, G. C. (1958). Social Behavior as Exchange. American Journal of Sociology, 63(6), 597–606. https://doi.org/10.1086/222355
John, A., & Raj, V. P. J. (2020). Employer Brand and Innovative Work Behaviour: Exploring the Mediating Role of Employee Engagement. Journal International Journal of Theory & Practice, 11(2), 93–113. https://doi.org/10.4038/cbj.v11i2.65
Johnston, K. A., & Everett, J. L. (2012). Employee perceptions of reputation: An ethnographic study. Public Relations Review, 38(4), 541–554. https://doi.org/10.1016/j.pubrev.2012.05.007
Khoshnevis, M., & Gholipour, A. (2017). Exploring the Relationship between Employer Brand and Employees’ Retention. International Journal of Scientific & Engineering Research, 8(10).
Kingi, R. N., Uzel, J., Monari, D., & Monari -Senior, D. (2019). Effect of Employee Retention on Employee Performance At the Five Star Hotels At the Kenyan Coast. Global Scientific Journals, 7(9), 433–465.
Koskey, MC (2019). Influence of employee retention practices on employee performance in disciplined services: case of the administration police service nyandarua county. Master Thesis.
Kristianto, N. A., & Handoyo, S. (2020). Pengaruh Employer Branding Terhadap Employee Retention Dengan Employee Engagement Sebagai Mediator Pada Generasi Milenial Di Industri E-Commerce. 11.
Madiono Sutanto, E., & Kurniawan, M. (2016). THE IMPACT OF RECRUITMENT, EMPLOYEE RETENTION AND LABOR RELATIONS TO EMPLOYEE PERFORMANCE ON BATIK INDUSTRY IN SOLO CITY, INDONESIA. In International Journal of Business and Society (Vol. 17, Issue 2).
Matongolo, A., Kasekende, F., & Mafabi, S. (2018). Employer branding and talent retention: perceptions of employees in higher education institutions in Uganda. Industrial and Commercial Training, 50(5), 217–233. https://doi.org/10.1108/ICT-03-2018-0031
Mohammad Awadh, A., & Saad, M. (n.d.). Impact of Organizational Culture on Employee Performance.
Msengeti, D. M., & Obwogi, J. (2015). Effects of Pay and Work Environment on Employee Retention: A Study of Hotel Industry in Mombasa County. International Journal of Scientific and Research Publications, 5(4).
Njoroge, M. (2019). Influence of Employee Retention Practices on Employee Performance in Disciplined Services: Case of the Administration Police Service. Kenya. International Journal of Current Aspects, 3, 83–95. https://doi.org/10.7176/ijcab.v3iIII.32
Prasetya, M., & Susilo, D. (2022). The effect of content marketing on purchase intention through customer engagement as variable mediation. Jurnal Komunikasi Profesional, 6(5), 423–434.
Purusottama, A., & Ardianto, A. (2019). the Dimension of Employer Branding: Attracting Talented Employees To Leverage Organizational Competitiveness. Jurnal Aplikasi Manajemen, 17(1), 118–126. https://doi.org/10.21776/ub.jam.2019.017.01.13
Raj, N., & Rao, Ch. B. N. (2017). Employee retention: A systematic review. International Journal of Research, 04(17), 2031–2037.
Redmond, M. V. (2015). Social Exchange Theory. In Englis Technical Reports and White Papers. Iowa State University. https://doi.org/10.4135/9781452276236.n454
Rukmani, S. (2012). Impact of Employer Branding on Employee Retention in Select It Companies in Chennai City. January, 7–12.
Shakeel, N. (2015). Journal of Resources Development and Management www.iiste.org ISSN. In An International Peer-reviewed Journal (Vol. 6).
Shelar, N. R., & Buch, G. V. (2020). the Role of Employee Retention on Job Performance: a Study of Oil & Gas Sector. Ijiris, 7(02), 1–24.
