1. Introduction
The concept of ‘EB’ comprises of functional, economic and psychological benefits that the company can provide to its employees. Concurrently, this definition is unique to each company and helps to distinguish one company from another. EB plays an important role in improving the efficiency of recruiting and retaining employees in each company (Ambler and Barrow, 1996). On the other hand, according to Minchington (2006), EB can be understood as the image of a company built by Board of Directors to become the best workplace for employees. In addition, EB activities attract other external potential candidates to work for the company. These activities focus on the organization image development as one potential employer in the labor market (Backhaus and Tikoo, 2004). From a more general perspective, Edwards (2010) argued that EB is the concept of intersection between human resources and marketing areas: This brand-building activity (in marketing field) is related to talent attraction, and attaining (in human resource field). In contrast, EB, from a more detailed approach, includes intangible asset (corporate culture) and tangible asset (corporate salary) (Ruch, 2002).
Different perspectives result from EB approaching the impact object. Berthon et al. (2005) and Lievens and Highhouse (2003), in which the target audience of EB are the only potential candidates, concentrate on researching the attractiveness factor. In contrast, Backhaus and Tikoo (2004) argue that the target audience of EB includes a wide range of subjects such as potential candidates, current employees, competitors and other intermediaries. The primary role of using EB is to develop the distinction of an external reputation, rather than an internal description. In short, the role of EB is to achieve positive cohesion or cultural change (Backhaus and Tikoo, 2004; Mosley, 2007; Love and Singh (2011).
Nevertheless, the recent studies have followed an integrated approach. Many organizations have combined external candidates’ promises with their internal staff’s experiences or the combination of the development of employer brand with company brand and brand customer (Mosley, 2007). Sharing this view, Martin et al. (2005) argued that the strength of EB is the harmonious combination of internal trust and external brand message.
EB and employer brand are commonly applied in human resource practice although these two terms are often used interchangeably. Lievens and Slaughter (2016) show the difference between these two concepts: The external employer brand can be understood as an image of an organization whereas the internal employer brand is again seen as an organization‘s identity. In contrast, EB is seen as management of the image of the organization as well as the brand of the organization.
Tanwar and Prasad (2016), based on the theories of Ambler and Barrow (1996), develop the scale of EB, including 5 dimensions: training and development, ethics and corporate social responsibility (CSR), work-life balance, healthy work atmosphere and compensation, and benefits. Compensation and benefits components represent the ‘economic dimension’, Healthy work atmosphere element represents the ‘psychological dimension’, Training and ethics and corporate social responsibility component represents ‘functional dimension’. EB will provide flexible and responsive work policies to an employee’s social needs. In addition, the training and development, ethics and corporate social responsibility attitudes of employer is reaching both employee and social expectation.
The purpose of this study is to build the specific scale for EB as the basis of this conceptual measurement in the context of Vietnamese organizations. The study will also propose managers further implications regarding the EB activity. In particular, based on the study results, factors are recommended for managers to focus on to improve efficiency in attracting and retaining talent.
2. Literature Review
EB theory is based on the combination of marketing and human resource fields developed by Ambler and Barrow (1996). According to this theory, the concept of EB is seen as a package for both economic and psychological benefits from the organization’s managerial levels. Previously, according to Wally (1989), employer brand in organizational culture as well as the internal spirit creation helps motivate the whole organization to connect with other members as well as create an organization’s reputation with its stakeholders (Hlavsa et al. 2015). However, EB, despite receiving great attention from practitioners, has not received much in-depth research as a result EB theory is still to develop fully. First, in a practical term, EB is predicted, based on the hypothesis, that human capital will bring value to the company and improve company performance through human capital skill investment (Backhaus and Tikoo, 2004). This proves the new perspective that tangible means (factories, equipment or capital) create a competitive advantage for the organization as well as human capital is an important source of organizational competitive advantages (Priem and Butler, 2001).
One theoretical foundation of EB is external marketing and internal marketing. The external marketing employer helps build a company as the first option to attract the best candidates to join the company. For internal marketing, companies will build a different working environment and cannot be imitated by others companies. Thanks to this advantage, the employees will discover the values of the working environment and organizational culture through expressions like company goals. At the same time, it will also help the company achieve its unique and distinct culture, supporting the execution of the company’s business strategy. Therefore, unique working environment creation for each company will help avoid duplication of competitors. In other words, internal marketing not only contributes to employee retention but also uses the brand strength to improve the overall quality of human resource management of the company (Ambler and Barrow, 1996).
