How to attract talents? The role of CSR, employer brand, benefits and career development

Abstract

Attracting talent, particularly from Generation Z, remains a paramount concern for organizations across diverse industries. This paper aims to identify key variables influencing candidate attractiveness in joining organizations. Three variables—Corporate Social Responsibility (CSR), Employer Brand, Perceived Benefits, and Perceived Career Development—were examined for their impact on the intention to apply, serving as the dependent variable. A quantitative study involving 324 respondents, primarily Gen Z employees, was conducted between May and June 2022. Indicators for each variable were drawn from prior research. The data underwent analysis using Partial Least Squares (PLS) to assess validity and reliability, followed by structural model analysis to test hypotheses. The results indicated that only Employer Brand, Perceived Benefits, and Perceived Career Development significantly and positively influenced potential candidates’ intention to apply to organizations (p-value < 0.05). However, the study did not demonstrate a significant impact of CSR implementation on potential candidates’ intention to apply. Notably, it revealed a strong influence of CSR on employer brand. This study makes significant contributions to the discourse on talent attraction, underscoring the pivotal role of brand reputation, particularly influenced by CSR, in attracting talent. The findings emphasize the necessity for organizations to continually engage in CSR activities to bolster their reputation. Simultaneously, companies are encouraged to actively promote their career development programs and employee benefits offerings.

IMPACT STATEMENT

Attracting talents is still a major concern of organizations across various industries; particularly attracting Gen Z. Failed to fulfil the needs of talents might cause negative impact to the organization. Therefore, understanding what factors influencing organization attractiveness will be beneficial for organization. This paper explains how employer brand play critical role on candidate decision in intention to apply. Yet, CSR strongly influenced employer brand. Employer benefits and career development are also important consideration for candidates in assessing what organization they intent to work with.

Keywords:

• Benefits
• career development
• CSR
• Gen Z
• intention to apply
• talent management

Reviewing Editor:

• Maria Garcia-Haro
• University of Castilla-La Mancha: Universidad de Castilla-La Mancha
• Spain

Subjects:

• Corporate Social Responsibility & Business Ethics
• Human Resource Management

1. Introduction

In the competitive world of hiring, companies face challenges like changing demographics, a shortage of skilled workers, and the evolving preferences of the Generation Z workforce. This competition for top talent, known as the ‘talent war’, is a significant concern for Fortune 500 executives, with 82% reporting difficulties in recruiting key talents (Keller & Meaney, 2017).

Adding to the complexity, Generation Z tends to prefer short-term commitments and is open to new job opportunities, as highlighted by Gallup’s survey (Adkins, 2016). In this rapidly changing job market, understanding the factors influencing a candidate’s intention to apply becomes crucial.

Surprisingly, the concept of ‘intention to apply’ is underexplored in organizational psychology and human resource management. Employer branding, a key influencer, shapes expectations and benefits in the minds of potential candidates (Aslam, 2015a; Bahri-Ammari et al., 2022; Saini et al., 2015; Sharma & Prasad, 2018). While employer branding is studied, the impact of employee benefits and corporate social responsibility (CSR) on intention to apply is less explored. This study aims to fill this gap by examining how perceived benefits and CSR practices contribute to an organization’s appeal, shedding light on the factors influencing candidates’ career choices.

The research delves into the multifaceted factors affecting intention to apply, specifically focusing on perceived employee benefits and CSR. By unraveling the impact of these elements, the study contributes to the Social Cognitive Career Theory (SCCT), explaining how benefits and career development influence career choices (Lent et al., 1994).

The study also explores CSR’s role in talent acquisition, investigating if ethical practices enhance an organization’s attractiveness. Navigating the complexities of employer branding, benefits, career development, and CSR, the study offers actionable insights for organizations aiming to stand out in the talent war.

In a landscape where talent is scarce and discerning, the study’s findings are crucial for organizations seeking to attract and retain top-tier talent. By understanding the interplay between CSR practices, employer branding, benefits, and career development, the research equips organizations with strategic knowledge to strengthen their positions in the talent war, creating workplaces that align with modern workforce values. This impact is emphasized by McKinsey’s 2018 report, highlighting Generation Z’s prioritization of ethical considerations in their choices, a sentiment shared by millennials (Dwidienawati et al., 2021; Ichsan et al., 2021).

