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Do Employment Experience and Attractiveness Rankings Matter in Employee Recommendation? A Firm-level Analysis of Employers

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  • Gordhan K. Saini
  • I. M. Jawahar

Abstract

In this article, we draw on psychological contract theory to examine the influence of employees’ experiences on their ‘employer of choice’ recommendation and on signalling theory to examine the influence of employer rankings on ‘employer of choice’ recommendation. Using firm-level data representing 387 firms, we used Tobit regression model to assess the effect of employment experience and employer attractiveness rankings on employees’ recommendation of a company as an ‘employer of choice’. We found that employment experience of current and former employees positively influenced employees’ endorsement of their employer. Culture and values, and career opportunities are the most significant variables in generating positive employee recommendation. In addition, appearing in most attractive employer rankings also influenced their recommendation. However, employer rankings lower than the median rank had no effect on whether or not employees recommended their organizations. Being ranked lower than the median did not influence employees’ decisions to endorse their organization because it does not have the same potency for employees as when a firm is ranked higher than the median. Results provide us with a nuanced understanding of the effects of employer attractiveness rankings. Our study has important conceptual and methodological strengths (including the firm-level measure of employment experience and word of mouth) over previous studies in the area of employer branding. JEL Classification: M370, M510, M540, C340, M190

Suggested Citation

  • Gordhan K. Saini & I. M. Jawahar, 2021. "Do Employment Experience and Attractiveness Rankings Matter in Employee Recommendation? A Firm-level Analysis of Employers," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 46(2), pages 175-191, May.
    • Handle: RePEc:sae:manlab:v:46:y:2021:i:2:p:175-191
    DOI: 10.1177/0258042X21989945
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    References listed on IDEAS

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    Cited by:

    1. Ghanbarpour, Tohid & Gustafsson, Anders, 2022. "How do corporate social responsibility (CSR) and innovativeness increase financial gains? A customer perspective analysis," Journal of Business Research, Elsevier, vol. 140(C), pages 471-481.
    2. Faiz Ahamad & Gordhan K. Saini & I. M. Jawahar, 2023. "Interactive influence of work–life balance benefits, employee recommendation, and job attributes on employer attractiveness and job pursuit intentions: two experiments," Asian Business & Management, Palgrave Macmillan, vol. 22(4), pages 1215-1242, September.
    3. Crosby, Lawrence A. & Ghanbarpour, Tohid, 2023. "The Drucker intangibles measurement system: An academic perspective," Journal of Business Research, Elsevier, vol. 155(PB).
    4. Zeeshan Ullah, 2023. "The determinants and performance outcome of the firm's capacity to maintain customer loyalty," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 265-279, February.

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