Building Employee Retention through Employer Branding: The Mediating Role of Organizational Trust

Abstract

This study aims to analyze the mediating role of organizational trust on the effect of employer branding on employee retention. Specifically, this study examines whether organizational trust mediates the relationship between employer branding and employee retention. The sample comprised 170 employees working for at least 1 year in manufacturing companies in West Java, selected using random sampling. Data were collected via a questionnaire on a 5-point Likert scale. PLS-SEM in SmartPLS analyzed the data by evaluating the measurement model, structural model, and hypotheses tests. This methodology should provide valid results to prove the mediating effect of organizational trust on the relationship between employer branding and employee retention. Employer branding relates positively to organizational trust and employee retention. Further, organizational trust mediates between employer branding and retention. Companies should communicate strong employer branding to increase organizational trust and retain talent long-term.This research highlights the importance of employer brand and organizational trust for manufacturing companies looking to improve employee retention. Companies should invest in building a strong employer brand and fostering employee trust. This study makes a new contribution to employer branding, organizational trust, and employee retention research by validating and extending Social Exchange Theory in the context of employee-company relationships. This research provides new insights and empirical evidence regarding the phenomenon and important factors that influence employee retention in Indonesia.