2. Literature review

2.1. Corporate social responsibility (CSR)

Corporate Social Responsibility (CSR) is defined as the company’s obligation to develop and implement policies and practices that address the three pillars of ecological, economic and social sustainability, and that maximize positive outcomes for all stakeholder groups above and beyond the requirements of legislation (Carlini et al., 2019). CSR is a company’s voluntary social initiatives beyond its legal obligations, in an effort to improve the welfare of society as a whole (Schuler & Cording, 2006). Businesses use CSR as part of their corporate governance to ensure that their operations are ethical and beneficial to society (Choi et al., 2020). CSR also means as company ethical obligations to its various stakeholders to conduct business operations responsibly, that exceeds their economic interests in society (Turker, 2009).

The concept of CSR was introduced after World War II and gradually accepted and even Nowadays, CSR has not only the concerns of NGOs. The increased awareness of government and public leads to many CSR initiatives from company. CSR initiatives build a positive view to companies or brand which leads to increased company or brand reputation. If the company conducts otherwise, such as negative news, their reputation will be deteriorated (Jung & Seock, 2016).

Study show how CSR practice is effective in enhancing company reputation and sharpen its competitive advantages, which leads to the profitability of the firm (Hsu & Bui, 2022). Kucharska (2020) further confirm that CSR practice at the highest possible level to secure corporate brand reputation. The impact of CSR to brand reputation is also reported by Allui and Pinto (2022). The impact of CSR to company reputation has been studied cross culturally. Study from (Hsu & Bui, 2022) shows how CSR had a positive significant impact on brand reputation in all three cultures (Indonesia, Vietnam, and Taiwan).

How CSR build a positive impact can be explain with that CSR is considered as good deeds done by organizations. Good deeds will be considered as selfless act of organization, where organization does not only put priority on shareholder interest. However, they also participate in the welfare of the ecology and societal. Study from (Hsu & Bui, 2022) shows that CSR toward others issues than shareholder issues, especially issues on customer, will positively influences the effectiveness of CSR initiatives. With CSR, organization is considered as pro-social. Therefore, it is considered as positive efforts from organization. Such as other positive effort such as ethical conducts, consistent performance and service quality, CSR can contribute positive view and trust which lead to organization reputation. A good organization behavior will foster a good employer brand. A good company behavior is increasing company brand (Sharma & Prasad, 2018).

CSR benefits are not merely to build good news to customer. Sustainable companies have an ulterior purpose beyond money. For them, profitability is a means but not an end. Strategy of sustainable companies is not simply to win in the short term but also to endure and to stand the test of time. But while it is usually possible for a company to be temporarily profitable it is much more difficult to sustain corporate success over a long time (Viardot, 2011). The argumentation is that doing good is costly. However, when the management takes care of the environmental requirements of the firm, the quality of products and services also improves, which enhances the firm brand reputation. The reputation as a result of CSR ensures sustainability in the business performance (Feng et al., 2022).

Current potential employees are from Generation Z. Generation Z, born between 1980 and 1995 are much more concerned with taking responsibility for the environment than Gen Xers and Baby Boomers (Dabija, 2018; Dwidienawati et al., 2021). (Dabija, 2018) confirms that both Generation Z actively involved in cultural and social event than previous generations. They are known as internet generation and have understanding on global issue such as climate issue and social issue. (Dwidienawati & Gandasari, 2018) confirm that Generation Z are willing to donate money and participate in a Cause Related Marketing program. Generation Z members, are aware that their decisions on consumption have direct impact on the environment (Smith & Brower, 2012). Therefore, they put how company approach to environmental and social issue will affect their consumption decisions. They even are willing to buy and pay higher price for ‘green’ food and products and from company who involve in sustainability development. Their decision to choose which company works with will also be influenced by the company reputation on CSR. Study from (Dwidienawati et al., 2021) also confirm that Gen Z consider CSR implementation by organization when they choose organization to work for.

Research on direct relationship on CSR program done by the organization and its influence to intention to apply is still limited. (Ikhide et al., 2021) has shown a positive relationship between CSR activities and intention to join the organization by millennial. Another study from (Choi et al., 2021a) di Korea Selatan also showed similar result. Employee candidate is positively influenced by whether or not company conducts CSR.

Hypothesis 1: Perceived CSR implementation by organization has a positive and significant impact to employer brand.

