Syntax Literate: Jurnal Ilmiah Indonesia p–ISSN: 2541-0849 e-ISSN: 2548-1398

Vol. 9, No. 11, November 2024

THE INFLUENCE OF EMPLOYER BRANDING ON INTENTION TO APPLY, MEDIATED BY ORGANIZATION REPUTATION AND PERSON-ORGANIZATION FIT IN GENERATION Z TALENT CANDIDATES

Muhammad Hazel Jordan¹, Putri Mega Desiana²

Universitas Indonesia, Depok, Indonesia^1,2

Email: [email protected]¹, [email protected]²

Abstract

This study aims to examine how employer branding influences intention to apply among potential Generation Z candidates. In practice, research related to employer branding has not been common and studied in more depth, especially on potential Generation Z talent candidates, therefore this study seeks to fill the gap in previous academic literature examining similar topics, In addition, this study also seeks to examine the mediating role of organization reputation and person-organization fit in the influence of employer branding on intention to apply. The sample in this study consisted of 251 final year students and fresh graduates from 10 top universities in Indonesia. Mediation analysis was conducted using structural equation modeling. The findings of this study show that the relationship between employer branding and intention to apply is positive and significant. In addition, empirical evidence also shows the role of organization reputation in increasing the influence of employer branding dimensions on intention to apply. In addition, the results show that organization reputation partially mediates the effect of employer branding on intention to apply, which emphasizes the need to align the dimensions of employer branding with organization reputation in strengthening its effect on intention to apply. Employer branding is important to be a current and future investment priority for employer companies that enable companies to attract top talent, improve organizational reputation and help companies achieve a better position in the job market.

Keywords: Gen Z, Talent, Employer Branding, Person-Organization Fit, Organization Reputation, Intention to Apply

Introduction

In an increasingly disruptive market competition, employers compete to achieve their goals by maintaining a competitive advantage.(Bharadwaj, 2024). According to Mckinsey, superior talent is a very valuable asset for a company, becoming one of the main components in competitive advantage in the competitive business world.(Kwon & Jang, 2022). According to Maurya and Agarwal(2018), every company realizes that talent is an important factor in determining success and is the lifeblood of the company itself. Therefore, efforts to attract and retain talent are not easy challenges for companies.

Ilustrating the magnitude of the challenge in attracting and retaining talent, a Universum survey of more than 2,000 senior executives, including CEOs, showed that 36 percent of global companies reported talent shortages in 2014, the highest percentage since 2007.(Berger & Berger, 2017). Employers compete for the best talent in the labor market. In recent years, this competition to attract and retain the best talent has been described by Mckinsey as the “war for talent”(Chambers et al., 1998). A survey conducted by McKinsey suggests that leading companies with superior employee value propositions have a stronger appeal in attracting talent. Creating a superior employee value proposition means tailoring the company's "brand" and "product" to the jobs offered to attract the specific people it wants to find and retain.(Chambers et al., 1998).

In order to face the challenges of attracting talent, employers need to know the things that can influence the intention of applicants to apply for a job. This is a logical consequence so that efforts to attract potential talent can be carried out effectively through recruitment.(Gomes & Neves, 2011). The recruitment process is the earliest stage carried out by companies to attract talent. According to Mullins(2007), the recruitment process helps companies to select and place the right individuals in the right jobs, which shows that the company is performing well. By understanding the factors that influence the intention to apply for a job by potential talents, companies can design more effective and attractive recruitment strategies, thereby increasing the chances of getting the best talent.

In order to attract the best talent, employers strive to portray their organization as the best employer.(Backhaus & Tikoo, 2004). They invest significant resources to build and maintain this image. In the competitive business world, employer branding and organizational reputation are considered crucial in attracting the best potential employees.(Cappelli, 2001). Thus, companies do not only focus on compensation and benefits, but also on the values and culture they offer. Employer branding and organization reputation, have a significant impact on the intention to apply for a job and make the company more preferred by applicants.(Elbendary et al., 2023).

Along with the increasing importance ofemployer branding, companies are increasingly realizing that a strong reputation not only helps attract talent but also maintains a positive image in the eyes of the public. According to Sivertzen et al.(2013), employer branding not only describes what applicants emphasize when applying for a job but also plays a role in strengthening the company's reputation. A survey conducted by Mosely which aims to find out the long-term goals of employer branding revealed the results that, 40 percent of companies said they want their employer brand to help meet long-term recruitment needs, and 31 percent of companies said their brand will be increasingly important to building the company's reputation in the future.(Berger & Berger, 2017).

