Effect of employer branding on job application decisions of fresh graduates in ho chi minh city – a case study on retail enterprises

MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIET NAM BANKING UNIVERSITY OF HO CHI MINH CITY TRIEU DOAN NGAN DAO EFFECT OF EMPLOYER BRANDING ON JOB APPLICATION DECISIONS OF FRESH GRADUATES IN HO CHI MINH CITY – A CASE STUDY ON RETAIL ENTERPRISES BACHELOR THESIS MAJOR: BUSINESS ADMINISTRATION CODE: 7340101 HO CHI MINH CITY, 2021 MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIET NAM BANKING UNIVERSITY OF HO CHI MINH CITY TRIEU DOAN NGAN DAO EFFECT OF EMPLOYER BRANDING ON JOB APPLICATION DECISIONS OF FRESH GRADUATES IN HO CHI MINH CITY – A CASE STUDY ON RETAIL ENTERPRISES BACHELOR THESIS MAJOR: BUSINESS ADMINISTRATION CODE: 7340101 SUPERVISOR PHAM HUONG DIEN, Ph.D HO CHI MINH CITY, 2021 i ABSTRACT In increasing competitive labour markets, attracting candidates has become a prime concern of organizations Fresh graduates is known as potential employee for the employer Fresh graduates having new ideas, knowledge can contribute to the development of the company So the employers need to identify and understand the range of factors that affect job application decisions of this potential human capital In this study, I hypothesize that organizational size, compensation and benefits, training and development, corporate reputation and word of mouth that influence the decisionmaking of fresh graduates Using regression analysis, I demonstrate that fresh graduates is impacted by training and development opportunities, corporate reputation and word of mouth In particular, the corporate reputation is the most attractive component for prospective candidates Besides that, organizations should develop many training and development programs for employee because fresh graduates prefer working in a company where they can learn and develop new skills and knowledge The results suggest that firms should develop employer branding and communicate values that company brings for customers, employees and social communities to attract the attention of potential applicants Key words: employer branding, fresh graduates, job application decisions, retail enterprise ii DECLARATION OF AUTHENTICITY I the undersigned declare that all material presented in this paper is my own work or fully and specifically acknowledged wherever adapted from other sources I understand that if at any time it is shown that I have significantly misrepresented material presented here, any degree or credits awarded to me on the basic of that material may be revoked I declared that all statements and information contained herein are true, correct and accurate to the best of my knowledge and belief Ho Chi Minh City, June 2021 Trieu Doan Ngan Dao iii ACKNOWLEDGEMENT I would like to take this opportunity to acknowledge serveral individuals who have helped me to complete my thesis Frist of all, I would like to express my endless thanks and gratefulness to my supervisor Ph.D Pham Huong Dien Her kindly and continuous advices through the process of completion of my thesis Her encouragement and comments had significantly enriched and improved my work Without her motivation and instruction, the thesis would have been impossible to be done effectively Secondly, I want to thanks my family for their endless love, care, and have most assistant and motivation me for the whole of my life Next, my deeply thanks come to all of my friends who always support me during time I study in Banking University of Ho Chi Minh City I am thankful for the times and they have listened to me, advised me and even comforted me Their kindly helps, care and motivation gave me strength and lift me up all the trouble for the rest of my life Ho Chi Minh City, June 2021 Trieu Doan Ngan Dao iv TABLE OF CONTENTS LIST OF TABLES viii LIST OF FIGURES x CHAPTER 1: INTRODUCTION 1.1 Research neccessity 1.2 Research objectives and questions 1.2.1 Research objectives 1.2.2 Research questions 1.3 Research scopes and subjects 1.3.1 Research scopes 1.3.2 Research subjects 1.4 Research methodology 1.5 Expected contributions 1.6 Thesis structure 1.7 Conclusion CHAPTER 2: LITERATURE REVIEW 2.1 Important concepts 2.1.1 Branding 2.1.2 Employer branding 2.1.3 Retail enterprise 2.1.4 Fresh graduates 2.2 Theoretical models and the previous studies 10 2.2.1 The theoretical models 10 2.2.1.1 Theory of Reasoned Action (TRA) 10 2.2.1.2 Theory of Planned Behaviour (TPB) 11 2.2.1.3 The career decision making model 12 2.2.1.4 The job choice model 13 v 2.2.1.5 2.2.2 The Model of Career Decision Making for College Students 15 The previous researches 18 2.2.2.1 The research ―Factors influencing the job search and job selection in students of Generation Y in the Czech Republic in the employer branding context‖ 18 2.2.2.2 The research ―Captivating company: dimensions of attractiveness in employer branding‖ 19 2.2.2.3 The research ―A