Hypothesis 2: Perceived CSR implementation by organization has a positive and significant impact to intention to apply.

2.2. Employer brand

Brand image is defined as a subjective, perceptual phenomenon that is formed through rational and emotional interpretation (Bianchi et al., 2019). Employer brand includes a set of beliefs held by job seekers about organizational and job attributes (Cable & Turban, 2001). Employer brand is the willingness of consumer to show a favourable or unfavourable attitude toward employer. The attitude is developed through the interactions or the experiences between the company and its stakeholders (Bianchi et al., 2019). It is based on the information or knowledge he or she has gained through particular sources, such as their family, friends, networking, cultural, and global aspects (Hsu & Bui, 2022). A positive attitude toward the company will make people trust, like, or even loyal. A positive employer brand will be a distinctive attribute of the company which can attract future associates as well as retain current associates well (Aslam, 2015b).

A positive employer brand is important because it influences applicants’ behaviour and decisions in at least three ways (Barber, 2013; Keller & Meaney, 2017): (1) a positive employer brand can increase the chances that the company will be perceived as a workplace; (2) a positive employer brand can influence applicants’ acceptance of the organization’s message; and (3) a positive employer brand early in the recruitment context may be the only information an applicant has about the company that can help create differentiation and motivation to choose a particular organization over others in the labour market.

Employer brands consist of a set of beliefs about certain attributes of the job and the organization (Cable & Turban, 2001). These attributes include tangible (i.e. instrumental) and intangible such as organizational characteristics (e.g. size, location, centralization, values, organizational environment, and culture), occupation (e.g. salary level, opportunities for advancement), job security), and individuals working within the organization (e.g. characteristics of supervisors, characteristics of co-workers (Lievens & Slaughter, 2016).

The relationship of the company brand image to intention to apply has been studied quite extensively. Various study such as from (Saini et al., 2015) in India has shown that the good name of company significantly influenced the intention to apply. The study event further claimed that the applicant decision to apply is influenced by how good the name of the company. Employee seemed to consider to work for the best company which has a good employer brand. Aslam (2015b) in Pakistan in study involving more than 200 respondents shown that how good the employer brand significantly influenced the intention apply from the applicants. Aslam (2015b) argue that initial images or reputation can be interpreted on how well they know the organization. Other study such as from (Arijs et al., 2018) showed similar impact of employer brand to intention to apply. Silaban et al. (2023) and Soeling et al. (2022) conducted study in Indonesia. They also revealed how the reputation of employer played critical role in attracting talents to the organization.

Hypothesis 3: Employer Brand has a positive and significant impact to intention to apply

2.3. Employee benefits

Employee benefits are one topic that extensively studied in the field of human resources. Employee benefits, can be influential incentives for an employee to put more effort into finishing their work and delivering greater performance (Yoopetch et al., 2021). Employee benefits can be thought of as a total reward, including both tangible (e.g. bonuses, salary, and stock options) and intangible (e.g. social status, rewarded job design, and work/life balance. Employee benefits have been found to be a ‘very important’ part of choosing a job (Schuth et al., 2018), employee performance and productivity (Guo et al., 2016). In the in the long run could improve company profitability, brand reputation, and employee outcomes.

Employee benefits have been considered as facilitation of the employee acquisition, development and motivation. Generous employee benefits is consider as good company to work with since it can motivate employee to work more productive and more enjoyable to stay in the company (Guo et al., 2016). Vroom’s expectancy theory stated that individuals are motivated to perform if they know that their extra performance is recognized and rewarded. Therefore, potential candidate will consider a good employee benefits in return of their contribution.

The relationship between perceived employee benefits and intention to apply has been studied quite extensively. One study by McGuigan et al. (2016) in UK that getting somehow information about the benefits provided by employer somehow had a significant effect on Intention to apply in college or workplace. Other studies by Schuth et al. (2018) gave the similar evidence how perceived Salary & Benefit has a significant effect on Intention to Apply.

Hypothesis 4: Perceived employee benefits has a positive and significant impact to intention to apply.

2.4. Career development

A career is defined as the sequence and combinations of work-related roles people occupy across their lifespan (Zacher et al., 2019). Career development is a distinct concept that refers to the process by which both individuals and their employers manage various tasks, behaviours, and experiences within and across jobs and organizations over time, with implications for employees’ work-related identity (Creed & Hood, 2019). Career Development is career advancement and promotion opportunities can be described as the extent to which developmental opportunities to gain responsibility and strengthen personal skills (Konrad et al., 2000).

