Impact of Employer Branding on Employee Loyalty: A Quantitative Exploration

Abstract

This research studies the correlation among employer branding, employee loyalty, and work happiness within the Indian information technology (IT) sector. Although employer branding has become a significant technique for talent acquisition and retention, its direct influence on employee loyalty remains insufficiently explored in academic literature. This study, rooted on brand equity theory, social exchange theory, and equity theory, utilises a quantitative research methodology to examine the impact of employer branding on employee loyalty, with work satisfaction serving as a mediating variable.
Primary data was collected through a structured questionnaire distributed to IT professionals in four major Indian cities - Pune, Hyderabad, Bangalore, and Chennai - yielding a final sample of 242 respondents. The study employs descriptive statistics, factor
analysis, and regression analysis to identify the key determinants of employer branding and their impact on employee retention. The findings reveal that employer branding significantly influences employee loyalty, with job satisfaction enhancing this relationship.
Three key dimensions of employer branding emerge from the analysis: employee wellbeing and work environment, organizational growth and development, and corporate culture and social responsibility. Similarly, employee loyalty is shaped by factors such as
a sense of ownership, willingness to stay, and trust.
The mediation analysis confirms that job satisfaction strengthens the link between employer branding and employee loyalty. Regression results highlight the strategic importance of employer branding in employee retention, positioning it as a more potent
predictor of loyalty compared to job satisfaction alone. These findings offer valuable insights for IT firms seeking to enhance their employer branding strategies. The study suggests aligning corporate values with employee expectations, fostering a supportive
work environment, and integrating HR and marketing initiatives to develop a compelling employer brand. The research contributes to the growing body of knowledge on employer branding and provides actionable recommendations for IT companies striving to attract and retain top talent in competitive job markets.
Keywords: Employer Branding, Employee Loyalty, Job Satisfaction, IT Professionals