The Impact of Employer Branding on Turnover Intention in Pharmaceutical Industries: Does Generation Matter?

Ivana Gracita; Rina Anindita

doi:10.56444/mem.v38i2.3700

The Impact of Employer Branding on Turnover Intention in Pharmaceutical Industries: Does Generation Matter?

Ivana Gracita, Rina Anindita

Abstract

In an increasingly globalized economy, organizations are increasingly competing for the best employees who are skilled in professional fields. Employer branding has an important role in helping organizations find new employees and retain existing employees. The goal of this study was to look at the effect of employer branding on organizational commitment and turnover intention in the pharmaceutical industry, as it was moderated by generation. The population sample is made up of Generation X, Y, and Z workers in the pharmaceutical industries in Indonesia. The sampling technique uses a non-probability sampling method with purposive sampling. PLS-SEM was utilized in this study to analyze data from 175 samples. The research results have proven that employer branding increases organizational commitment and decreases turnover intention. Organizational commitment reduces turnover intention. Moreover, the relationship between employer branding and turnover intention might be mediated by organizational commitment. The association between organizational commitment and turnover intention or employer branding and turnover intention cannot be moderated by generation because it has no impact on turnover intention in the pharmaceutical industries. Corporate leaders need to establish and develop employer branding to increase organizational commitment and reduce turnover intentions in the pharmaceutical industry.

Keywords

Employer Branding; Organizational Commitment; Turnover Intention; Generation.

Full Text:

PDF

References

REFERENCES

Ahmad, N. A., & Daud, S. (2016). Engaging People with Employer Branding. Procedia Economics and Finance, 35, 690–698.https://doi.org/10.1016/s2212 -5671(16)00086-1

Al-Muallem, N., & Al-Surimi, K. M. (2019). Job satisfaction, work commitment and intention to leave among pharmacists: A cross-sectional study. BMJ Open, 9(9), 1–12. https://doi.org/10.1136/bmjopen-2018-024448

Alzamel, L. G., Abdullah, K. L., Chong, M. C., & Chua, Y. P. (2020). The quality of work life and turnover intentions among Malaysian nurses: the mediating role of organizational commitment. Journal of the Egyptian Public Health Association, 95(1). https://doi.org/10.1186/s42506-020-00048-9

Alves, P., Santos, V., Reis, I., Martinho, F., Martinho, D., Sampaio, M. C., Sousa, M. J., & Au-Yong-oliveira, M. (2020). Strategic talent management: The impact of employer branding on the affective commitment of employees. Sustainability (Switzerland), 12(23), 1–21.https://doi.org/10.3390/su12239993

Astrachan, C. B., Patel, V. K., & Wanzenried, G. (2014). A comparative study of CB-SEM and PLS-SEM for theory development in family firm research. Journal of Family Business Strategy, 5(1), 116–128. https://doi.org/10.1016/j.jfbs.2013.12.002

Backhaus, K. (2016). Employer Branding Revisited. Organization Management Journal, 13(4), 193–201.

https://doi.org/10.1080/15416518.2016.1245128

Bell, M., & Sheridan, A. (2020). How organisational commitment influences nurses’ intention to stay in nursing throughout their career. International Journal of Nursing Studies Advances, 2.https://doi.org/10.1016/j.ijnsa.2020.100007

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

Bussin, M., & Mouton, H. (2019). Effectiveness of employer branding on staff retention and compensation expectations. South African Journal of Economic and Management Sciences, 22(1), 1–9.

https://doi.org/10.4102/sajems.v22i1.2412

Fan, Y., Chen, J., Shirkey, G., John, R., Wu, S. R., Park, H., & Shao, C. (2016). Applications of structural equation modeling (SEM) in ecological studies: an updated review. Ecological Processes, 5(1).

https://doi.org/10.1186/s13717-016-0063-3

Gupta, R., Sahoo, S., & Sahoo, T. (2018). Employer Branding : A Tool For Employee Retention Employer Branding : A Tool For Employee Retention. International Journal of Business and Management Invention (IJBMI), 7(6), 6–12.

https://www.researchgate.net/profile/Saroj-Sahoo-2/publication/341177800_Employer_Branding_A_Tool_For_Employee_Retention/links/5eb24e10a6fdcc7050ad6de7/Employer-Branding-A-Tool-For-Employee-Retention.pdf

Hadi, N. U., & Ahmed, S. (2018). Role of employer branding dimensions on employee retention: Evidence from educational sector. Administrative Sciences, 8(3).

https://doi.org/10.3390/admsci8030044

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2018). Article information : When to use and how to report the results of PLS-SEM Abstract. European Business Review, 3(1), 3–24.