Career Development can be considered a long-term goal for all employees working in organizations (Yoopetch et al., 2021). It consists of different aspects such as ability development, skill retainer, and future requirement (Kaya & Ceylan, 2014). It is considered as one of determining factors for career advancement in organizations (Greenhaus et al., 1990).

It is well understood that career development required investment from the organization. Yet it is important to be done. Career development can enhance employee performance, improve performance of the management, increase loyalty, maintain professionalism, foster corporate culture and value, and can be considered as extra benefits (Loyarte-López et al., 2020). Career development then is considered as the organization commitment to the advancement of individual career. Thus, it will foster more positive motivation and commitment (Ismail et al., 2013).

However, offering career development is not only beneficial for current employee, it also helps organization to attract talents. Since a good career development is a concern for candidates before making a joining choice. Gen Z wants to have good careers fast. Therefore, career development provided by the organization will attract them to apply. However, studies on perceived career development to intention to apply are still limited. Study from (Cappelli & Keller, 2014) showed that dissemination of career program in the organization will attract both internal and external talents. Another experimental study from (Bocanegra et al., 2019) showed that when students know the career prospect, it will attract them to choose one particular study.

Hypothesis 5: Perceived career development has a positive and significant impact to intention to apply.

Research framework of this study is depicted in Figure 1.

Figure 1. Research framework.

3. Methodology

3.1. Research method and design

The quantitative approach is used in this study since hypothesis of this study should be tested. Since the study was to evaluate intention to apply, therefore, it was needed to assign company as object. A preliminary study was conducted to see perceptions of brand awareness and perceptions of the company’s CSR implementation. Questionnaires were distributed to 100 Generation Y and Z. Four companies were selected based on company brand reputation and CSR activities. The preliminary study result come up with two companies which one had good company brand and CSR awareness and the other one had lack awareness of company brand and CSR.

Structured questionnaires were used as the instruments for an online survey, which was conducted in May–June 2022. Disclosure about the nature of the study, informed consent, and the participants’ willingness to join the survey voluntarily were also included at the beginning of the questionnaire. Only respondent from Gen Z were included in this study. Questionnaires without informed consent from participants were omitted from the analysis. A six-point Likert scale (from 1 strongly disagree to 6 strongly agree) was used for participants to rate their opinion. With a six-point Likert scale, the mid-point is omitted to avoid a social desirability bias (Nadler et al., 2015). Additional demographic information, such as age, gender, educational background, and position was also requested for descriptive analysis.

3.2. Participants and procedures

The population used in this study is Generation Z who were born in 1993–2005 in Indonesia. The current number of Generation Z itself reaches 74.93 million people or equal to 27.94% of Indonesia’s population (Central Bureau of Statistics, 2021). Meanwhile, the sample is an element of the population selected and made as an object of observation. The number of samples was calculated based on (Hair et al., 2020) which is ten times the number of indicators. In this research there are 30 indicators therefore minimum target number of samples was 300 and the result gained from total questionnaires distributed, 325 questionnaires were returned, yet 1 questionnaire should be omitted due to missing data, therefore only 324 were further analyzed. Selection of the participants was done using the convenience sampling. Convenience sampling method was used considering the time and resources constraints.

This research using questionnaire as the instrument of sampling collection. Questionnaire was distributed online via email, WhatsApp, and other social media. Questionnaires consist of 3 parts. The first brief was information about the survey and confidentiality. The second part was the screening part. It is about the willingness to participate in the survey voluntarily, and participant generation. If they were not willing to join or/and were not a Gen Z, they will be omitted from the study. In this study, informed consent was obtained from all participants, indicating that the researchers followed ethical guidelines by ensuring that participants were fully informed about the nature of the study and voluntarily agreed to participate.

Regarding the variables of the study, self-rated statements in the questionnaire were used to collect data from the respondents. These self-rated statements likely asked participants to assess their own perceptions, attitudes, or experiences related to the variables under investigation.

The researchers implemented a specific approach to handling missing data. If only one indicator was missing for a variable, the missing data were replaced with the mean value of that indicator. This approach helps to maintain the completeness of the dataset and allows for the inclusion of data from respondents who have only one missing data point. However, if the missing data were more than one for a specific indicator, the questionnaire associated with that missing data would be omitted from the analysis.