Previous research has shown that employer branding and organizational reputation are important factors in attracting potential talent. According to Ambler and Barrow(1996), employer branding is a combination of functional, economic, and psychological benefits provided by a company to its employees, which forms a positive perception of the organization. Another study by Lievens and Highhouse(2003)revealed that organizational reputation plays an important role in attracting potential employees by influencing their perception of the value offered by the company. Both studies show that the combination of strong employer branding and positive organizational reputation can increase a company's attractiveness to job seekers, especially in a competitive labor market.

This study aims to provide a perspective on how companies understand the expectations and hopes of Generation Z in applying for jobs, which have different characteristics from other generations. This study explores the influence of employer branding, organizational reputation, and person-organization fit on the intention to apply for prospective Generation Z talents. In addition, this study also examines the relationship between employer branding and organizational reputation and person-organization fit, as well as the mediating effects of organizational reputation and person-organization fit between employer branding and intention to apply. Theoretically, this study is expected to contribute to the literature in the field of human resource management by providing relevant empirical evidence, as well as being a reference for further research. Practically, the results are expected to help human resource practitioners in adjusting appropriate branding strategies to attract Gen Z, identifying key factors that appeal to them, and developing innovative and relevant recruitment policies to the needs of this generation.

Research methods

In this study, the researcher used four previous studies as the main reference for compiling the research model. The first study by Soeling et al.(2022)discussed the role of organizational reputation in mediating the influence of employer branding attractiveness on job application intentions, showing that organizational reputation is significant in influencing job application intentions. The second study by Silva and Dias(2022)also found a crucial role of organizational reputation in mediating the attractiveness of employer branding on application intentions. Furthermore, Tanwar and Kumar(2019)identified person-organization fit as a mediator between employer branding and candidate decisions in choosing a place to work, even without the moderating variable of social media. Gomes and Nevez(2011)combining interactionist and behaviorist approaches, highlighting the importance of person-organization fit in the mediation pathway between employer branding and application intentions. Based on these three reference journals, the researcher integrates the latest elements to construct a research model that includes employer branding, organizational reputation, person-organization fit, and application intentions in the context of Generation Z in the current labor market dynamics.

Results and Discussion

Results of Causal Relationship Analysis

Furthermore, to test the hypothesis that has been designed, the researcher conducted a causal relationship analysis. According to Maholtra(2020)t-value greater than or equal to 1.645 is used to indicate the significance of the influence between variables, especially to test hypotheses that influence in one direction or are called 'one-tailed'. The results of the causal relationship between the variables used in this study can be seen in Figure 1.

Figure 1. Standard Value of Coefficient and t-value of Research Model

Source: Researcher Processed Results (2024)

Based on Figure 1, there is a relationship between the variables used in this study, which is indicated by the coefficient value.standard and t-value on each path. The results of the interpretation of the direct relationship between variables can be seen in Table 4.25. The table indicates that the data used supports the majority of the hypothesized direct relationships and shows significant results with a t-value above 1.645. Of the 5 direct relationship hypotheses, there is 1 variable that is not significantly directly related to the dependent variable by having a t-value below 1.645. From table 4.25 it can be seen that the effect of Person-Organization Fit on Intention to Apply is proven to be insignificant because it has a t-value of 0.02 where this value is below 1.645.

Table 1. Results of Direct Relationship Testing

Hypothesis	Track	Coefficient Value	t-value	Connection
H1	Employer branding➝Intention to Apply	0.16	1.76	Positive, significant
H2	Organization Reputation➝Intention to Apply	0.72	7.45	Positive, significant
H3	Person-organization fit➝Intention to Apply	0.00	0.02	No significant
H4	Employer branding➝Organization Reputation	0.67	9.15	Positive, significant
H5	Employer branding➝Person-organization fit	0.70	10.23	Positive, significant

Source: Researcher Processed Results (2024)

In addition to analyzing direct relationships between variables, using the Lisrel application, causal relationship analysis is also carried out on indirect relationships between variables through mediating variables.organization reputationand person-organization fit. Table 2 shows the results of the analysis of the mediation relationship between variables. In table 2, information can be drawn that 2 hypotheses of indirect relationships were proposed, 1 indirect relationship was proven to be positively and significantly related and 1 indirect relationship was proven to be insignificant.

