Effects of an external crisis: How internal communication influences employer brands

Abstract

This study explores how a major external crisis, like the COVID‐19 pandemic, affects employees' perception of their employers, as a result of changes in internal communication practices. A total of 3457 employees filled out a questionnaire on internal communication satisfaction and employer attractiveness; 1805 just before the first COVID‐19 outbreak in Europe and 1652 after the first outbreak. Multi‐group structural equation modelling was conducted to examine how the relationship between internal communication satisfaction and employer attractiveness changed as a result of the crisis. The effect of different internal communication aspects on employer attractiveness was altered. Horizontal communication remained only significant determinant of positive employer perception even after the crisis. Channels of internal communication and informal internal communication lost their significant influence on employer perception, whereas communication climate and level of available corporate information gained significant influence. This study elucidates how an external crisis alters the relationship between internal communication and employer branding and can help organizations optimize their communication strategies during and after a major crisis to retain and attract desired employees.

Recommendations for Internal Communication to Strengthen the Employer Brand: A Systematic Literature Review

“…The COVID-19 pandemic has underscored the significance of organisational information. Well-informed employees not only feel secure and engaged but also tend to share positive experiences with the organisation, serving as valuable advocates (Verčič and Špoljarić 2023). Creating a transparent communication environment helps reinforce the perception that the company values its employees and increases its attractiveness to potential talent.…”

“…Developing a compelling and appealing employer brand is closely tied to how organisations handle internal communication and aid their employees. Current studies Fernandes et al 2023;Verčič and Špoljarić 2023) emphasise the significance of fostering a positive and inclusive communication atmosphere, particularly during difficult situations. However, enhancing satisfaction with the communication climate requires a tailored approach considering the organisation's and its employees' unique needs.…”

“…Posts highlighting employees' achievements and contributions can positively reinforce the employer's image (Fernandes et al 2023). Employers who succeed in establishing an environment that promotes reassurance and empathy are regarded as more attractive since employees feel well-supported (Verčič and Špoljarić 2023). According to , for employees to nurture trust and attraction toward the company, it is essential to maintain honest, regular, and coherent internal communication.…”

“…(Špoljarić and Verčič 2021, p. 137) Empowering Employees 1 "Middle managers have high degrees of efficiency, are effective at resolving problems that arise, and achieve objectives, as well as increase the attractiveness of or satisfaction with the organisation." (Pérez-Pérez et al 2022, p. 14) The first recommendation, presented in Table 1, concerns (1) Communication Quality, which according to several authors Špoljarić and Verčič 2021;Deepa and Baral 2021) should be effective, clear, open, and bidirectional, while also being informal, coherent, constant, innovative, and unrestricted (Verčič and Špoljarić 2023;Deepa and Baral 2021;Špoljarić and Verčič 2021;Malik et al 2018). Moreover, it is crucial to have horizontal communication (peer-to-peer) as this increases the perception of support between employees (Verčič and Špoljarić 2023).…”

A new mechanism for crisis management success

“…It is contended that an appropriate strategy framework that encourages practical decision-making can reduce a crisis's impacts. This reality was highlighted by the recent global COVID-19 epidemic, which exposed significant differences in approaches and results between various countries and organisations (Verčič & Špoljarić, 2023). The organisational culture (OC) that is in place, the strategic frameworks used to manage the crisis, and the leadership's ability to identify risk are the interrelated elements that form the basis of these approaches (Dahleez et al, 2022).…”