Impact of Employer Branding on Talent Attraction and Employee Retention: Evidence from MSMEs in Jharkhand, India

Abstract

Micro, Small and Medium Enterprises (MSMEs) play a vital role in Jharkhand's economic development and employment generation. However, attracting and retaining skilled employees remains a major challenge because of increasing competition in the labour market. This study examines the impact of employer branding on talent attraction and employee retention among MSMEs in Jharkhand. A quantitative research design was adopted, and primary data were collected from 96 respondents, including HR managers and MSME owners, through a structured questionnaire administered using Google Forms. Convenience sampling was employed, and the data were analysed using simple linear regression (SLR) in SPSS. The findings reveal a significant positive relationship between employer branding and the combined outcome of employee retention and talent attraction (r = 0.596, R² = 0.355, F = 51.747, p < 0.001). The results indicate that organisations with stronger employer-branding practices are more successful in attracting and retaining talented employees. However, the study also highlights limited awareness and implementation of formal employer-branding practices among many MSMEs in Jharkhand. The study concludes that employer branding should be recognised as a strategic human resource management tool for improving organisational attractiveness and workforce stability. It recommends that MSMEs strengthen their employee value proposition by fostering a positive work environment, offering competitive compensation and career-development opportunities, and improving communication about organisational culture and future growth. These initiatives may enhance talent attraction and employee retention, thereby contributing to the long-term sustainability and competitiveness of MSMEs in Jharkhand.