The Value of Organizational Reputation in the Recruitment Context: A Brand-Equity Perspective

Authors


Correspondence concerning this article should be addressed to Daniel M. Cable, The Kenan-Flagler Business School, University of North Carolina at Chapel Hill, Chapel Hill, NC 27599-3490.

Abstract

We extend the recruitment literature by examining how and why firms’ reputations affect job seekers, and by expanding the outcome variables that can be used to judge recruitment success. Results from 339 individuals suggested that job seekers’ reputation perceptions affected job pursuit because (a) individuals use reputation as a signal about job attributes, and (b) reputation affects the pride that individuals expect from organizational membership. Moreover, individuals were willing to pay a premium in the form of lower wages to join firms with positive reputations, and individuals’ familiarity with organizations affected the amount of information they could recall about a recruitment job posting after 1 week. Finally, the results suggested that reputation advertising did not affect job seekers’ reputation perceptions, suggesting that past research on fictitious companies may not generalize to actual organizations.

Ancillary