Analyzing the mediating effect of organizational identification on the relationship between CSR employer branding and employee retention

Abstract

Purpose The study aims to explore the relationship between the employer branding (EB) dimension of corporate social responsibility (CSR) and employee retention (ER) while testing for organizational identification (OI) as a mediator, within a single framework. Design/methodology/approach The study is cross-sectional, and the data were collected from 126 employees working in the Indian information technology (IT) companies. Regression technique and PROCESS macro were deployed to analyze the data. Findings The findings asserted that, first, the EB dimension of CSR influences ER. Second, CSR significantly affected OI and was found to be a strong predictor of ER. Third, the relationship between CSR and ER is mediated by OI. Practical implications Organizations should embed ethical stance in their policies, practices and procedures to retain a skilled workforce. Further, CSR as an EB dimension, while being imperative for improving employee-related outcomes, does not necessarily help to enhance retention of employees unless the employees build a strong identity with their work organization. Social implications The study connotes that organizations should be more socially responsible for achieving better employer status among various stakeholders. A well-designed strategy pertaining to CSR may increase the reputation of an employer as an attractive place to work for current and prospective employees. Originality/value The paper examined CSR as an important attribute of employer branding for retaining competent employees in the Indian setting; studies on CSR as an EB dimension are limited. The results focus on embracing socially responsible behavior of organizations and on examining the role of OI as a mediating variable.