Another fundamental framework of EB is the psychological contract theory that discusses the relationship between the employees and the organizations. According to the traditional concept of psychological contract between employees and organization, the employee promises a limit of loyalty to the company in exchange for job security (Hendry & Jenkins, 1997). However, according to current trends towards downsizing, outsourcing and flexibility, some companies have converted psychological contracts in a new direction: companies will provide employees with market-updated skills through training and mentoring programs in return for employee efforts (Baruch, 2004). Moreover, in order to deal with the negative employees, companies can use EB to promote interests such as training, career opportunities, and personal development. To summarize, EB is seen as an effective strategy designed to help companies change ineffective solutions in their operations related to employees (Newell and Dopson, 1996; Hendry and Jenkins, 1997).
Finally, the EB theory is also contributed from the concepts of ‘brand equity' defined as ‘a set of brand assets and liabilities linked to a brand that add to or subtract form the value provided by a product or service to a firm and/or to that firm’s customers’ (Aaker and Equity, 1991). According to this definition, the customers will depend on brand equity in the impact of brand knowledge on customer feedback on the marketed product (Keller, 1993). The application, in particular, is EB, brand equity can attract potential candidates as well as motivate current candidates to stay and contribute to the company. In other words, potential candidates as well as current employees may have conflicting responses to the same hiring process and each company’s efforts to retain talent. This can be explained by the difference in employer brand equity. With this same point of view, Ha and Luan (2018) have demonstrated that employer attractivenesss (seen as part of employer branding) have a positive effect on potential candidates’ intention to apply.
3. Dimensions of EB Scale
3.1. Corporate Social Responsibility (CSR)
Corporate social responsibility (CSR), according to Tanwar and Prasad (2016), is one important factor in the EB strategy of each organization. This factor reflects the degree to which an organization cares about ethical and social issues. This concern includes all stakeholders such as employees, society, government, etc. Ethical factor indicates the attitude of an organization to its employees and the legal processes. CSR is seen as the organization’s impact on society with defined goals and creating engagement with new customers. In addition, this factor is to assess the high level of ethical standards as well as the adequate concern about environmental protection (Lievens, 2007, cited from Turban et al, 1995). Moreover, the employees always have a chance to become a part in contributing to the company’s core values (Chauhan & Mahajan, 2013). In addition, according to Tangngisalu et al. (2020), CSR enhances employee trust and corporate reputation. In other words, CSR is an important component of employer branding.
3.2. Work-Life Balance Satisfaction (WLSA)
Work-life balance, a major factor in the effectiveness of EB, consists of two important elements: work-life balance effectiveness and work-life balance satisfaction (Lorys, 2017). In particular, work-life balance effectiveness demonstrates effectiveness in associating and fulfilling all the responsibilities of both family and work (Carlson et al., 2009). Meanwhile, work-life balance satisfaction shows an employee’s perception of how important their contribution to their work is and how they are rewarded for successfully completing their tasks (Marks & MacDermid, 1996; Rantanen et al., 2011). In other words, work-life balance satisfaction is the employee’s perception of how to do the job well and the content they perform to achieve the most holistic balance between family and work (Lorys, 2017). This factor will help increase employee engagement in the organization (Vu, 2020).
3.3. Promotion (PRO)
Promotion is the promotion opportunity provided to the employees. This advancement is possible for the current position as well as the future direction of the employees (Tanwar and Prasad, 2016). In addition, this factor includes the challenge and attraction of job types as well as the opportunity to use the staff’s capabilities (Ha et al., 2021). Thereby, they satisfy the career goals of employees (Lievens, 2007, cited from Turban et al, 1995). Moreover, this factor also shows that all the employees in the organization are aware of the development in their careers (Chauhan and Mahajan, 2013).
3.4. Education (EDU)
Education is a very important component of EB. This element represents the skill development activities that the organizations provide to employees towards their current positions as well as for the development of future positions (Tanwar and Prasad, 2016). According to Kusumaningrum et al. (2020), training is one of the important factors whih has an effect on the performance of an employee.