great place to work!? Understanding crowdsourced employer branding‖ 21 2.2.2.4 The research ―Employer Brand and Job Application Decisions: Insights from the Best Employers‖ 23 2.3 Research hypotheses and the research model 25 2.3.1 2.3.1.1 Organizational size 25 2.3.1.2 Compensation and benefits 25 2.3.1.3 Training and development 26 2.3.1.4 Corporate reputation 26 2.3.1.5 Word of mouth 27 2.3.2 2.4 Research hypotheses 25 The proposed research model 29 Conclusion 30 CHAPTER 3: METHODOLOGY 31 3.1 Process of research 31 3.2 Qualitative research 31 3.2.1 Qualitative research methods 31 3.2.2 The qualitative research result 33 3.3 Quantitative research 35 3.3.1 Scale 35 vi 3.3.2 Research sample design 36 3.3.3 Questionnaire design 37 3.3.4 Research data collection 37 3.3.5 Data processing and analysis 38 3.4 3.3.5.1 Data checking and cleaning 38 3.3.5.2 Descriptive statistics 38 3.3.5.3 The reliability of scale 38 3.3.5.4 Explored Factor Analysis 39 3.3.5.5 Linear Regression Analysis and hypothesis testing 40 3.3.5.6 Robust check 42 Conclusion 42 CHAPTER 4: DATA ANALYSIS 43 4.1 Describing data 43 4.2 Reliability Analysis 45 4.3 Explored Factor Analysis 47 4.3.1 Explored Factor Analysis for Independent Variables 47 4.3.2 Explored Factor Analysis for Dependent Variable 48 4.4 Correlations Analysis 50 4.5 Regression Analysis 52 4.5.1 Analysis the fit of model 52 4.5.2 Coefficients Analysis 53 4.5.3 Testing Autocorrelation 55 4.5.4 Testing Collinearity 55 4.5.5 Testing Normal Distribution of Residual 56 4.5.6 Testing Heteroskedasticity 56 4.6 Robust Check 57 4.6.1 The difference about gender 57 vii 4.6.2 The difference about qualifications 58 4.6.3 The difference in job application decisions by graduation status 59 4.7 Conclusion 60 CHAPTER 5: CONCLUSION AND IMPLICATIONS 62 5.1 Summarize the research result 62 5.2 Implications 63 5.3 Limitations and orientations for further studies 64 5.4 Conclusion 65 REFERENCES 66 APPENDIX lxxv APPENDIX lxxx APPENDIX lxxxv viii LIST OF TABLES Table Table 2.1 Name Summary the conceptions of career decision-making process Page 12 Table 2.2 Summary the characteristics of career decision-making process 15 Table 2.3 Five elements in employer brand development 20 Table 2.4 Seven key employer branding areas 22 Table 2.5 Summary the research hypotheses 29 Table 4.1 Frequency statistics for study sample 43 Table 4.2 Summary the Reliability Statistics 45 Table 4.3 KMO and Bartlett's Test for Independent Variables 47 Table 4.4 Factor loading for Independent Variables 47 Table 4.5 KMO and Bartlett's Test for Dependent Variable 48 Table 4.6 Component Matrix for Dependent Variable 48 Table 4.7 Summarize the research scales after analyzing EFA 49 Table 4.8 Correlations between Dependent Variable and Independent 51 Variables Table 4.9 Model Summary 52 Table 4.10 Test for the fit of regression model 52 Table 4.11 Coefficients Analysis for Independent Variables 53 Table 4.12 Testing Autocorrelation 55 Table 4.13 Testing Collinearity 55 Table 4.14 Correlations between ABSRES and independent variables 56 Table 4.15 Comparing the job application decisions by gender group 57 Table 4.16 Independent Test for gender groups 57 Table 4.17 Comparing the job application decisions by qualifications 58 group 74 lxxv APPENDIX RESEARCH SCALES BUILDING BASIS Research scales Original scales Source Organizational Size OS1 OS2 I prefer to work in a large A large company Arachchige, B J., & company Robertson, A (2011) I prefer to apply for a Employer's multinational company OS3 I consider the infrastructure scope international operations office Office infrastructure when I of Aboul-Ela, G M B E (2016) Sengupta, A., Bamel, U., & Singh, P (2015) choose a company to apply Compensation and Benefits CB1 CB2 When I apply for job, I Offer a very high starting Terjesen, S., consider about the starting salary Vinnicombe, S., salary Freeman, C (2007) & When applying for a job, I When I choose a job, Hsiao, J M., & Lin, D am interested in the benefits are S (2018) benefits that the company offers to the employee CB3 When applying for a job, I Fair amount of vacation Schlager, T., Bodderas, am M., interested in the quantity of annual paid day Maas, P., & Cachelin, J L (2011) leaves that the company offers to the employee CB4 When applying for a job, I An attractive overall Roper, S., de Carvalho, am interested in bonuses compensation package L V., Guzman, F., lxxvi and incentives that the Sivertzen, A company provide for the Nilsen, employee Olafsen, A H (2013) E R., M., & Training and Development TD1 I prefer to apply for a Provides opportunity for company that creates better jobs in the future opportunities for employees to learn and develop new skills TD2 Arachchige, B J., & I prefer to apply for an Good promotion Robertson, A (2011) organization that has equal opportunities within the and good opportunities promotion organization for all employees TD3 I prefer to