Indirect relationships that are considered positive and significant have a valuet-valueabove 1.645 and 1 other indirect relationship has a t-value below 1.645. The data used also shows that there is a simultaneous mediation effect of organization reputation in the relationship between employer branding and intention to apply. In other words, the organization reputation variable mediates the effect of the employer branding variable on the intention to apply variable. Meanwhile, in other indirect relationships, there is no significant mediation effect of the person-organization fit variable in the relationship between the employer branding variable and the intention to apply variable.

Table 2. Results of Indirect Relationship Testing

Hypothesis

Track

Mark

Coefficient

t-value

Connection

Employer branding➝Organization Reputation➝Intention to Apply

0.48

6.47

Positive, significant

Employer branding➝Person-organization fit➝Intention to Apply

Not significant

Source: Researcher Processed Results (2024)

Based on Hair, Black, Babin, and Anderson(2019)the mediation effect of organization reputation on the relationship between employer branding variables and intention to apply is included in partial mediation. This partial mediation occurs because the direct relationship between employer branding variables and intention to apply decreases but remains significant when the mediation variable organization reputation is entered as an additional predictor as shown in table 3. Although the organization reputation variable does not mediate completely, this variable cannot be ignored because this variable has a significant influence in relation to the dependent variable intention to apply.

Track	Without mediating variables	With mediating variables		Information
Track	*Direct effect*	*Direct effect*	*Indirect effect*	Information
Employer branding Organization Reputation Intention to Apply	9.62	1.76	6.47	Partial mediation
Employer branding Person-organization fit Intention to Apply	9.62	1.76	-	Not mediated

Table 3. Results of Mediation Type Testing

Source: Researcher Processed Results (2024)

On the other hand, there is no mediating relationship between variables.person-organization fiton the relationship between employer branding variables and intention to apply. Table 3 shows that employer branding has a direct effect on intention to apply. However, the coefficient value showing a value of 0.00 and a t-value of 0.02 on the indirect effect through the person-organization fit variable indicates that this mediation effect is not significant. This occurs because although there is a positive and significant direct relationship between the employer branding variable and person-organization fit, the direct relationship between the person-organization fit variable and the intention to apply variable is not significant, thus affecting the significance of this indirect relationship.

Then, the coefficient values on the direct relationship, indirect relationship and total overall effect on intention to apply can be seen in Table 4.28. The coefficient values in Table 4 show that the indirect effect of employer branding through organizational reputation on intention to apply has an effect value that is not higher than the direct relationship of employer branding on intention to apply. Meanwhile, the effect of employer branding on intention to apply through the mediation of person-organization fit is proven to be insignificant. In other words, this also shows that person-organization fit does not mediate the effect of employer branding on intention to apply. This shows that corporate reputation plays a more important role in attracting applicants compared to the compatibility of individual values with the company.

Table 4. Results of Testing Direct Influence, Indirect Influence and Total Influence on Intention to Apply

No.	Track	*Direct Effect*	Track	*Indirect Effect*	*Total Effect*
1.	Employer branding➝Intention to Apply	0.16	Employer branding➝Organization Reputation➝Intention to Apply	0.48	0.64
2.	Employer branding➝Intention to Apply	0.16	Employer branding➝Person-organization fit➝Intention to Apply	-	0.16

Source: Researcher Processed Results (2024)

Research Hypothesis Analysis

Based on the results of the correlation test between variables that have been conducted, the researcher then conducted a hypothesis analysis. This research model consists of 4 (four) variables, each of which forms a hypothesis with 5 (five) direct relationship hypotheses and 2 (two) hypotheses, each of which forms an indirect relationship hypothesis. Table 5 provides information on the results of the hypothesis analysis in this study.

Table 5. Hypothesis Testing Results

Hypothesis	Statement	Conclusion
H1	Employer brandinghave a positive influence and significant to intention to apply	Data supports the hypothesis
H2	Organization reputationhave a positive influence and significant to intention to apply	Data supports the hypothesis
H3	Person-organization fithave a positive influence and significant to intention to apply	Data does not support the hypothesis
H4	Employer brandinghave a positive influence and significant to Organization reputation	Data supports the hypothesis
H5	Employer brandinghave a positive influence and significant to Person-organization fit	Data supports the hypothesis
H6	Organization reputationmediating the relationship between employer branding and intention to apply	Data supports the hypothesis
H7	Person-organization fitmediating the relationship between employer branding and intention to apply	Data does not support the hypothesis

Source: Researcher Processed Results (2024)

Based on these results, the researcher then conducted a hypothesis analysis with the following discussion:

H1: Employer branding has a positive and significant influence on Intention to Apply for prospective Generation Z talents.

