10 1108 - Cdi 03 2018 0069
10 1108 - Cdi 03 2018 0069
10 1108 - Cdi 03 2018 0069
www.emeraldinsight.com/1362-0436.htm
CDI
23,4 Do instrumental and symbolic
factors interact in influencing
employer attractiveness and job
444 pursuit intention?
Received 5 March 2018
Revised 3 August 2018
Shweta Kumari and Gordhan K. Saini
Accepted 19 August 2018 School of Management and Labour Studies, Tata Institute of Social Sciences,
Mumbai, India
Abstract
Purpose – The changing demographics of talent market calls for a better understanding of the
expectations of diverse job seekers. However, there is limited research on employer attractiveness (EA)
factors which cover the expectations of new generation job seekers. The purpose of this paper is to examine
the effect of career growth opportunities (CGO), work–life benefits (WLB) and corporate social
responsibility (CSR) reputation on the perceived attractiveness of an organization as an employer and the
job pursuit intention ( JPI) of job seekers.
Design/methodology/approach – A 2 (CGO: many vs limited) × 2 (WLB: many vs limited) × 2 (CSR
reputation: high vs low) between-subjects experimental design was used for this study. A total of 240
respondents participated in the study.
Findings – The results showed that provision of CGO had the highest effect on both EA and JPI. This effect
was strong enough to compensate for limited WLB and a low CSR reputation. A significant interaction effect
between CGO and CSR reputation revealed that the effect of CSR reputation on EA depends on the
availability of many or limited CGO.
Originality/value – The study contributes and expands literature on attributes relevant in job choice
decisions by providing useful insights regarding how job seekers weigh these attributes while making an
employment choice. Also, the study offers suggestions for designing organizations’ recruitment strategy for
attracting talent.
Keywords Employer attractiveness, CSR reputation, Job pursuit intention, Career growth opportunities,
Work–life benefits
Paper type Research paper
Attracting the best talent can generate a distinct advantage for an organization (Ployhart,
2006; Harari, 1998). This realization has resulted in a war for talent among organizations
(Mahroum, 2000; Michaels et al., 2001). Organizations are likely to compete more fiercely for
talented employees than for consumers. To attract and retain the best talent, organizations
are increasingly focusing on branding themselves as employers of choice. There is extensive
literature on employer branding and employer attractiveness (EA) (Lievens and Slaughter,
2016; Banerjee et al., 2018; Saini et al., 2014; Theurer et al., 2018). Berthon et al. (2005,
p. 156) defined EA as “the envisioned benefits that a potential employee sees in working for
a specific organization.” Job seekers assess an organization’s attractiveness on various
parameters such as pay, career growth, security, etc., before seeking employment with
the organization.
Existing literature (Ehrhart and Ziegert, 2005; Firfiray and Mayo, 2017; Jones et al., 2014;
Renaud et al., 2016) has examined the influence of various employment benefits/factors
on an organization’s attractiveness as an employer. These factors have been classified into
Career Development International two broad categories – instrumental factors and symbolic factors. Instrumental
Vol. 23 No. 4, 2018
pp. 444-462
factors are tangible in nature and provide utilitarian value to employees such as pay,
© Emerald Publishing Limited
1362-0436
benefits, location, advancement opportunities, etc. In contrast, symbolic factors are
DOI 10.1108/CDI-03-2018-0069 intangible and provide symbolic value such as a sense of prestige to be associated with an
organization. Literature shows that both symbolic and instrumental factors have a Instrumental
significant effect on EA. and symbolic
However, changing demographics (i.e. baby boomers, generation X and generation Y or factors
millennials) calls for a better understanding of the expectations of different generations
co-existing in the workplace ( Johnson and Johnson, 2010; Lyons and Kuron, 2014).
Montgomery and Ramus (2011) noted that it is important for organizations to understand the
expectations of young graduates and the organizational attributes that influence their choice 445
of employment. Existing research on emerging expectations of the newer generation has
identified three major attractiveness factors: career growth opportunities (CGO), work–life
benefits (WLB) and association with organizations that are socially responsible or have a good
reputation in terms of corporate social responsibility (CSR). Literature shows that millennials
want quick promotions (Ng et al., 2010; Smola and Sutton, 2002), flexibility in work hours,
quality of life, recognition, continued feedback, and a positive environment and relationships
at the workplace (Cavazotte et al., 2012). LaPlante (2004) reported that jobseekers are willing to
forego financial benefits to work for an organization that has a better reputation in terms of
CSR and ethics. This signals the growing importance assigned by the workforce to social and
environmental engagement (Heslin and Ochoa, 2008). Researchers have highlighted that such
emerging factors that appear to have a positive effect on organizational attractiveness need to
be studied with empirical data (Ehrhart and Ziegert, 2005; Lievens, 2007).
