Does employer brand matter: An empirical study on online job reviews, social media usage and firm performance

Abstract

We examine how employee-contributed job reviews and firm-managed social media posts jointly build up “employer brand” as an intangible asset and influence market valuation. Using large-scale data of job reviews, social media posts and firm performance, we study how employer band can create value distinct from overall corporate (consumer) branding. We find that more positive job ratings are associated with higher firm market value, particularly in labor-intensive industries and especially for positions which are harder to replace and have higher employee mobility. In addition, firms can respond and complement this effect by posting more employee-related content on their social media pages. Overall, our results suggest that firms should have coordinated strategies across digital platforms, presenting a consistent employer brand, to maximize their market valuation.