Based on the results of the hypothesis test of the direct relationship of variables shown in Table 1, it can be seen that the influence of employer branding on intention to apply produces a t-value of 1.76. The t-value of the direct influence between these variables is greater than the t-value of 1.645. This value indicates that the data used in this study supports hypothesis 1 in this study so that it can be said that H1 in this study can be accepted. Therefore, it can be concluded that the attractiveness of employers owned by companies or employer organizations has a positive implication on increasing the desire of prospective generation Z talents to apply for jobs at the company or organization.

The positive and significant influence of employer branding on intention to apply shown in the results of this study is in line with previous studies that examined similar variables. In a study conducted by Santiago (2019) showed that 60% of samples from a total of 281 respondents showed that almost all dimensions in employer attractiveness influenced intention to apply positively and significantly. Recent research conducted by Soeling et al.(2022)which also examined the effect of employer branding on intention to apply with sample characteristics similar to this study but more specific, namely final year students of the Faculty of Economics and Business, University of Indonesia and students of the Faculty of Economics and Business and the Faculty of Engineering from Gadjah Mada University and University of Indonesia also found that employer branding also has a significant effect on intention to apply. Further strengthening the results of previous studies and the results of this study, the latest study conducted by Elbendary et al. (2023) which examined 356 job seeker respondents including new graduates or fresh graduates also found a positive and significant effect of employer branding on intention to apply.

When viewed based on the results of the causal relationship test, there are several indicators in one dimension that have the highest SLF value. It is known that the Healthy Work Atmosphere (HWA) dimension has the highest SLF value compared to other dimensions. The HWA dimension is a dimension that describes the attractiveness of employers who provide a friendly and stress-free working atmosphere. The HWA dimension with an SLF value of 0.99 consists of 6 question indicators, one of which has the highest SLF value, namely the HWA6 and HWA1 indicators. Thus, it can be said that these indicators are the indicators that best reflect the employer branding variable. This is in line with the results of open questions that were filled out voluntarily by respondents to dig deeper into the factors that influence respondents in determining their dream company, where the majority of respondentswant a comfortable, supportive, and mentally healthy work environment, and provide respondents with freedom to work.

In the intention to apply variable consisting of 5 question indicators, there are 2 indicators that have the highest SLF values, namely indicators IA3 and IA2. From these findings, it can be concluded that prospective generation Z talents will come if invited to do a job interview and make the company their main choice in applying for a job if the employer company can offer a stress-free work environment and provide flexibility for its employees in making decisions.

H2: Organization Reputation has a positive and significant influence on Intention to Apply for prospective Generation Z talents.

Table 1 shows the results of the direct relationship test, it can be seen that the influence of organizational reputation on intention to apply has a t-value of 7.45. This value is greater than the t-value of 1.645, so it can be said that the influence of organizational reputation on intention to apply is proven to be positive and significant, so the hypothesis can be said to be accepted. Based on these results, it can also be concluded that organizational or company reputation has a positive influence on the desire and intention of prospective generation Z talents to apply for jobs at the employer company.

The results of this study are in line with previous studies that show a positive and significant influence of the organizational reputation variable on the intention to apply. Research conducted by Soeling et al. (2022) also indicates that company reputation has a significant influence on the intention to apply for a job. Strengthening the findings of previous studies, the latest research from Elbendary et al. (2023) which examined 356 job seeker respondents including new graduates or fresh graduates also showed that organizational reputation significantly influenced the intention to apply for a job vacancy. Strengthening the findings, the findings of this study are also in line with the respondents' answers to the open-ended questions in this research questionnaire where the majority of respondentsIn addition to prioritizing a mentally healthy work environment, respondents considered the company's good name, reputation, and image as determinants in choosing their dream workplace. They tend to be attracted to large companies that have a good track record and are prestigious in their field, and are widely known by the public. A positive company image for respondents not only increases pride in working there, but also provides a sense of security and confidence for respondents.

When viewed based on the highest SLF value, it is known that the OR4 indicator is the indicator that best reflects the organization reputation variable, while the indicators that best reflect the intention to apply variable are the IA3 and IA2 indicators. It can be said that prospective generation Z talents will come if invited to do a job interview and make the company their main choice in applying for a job if prospective generation Z talents often hear good things about an organization or company. The higher the frequency of prospective generation Z talents hearing good things about a company, the stronger their intention and drive to apply for a job at that company.