Hung, L. M., Lee, Y. S., & Lee, D. C. (2018). The moderating effects of salary satisfaction and working pressure on the organizational climate, organizational commitment to turnover intention. International Journal of Business and Society, 19(1), 103–116.

Karnadi, M., & Baskoro, T. (2019). The Effect of Employer Branding on Employee Expectation and Turnover Intention in Online Streaming Industry (A Case Study of The Permanent Employees at Vidio. South East Asia Journal of, 19(2), 56–63. http://repository.ipmi.ac.id/id/eprint/651

Kashyap, & Verma N. (2018). Linking Dimensions of Employer Branding and Turnover Intention. International Journal of Organizational Analysis, 26(2), 282–295.

Kristianto, N. A., & Handoyo, S. (2020). Pengaruh Employer Branding terhadap Employee Retention dengan Employee Engagement sebagai Mediator pada Generasi Milenial di Industri E-Commerce. Media Ilmiah Psikologi, 18.

Labrague, L. J., McEnroe – Petitte, D. M., Tsaras, K., Cruz, J. P., Colet, P. C., & Gloe, D. S. (2018). Organizational commitment and turnover intention among rural nurses in the Philippines: Implications for nursing management. International Journal of Nursing Sciences, 5(4), 403–408.

https://doi.org/10.1016/j.ijnss.2018.09.001

Mustofa, W., & Frianto, A. (2019). Peningkatan Komitmen Organisai Dipengaruhi Work Family Conflict melalui Kepuasan Kerja. Jurnal Ilmu Manajemen, 7(4), 931–941.

Na-nan, K., & Saribut, S. (2019). Development and validation of an organisational commitment instrument for generation Y employees in small and medium-sized enterprises in Thailand. Industrial and Commercial Training, 51(4), 244–255.

https://doi.org/10.1108/ICT-11-2018-0091

Nasurdin, A. M., Tan, C. L., & Khan, S. N. (2018). The relation between turnover intention, high performance work practices (HPWPS), and organisational commitment: A study among private hospital nurses in Malaysia. Asian Academy of Management Journal, 23(1), 23–51.

https://doi.org/10.21315/aamj2018.23.1.2

Nasution, M. I. (2017). Pengaruh Stres Kerja, Kepuasan Kerja dan Komitment Organisasi terhadap Turnover Intention Medical Representative. In Jurnal Ilmiah Manajemen: Vol. VII (Issue 3).

Neves, T., Parreira, P., Rodrigues, V., & Graveto, J. (2022). Organizational Commitment and Intention to Leave of Nurses in Portuguese Hospitals. International Journal of Environmental Research and Public Health, 19(4).

https://doi.org/10.3390/ijerph19042470

Noviyanti, R., & Nurhasanah, . (2019). Faktor Yang Mempengaruhi Kompetensi Nelayan Di Teluk Banten: Menggunakan Partial Least Square-Structural Equation Modelling (Pls-Sem). Marine Fisheries : Journal of Marine Fisheries Technology and Management, 10(1), 33–44.

https://doi.org/10.29244/jmf.10.1.33-44

Parmar, V., Channar, Z. A., Ahmed, R. R., Streimikiene, D., Pahi, M. H., & Streimikis, J. (2022). OeconomiA copernicana (Vol. 13, Issue 1).