A review of extant literature reveals that empirical studies examining these three factors
(i.e. CGO, WLB and CSR reputation) in relation to EA and job pursuit intention ( JPI)
are limited. A few notable empirical studies (e.g. Honeycutt and Rosen, 1997) have examined
the relationship between WLB and an organization’s recruitment strategy. The results are
inconclusive about the likely positive impact of WLB on EA and raise concerns about
efficiency of such benefits to multiple employee (or job seeker) segments. Also, CGO are
likely to increase EA, but it has been studied mainly with respect to employee commitment
(Weng et al., 2010) and turnover intentions (Weng and Mcelroy 2012). Using social identity
and signaling theories, Turban and Greening (1996) found that corporate social performance
relates positively to organizational reputation and increases organizational attractiveness.
Prospective job applicants are more likely to pursue jobs in socially responsible firms than
in firms with a poor record of social responsibility (Turban and Greening, 2000). Backhaus
et al. (2002) showed that CSR has a positive impact on EA. However, the role of CSR
reputation in increasing the positive effect of instrumental variables (i.e. CGO and WLB) on
EA and JPI has not been investigated. Moreover, these attributes have so far not been
studied in an emerging country context (e.g. India).
This study is an attempt to address these research gaps by answering the following main
research questions:
RQ1. What is the relative influence of CGO and WLB vis-à-vis CSR reputation on EA
and JPI?
RQ2. Does the presence of instrumental variables (i.e. CGO and WLB) increase the
positive effect of the symbolic variable (i.e. CSR reputation) on EA and JPI?
Accordingly, the main objective of this study is to examine the effect of CGO, WLB and CSR
reputation on the perceived attractiveness of an organization as an employer and the JPI of job
seekers. Specifically, we examine the main effect and interaction effect of two instrumental
attributes (i.e. CGO and WLB) and one symbolic attribute (i.e. CSR reputation) on EA and JPI.
Methodology
Study design
A 2 (WLB: many vs limited) × 2 (CGO: many vs limited) × 2 (CSR reputation: high vs low)
between-subjects experimental design was used for this study. Thus, a total of eight scenarios
were constructed for eight fictitious organizations (a sample description of Scenario 1 is given
in the Appendix) and respondents were presented with one of the eight different
organizational descriptions. These descriptions presented information on three factors: WLB,
CGO and CSR reputation. Upon reading the description, participants were asked to imagine
themselves as jobseekers and provide their responses to a series of questions to measure their
attitudes toward EA and JPI for the organization mentioned in the description.
Sample
The respondents were invited to participate in this study through e-mail with a request to
fill a standard questionnaire. The e-mail invitation along with the questionnaire was sent to
CDI the students who were pursuing final year of their engineering and management courses
23,4 from premier institutions and were about to enter the employment market, making them
appropriate for this study. University students have been used in many earlier studies on
organizational attractiveness and job seekers’ application intention (Highhouse et al., 2003;
Terjesen et al., 2007; Tews et al., 2012). Participation in the study was completely voluntarily
and respondents could opt out of the study anytime during the data collection. A total of 264
450 respondents participated in the study; however, 24 responses were incomplete, leaving 240
responses for subsequent analysis. Thus, we had 30 responses per experimental condition
(i.e. scenario).
The sample had 175 male (72.9 percent) and 65 female respondents. In total, 171
respondents had no prior work experience, and the mean age of respondents was 25 years.
In total, 198 out of 240 respondents were in the second year of their two-year post
graduate course in management and the remaining 42 students were in the final year of their
four-year undergraduate course in engineering.
Results
Table II shows the mean and standard deviation for the two dependent variables, EA and
JPI, by experimental scenarios. As expected, amongst all the scenarios, Scenario 1 has the
Many/high Limited/average
Variable Mean SD Mean SD p-value
Career growth opportunities (many or limited) 5.84 0.68 3.56 0.90 0.000
Work–life benefits (many or limited) 5.38 0.98 3.71 0.70 0.001 Table I.