Singh, M. M., & Rokade, V. (2014). Journal of Marketing and Consumer Research www.iiste.org ISSN. In An International Peer-reviewed Journal (Vol. 5).
Sivertzen, A. M., Nilsen, E. R., & Olafsen, A. H. (2013). Employer branding: Employer attractiveness and the use of social media. Journal of Product and Brand Management, 22(7), 473–483. https://doi.org/10.1108/JPBM-09-2013-0393
Sokro, E. (2012). Impact of Employer Branding on Employee Attraction and Retention. In European Journal of Business and Management www.iiste.org ISSN (Vol. 4, Issue 18). Online.
Sumarni, M. (2020). Dampak Talent Management terhadap Employee Retention pada Millenials Workforce. Akmenika: Jurnal Akuntansi Dan Manajemen, 15(1). https://doi.org/10.31316/akmenika.v15i1.935
Susilo, D. (2022). Teori Komunikasi: Kajian Interdispliner dalam Kajian Publik dan Kajian Media. Indomedia Pustaka.
Swaroopa, D., & Sudhir, P. B. (n.d.). A Study on Employee Retention Strategies and Factors with Special Reference to IT Industry. In International Journal of Business and Management Invention (IJBMI) ISSN.
Syahreza, D. S., Lumbanraja, P., Dalimunthe, R. F., & Absah, Y. (2017). Compensation, employee performance, and mediating role of retention: A study of differential semantic scales. European Research Studies Journal, 20(4), 151–159. https://doi.org/10.35808/ersj/825
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1176/appi.psychotherapy.2009.63.1.13
Thelen, P. D. (2020). Internal communicators’ understanding of the definition and importance of employee advocacy. Public Relations Review, 46(4), 101946. https://doi.org/10.1016/j.pubrev.2020.101946
Tkalac Verčič, A. (2021). The impact of employee engagement, organisational support and employer branding on internal communication satisfaction. Public Relations Review, 47(1), 102009. https://doi.org/10.1016/j.pubrev.2021.102009
Tkalac Verčič, A., & Sinčić Ćorić, D. (2018). The relationship between reputation, employer branding and corporate social responsibility. Public Relations Review, 44(4), 444–452. https://doi.org/10.1016/j.pubrev.2018.06.005
Uppal, A., Wadhwa, B., & Vashisht, A. (2017). Magnitudes of attractiveness in employer branding: Generation Z. International Journal of Applied Business and Economic Research, 15(23), 1–8.
Vasantham, T. (2016). Importance of Employee Retention in the Overall Performance of an Organization. International Journal of Business Economics and Management Reaserach, 7(11), 16–18.
Wernerflet, B. (1984). A Resource-based View of the Firm. Journal of Management, 5(2), 171–180.
Wong, H. C. Y. (2015). The Influence of Employer Branding on Employee Performance. Indian Journal of Applied Research, 5(8), 211–213.
Xuecheng, W., Iqbal, Q., & Saina, B. (2022). Factors Affecting Employee’s Retention: Integration of Situational Leadership With Social Exchange Theory. Frontiers in Psychology, 13(July), 0–13. https://doi.org/10.3389/fpsyg.2022.872105
Yusliza, M. Y., Noor Faezah, J., Ali, N., Mohamad Noor, N. M., Ramayah, T., Tanveer, M. I., & Fawehinmi, O. (2020). Effects of supportive work environment on employee retention: the mediating role of person–organisation fit. Industrial and Commercial Training. https://doi.org/10.1108/ICT-12-2019-0111
Zareen, M., Razzaq, K., Mujtaba, B. G., & Wayne, H. (n.d.). Job Design and Employee Performance: the Moderating Role of Employee Psychological Perception.
Published
2022-11-21
How to Cite
Srimulyani, V. A., & Hermanto, Y. B. (2022). Employer branding and employee performance at KAI: employee retention’ role as mediator. Jurnal Studi Komunikasi, 6(3), 921 - 940. https://doi.org/10.25139/jsk.v6i3.5381
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