3.3. Measurement

In this study, the measurement scales for the variables were based on frameworks established in previous studies. Appendix 1 provides further details on the specific framework used for each measurement scale.

3.4. Data analysis

Collected elgible data were analyzed using Partial Least Square Structural Equation Model with help of Software SmartPLS version 3.2.9. (Hair et al., 2020) and (Sarstedt et al., 2020) have proposed a two-step analysis approach to be used. A two-step analysis approach was employed to examine the measurement model, which aimed to confirm the validity and reliability of the measurement instruments. The first step was to analyze the measurement model to confirm the validity and reliability of the variables. The validity was analyzed with factor loading (SFL) and AVE for convergent validity, and Cross Loading and Fornell Larcker Criterion for discriminant validity. Reliability was measured by Cronbach’s alpha, composite reliability.

The second step was to analyze the structural model analysis. The structural model analysis is to see Variance Inflation Factor (VIF) used to evaluate collinearity, Explanatory power and out-of-sample predictive power (indicated by R2, Q2 and f2), significance and relevance of the path coefficients

4. Results

4.1. Descriptive analysis

From total questionnaires distributed, 325 questionnaires were returned. However, one questionnaire should be omitted from the analysis due to no data related to the statements. Therefore, only 324 data undergone further analysis. The demographic analysis of 324 respondents showed that there were 54% female and 46% male. Educational background of respondents were 70% bachelor degrees, 4% master, 4% doctoral degrees and 22% others. Most of respondents (77%) were from Greater Jakarta (Table 1)

Table 1. Respondent demographic.

Gender	Female	174	54%
	Male	149	46%
	Preferred not to answer	1	0%
	Total	324	100%
Education	Bachelor	226	70%
	Master	13	4%
	PhD	14	4%
	Others	71	22%
	Total	324	100%
Location	Greater Jakarta	251	77%
	Others	73	23%
	Total	324	100%

The mean statistic for all variables were above 4. It means that majority of respondents agreed to the statement related to indicator.

4.2. Measurement model analysis

The analysis of measurement model for convergent validity showed that the factor loading number for all indicators were >0.70 and AVE for all variables were >0.50 (Table 2). The analysis for discriminant validity showed that the cross loading showed that the number to own indicator reflected the higher number compared to others. It means the correlation of indicators to its variable is the highest compares to other variables. The value of Fornell-Larcker Criterion was <0.90. Based on the value of factor loading, AVE, Cross Loading and Fornell-Larcker Criterion, it can be concluded that all indicators were valid.

Table 2. Validity and reliability analysis.

Variable	Code	Outer loading (>0.70)	AVE (>0.50)	Cronbach alpha (>0.50)	Composite reliability (>0.70)
Benefits	BNF1	0.846	0.686	0.924	0.939
	BNF2	0.876
	BNF3	0.865
	BNF4	0.851
Career development	CDV1	0.860	0.649	0.940	0.949
	CDV2	0.861
	CDV3	0.874
	CDV4	0.842
	CDV5	0.828
CSR	CSR1	0.839	0.734	0.879	0.917
	CSR2	0.835
	CSR3	0.836
	CSR4	0.842
	CSR5	0.840
	CSR6	0.822
	CSR7	0.784
Employer brand	EMB1	0.810	0.739	0.882	0.919
	EMB2	0.813
	EMB3	0.771
	EMB4	0.824
	EMB5	0.789
	EMB6	0.801
	EMB7	0.795
	EMB8	0.792
	EMB9	0.849
	EMB10	0.811
Intention to apply	ITA1	0.858	0.727	0.906	0.930
	ITA2	0.856
	ITA3	0.847
	ITA4	0.864

The analysis of reliability showed that Cronbach Alpha value was >0.50 for all variable and Composite Reliability value was >0.70 (Table 2). Therefore, it can be concluded that all indicators were reliable. The VIF value for all indicators were <5 which indicates there was no multicollinear problem with the indicators. Thus, the second step analysis can be proceeded.

4.3. Structural model analysis

Figure 2 showed the path coefficients of the model. CSR influenced Employer Brand positively by 0.899. CSR influenced Intention to apply positively by 0.064. Employer brand influenced Intention to apply positively by 0.329. Perceived benefit and perceived career development influenced intention to apply by 0.180 and 0.347, respectively.

