Exploring the impact of employer brand attributes on financial performance: an intellectual capital perspective

Abstract

PurposeThe employer brand is a crucial intangible asset for companies as it enhances the employer–employee relationship, leading to improved employee performance and overall company outcomes. This paper aims to investigate the contribution of the employer brand to the financial results of companies in southern Europe.Design/methodology/approachThe sample consists of 266 companies operating in southern European countries during the year 2020. Secondary data on employer brand attributes, assessed from the perspective of current employees, were collected from the Glassdoor platform. Financial indicators were obtained from the companies' annual financial reports. The research hypotheses were tested using regression analysis.FindingsThe results of the regression analysis support the notion that the employer brand contributes to profitability indicators and management effectiveness indicators of southern European companies. However, the study did not find evidence supporting the contribution of the employer brand to market indicators and financial structure indicators of the observed companies.Originality/valueThis study is one of the first empirical investigations to assess the role of the employer brand as a human capital tool for enhancing the financial performance of companies in southern Europe. The study examines employer brand attributes from the perspective of current employees, who actively participate in shaping the employer brand and the company's image. In contrast to prior research, this study incorporates a more extensive set of financial indicators, categorized into four groups: profitability indicators, management effectiveness indicators, market indicators and financial structure indicators.