Employer Branding and Compensation Effects on Job Seekers’ Interest in FMCG: Reputation as Mediator

Authors

  • Muhammad Arrazi Bagaswara Universitas Tanjungpura
  • Arman Jaya Universitas Tanjungpura
  • Hasanudin Hasanudin Universitas Tanjungpura
  • Ikram Yakin Universitas Tanjungpura

DOI:

https://doi.org/10.55606/jimek.v5i2.6297

Keywords:

Compensation, Company Reputation, Employer Branding, Employer Attractiveness, FMCGs

Abstract

Today’s increasing number of companies in the Fast-Moving Consumer Goods (FMCG) sector is intensifying the competition among FMCG firms in Indonesia for top talent, which has triggered a “war for talent.” The battle to attract the best employees has become just as intense as the competition for customers, compelling organisations to distinguish themselves from their competitors to be seen as an appealing employer to prospective candidates and current staff. This study aims to identify the key factors that influence Employer Branding (EB) among job seekers in Indonesia to support FMCG companies in crafting more effective recruitment strategies. The research utilised a questionnaire survey with 250 respondents selected through quota sampling. Using Structural Equation Modelling (SEM) with the AMOS 23 tool, the results of this study indicate that company attractiveness, compensation, and company reputation can affect job application interest, where company attractiveness is the most influential factor in job application interest in FMCG companies. Company reputation has also been proven to mediate the influence of company attractiveness on job application desire.

References

Abdul Malik, M. H., & Alhassan Musah, A. (2024). Compensation and benefits satisfaction on turnover intention among millennial employees in Malaysia construction sector: A conceptual study. International Journal of Academic Research in Business and Social Sciences, 14(1), 786–799. https://doi.org/10.6007/ijarbss/v14-i1/20103

Afrizal, A., Muhammad, M., Wibisono, C., Indrayani, I., & Qarny, A. A. (2022). Mediating role of job satisfaction in the relationship of compensation, motivation, and organisational commitment on employee performance in Batam Island, Indonesia. International Journal of Advances in Social Sciences and Humanities, 1(3), 131–137. https://doi.org/10.56225/ijassh.v1i3.50

Aghna, M. N., & Kurniawan, D. T. (2023). The effect of employer branding and electronic word of mouth (e-WOM) on intention to apply mediated by corporate reputation with social media as a moderation variable in e-commerce companies in Indonesia. Ekonomi Bisnis, 28(3), 12–22. https://doi.org/10.17977/um042v28i3p12-22

Aise Hayomi, Y., & Suharnomo. (2024). Pengaruh e-recruitment, reputasi perusahaan, dan kompensasi terhadap minat melamar kerja kajian ekonomi Islam (Studi pada fresh graduate di Semarang). Jurnal Ilmiah Ekonomi Islam, 10(1), 1147–1156. https://doi.org/10.29040/jiei.v10i1.8391

Ali, E., Satpathy, B., & Gupta, D. R. (2024). Examining the effects of CSR on organisational attractiveness: Perception study of job seekers in India. Journal of Global Responsibility, 15, 19–52. https://doi.org/10.1108/JGR-11-2021-0098

Alzaid, D., & Dukhaykh, S. (2023). Marca de empleador y retención de empleados en el sector bancario en Arabia Saudita: Efecto mediador de los contratos psicológicos relacionales. Sostenibilidad (Suiza), 15(7). (URL tidak tersedia, harap lengkapi jika ada)

Andhany, N., & Nurlaela Arief, N. (2024). Employer branding to improve employee loyalty after a business merger in PT Pelindo Terminal Petikemas. International Journal of Current Science Research and Review, 7(2), 1187–1198. https://doi.org/10.47191/ijcsrr/v7-i2-37

Anggoro, I. D., & Harsono, M. (2023). The relationship between product brands, corporate brands, employer brands, social media, corporate reputation, and intention to apply for a job. Global Research Review in Business and Economics, 9(1), 57–65. https://doi.org/10.56805/grrbe.23.9.1.7

Aresu, S., Hooghiemstra, R., & Melis, A. (2023). Integration of CSR criteria into executive compensation contracts: A cross-country analysis. Journal of Management, 49(8), 2766–2804. https://doi.org/10.1177/01492063221110200

Aslam. (2013). Employer branding: Employer attractiveness and the use of social media. Journal of Product and Brand Management, 22(7), 473–483. https://doi.org/10.1108/JPBM-09-2013-0393

Aslam. (2015). Employer branding and intention to apply by social media usage in the banking sector, Pakistan. International Journal of Scientific & Engineering Research, 6(5), 400–405.