3.5. Behavior-Based Family Interference with Work (WLBE)
Theoretically, three types of work-family conflicts include time-based conflict, strain-based conflict and behavior-based conflict (Carlso et al. 2000). In particular, this type of behavioral conflict between work and home occurs when there is a specific behavior required for this role (at home) but not compatible with another (at work). In this study, the opposite meaning is to measure the behavioral balance at work and at home. In other words, the family behaviors will also be effective for the behaviors at work.
3.6. Travel Opportunities (TRA)
Travel is one essential and important need for each individual, especially, the employees who are young in age and love to experience. The travel opportunity factor represents that an organization provides its employees with the opportunity to both work and recreation for their employees. In particular, this organization can enable the employee to experience external social lives (Lievens, 2007, cited from Turban et al, 1995).
3.7. Time-Based Work Interference with Family (WLTI)
Time-based work interference with family, according to Carlso et al (2000), similar to the behavioral balance factor between home and work, is one basic form between work-family conflicts includes time-based conflict, strain-based conflict and behavior-based conflict. Accordingly, the time-based work interference with family element indicates that when time is devoted to one role (at work) will make it difficult to implement the remaining role (for example, in the family). In this study, the opposite meaning measures the balance of time factors at work and at home. In other words, time spent at work will not affect the time spent on family activities.
3.8. Teamwork (GRO)
Teamwork, an important and significant factor in EB strategy, reflects the degree of friendliness and stress-work environment as well as it also shows the spirit for teamwork among emplyees (Tanwar and Prasad, 2016). Working environment is unique and used as an employee value proposition (EVP) of each company that helps differentiate one company from the another company. Furthermore, teamwork element means good friendships in the organization among people with social tendencies, warmth and friendliness (Lievens, 2007 cited from Turban et al, 1995). In addition, opportunities are indicated to experience interdisciplinary experiences among different individuals (Chauhan and Mahajan, 2013). In addition, Na et al. (2018) also said that the teamwork leadership style and teamwork environment will positively impact the creativity of employees in the organization.
3.9. Strain-Based Family Interference with Work (WLST)
Strain-based family interference with work, by Carlso et al. (2000), indicates that the strain within one role (at home) will negatively impact other roles (at work). In this study, the opposite meaning will be used to measure the balance of the strain factor at work and at home. In other words, work strain will not have a negative impact on other activities at home. The conceptual framework of this research is shown in Figure 1.
Figure 1: Research Model
4. Research Methodology
4.1. Sampling
The mixed research method, including qualitative research methods and quantitative research methods, are used to achieve the proposed research objectives. Qualitative research was used in this research especially the expert interview method and the group discussion method. Participants in discussion are 4 experts (with Ph.D. qualification), including an expert in researching, an expert in marketing and Journal editor, an expert has application experience in human resources (consultant) and 01 lecturer in human resources) and 2 groups of staff who have worked for 5 years or more. The results of qualitative research summarize research concepts and EB including 10 factors Corporate social responsibility (CSR), Promotion (PRO), Work-Life Balance Satisfaction (WLSA), Education (EDU), Behavior-based family interference with work (WLBE), Travel opportunities (TRA), Time-based work interference with family (WLTI), Teamwork (GRO), Supporting (SUP), and Strain- based family interference with work (WLST). In addition, through group discussion, the scales in the study have been adjusted to suit the thought processes of the surveyed subjects’ thought processes.
In the next step, respondents surveyed by questionnaires focus on the employees working in enterprises in Vietnam and understand the activities in the businesses they are working for. As for sample number, Hair et al. (2017) proposes analysing the sample with fewer than 50 observations and preferably 100 or more observations. As a rule, the minimum number of the observed samples must be equal to 5 times of the number of observed variables. The acceptable sample level for sample size is in the ratio of 10:1. Some researchers propose, at least, 20 cases for each variable. In addition, according to Tabachnick and Fidell (2007), the sample sizes that give the results 50 are very poor, 100 are bad, 200 are pretty good, 300 is good, 500 are great and 1000 are excelent. This means that researchers are always trying to achieve the highest number of cases per variable to help minimize the overfitting (deriving factors that are sample-specific with little generalizability). To achieve this goal, researchers need to save on building variables guided by concepts and practices. In the case of selecting a smaller sample size or a lower case-to-variable ratio, the researchers need a suitable explanation. Therefore, this study chooses the number of sample 937 is appropriate and meets the requirements of standards and optimization of research resources.
