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1. Introduction
The brand of a company and its human resources are the most important sources of competitive advantage in a new economy. In addition, talented and well-educated people are difficult to find, and their recruitment and retention has become a crucial issue of concern. Companies today find themselves in a dynamic, complex and competitive environment characterised by shifting economic conditions. As the business cycle is improving, the demand for a competent workforce is also increasing. According to ManpowerGroup’s 11th-annual Talent Shortage Survey, 40 per cent of global employers have reported talent shortages, the highest percentage since 2007. In a survey published in Harvard Business Review (2015), 73 per cent of the CEOs interviewed expressed concern about the availability of workers equipped with key skills. This situation has compelled companies to try and compete effectively in the new war for talent and leaders to focus on strengthening the employer brands of their organisations (Richard, 2015).
Another survey has demonstrated that poor reputation in the market costs a company at least 10 per cent more per hire. Thus, there is a tremendous need for companies to develop an employer value proposition, clearly defining the key benefits offered by the company as an employer, and various employer brand guidelines, to make the company’s recruitment advertising more efficient. Hitherto, the major focus of all organisations has primarily been on product branding, and its communication and maintenance, but now, the concept of branding also encompasses effective human resource management (Kunerth and Mosley, 2011). The rapidly changing expectations of workers of the current generation from their employers have made employer branding a critical tool for organisations to establish themselves as employers of choice. It is also serving as a strategic tool across all sectors for attracting and retaining the right pool of employees.
Earlier, organisations were less concerned about branding and its various outcomes as both competition and employer choices were limited. However, with the phenomenal increase in the number of employers in the market, there has been a concomitant rise in employee turnovers because of the eagerness of employees to switch jobs. The intensive competition and rise in the number of firms across all sectors have fostered a new era of employment. This has made it imperative for all...