Why does firm reputation in human resource policies influence college students? The mechanisms underlying job pursuit intentions

Abstract

Business periodicals, such as Fortune magazine, rank organizations in lists such as the “Best Companies to Work For,” providing applicants with information about firms' human resource practices, including pay, benefits, work-life, and diversity practices. It is not clear what influence this reputational information about HR practices has on applicant interest in pursuing employment or, more important, why it does so. Given that firms invest substantial resources in HR practices to vie for positions on these lists, the current study sought to fill these gaps in the literature. In the 2 (compensation) × 2 (work-family) × 2 (diversity) factorial design, 232 college students read about magazine rankings in which a firm's reputation in each HR practice was manipulated as ranking either high or low relative to competitors. We examined perceptions of organizational prestige, anticipated organizational support, and anticipated role performance as mechanisms that explain the influence of HR practice reputation on job pursuit intentions. Our results indicate that a firm's reputation in compensation, work-family, and diversity efforts increase college students' intentions to pursue employment with a firm. They do so because college students perceive that the organization is prestigious, will be supportive, and will foster their job performance. Our results suggest that a strong employer brand derived from employee-centered HR practices is important for recruiting college students. © 2012 Wiley Periodicals, Inc.