Azizah, A., Wulaningrum, R., & Diah, A. M. (2022). The essentiality of corporate reputation on firm performance. In Proceedings of the International Conference on Applied Science and Technology on Social Science 2021 (ICAST-SS 2021) (Vol. 647, pp. 585–589). https://doi.org/10.2991/assehr.k.220301.096

Berthon, P., Ewing, M., & Hah, L. L. (2005). Captivating company: Dimensions of attractiveness in employer branding. International Journal of Advertising, 24(2), 151–172. https://doi.org/10.1080/02650487.2005.11072912

Butterworth, J., Migliore, A., Nye-Lengerman, K., Lyons, O., Gunty, A., Eastman, J., & Foos, P. (2020). Using data-enabled performance feedback and guidance to assist employment consultants with job seekers: An experimental study. Journal of Vocational Rehabilitation, 53(2), 219–225. https://doi.org/10.3233/JVR-201096

Byrne, B. M. (2013). Structural equation modelling with AMOS. https://doi.org/10.4324/9781410600219

Collins, C. J., & Martinez-Moreno, J. E. (2021). Recruitment brand equity for unknown employers: Examining the effects of recruitment message claim verifiability and credibility on job pursuit intentions. Human Resource Management, 61(5), 585–597. https://doi.org/10.1002/hrm.22089

Dessler, G., Gannon, G. L., & Chhinzer, N. (2015). Management of human resources: The essentials. (Informasi penerbit dan URL belum tersedia, harap lengkapi jika ada)

Dillahunt, T. R., Garvin, M., Held, M., & Hui, J. (2021). Implications for supporting marginalized job seekers: Lessons from employment centers. Proceedings of the ACM on Human-Computer Interaction, 5(CSCW2). https://doi.org/10.1145/3476065

Drūteikienė, G., Savickė, J., & Skarupskienė, D. (2023). The impact of employer brand on the relationship between psychological empowerment and employee engagement. Problems and Perspectives in Management, 21(1), 193–203. https://doi.org/10.21511/ppm.21(1).2023.17

Ekhsan, M., & Saroh, T. (2021). The role of organisational trust on the influence of employer branding on employee performance. International Journal of Management Science and Information Technology, 1(2), 31–35. https://doi.org/10.35870/ijmsit.v1i2.353

Ekhsan, M., Putri Ayu Jayanti, N. K., & Dhyan Parashakti, R. (2022). Pengaruh employer branding terhadap minat melamar pekerjaan dengan kompensasi sebagai variabel mediasi. Jurnal Perspektif Manajerial dan Kewirausahaan, 2(1), 16–29. https://doi.org/10.59832/jpmk.v2i1.105

Elbendary, I., Elsetouhi, A. M., Marie, M., & Aljafari, A. M. (2024). A mixed-methods approach for the relationship between organisational attributes, reputation, employer brand, and intention to apply for a job vacancy. Personnel Review, 53, 1244–1268. https://doi.org/10.1108/PR-03-2021-0188

Fany, N. A., & Iryanto, M. B. W. (2024). Pengaruh remunerasi direksi terhadap nilai perusahaan yang dimediasi oleh agency cost pada consumer goods industry yang terdaftar di Bursa Efek Indonesia. Jurnal Manajemen, 13(2), 67–81. https://doi.org/10.46806/jm.v13i2.1094

Fombrun, C. J., & Van Riel, C. B. M. (1996). Who’s tops and who decides? The social construction of corporate reputations. New York University, Stern School of Business. Working paper.

Gao, G. (2024). A study of the relationship between corporate social responsibility, corporate reputation, and corporate performance based on internal employee survey data. The EUrASEANs: Journal on Global Socio-Economic Dynamics, 3(46), 112–125. https://doi.org/10.35678/2539-5645.3(46).2024.112-125

Glints. (2022). Kenapa kamu harus coba kerja di perusahaan FMCG? https://glints.com/id/lowongan/coba-kerja-di-perusahaan-fmcg/

Highhouse, S., Lievens, F., & Sinar, E. F. (2003). Measuring attraction to organisations. Educational and Psychological Measurement, 63(6), 986–1001.