Figure 2. Path coefficients.

4.4. Hypothesis testing

Table 3 showed the T-statistic and P value of the structural model. Based on the analysis all hypotheses, except Hypothesis 2 CSR to Intention to apply, were supported. Therefore, hypotheses 1, 3, 4, and 5 were accepted.

Table 3. Hypothesis testing.

	Original sample (O)	Sample mean (M)	Standard Deviation (STDEV)	T statistics (|O/STDEV|)	P values	Remark
CSR -> Employer brand (EMB)	0.899	0.900	0.014	65.456	0.000	Hypothesis is supported
CSR -> Intention to Apply	0.064	0.063	0.081	0.787	0.432	Hypothesis is rejected
Employer brand (EMB) -> intention to apply	0.329	0.332	0.097	3.403	0.001	Hypothesis is supported
Perceived benefit (BNF) -> intention to apply	0.180	0.177	0.088	2.039	0.042	Hypothesis is supported
Perceived career development (CDV) -> intention to apply	0.347	0.348	0.087	3.989	0.000	Hypothesis is supported

5. Discussion

Attracting potential employee is still a big challenge faced by the organization. Both talent war and trend of young generation to stay only in short period of time in one company are the main reasons of the challenge. In order to ensure the organization fulfills the need of the talents, organization needs to identify what factors influence Gen Z as the current potential employee to apply to particular organization.

5.1. Perceived CSR implementation by organization has a positive and significant impact to employer brand

This study contributes to the existing body of knowledge by revealing the impact of perceived Corporate Social Responsibility (CSR) implementation on a brand reputation. The result of this study enhance prior studies result such as the works of Hsu and Bui (2022), Kucharska (2020), Allui and Pinto (2022) have proven how CSR initiatives influence a company’s reputation.

CSR impact to employee brand can be from direct or indirect effect. The direct consequences come from CSR compliance with legal requirements and the broader implications for an organization’s image. Beyond mere legal adherence, organizations known for their robust CSR programs are regarded as agents of benevolence, actively contributing to the betterment of society. As (Aslam, 2015b) posits, CSR activities would lead to positive perceptions of the organization, which would further form a collective belief that the company is a responsible and conscientious corporate citizen. Consequently, CSR-related information generates a favorable image of the organization, and enhances organization reputation within the eyes of stakeholders and the public at large.

CSR impact to reputation might come from indirect effects, particularly through product and service quality. Commitment to CSR implies a willingness to not only meet legal requirements but also to exceed them. It showcases how organization exercises stakeholder-centric approach. This orientation leads to the production and delivery of superior-quality products and services which will foster the organization competitive advantages. In this context, the alignment with CSR principles serves as a powerful differentiator, which further lead to better reputation for the organization.

5.1.1. Perceived CSR implementation by organization has a positive and significant impact to intention to apply

This study fails to show the direct relationship between CSR and intention to apply. The available literature on CSR impact to intention to apply is not consistent. Studies such as from Magbool et al. (2016), Ikhide et al. (2021) and Choi et al. (2021b) show how CSR implementation positively influence the interest of candidates in applying to a company. The non-significant relationship between CSR and intention to apply can be explained as followed. (Feng et al., 2022) explain that when management CSR, means management takes care of the environmental requirements of the firm. This leads to the improvement of quality of products and services, which enhances the firm brand reputation. Therefore, (Feng et al., 2022) argue that the relationship of CSR to intention to apply is mediated by brand reputation. This position is also raised by Kucharska (2020).

Another explanation on the insignificant relationship between CSR and intention to apply is career stage. Career stage can affect the importance of CSR in their decision-making. The respondents are Gen Z who are in the early stage of their career. Those early in their careers may prioritize different aspects of a job compared to more seasoned professionals, leading to varying levels of influence.

5.1.2. Employer brand has a positive and significant impact to intention to apply

The empirical findings of this study showed the positive impact of an organization’s employer brand on individuals’ intentions to apply for job positions within that organization. The result of this study aligns with the conclusions drawn from prior research from Saini et al. (2015), Aslam (2015b), Arijs et al. (2018), and Benraïss-Noailles and Viot (2021). These previous investigations have consistently highlighted the direct link between the employer brand and the intention to apply.