Rana, G., Sharma, R., Singh, S. P., & Jain, V. (2019). Impact of Employer Branding on Job Engagement and Organizational Commitment in Indian IT Sector. International Journal of Risk and Contingency Management, 8(3), 1–17. https://doi.org/10.4018/ijrcm. 2019070101

Rawashdeh, A. M., & Tamimi, S. A. (2020). The impact of employee perceptions of training on organizational commitment and turnover intention: An empirical study of nurses in Jordanian hospitals. European Journal of Training and Development, 44(2–3), 191–207. https://doi.org/10.1108/EJTD-07-2019-0112

Redditt, J., Gregory, A. M., & Ro, H. (2019). An Examination of Organizational Commitment and Intention to Stay in the Timeshare Industry: Variations Across Generations in the Workplace. International Journal of Hospitality and Tourism Administration, 20(2), 206–225.https://doi.org/10.1080/ 15256480.2017.1359735

Satardien, M., Jano, R., & Mahembe, B. (2019). The relationship between perceived organisational support, organisational commitment and turnover intention among employees in a selected organisation in the aviation industry. South African Journal of Childhood Education, 17, 1–9. https://doi.org/10.4102/sajhrm.v17i0.1123

Shaikh, E., Brahmi, M., Thang, P. C., Watto, W. A., Trang, T. T. N., & Loan, N. T. (2022). Should I Stay or Should I Go? Explaining the Turnover Intentions with Corporate Social Responsibility (CSR), Organizational Identification and Organizational Commitment. Sustainability, 14(10), 6030. https://doi.org/10.3390/su14106030

Sharif, F., & Sharif, S. (2017). Assessing the relative importance of employer branding dimensions on retention of employees: A case of private schools of Karachi. Business Review, 12(1), 71–88. https://doi.org/10.54784/1990-6587.1050

Skelton, A. R., Nattress, D., & Dwyer, R. J. (2020). Predicting manufacturing employee turnover intentions. Journal of Economics, Finance and Administrative Science, 25(49), 101–117. https://doi.org/10.1108/JEFAS-07-2018-0069

Suárez-Albanchez, J., Blazquez-Resino, J. J., Gutierrez-Broncano, S., & Jimenez-Estevez, P. (2021). Occupational health and safety, organisational commitment, and turnover intention in the Spanish IT consultancy sector. International Journal of Environmental Research and Public Health, 18(11). https://doi.org/10.3390/ijerph18115658

Tsaousoglou, K., Koutoulas, D., & Stavrinoudis, T. (2022). Personality and commitment as predictors of turnover intentions among Greek employees in the lodging industry. European Journal of Tourism Research, 31(2022), 1–33. https://doi.org/10.54055/ejtr.v31i.2296

Wahyuni, D., & Muafi, M. (2021). Effects of workplace loneliness and perceived organizational support towards intention to leave mediated by organizational commitment. International Journal of Research in Business and Social Science (2147- 4478), 10(4), 01–16. https://doi.org/10.20525/ijrbs.v10i4.1212

Wei, W., Gan, M., Liu, Y., Yang, M., & Liu, J. (2021). Mediating effects of nurses ’personal and organizational values between organizational commitment and turnover: Cross-sectional study. PLoS ONE, 16(10 October), 1–15. https://doi.org/10.1371/journal.pone.0258387

Wu, H., & Liu, Y. (2022). The relationship between organisational support for career development, organisational commitment, and turnover intentions among healthcare workers in township hospitals of Henan, China. BMC Primary Care, 23(1), 1–9. https://doi.org/10.1186/s12875-022-01753-4

Yousf, A., & Kurshid, S. (2021). Impact of Employer Branding on Employee Commitment: Employee Engagement as a Mediator. The Journal of Business Perspective, 51.

Zhou, S., Li, X., & Gao, B. (2020). Family/friends support, work-family conflict, organizational commitment, and turnover intention in young preschool teachers in China: A serial mediation model. Children and Youth Services Review, 113.

Živković, A., Franjković, J., & Dujak, D. (2021). The Role of Organizational Commitment in Employee Turnover in Logistics Activities of Food Supply Chain. Scientific Journal of Logistics, 17(1), 25–36.

DOI: http://dx.doi.org/10.56444/mem.v38i2.3700