apply for a Invest heavily in the Terjesen, company having a heavy training and development Vinnicombe, invesment in the training of their employees S., S., & Freeman, C (2007) and development of their employees TD4 I prefer to apply for an Opportunity to apply what Arachchige, B J., & organization that I can was learned at university apply what was learned at university Robertson, A (2011) lxxvii Corporate Reputation CR1 The corporate having a Higher reputation makes Cable, good reputation attracts me an organization D.M., & more Turban, D (2003) attractive than low or no reputation CR2 CR3 I want to apply for a Good reputation of the Schlager, T., Bodderas, company that has a good company amongst friends M., reputation amongst friends Cachelin, J L (2011) I prefer to make a apply This company has Maas, P., & a Turban, D B., Forret, for a company which is reputation as being an M L., & Hendrickson, reward as ―Best place to excellent employer C L (1998) work‖ CR4 I want to work for a firm I have heard a lot of good Roper, S., de Carvalho, that I have heard a lot of things about this firm L V., Guzman, F., good things about this firm Sivertzen, Nilsen, A E R., M., & Olafsen, A H (2013) CR5 I prefer to work for a Socially company considered organization socially responsible responsible organization CR6 I prefer to apply for an Innovative organization employer— considered new work practices and innovative employer applying new practices and ideas – ideas work Arachchige, B J., & Robertson, A (2011) lxxviii Word of Mouth WOM1 I usually look for reviews, I have seen advertising for information about the jobs at this organisation in company that I apply for in social media L V., Guzman, F., social media WOM2 E-wom provides me with The organisations profile detailed information about in social media gave me the company and job Roper, S., de Carvalho, detailed information about Sivertzen, A M., Nilsen, E R., & Olafsen, A H (2013) their job opportunities WOM3 Reading the reviews of the Referred by employee of organization‘s current or the organisation—present former employees influence my application can or past job Sengupta, A., Bamel, decision- U., & Singh, P (2015) making WOM4 I will apply for a company Referred which referred by somebody by whom you trust somebody I trust WOM5 I prefer to apply for the A lot of alumni from this Collins, C J., & organization where a lot of university go to work for Stevens, C K (2002) alumni from my university this organization go to work for WOM6 The online comment experience review, The about at the review/comment the credible workplace which is posted online Lin, Chinho, Yi is Shuang Wu, and JengChung (2013) Victor Chen lxxix in social media is credible Job Application Decision AD1 These factors affect my job This company would be Turban, D B., Forret, application decision- your first choice as an M L., & Hendrickson, employer‘ making AD2 Employer branding is one I would like to work for of important factor that this company affects my job application I decide to apply for a I would actively pursue company that employer branding Aiman-Smith, L., Bauer, T N., & Cable, decision-making AD3 C L (1998) has obtaining a position with this company D M (2001) lxxx APPENDIX SURVEY QUESTIONNAIRE Dear Mr/Ms, My name is Trieu Doan Ngan Dao, I come from the Banking University of Ho Chi Minh City (BUH) I am doing my Bachelor Thesis with the title “EFFECT OF EMPLOYER BRANDING ON JOB APPLICATION DECISIONS OF FRESH GRADUATES IN HO CHI MINH CITY – A CASE STUDY OF ENTERPRISES IN THE RETAIL INDUSTRY” I hope you can take a moment to help me complete this survey The information you provide will become valuable material for my thesis I commit that your information and answers will be kept confidential and used for research purposes only Looking forward to receiving your help Sincerely thanks! lxxxi I PERSONAL INFORMATION Your gender:  Male  Female You are:  Final year students preparing for graduation  Just have graduated  Graduated having less than year of working experience  Graduated having less than years of working experience Your qualifications:  University  College You look for the recruitment posts on :  Corporate website, page  Recruitment websites: Vietnamworks, Career Builder, Linkedin, Ybox, etc  Job groups on Facebook  Career fairs  The University Associations, Groups, Student Affairs Departments  Friends, relatives, etc  Newspapers, magazine  Other Do you want to apply to a retail enterprise?  