4.2. Measurement
The scale of all research concepts in this article is based on the previous studies, qualitative research results, adjusted through preliminary research and presented in the form of statements. The scales use the Likert scale with 5 levels (from (1) Totally disagree to (5) Totally agree) as follows (see Table 1):
Table 1: Measurement and Scales
5. Results
5.1. Cronbach Alpha
This study also uses Cronbach’s Alpha testing to check scale reliability. To test internal consistency, the author uses the results of factor analysis (EFA). From Table 2, the results show that all scales meet the reliability requirements: Cronbach’s Alpha of the scales is greater than 0.8. No item, if deleted, creates the Cronbach’s Alpha larger than the original value; therefore, all items must be maintained. (See Table 2).
Table 2: Cronbach Alpha Results
5.2. Explore Factor Analysis (EFA)
From Table 3 (given below), it can be inferred that KMO index reached 0.963 ranges from [0.5–1] shows that the scale is suitable. In addition, that the significance in the Bartlett’s Test has a value of 0.000 (< 0.05) as a standard fit (Hair et al., 2017) proves that this scale is in accordance with the explore factor analysis (EFA) criteria. That the eigenvalue of the employer-branding factor is 10 (Gerbing & Anderson, 1988) demonstrates that the number of factors includes the following 10 factors: CSR (9 items), PRO (8 items), WLSA (8 items), EDU (7 items), WLBE (7 items), WLTI (5 items), SUP (3 items), GRO (4 items), TRA (3 items) and WLST (3 items). Moreover, the Total Variance Explained index reaches 65, 946% (> 50%), meeting the required standard (Gerbing & Anderson, 1988). Finally, Factor loading shows the correlation level between observed variables and factors. That most items reach value more than 0.5 signals that the relationship between all observed variables in different factors, the value of association capacitor and discriminant value of the scale achieved the criteria requirement.
Table 3: The Explore Factor Analysis (EFA) Results
In addition, the analysis results also presents that the employer attractiveness scales achieve the internal consistency reliability requirement with the result of Composite Reliability (CR) value greater than 0.70 and convergent validity with Average Variance Extracted (AVE) greater than 0.50. (See Table 3).
6. Discussion
EB scale is based on Tanwar and Prasad’s (2016) definition, “EB has five-dimensional structure including training and development, ethics and corporate social responsibility (CSR), work-life balance, healthy work atmosphere and compensation and benefits.” Based on this definition, the study has developed the EB scale, based on the scales introduced by Tanwar and Prasad (2016), Chauhan & Mahajan (2013), Lievens (2005), Lorys (2017), Carlso et al. (2000) and through qualitative research. In particular, the scale of Tanwar and Prasad (2016) is to measure the factors CSR, PRO, EDU and GRO. Chauhan & Mahajan (2013) scales are to measure CSR and PRO factors. Lievens (2005) scale measures CSR, PRO, TRA and GRO whereas Lorys (2017) scale measures WLSA and WLBE factors. The Carlso et al. (2000) scale was used to measure WLBE, WLTI and WLST. All items in the 10 factors have achieved standard Cronbach alpha, EFA, CR and AVE. Therefore, it can be asserted that all 10 factors have reached the reliability of EB scale.
According to the above analysis results, CSR factor focuses on legal and ethical issues such as CSR1 (My organization always obeys the law) or CSR4 (Ethical organization with high moral standards), caring employee life such as CSR3 (My organization provides insurance coverage for employees) or CSR9 (My organization is always concerned about the material life of its employees). At the same time, the contents of CSR factor also focus on activities related to customers as well as society such as CSR7 (My organization is always concerned about the benefit of our customers) or CSR6 (Humanitarian organization gives back to the society). Therefore, the items constituting the CSR factor are completely consistent with Carroll’s (1991) contents, including 4 main responsibilities (economic, legal, ethical and philanthropic).
