Does Employer Branding Retain Employees? Job Satisfaction as a Mediator

Abstract

The development and quality of human capital determine contemporary companies’ long–term competitive potential. Consequently, in addition to the goods and services market, companies aspire to be competitive in the labour market in order to acquire and retain skilled employees. Creating a distinct employer brand is a successful strategic reaction by top management to the increasing pressures to reduce turnover rates. This study aims to look at job satisfaction’s role as a mediator in the link between employer brand and employee retention. The research was conducted on a sample of 128 companies in the Republic of Serbia, with primary data acquired by the survey method. We applied the PLS-SEM and found that satisfaction acts as a competitive mediator in the relationship between organisational culture and employee retention, and as a complete mediator in the link between training and development, and retention. Furthermore, the analysis showed that job satisfaction appears as a complementary intervening variable in the employer reputation-employee retention path. The study provides a foundation for a more comprehensive understanding of the complex nature of the interaction between the investigated components of the employer brand and staff retention, as well as assistance for management decision-making in the creation of initiatives to prevent voluntary turnover.