Linking employer labels in recruitment advertising,governance mode and organizational attractiveness

Abstract

To attract talent, companies might use employer labels (e.g. ‘Great Place to Work’ and ‘ecologically responsible’) in their recruitment advertisements. This study investigates whether the resulting attractiveness of organizations to job candidates might be (1) moderated by the organization’s governance mode (cooperative vs publicly traded) and (2) mediated by candidates’ perceptions of the organization’s prestige and person–organization fit. A survey of 320 respondents shows that, regardless of governance mode, communicating a ‘Great Place to Work’ label improves organizational attractiveness to candidates, by increasing their perceptions of its prestige and person–organization fit. Furthermore, listed companies that communicate this label are more attractive than those that rely on an ‘Ecological’ label.