H3: Person-organization fit has a positive and significant influence on Intention to Apply for prospective Generation Z talents.

Based on the results of the direct relationship test in table 1, the results of the test of the influence of person-organization fit on intention to apply produced a t-value of 0.02. This value is smaller than the t-value of 1.645. These results indicate that based on the data used, it does not support the hypothesis so that the hypothesis cannot be accepted. This also concludes that the fit between people and organizations does not have a significant effect on the intention to apply for jobs for prospective generation Z talents.

The results of this study revealed that the person-organization fit variable did not have a significant effect on the intention to apply variable in line with previous studies that examined the same variables. A recent study conducted by Sengupta and Mittal (2022) which examined the intention to seek entry-level employment among Indian students revealed the results of a lack of subjective fit or fit between the desired values of entry-level job seekers and the values offered by employers. In other words, job seekers at the entry-level do not make a match between individual values and the employer organization when applying for jobs.

When viewed based on the highest SLF value in the person-organization fit variable, it is known that the POF1 indicator is the indicator that best reflects this variable, while the indicators that best reflect the intention to apply variable are the IA3 and IA2 indicators. From these findings, it can be concluded that although prospective generation Z talents have principle values in life that are in line with the things valued by the company, it does not necessarily determine whether prospective generation Z talents will come if invited to a job interview and make the company their main choice when applying for a job. In other words, the suitability of prospective talents with the organization or employer company does not determine the intention of prospective generation Z talents to apply for a job at the employer company.

H4: Employer branding has a positive and significant influence on Organization Reputation on prospective generation Z talents.

Based on the results of the direct relationship test in table 1, the results of the test of the influence of employer branding on organizational reputation produced a t-value of 9.15. This value is greater than the t-value of 1.645. Based on these results, it can be said that the influence of employer branding on organizational reputation is proven to be positive and significant so that the hypothesis can be said to be accepted. Based on these results, it can also be concluded that the attractiveness of employers has a positive influence on the reputation of the organization or company, especially on prospective generation Z talents.

The results of this study are in line with previous studies that show a positive and significant influence of employer branding variables on organizational reputation. Research conducted by Silva and Dias (2022) which examined the influence of employer branding on the intention to apply mediated by corporate reputation in the context of Portugal stated that employer branding positively affects the reputation of a company or organization. Research by Elbendary et al. (2023) which examined 356 job seeker respondents including new graduates or fresh graduates also showed that organizational reputation significantly affects the intention to apply for a job vacancy.

The employer branding variables used in this study consist of 5 formative dimensions that have different significance in building employer branding variables. Based on the highest SLF value, the HWA dimension is the dimension that best reflects the employer branding variable. When viewed based on the highest SLF value in the HWA dimension, it is known that the HWA6 and HWA1 indicators are the indicators that best reflect the employer branding variable, while the indicator that best reflects the organization reputation variable is the OR4 indicator. From these findings, it can be concluded that the more the employer company offers a stress-free work environment and gives its employees the freedom to make decisions, the more it will have a positive impact on increasing the good things heard by prospective generation Z talents about an organization or company.

H5: Employer branding has a positive and significant influence on Person-organization fit in prospective Generation Z talents.

Based on the results of the direct relationship test in table 1, the results of the test of the influence of employer branding on organizational reputation produced a t-value of 10.23. This value is greater than the t-value of 1.645. Based on these results, it can be said that the influence of employer branding on person-organization fit is proven to be positive and significant so that the hypothesis can be said to be accepted. Based on these results, it can also be concluded that the attractiveness of employers has a positive and significant influence on the suitability of people with organizations or companies, especially for prospective generation Z talents.

The results of this study are in line with previous studies that show a positive and significant influence of employer branding variables on person-organization fit. Research conducted by Gomes and Neves (2019) stated that applicants' perceptions of the suitability of individual values with the employer organization are the result of evaluating the attractiveness of the employer. Further research conducted by Tanwar and Kumar (2019) also indicated that employer branding has a positive and significant influence and helps create person-organization fit. Chawla (2020) also showed that employer branding has a direct positive and significant relationship to person-organization fit.

H6: Organization Reputation mediates the influence of Employer branding on Intention to Apply for prospective Generation Z talents.

