The relationship between employer brand and intentions to stay in organizations

In the modern highly competitive business environment, companies characterized by labor shortage are struggling to attract, motivate, and retain talents. As a mix of functional, economic, and psychological benefits that stem from employment, employer brand is one of the approaches that companies develop to create employee value proposition and maintain their workforce. Many employees decide to stay in or leave a company based on the whole human resource management system that a company offers. This paper mainly aims to investigate the relationship between the perceived employer brand and employees’ intention to stay in an organization. The research is based on a sample of 209 employees working in Serbia. The research methodology consists of the theoretical and empirical quantitative research in the proposed relationship. The analytical procedure used is PLS-SEM. The results show a positive relationship between the observed variables and points to the conclusion that a positive perception of employer brand leads to employees’ higher intention to stay in an organization. The strongest effect on intention to stay was made by a healthy working atmosphere, followed by training and development, work-life balance, ethics and corporate social responsibility, and finally, compensation and benefits.