Meanwhile, the work-life balance factor is detailed separately into 4 component factors including Work-Life Balance Satisfaction (WLSA), behavior-based family interference with work (WLBE), time-based work interference with family (WLTI) and strain-based family interference with work (WLST). It goes on to say that the work-life balance receives a lot of importance from the employees. This result are consistent with the previous studies. Lorrys (2017) researched and developed a scale of work-life balance, in which, an important component is work-life balance satisfaction. Meanwhile, Carlson (2000), when researching work-life balance, built a model for the conflict between life and work and built up three types of conflicts: time, strain and behavior. Consequently, the results of this study are consistent and inherit the results of previous studies. Next, Promotion (PRO) factor will focus on career development activities for employees such as PRO1 (My Organization offers prospects for higher positions) or PRO7 (My organization has a professional development orientation for its employees (besides position development)). In addition, Education (EDU) factor will focus on employee training activities such as EDU1 (My organization always organizes many annual trainings for its employees) or EDU7 (My organization organizes various conferences, workshops and training programs. on regular basis). These activities include both public and internal training courses. The two factors PRO and EDU are consistent with the training and development factor of the scale on EB of Tanwar and Prasad (2016).
There is another factor that is relatively new compared to the original scale of Tanwar and Prasad (2016) is the Travel opportunities factor (TRA). This factor addresses the need to travel and experience new workplaces as well as learn new things about the world outside the (My organization offers the possibility to see a lot of the world (TRA3)). This factor is consistent with the preferences of employees, especially young employees. This factor shows that the organization provides a light, entertaining and enjoyable working environment as well as the opportunity to experience social life outside such as working abroad (Lievens, 2005). The next factor Teamwork (GRO) shows the spirit of mutual support between colleagues (GRO1: Teamwork is always encouraged in my organization) as well as the businesses that provide the opportunity for employees to work with different groups of people (GRO2: My organization offers the possibility to work together with different people) or (GRO4: My organization offers opportunity to work in teams). This concept is consistent with the previous authors’ view of friendliness and comfortable working environment (Tanwar and Prasad, 2016) or shows the organization with many kind and friendly colleagues (Lievens, 2005). The last factor that is newly added in qualitative research is Supporting (SUP). This factor shows the spirit of support and mutual help between members (SUP3: All members of the organization support each other’s work) as well as the harmonious relationship between members (SUP1: My organization always has a harmonious among group members).
To summarize, through the major findings of the previous scales, theoretical basis, qualitative research and quantitative research by the Cronbach alpha, EFA, CR and AVE testing confirmed that the 10 factors developed in this study have relatively measured EB.
7. Conclusion and Managerial Suggestions
The study has built a new EB scale on the foundation of integrating the previous scales by Tanwar and Prasad (2016), Chauhan & Mahajan (2013), Lievens (2007), Lorys (2017), Carlso et al. (2000) through qualitative research. In particular, employer-branding scale has added a lot of factors related to work and life balance. Specifically, factors related to this content account for 4/6 factors in this scale (Work-Life Balance Satisfaction (WLSA), Behavior-based family interference with work (WLBE), Time-based work interference with family (WLTI) and Strain-based family interference with work (WLST)). These factors are very comprehensive for the balance between work and life (satisfaction, behavioral balance, time and stress). This is a new discovery of the structure of EB scales. In addition, the combination of 10 factors (Corporate social responsibility (CSR), Promotion (PRO), Work-Life Balance Satisfaction (WLSA), Education (EDU), Behavior-based family interference with work (WLBE), Travel opportunities (TRA), Time-based work interference with family (WLTI), Teamwork (GRO), Supporting (SUP), and Strain-based family interference with work (WLST)) have created a new scale for EB. Through reliability tests of scales, these factors prove to be reliable and can represent measurement for this concept. Therefore, the creation of this new scale will help complement the system of EB concept as well as support the up-coming researchers to have more references in measuring this concept.