The findings underscore the importance of an organization’s reputation and brand perception in the talent acquisition process. Beyond employees and their immediate networks, the broader public’s awareness of an organization is often shaped by its brand image. A favourable reputation not only enhances an organization’s overall appeal but also facilitates the attraction of top-tier talent. The findings reinforce the belief that the employer brand is a critical factor influencing prospective candidates’ decisions to apply for positions within an organization. In today’s fiercely competitive job market, understanding and cultivating a positive employer brand emerges as an imperative strategy for organizations seeking to attract and retain the best talent available.

5.1.3. Perceived employee benefits has a positive and significant impact to intention to apply

The study highlights a significant and positive relationship between the perception of employee benefits and individuals’ intentions to apply for job positions. The findings contribute additional empirical evidence to the existing body of research on the subject, aligning with and extending findings from prior studies such as those conducted by McGuigan et al. (2016), Schuth et al. (2018), Yoopetch et al. (2021). Employee benefits have long been recognized as a crucial component of an organization’s attractiveness in terms of talent acquisition and retention. Moreover, research, such as from (Guo et al., 2016), has illustrated the influential role of benefits in shaping employee performance and productivity.

In the context of the evolving workforce landscape, the significance of employee benefits is particularly pronounced for the Gen Z demographic. This generation places a priority on the quality of benefits offered by prospective employers, considering them a essential factor when evaluating organizational fit. A study by Pradipto et al. (2022) highlights the impact of outcome expectations, or the benefits that candidates anticipate, on their career choices. Consequently, for applicants, having a clear understanding of the benefits they can expect plays a crucial role in influencing their inclination to apply for positions within an organization. The findings reinforce that employee benefits are a persuasive factor in the decision-making process of potential candidates. Therefore, providing appealing benefits should be carefully considerate by organizations when they are seeking to attract top talent.

5.1.4. Perceived career development has a positive and significant impact to intention to apply

Gen Z is often characterized by their tendential to rapid processes and a strong desire for swift career progression. They are known for seeking success in their careers instantly. The findings of this study reinforce the perception that Gen Z are attracted to organizations that offer the prospect of promising career opportunities. In other words, if Gen Z perceives that joining a particular organization can potentially fast-track their career advancement, it becomes an attractive consideration in their decision-making process.

This study’s results align closely with previous research in this area. Previous studies such as from (Cappelli & Keller, 2014) and (Bocanegra et al., 2019) have also highlighted the importance of career development opportunity as a motivating factor for Gen Z. Therefore, it is evident that organizations aiming to attract and retain Gen Z talent should emphasize and provide clear career development processes as a key item of their employee value proposition. In doing so, they are more likely to meet the needs of the aspirations and expectations of Gen Z. This will lead to enhancing their attractiveness as employers.

6. Conclusion

Attracting talents is still a major concern of organizations across various industries. This study examines into this problem and reveals that several critical factors play an important role in influencing potential candidates’ decisions to join a company. The study highlights that perceived career development prospects have a positive and significant influence on candidates’ intentions to apply for positions within an organization. This finding underscores the crucial importance of offering clear pathways for professional growth and advancement as part of an employer’s value proposition.

Furthermore, the study also shows the importance for organizations to actively manage their employer brand and reputation. This study highlights that increasing awareness of their positive attributes, such as the implementation of Corporate Social Responsibility (CSR) initiatives, can contribute significantly to enhancing their employer brand. This aspect is of essentially importance in for Gen Z, who are hyperconnected. They have access to an abundance of information and are increasingly perceptive in their evaluation of potential employers.

This study provides valuable contributions to the ongoing discussion on talent attraction. It strengthens the notions of how brand reputation can provide a favourable impact to organization, in this case in attracting talents. This study also provides further evidence on SCCT which highlighting how perceived benefits as an important consideration of candidates in choosing particular career or position.

This study obtains several limitations. It is important to acknowledge how candidates’ preferences of employees may depend on the period of economic cycle. It should also well notice that this study was conducted just during COVID-19 pandemic (2022) which may shape a certain opinion. Further study during different economic condition and post pandemic should be conducted to confirm the result of this study. The early stage of employment might affect the result of the study, therefore, further study in the next 4–5 years should be considered to see how different stage of employment of Gen Z might impact to the result.