Role mediation of organization reputation in the relationship between employer branding and intention to apply is proven in this study. Employer branding has a significant positive influence on intention to apply mediated by organization reputation. This information is based on the results of indirect relationship testing in Table 1 and Table 2, which shows that there is an SFL indirect effect value of 0.48 and a t-value of 5.26. So it can be concluded from this information that the H6 hypothesis in this study can be said to be accepted.

Based on table 2, it is known that the organization reputation variable has a partial mediation effect. The mediation effect is considered partial mediation because the direct relationship between employer branding and intention to apply without the mediation variable decreases from a value of 9.89 compared to the influence of the mediation effect which is only 5.57. Although it has a t-value of indirect influence that is not greater than the t-value of direct influence. However, the coefficient value of the total effect of the influence of employer branding on intention to apply, both directly and indirectly, has increased significantly, so that the mediation role of organization reputation is still considered significant and strengthens the influence of employer branding on intention to apply.

The results of this study are in line with previous studies that show that organizational reputation can mediate the influence of employer branding on intention to apply. Research conducted by Silva and Dias (2022) which examined the influence of employer branding on intention to apply mediated by corporate reputation showed that employer branding has a positive influence on corporate reputation and increases the influence of employer branding on intention to apply. In other words, the increasing attractiveness of employers will further increase the company's reputation which in turn will also increase the intention or desire to apply for a job at the company.

Based on the highest SLF value between the dimensions of employer branding, the HWA dimension is the dimension that best reflects the employer branding variable. When viewed based on the highest SLF value in the HWA dimension, it is known that the HWA6 and HWA1 indicators are the indicators that best reflect the employer branding variable, while the indicator that best reflects the organization reputation variable is the OR4 indicator. Then the indicators that have the highest SLF values in the intention to apply variable are the IA3 and IA2 indicators. From these findings, it can be concluded that the increasing attractiveness of employers who provide a stress-free working environment and give their employees the opportunity to make decisions will increase the good things heard by prospective talents about the company which will increase the intention of prospective talents to come when invited to do a job interview and make the company the main choice when applying for a job.

H7: Person-organization fit mediates the influence of Employer branding on Intention to Apply for prospective Generation Z talents.

The research hypothesis that suggests the existence of a mediating role of person-organization fit in the relationship between employer branding and intention to apply is not proven in this study. Employer branding has a significant positive effect on intention to apply without being mediated by person-organization fit. This information is based on the results of the indirect relationship test in Table 2, which shows that the SFL indirect effect value cannot be calculated because the influence of the person-organization fit variable on intention to apply is proven to be insignificant as shown in Table 1. So it can be concluded from this information that the H7 hypothesis in this study cannot be accepted.

The results of this study are proven to be different from the findings of previous research conducted by Gomes and Neves (2019) where person-organization fit did not have a significant mediating effect in the relationship between employer branding and intention to apply. Another study conducted by Sengupta and Mittal (2022) which examined job applicants at the entry level stated that the match between individual values subjectively and the organization or employer company was not significant in influencing job applicants' intentions to apply to the company. Pandita's (2021) research which examined innovative efforts in developing employer branding for companies to attract Generation Z stated that Generation Z has higher career aspirations, work styles, attributes, educational preferences, and innovative mindsets. This requires flexibility to be independent and confident. They prefer diversity not only through race and gender, but also through identity and orientation. This implies that Generation Z likes the value of diversity in the workplace to support innovative and flexible thinking patterns.

Based on the highest SLF value, the HWA dimension is the dimension that best reflects the employer branding variable. When viewed based on the highest SLF value in the HWA dimension, it is known that the HWA6 and HWA1 indicators are the indicators that best reflect the employer branding variable. When viewed based on the highest SLF value in the person-organization fit variable, it is known that the POF1 and POF3 indicators are the indicators that best reflect this variable, while the indicators that best reflect the intention to apply variable are the IA3 and IA2 indicators. From these findings, it can be concluded that From these findings, it can be concluded that although the employer company offers a stress-free work environment and gives its employees the freedom to make decisions, it will increase the compatibility of the values of the principles in life with the things that are valued by the company, it does not necessarily encourage prospective generation Z talents to come if invited to do a job interview and make the company their main choice in applying for a job. In other words, the compatibility of prospective talents with the organization or employer company does not strengthen the influence of the employer's attractiveness on the intention of prospective generation Z talents to apply for a job at the company.

