Linking employer branding and firm-level performance: The case of Azerbaijani firms registered on Glassdoor

Abstract

In today’s competitive labor market, firms use employer branding strategies to engage their workforce for better performance. However, the current understanding of the role of employer branding in firm-level performance in the context of developing countries is very limited. This study aims to investigate the importance of employee retention and recruitment efficiency to strengthen the relationship between employer branding and firm-level performance. Data are collected from 316 Azerbaijani firms that are tagged by the Glassdoor and reviewed by former employees. Structural equation modeling is used to test the hypotheses. The results of the study show that employer branding can enhance firm-level performance through employee retention and recruitment efficiency. However, online employee reviews on the Glassdoor do not moderate the connection between employer branding and employee retention. Current employees feel motivated to continue working with those companies which show excellent employer strategies. Furthermore, a firm’s strategy to attract the best employee pool improves firm-level performance. It is also concluded that employees working in developing countries do not concern about online reviews on their employer, and prefer to continue working despite contrary thoughts. Acknowledgment Author acknowledges the financial support provided by Internal Grant Agency (IGA/FaME/2019/008) of FaME through Tomas Bata University in Zlin, Czech Republic.