CSR reputation (high or low) 5.49 0.87 3.53 0.98 0.000 t-test comparing
Note: Pre-test results: n ¼ 20 scenario conditions
CSR
6.50
reputation
High
6.00 Low
Estimated marginal means for EA
5.50
5.00
4.50
4.00 Figure 1.
Interaction effect of
career growth
3.50
opportunities and CSR
reputation on
Many Limited
employer
attractiveness
Career growth opportunities
EA (Scenarios 1 and 3) while in the cases of limited CGO, even a high CSR reputation
generates lower EA (Scenarios 5 and 7). On the contrary, the effect of CSR reputation on EA
is very small in scenarios when the organization offers limited CGO. Overall, this implies
that an offer of many CGO increases the effect of CSR reputation on EA, and vice versa.
CDI Interestingly, CGO have a significant effect on the EA when WLB are limited and CSR
23,4 reputation is high. Table II reveals that the differential effect of CGO in Scenarios 2 and 6
(many WLB and low CSR reputation) is 1.93 (5.93–4.00) and this effect increases to
2.94 (5.97–3.03) in Scenarios 3 and 7 (limited WLB and high CSR). Thus, the effect of CGO on
the EA increases by a significant portion (1.1 ¼ 2.94–1.93). Therefore, it can be argued that
the effect of CGO on EA is better reinforced by great CSR reputation than the provision of
454 many WLB.
A comparison of means of Scenario 7 (3.83; i.e. low CSR reputation) and Scenario 8
(3.03; i.e. high CSR reputation) reveals that a job seeker may not perceive a high CSR
reputation as attractive in the absence of many CGO and many WLB. The presence of
limited CGO and limited WLB with a high CSR reputation (Scenario 8) is the worst
scenario than limited CGO and limited WLB with a low CSR reputation (Scenario 7)
(Figures 2 and 3). This is counter-intuition. Such results may be explained by the varied
preference of job seekers for different employment attributes. While a high CSR reputation
generates a positive impact at an aggregate level leading to main effect, job seekers are
more concerned about CGO and WLB; and absence of the latter two may outweigh the
positive effect of a high CSR reputation.
Interestingly, both Scenario 4 (i.e. many CGO, limited WLB, low CSR reputation) and
Scenario 5 (i.e. limited CGO, many WLB and high CSR reputation) have equal means for
both EA (4.77) and JPI (5.10). This implies that the effect of many CGO is strong enough to
compensate for limited WLB and a low CSR reputation.
Discussion of results
In this study, we examined the influence of two instrumental attributes – CGO and WLB,
and one symbolic attribute –CSR reputation, on EA and JPI. The results show significant
main effects for all the three variables, though their effect sizes differ significantly. Provision
of CGO came out to be the most significant factor with the highest effect on both EA and JPI,
followed by WLB with a medium effect and CSR reputation with a small effect. Such results
are consistent with the findings of Smola and Sutton (2002) that individuals appreciate skill
CSR
5.00 reputation
High
Low
Estimated marginal means for EA
4.50
4.00
3.50
Figure 2.
Interaction effect of
work–life benefits and
CSR reputation on
employer 3.00
attractiveness: case of
limited career Many Limited
opportunities
Work–life benefits
5.50
CSR Instrumental
reputation
High
and symbolic
Low factors
Estimated marginal means for JPI
5.00
4.50 455
4.00
3.50
Figure 3.
Interaction effect of
work–life benefits and
3.00 CSR reputation on job
pursuit intention: case
Many
of limited career
Limited
opportunities
Work–life benefits
development and prefer a balance between personal life and work, and Sokro (2012) that
good working conditions, career development and core values of the organization are major
talent attraction drivers.
The study results add to the literature on EA drivers (Ersoy and Aksehirli, 2015; Hu
et al., 2008; Renaud et al., 2016; Terjesen et al., 2007) in an emerging economy context. Our
results confirm that the provision of CGO attracts millennial job seekers. Previous studies
have also found that career growth was one of the most important factors considered by
students in their job choice decisions (Hu et al., 2008) and information on career development
opportunities positively influences job seekers’ attraction toward an organization (Allen and
O’Brien, 2006; Chapman et al., 2005).
