Micro, small and medium enterprises (MSMEs) are significant contributors to the Indian economy in several ways. They play a critical role in the economic development of the country, along with driving innovation and employment creation. They, however, face multiple challenges in attracting and retaining talent due to limited resources and limited visibility. This empirical study uses a single-case study approach to investigate Engineering Toys (pseudonym), an Indian MSME in the toy manufacturing sector, determining how employer branding strategies impact talent attraction and retention. The employer branding models of Backhaus and Tikoo (2004, Career Development International, 9(5), 501–517) and Gaddam (2008, ICFAI Journal of Soft Skills, 2(1), 45–55) form the theoretical foundation of this study, along with the psychological contract theory and the signalling theory, enabling the study to investigate how MSMEs develop the employer brand in their unique environment. Primary data were collected through in-depth interviews and triangulated using secondary data like online presence, internal documents and observation. Findings indicate that authentic, purpose-driven employer branding empowers employees and fulfils the psychological contract, improves job satisfaction and influences retention in MSMEs. The study establishes that even with limited resources, employer branding can serve as a sustainable tool for talent attraction and retention for MSMEs.
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