IDXChannel. (2022). 7 perusahaan FMCG terbesar di Indonesia, apa saja? https://www.idxchannel.com/milenomic/7-perusahaan-fmcg-terbesar-di-indonesia-apa-saja

John, A., & Jagathy Raj, V. P. (2020). Employer brand and innovative work behaviour: Exploring the mediating role of employee engagement. Colombo Business Journal, 11(2), 93–113. https://doi.org/10.4038/cbj.v11i2.65

Junça Silva, A., & Brandão, H. B. (2022). The relationship between employer branding, corporate reputation, and intention to apply to a job offer. International Journal of Organisational Analysis. (Volume dan halaman belum tersedia)

Kakar, A. S., Naha, N., Mansor, A., Saufi, R. A., & Singh, H. (2019). Person–organisation fit. International Journal of Advanced and Applied Sciences, 6(9), 76–84.

Kanwal, H., Van Hoye, G., & Schollaert, E. (2022). Response to a crisis and applicant attraction: Signalling employer brand personality and organisational trust through warm and competent COVID-19 responses. International Journal of Selection and Assessment, 30(4), 486–502. https://doi.org/10.1111/ijsa.12394

Kaya, M., & Bogers, T. (2023). An exploration of sentence-pair classification for algorithmic recruiting. Proceedings of the 17th ACM Conference on Recommender Systems, 1175–1179. https://doi.org/10.1145/3604915.3610657

Keppeler, F., & Papenfuß, U. (2021). Employer branding for public sector organizations: Theory and evidence. Public Management Review, 23(8), 1189–1212. https://doi.org/10.1080/14719037.2020.1773311

Kimpakorn, N., & Tocquer, G. (2009). Employees’ commitment to brands in the service sector: Luxury hotel chains in Thailand. Brand Management, 16(8), 532–544. https://doi.org/10.1057/palgrave.bm.2550140

Kucherov, D., & Zavyalova, E. (2012). HRD practices and talent management in the companies with the employer brand. European Journal of Training and Development, 36(1), 86–104. https://doi.org/10.1108/03090591211192647

Kumari, P., & Saini, G. K. (2018). Employer branding and organisational citizenship behaviour: The mediating role of employee engagement. Asia-Pacific Journal of Management Research and Innovation, 14(1–2), 7–15. https://doi.org/10.1177/2319510X18776484

Lievens, F., & Highhouse, S. (2003). The relation of instrumental and symbolic attributes to a company’s attractiveness as an employer. Personnel Psychology, 56(1), 75–102. https://doi.org/10.1111/j.1744-6570.2003.tb00144.x

Moroko, L., & Uncles, M. D. (2008). Characteristics of successful employer brands. Journal of Brand Management, 16(3), 160–175. https://doi.org/10.1057/palgrave.bm.2550117

Ployhart, R. E., & Moliterno, T. P. (2011). Emergence of the human capital resource: A multilevel model. Academy of Management Review, 36(1), 127–150. https://doi.org/10.5465/amr.2009.0318

Punjaisri, K., Evanschitzky, H., & Wilson, A. (2009). Internal branding: An enabler of employees’ brand-supporting behaviours. Journal of Service Management, 20(2), 209–226. https://doi.org/10.1108/09564230910952780

Rampl, L. V., & Kenning, P. (2014). Employer brand trust and affect: Linking brand personality to employer brand attractiveness. European Journal of Marketing, 48(1/2), 218–236. https://doi.org/10.1108/EJM-02-2012-0113

Tanwar, K., & Prasad, A. (2016). Exploring the relationship between employer branding and employee retention. Global Business Review, 17(3_suppl), 186S–206S. https://doi.org/10.1177/0972150916631214

Tanwar, K., & Prasad, A. (2017). Employer brand scale development and validation: A second-order factor approach. Personnel Review, 46(2), 389–409. https://doi.org/10.1108/PR-03-2015-0065

Tariq, M. N., & Ding, F. (2018). Why am I still working for you? Exploring the influence of employer brand on employee retention. Journal of Global Business and Technology, 14(1), 32–48. https://www.gbata.org/wp-content/uploads/2020/01/JGBAT-Vol14-1-Spring-2018.pdf

Downloads

Published

2025-06-07

How to Cite

Muhammad Arrazi Bagaswara, Arman Jaya, Hasanudin Hasanudin, & Ikram Yakin. (2025). Employer Branding and Compensation Effects on Job Seekers’ Interest in FMCG: Reputation as Mediator. Jurnal Ilmu Manajemen, Ekonomi Dan Kewirausahaan, 5(2), 406–421. https://doi.org/10.55606/jimek.v5i2.6297

Similar Articles

1 2 3 4 > >> 

You may also start an advanced similarity search for this article.