Impact of Employer Branding on Employee Engagement in BPO Sector in India With the Mediating Effect of Person-Organisation Fit

Abstract

With human capital emerging as a sustainable source of strategic advantage organisations are focusing on developing employee value propositions which consistently engage their workforce so that they can proactively contribute towards the achievement of organisational goals. This research investigates the impact of employer branding strategy (a mechanism used by organisations to engage competent talent) on employee engagement whilst simultaneously measuring the mediating effect of person-organization (P-O) fit. The study analyses a sample of 296 employees working in the BPO sector (offshore call centres) in India. The proposed model is tested with the help of structural equation modelling. The findings of the research highlight that employer branding has an affirmative relationship with P-O fit and employee engagement. The findings also reveal that P-O effect has a partial mediating effect on the relationship between employer branding and employee engagement. It can be deduced that employer branding is a comprehensive strategy which can be used by employers to engage employees. Thus, in a global economy where a talented workforce is scarce and has plenty of choices available to them, firms can use employer branding as a strategic opportunity to enhance employee engagement.