Examining the Temporal Effects of Employer Branding on Employee Engagement and Employee Retention: A Longitudinal Study in the Indian IT Sector

Abstract

Anchored within the framework of the 'consumption-system' approach and guided by the principles of social exchange theory, this research delves into the interconnectedness of employer branding, employee engagement, and employee retention. The aim of this study is to construct and validate a dynamic model that explores how the desire of IT employees to stay with their current organization may either strengthen or weaken over time due to their previous perceptions of employer branding. The data for this investigation was gathered from a sample of young IT employees through two rounds of questionnaire surveys denoted as T1 and T2. Ultimately, the final dataset comprised of 380 participants. The findings unveil a direct impact of employer branding on employee engagement, as well as a direct influence of employee engagement on employee retention. Notably, both of these associations display significant temporal effects, indicating a propensity for them to become more potent as time progresses. Moreover, the carryover effects from one time point to another hold significance for all three constructs, underscoring the idea that the perceptions at T1 exert a substantial influence on the corresponding constructs at T2. In summation, it can be inferred that the impressions formed by employer branding have an enduring effect on employee engagement during subsequent time periods. Furthermore, the level of employee engagement also wields an influence on employee retention in the periods that follow. As a whole, this study provides valuable insights for human resource managers operating within the IT sector, furnishing them with guidance on how to strategically deploy employer branding practices to foster employee engagement and, in turn, bolster their commitment to remain with the organization.