These results identify many factors in building a strong employer brand for the organization, not just a few traditional factors like salary, bonus or welfare. Therefore, managers need to be deeply concerned about these factors affecting EB in order to build the organization in the most effective way. Factors of EB can be summarized as follows:
Group of factors related to work-life balance (WLB): According to the research results, this group has a strong impact and account for a high proportion in the EB of the business. This group accounts for 40% of the factors that influence the success of an EB strategy (4 out of 10 components that make up an EB) include: Work-Life Balance Satisfaction (WLSA), Behavior-based family interference with work (WLBE), Time-based work interference with family (WLTI) and Strain-based family interference with work (WLST). Therefore, managers need to pay attention to creating and creating the working environment for employees to feel the balance between work in the business and family life; in particular, the balance of time, behavior and stress. In terms of time, administrators need to create conditions for employees to work in a scientific manner and with an acceptable overtime so that the family life of the empoyees are not disrupted. In addition, if possible, managers should give them some extra days off (not in accordance with the law) so employees can spend more time engaging in activities with their families. In terms of behavior, managers need to build the company’s core values and cultural principles to be relevant and effective at work and in daily lives. This will enable employees to use these behaviors in both cases in the most effective way. For feelings of stress, managers should have training programs or counseling employees as how to effectively control emotions. This helps employees lessen their stress caused by family emotions affecting the work at company and vice versa. Last but not least, managers need to have regular programs to assess and survey employee satisfaction related to the balance between work and their families. Similarly, Anphabe organization in Vietnam has a survey program ‘The best place to work’ to assess employee satisfaction within the company so that solutions are built for an attractive and better working environment.
Development factor group includes Promotion (PRO) and Education (EDU) factors that create excitement and motivation for employees. Therefore, administrators need to develop a clear and attractive career development plan for their organization; in particular, focusing on providing employees with opportunities to experience diverse jobs. At the same time, there should be a clear career path so that every employee can be aware of the promotion path in their organizations. With this, employees can work in a better manner and more effectively with more development opportunities. In addition, to support employees to be able to work effectively, the company needs to organize many internal and external training courses with diverse content and forms. The frequency of implementation and program quality should be of interest to managers. This is the key to opening employees the opportunity to improve their competency and boost a positive contribution to the overall efficiency of the company.
Group of social factors including corporate social responsibility (CSR), Teamwork (GRO) and Supporting (SUP) that help create peace of mind and a friendly working atomosphere for employees in the company. Therefore, managers need to pay attention to build a healthy and humane working environment that improves employee engagement with the business. In particular, managers need to perform well the activities related to corporate social responsibility (CSR) like compliance with applicable laws, good protection of the living environment, building codes of conduct and ethics, doing business at the enterprise in the spirit of respect for ethics and humanity, customer respect, etc. Accordingly, administrators need to create favorable conditions for Departments to work together through projects as well as motivate company members to participate in team-work activities. At the same time, building a new harmonious relationship among organizational members encourages mutual assistance and support among superiors and subordinates as well as colleagues.
The final factor is the travel opportunities (TRA) factor. The need for experience and travel is increasingly essential for employees and their motivation for the jobs in all types of businesses. Therefore, managers need to pay attention to create conditions for employees to have the opportunity to experience business trips or provide extra days off and encourage employees to travel on their own to explore and learn more in new lands. This will help employees feel inspired at work and learn new things like culture, customs, food, etc. Since then, employees have more social knowledge and do not feel bored at work. This also changes the company’s image to become more positive in employee awareness.
8. Limitations and Future Research
Due to limited time and research resource, the study has the following limitations:
(1) Data was collected for a certain point of tine without any comparison to other timelines. Therefore, it is impossible to do a general evaluation about the respondents’ views on the factors related to EB.
(2) That most of the data collected from enterprises located in major cities in the Southern Vietnam can affect data generalization. In Vietnam, depending on different regions, respondents’ opinions and personalities do vary. As a result, the employee’s perception of EB is affected by its perception of these elements.
(3) The sampling method of the study is a non-probability method so accuracy and quality of the sample are affected as well as the overall representation ability of the sample is not high.
(4) That the working organizations of the respondents in this study are mostly enterprises and it does not cover other types of organizations namely socio-political organizations, state management agencies, non-profit organizations, associations, clubs and so on.
Therefore, in order to improve reliability and generalization of this study, it is suggested to conduct a survey of respondents nationwide. At the same time, it should expand to all types of organizations like socio-political organizations, state management agencies, non-profit organizations, associations, clubs, etc. In addition, the sampling method should use probabilistic methods and perform at different time points to improve data accuracy.
Appendix
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