Impact of Employer Branding on Employee Retention during the economic crisis: An empirical study in the Apparel Industry

Abstract

Due to the prevailing economic crisis in Sri Lanka, majority of organizations are battling to retain current employees as the employee turnover rates are increasing day by day. Hence, this study aims to identify the impact of employer branding on employee retention during the economic crisis among executive level employees of selected apparel companies in western province, Sri Lanka. Majority of the studies are dedicated to study the relationship between employer branding and attracting potential employees. But this research studies the impact of employer branding on retention of current employees. The study involved 285 executives in the apparel industry, employing a simple random sampling technique. A standard questionnaire, distributed online through Google Forms, utilized a Five Point Likert Scale for respondents to express their agreement or disagreement. Statistical analyses, including validity and reliability assessments, as well as correlation and regression analyses, were conducted using the Statistical Package for Social Science (SPSS) on the collected sample data. Findings revealed that employer branding significantly impacts on employee retention. Furthermore, the statistical evidence strongly supports the acceptance of hypotheses regarding a healthy work atmosphere and compensation and benefits. Ethics and corporate social responsibility, work–life balance, and training and development significantly contribute to enhanced employee retention within the context of the studied employer branding dimensions. Investing in and improving employer branding strategies is crucial for fostering employee retention, particularly in the studied industry. The research suggests practical implications, indicating that strengthening employer branding efforts can result in tangible benefits by retaining a motivated and engaged workforce.