This study also corroborates that the provision of WLB significantly affects JPI. This
contributes to the insights provided by Casper and Buffardi (2004) and Wayne and
Casper (2012). Casper and Buffardi (2004) showed that for young job seekers, availability of
WLB (e.g. schedule flexibility and dependent care assistance) and recruitment outcomes are
positively related. Similarly, Wayne and Casper (2012) found that perceptions of college
students regarding a firm’s reputation in work–life practices affected their decision to apply
for a job. We find a significant main effect of WLB on both EA and JPI, reaffirming findings
by Zhang et al. (2007) that millennials believe in “making a life” over “making a living”. Such
results are likely because these benefits enhance job seekers’ perceptions of organizational
prestige, anticipated organizational support and role performance. Organizations make
significant investments in helping employees strike a balance between professional
and personal lives by offering innovative perks (Renaud et al., 2016) which may be part of
many WLB.
Consistent with findings of previous studies (Evans et al., 2011; Kim and Park, 2011;
Turban and Greening, 1996), we find CSR reputation positively affects job seekers’ perception
about an employer and their JPI. However, we observed that as compared to CGO and WLB,
CSR reputation is a weak predictor of EA and JPI. We believe this is an incremental
contribution to the literature in an emerging economy context. Such results have important
implications for recruitment communications in assessing relative effectiveness of different
attractiveness drivers (please see the section on managerial implications).
CDI The most important finding of this study is the two-way interaction effect between CGO
23,4 and CSR reputation which we believe is a unique contribution to literature. The results show
that CSR reputation has a significant effect on EA only when many CGO are provided by
organizations and it fades when there are only limited CGO. This implies that CSR
reputation alone may not be able to make an organization attractive as job seekers place a
greater importance on CGO. Additionally, we find that an organization offering many CGO
456 but limited WLB and low CSR reputation is equally attractive as an organization offering
many WLB, having a high CSR reputation and limited CGO. This indicates that CGO alone
can compensate for limited WLB and low CSR reputation. Such results can be explained by
an increasing emphasis on CGO by job seekers. Savickas (2011) noted that in the
past, an individual’s career rested in the hands of an organization; today, individuals
own their careers. Consequently, career changes and job mobility have become common
practice among individuals and their career is no longer tied to a single organization
(Rousseau, 1998). Thus, if an organization fails to provide attractive career opportunities to
its employees, it may face a fluid talent pool with a high attrition rate and become less
attractive to new talent.
Another major contribution of this study relates to the three-way interaction effect
among the independent variables, which suggests that an organization offering limited CGO
and limited WLB, but having a high CSR reputation, is less attractive than an organization,
which is low on all these three attributes. This reinforces that job seekers place greater
importance on instrumental variables (i.e. CGO and WLB) than symbolic variables (i.e. CSR
reputation). In the absence of top preferred attributes (in this case CGO and WLB,
respectively), job seekers may undermine and ignore the organization’s CSR reputation in
their job search decisions. We believe that if an organization does not provide attractive
CGO and WLB, its high CSR reputation may come with a sense of dissonance. For instance,
job seekers may feel that an organization enjoys high CSR reputation, but does not fulfill the
basic expectations of its employees, leading to a sense of ambiguity and dissonance.
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Appendix
Scenario 1 (many CGO, many WLB and high CSR reputation) description
The organization offers challenging job assignments and job rotation giving rich work experience.
It offers trainings, seminars, professional development workshops, e-learning, coaching, special
assignments and tuition fee reimbursement for the employees. Promotions are on time and
accompanied with salary increases in line with what the market offers. The organization has adopted
best talent management practices and offers well defined career paths to its employees. Apart from the
statutory WLB (such as crèche and maternity benefits), it offers other benefits like child-related
benefits (e.g. childcare facilities, financial assistance and maternity/paternity leave), flexible work time
and job sharing, wellness programs (e.g. counseling and employee assistance programs) and eldercare
benefits. The organization complies with the statutory requirement of spending 2 percent of profits on
CSR activities. Apart from this, it aims at sustainable growth and engages in protecting and improving
the quality of the natural environment. It also supports NGOs working in problematic areas,
contributes toward the well-being of society and community development (independently or in
collaboration with the govt.). It respects consumer rights beyond the legal requirements. It ensures fair
labor practices and decent work for its workforce and managerial decisions related to employees are
usually fair. It complies with corporate governance rules and disseminates comprehensive and clear
information to shareholders and investors.
Corresponding author
Gordhan K. Saini can be contacted at: gksaini@tiss.edu; gksaini81@gmail.com
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