Overall Analysis

The purpose of this study was to measure the direct effect of employer branding, organizational reputation, and person-organization fit on intention to apply, while also looking at the role of organizational reputation and person-organization fit in mediating the relationship. This study involved 251 respondents who were final year students or recent graduates from the 10 best universities according to the QS World Rank 2023. The data in this study were obtained through questionnaires distributed online through social media and filled out independently by respondents. The data that had been collected were analyzed using a structural equation model (SEM) using the Lisrel 8.8 data processing application. The results of this study indicate that most of the hypotheses proposed can be accepted although 2 out of 7 hypotheses proposed cannot be accepted.

The findings in this study suggest that employer branding or employer attractiveness is one of the significant driving factors for job application intentions for prospective generation Z talents in line with previous studies (Soeling et al, 2022; & Elbendary, 2023). In other words, if an employer company wants to attract prospective generation Z talents who are currently entering the labor market, the employer company must prioritize employer attractiveness as a strategic aspect. Employer attractiveness in this study is represented by 5 (five) dimensions, namely, a friendly and stress-free work atmosphere (healthy work atmosphere), growth and development of skills (training and development), balance of personal life with work (work-life balance), concern for ethics and corporate social responsibility (ethics and corporate social responsibility), and attractive salary offers and competitive benefits (compensation and benefits) (Tanwar & Prasad, 2017).

Among several aspects that represent employer attractiveness, the aspect of a healthy work atmosphere or a friendly and stress-free work atmosphere is the aspect that is most prioritized by prospective generation Z talents. This is in line with research conducted by Tanwar and Prasad (2017) which states that among the 5 dimensions in the employer branding measurement tool, the healthy work atmosphere dimension was found to be the dimension that best reflects the employer branding variable. Research conducted by Dolev et al.(2024), also indicates something similar where this study states that Generation Z prefers companies that provide a calm working atmosphere even though they only provide low salaries compared to stressful working environments with higher salaries.

Based on the results of this study, employers can portray their company as a company that provides a friendly and stress-free working atmosphere as an attraction for prospective generation Z talents. In order to build the attractiveness of employers who offer a supportive and stress-free working environment, based on the findings in this study, companies can portray themselves by giving their employees the freedom to make decisions and offering a stress-free working environment for employees. Prospective generation Z talents will come if invited to a job interview and make the company their main choice when applying for a job if the employer can offer a stress-free working environment and provide flexibility for its employees in making decisions.

In addition to employer branding, organizational reputation is another factor that influences the intention and desire of prospective generation Z talents to apply to the employer company. This is in line with previous studies that examined similar topics (Soeling et al, 2022; & Elbendary, 2023). This study provides information that in addition to employer branding, employers can improve organizational reputation to increase the intention of prospective generation Z talents to apply for jobs. In other words, increasing the reputation of the employer company will increase the intention or desire of prospective generation Z talents to apply for jobs. In this case, prospective generation Z talents perceive the most influential aspect of company reputation when prospective generation Z talents often hear good things about the company. In other words, prospective generation Z talents will come if invited to a job interview and make the company their main choice when applying for a job if prospective generation Z talents often hear good things about the company.

In addition to showing the results that employer branding and organizational reputation both influence the intention or desire of prospective generation Z talents to apply to the company, this study also found that person-organization fit or the compatibility of values between individuals and organizations does not affect the intention or desire of prospective generation Z talents to apply to the company. This study provides information that although prospective generation Z talents have principle values in life that are in line with the things valued by the company and have personality values that are in accordance with the culture and values of the organization, it does not necessarily influence prospective generation Z talents to come if invited to do a job interview and make the company their main choice when applying for a job.

In addition to influencing the intention to apply for a job, employer branding also has a positive impact on increasing organizational reputation, strengthening previous findings that studied similar topics (Sivertzen, 2014; Soeling et al, 2022, Silva & Diaz 2022). In other words, the increasing attractiveness of the employer will further increase the reputation of the organization or employer company. In this case, companies that provide a stress-free work environment and provide opportunities for their employees to make decisions will have a positive impact on the company's reputation. Increasing the implementation of a stress-free work environment and providing employees with the freedom to make decisions will increase the good things that prospective Generation Z talents hear about the employer company.

This study also found that employer branding or employer attractiveness also has a positive impact on increasing person-organization fit or the match between individual values and organizational values. Where these results also strengthen previous studies that showed similar results (Gomes & Nevez, 2019; Tanwar & Kumar, 2019). In other words, the increasing attractiveness of the employer will increase the match between individual values and the values of the employer organization. This study found that companies that provide a stress-free work environment and give their employees the freedom to make decisions will increase the match between the values of the principles of prospective generation Z talents with the things valued by the company.