Authors’ contributions

Dyah Gandasari, Diena Dwidienawati carried out conceptualization, funding acquisition and writing-original draft; Mohammad Ichsan carried out the Data curation and formal analysis; David Tjahjana carried out the experiment; Dyah Gandasari, Diena Dwidienawati carried out writing-review & editing.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Data availability statement

Available upon request: Diena Dwidienawati.

Additional information

Funding

This study is partially funded by Bina Nusantara University and Multimedia Nusantara University.

Notes on contributors

Dyah Gandasari

Dyah Gandasari completed doctorate degree from Doctoral Program in IPB. She is a faculty member in Polbangtan Bogor. Her research of interest includes communication, information and communication technology, organizational behaviour.

David Tjahjana

David Tjahjana obtained his Doctorate degree from DRM Bina Nusantara University. He is a faculty member in Universitas Multimedia Nusantara. His research of interest is in innovation, leadership and strategic management.

Diena Dwidienawati

Diena Dwidienawati is a faculty member in BINUS Business School, Bina Nusantara University. She completed Doctorate degree from DRM Bina Nusantara University. Interest in research and areas of expertise are in digital business, leadership and strategic management.

Mohammad Ichsan

Mohammad Ichsan is a faculty member in in BINUS Business School, Bina Nusantara University. He graduated his doctoral degree from DRM Bina Nusantara University. Interest in research and areas of expertise are in project management and operation management.

Appendix 1.

Operational variable.

Variables	Definition	Code	Indicator	References
Corporate Social Responsibility	Corporate Social Responsibility is the responsibility of companies to develop and implement policies and practices that address the three pillars of ecological, economic and social sustainability, which maximize positive outcomes for all stakeholder groups beyond legal requirements (Carlini et al., 2019)	CSR1	The company participates in activities aimed at protecting and improving the quality of the natural environment.	(Ikhide et al., 2021)
		CSR2	The company invests in creating a better life for future generations.
		CSR3	The company implements special programs to minimize its negative impact on the natural environment.
		CSR4	The company targets sustainable growth, which considers future generations.
		CSR5	The company contributes to campaigns and projects that advance community welfare.
		CSR6	The company encourages employees to participate in Altruism volunteer activities.
Employer Brand	Employer brand has matched terms that aim to build a significant and distinct presence in the market so as to attract future associates as well as retain current associates well (Aslam, 2015b).	EB1	Pleasant Working Environment	(Benraïss-Noailles & Viot, 2021)
		EB2	Working in pleasant environment
		EB3	This organization produces high quality products and services
		EB4	Organizations produce innovative products and services
		EB5	Feeling good about yourself as a result of working for a particular organization
		EB6	Feeling more confident as a result of working for a particular organization
		EB7	This organization is customer-oriented
		EB8	A socially responsible organization
		EB9	Good promotion opportunities within the organization
		EB10	Job security in the organization
Employee Benefit	Employee benefits can be thought of as a total reward, including both tangible (e.g. bonuses, salary, and stock options) and intangible (e.g. social status, rewarded job design, and work/life balance. (Yoopetch et al., 2021)	EF1	The company will provide appropriate financial benefits (e.g. salary and bonuses)	(Yoopetch et al., 2021)
		EF2	Will be satisfied with the employee benefits provided by the Company
		EF3	If work for this company, will have a work-life balance
		EF4	If working for the Company, will have some other good employee benefits such as benefits for family members
		EF5	Compared to employees in other companies in the same industry, will have better employee benefits or benefits.
Career Development	Career development is a distinct concept that refers to the process by which both individuals and their employers manage various tasks, behaviours, and experiences within and across jobs and organizations over time, with implications for employees’ work-related identity (Creed & Hood, 2019).	CD1	The company supports long-term career development	(Dos Santos, 2022)
		CD2	In the long term the company will facilitate me to achieve career goals
		CD3	The company takes steps to ensure that maximize my career potential
		CD4	The company gave me the opportunity to achieve career goals
Intention to Apply	Intention to apply is the extent to which a potential employee is motivated to pursue a job in an organization (Carlini et al., 2019)	ITA1	Chance of applying at Company X is very high	(Ikhide et al., 2021)
		ITA2	Will accept this job offer from Company X
		ITA3	Will make this Company X one of my first choices as an employer
		ITA4	If this Company X invites me for a job interview, will go
		ITA5	Will try to be able to work at Company X