Yes (Please answer the following questions)  No (Please stop the survey, sincerely thanks) lxxxii II DETAILED ASSESSMENT INFORMATION Please indicate your level of agreement with each of the following statements, circling the number indicating your level of agreement 1↔Totally disagree 2↔Disagree Symbol 3↔No ideas 4↔Agree 5↔Totally agree Content Level of agreemen How does the organizational size influence your job application decision-making? Organizational OS1 I prefer to work in a large company OS2 I prefer to apply for a multinational company 5 5 5 Size OS3 I consider the office infrastructure when I choose a company to apply to How the compensation and benefits influence your job application decision-making? CB1 CB2 Compensation and Benefits When I apply for job, I consider about the starting salary When applying for a job, I am interested in the benefits that the company offers to the employee When applying for a job, I am interested in the quantity of CB3 annual paid day leaves that the company offers to the employee CB4 When applying for a job, I am interested in bonuses and incentives that the company provide for the employee How the training and development opportunities impact your job application decisions? TD1 Training and Development TD2 TD3 I prefer to apply for a company that creates opportunities for employees to learn and develop new skills I prefer to apply for an organization that has equal and good promotion opportunities for all employees I prefer to apply for a company having a heavy invesment in the training and development of their employees 5 lxxxiii TD4 I prefer to apply for an organization that I can apply what was learned at university 5 5 5 5 5 5 How does the corporate reputation affect your job application decisions? CR1 CR2 CR3 Corporate Reputation CR4 CR5 CR6 The corporate having a good reputation attracts me I want to apply for a company that has a good reputation amongst friends I prefer to make a apply for a company which is reward as ―Best place to work‖ I want to work for a firm that I have heard a lot of good things about this firm I prefer to work for a company considered socially responsible organization I prefer to apply for an organization considered innovative employer – applying new work practices and ideas How does the word of mouth influence your job application decision-making? WOM1 WOM2 I usually look for reviews, information about the company that I apply for in social media E-wom provides me with detailed information about the company and job Reading the reviews of the organization‘s current or former Word of Mouth WOM3 employees can influence my job application decisionmaking WOM4 WOM5 I will apply for a company which referred by somebody I trust I prefer to apply for the organization where a lot of alumni from my university go to work for lxxxiv WOM6 The online review, comment about the experience at the workplace which is posted in social media is credible 5 5 Your job application decisions JAD1 Job Application Decisions JAD2 JAD3 These factors affect my job application decision-making Employer branding is one of important factor that affects my job application decision-making I decide to apply for a company that has employer branding SINCERELY THANKS! lxxxv APPENDIX RESEARCH RESULT Explored Factor Analysis (EFA) for independent variables Explored Factor Analysis for Independent variables – 1st time KMO and Bartlett's Test for independent variables - 1st KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity Approx Chi-Square 917 2582.477 df 253 Sig .000 Source: Excerpt from SPSS analysis of the author Factor loading for Independent Variables - 1st Rotated Component Matrixa Component CR1 752 CR4 721 CR2 701 CR3 684 CR5 659 CR6 605 420 WOM6 757 WOM5 753 WOM2 722 WOM4 629 WOM3 606 lxxxvi WOM1 594 TD1 809 TD3 679 TD2 678 TD4 603 TD1 730 CB4 706 CB3 423 CB2 642 457 612 OS2 821 OS1 754 OS3 515 Total Initial Eigenvalues 1.131 1.062 40.076 48.286 54.140 59.058 Source: Excerpt from SPSS analysis of the author 63.676 Cumulative % of Eigenvalues 9.217 1.888 1.346 lxxxvii Explored Factor Analysis for Independent Variables – 2nd time KMO and Bartlett's Test for Independent Variables - 2nd KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity 904 Approx Chi-Square 2132.345 df 190 Sig .000 Source: Excerpt from SPSS analysis of the author Factor loading for Independent Variables - 2nd Rotated Component Matrixa Component CR1 806 CR4 759 CR2 696 CR3 673 CR5 626 CB4 501 456 CB1 WOM6 767 WOM5 755 WOM2 733 WOM4 638 WOM3 614 WOM1 583 TD1 826 lxxxviii TD2 742 TD3 685 TD4 579 OS2 832 OS1 765 OS3 Total Initial Eigenvalues 432 570 1.292 1.070 40.027 48.989 55.446 Source: Excerpt from SPSS analysis of the author 60.796 Cumulative % of Eigenvalues 8.005 1.792 ...MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIET NAM BANKING UNIVERSITY OF HO CHI MINH CITY TRIEU DOAN NGAN DAO EFFECT OF EMPLOYER BRANDING ON JOB APPLICATION DECISIONS OF FRESH GRADUATES. .. application decisions of fresh graduates 2.3.1.3 Training and development Training and learning had become one of important factors that influence job application decision-making of potential candidates... scales of Job Application Decision-making component 24 These factors affect my job application decision-making 25 Employer branding is one of important factor that affects my job application