This study also found that increasing employer branding or the attractiveness of the employer company will also increase the organization's reputation or organizational reputation which will also increase the intention or desire to apply for jobs for prospective generation Z talents. This study shows that the influence and positive impact of employer attractiveness on the intention and desire of prospective generation Z talents to apply is greater and stronger when the employer's attractiveness also affects the organization's reputation. This is in line with previous studies that have examined similar topics (Sivertzen, 2014; Soeling, 2022, Silva & Diaz, 2022). Without strengthening the organization's reputation, the influence of employer attractiveness on the intention to apply for jobs is not as strong as when the employer's attractiveness increases the organization's reputation.

Companies that provide a friendly and stress-free work environment and provide opportunities for their employees to make decisions will have an impact on increasing the good things that prospective generation Z talents hear about an organization or company. Increasing the good things that prospective generation Z talents hear about an organization or company will also have an impact on increasing the interest of prospective generation Z talents to come when invited to a job interview and make the company their main choice when applying for a job. In other words, the influence of employers who provide a friendly, stress-free work environment on the intentions or desires of prospective generation Z talents will be stronger when prospective generation Z talents hear a lot of good things about the company.

Among several aspects that build the attractiveness of an employer company, prospective generation Z talents prioritize aspects of a supportive and stress-free work environment and aspects of training and development for employees. The aspect of competitive salary and compensation in this study was found to have an influence on building organizational attractiveness but not as strong as the previous 2 aspects. The attractiveness of companies for prospective generation Z talents who do not consider competitive salary and benefits as the strongest consideration is in line with research conducted by Pandita (2021) which states that money is not the only priority for generation Z, in terms of career development they also want to be coworkers who show collective support and have an innovative mindset.

Although the attractiveness of the employer was found to have a positive influence and impact on both the intention or desire to apply for a job and the match between the values of prospective talents and the organization, it was also found that the match between individual values and the organization did not have a significant effect on the intention or desire of prospective talents to apply for a job. So it can be concluded that the match between the values of prospective talents and the organization does not strengthen the influence of the attractiveness of the employer on the intention or desire to apply for prospective generation Z talents. The presence or absence of a match between the values of the talent and the organization will not have an impact on the influence of the attractiveness of the employer on the intention or desire of prospective talents to apply. This study shows that the match between the values of prospective talents and the organization is not a determining factor for prospective talents in applying for a job. This shows that prospective generation Z talents do not prioritize the values they adhere to when considering where to work.

The overall analysis of this study can be concluded that in order for employers to be able to compete to get prospective generation Z talents who are currently entering the labor market, companies need to make strategic efforts by increasing employer attractiveness. Increasing employer attractiveness will be in line with the increasing reputation of the company perceived by prospective generation Z talents, thus increasingly influencing their intention to apply for jobs at the company. In conditions where company resources are limited, companies can increase employer attractiveness which has implications for increasing the company's reputation without having to make extra efforts to align the values of prospective talents with the values of the company. This is because this study proved that the influence of the suitability of the values of prospective talents with the company was proven to be insignificant and was not a determining factor for prospective generation Z talents in applying for jobs.

Conclusion

This study aims to analyze the influence of employer branding, organizational reputation, and person-organization fit on the intention to apply for a job in Generation Z. This generation is increasingly significant in the labor market, with unique hopes and expectations of the work environment. Based on the results of the study, it was found that employer branding and organizational reputation have a positive and significant influence on the intention to apply for Generation Z, while person-organization fit has no significant effect. Employer branding also has a direct effect on organizational reputation and individual-organization fit, indicating that high company attractiveness increases the reputation and perception of prospective employees of value congruence. In addition, organizational reputation mediates the influence of employer branding on the intention to apply, where the attractiveness of the company perceived by Generation Z increases the reputation and intention to apply for the company.However, the researchers also acknowledged several limitations, such as the sample being limited to students from the top 10 universities in Indonesia, as well as suggestions for future research including involving more diverse samples, considering samples from talents who are already working, and adding additional variables to deepen understanding of the factors that influence job application intentions that have not been examined in this study.

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Copyright holder:

Muhammad Hazel Jordan, Putri Mega Desiana (2024)

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Syntax Literate: Jurnal Ilmiah Indonesia

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