“Best Employers”: The impacts of employee reviews and employer awards on job seekers' application intentions

Summary

The research paper by Zhang, Shum, and Belarmino (2023) investigates how online employee reviews and employer awards influence job seekers' intentions to apply for positions, particularly in the hospitality industry where labor shortages are prevalent. Drawing upon the elaboration likelihood model (ELM) and signaling theory, the study addresses a gap in the literature regarding the concurrent impacts of user-generated content (employee reviews) and employer recognition (awards) on recruitment. Previous research often examined these factors independently, but this study provides a more integrated understanding of how different types of job seekers process such information. The methodology involved an experimental survey, with one source mentioning the development of a recruitment webpage based on Glassdoor. This experimental design allowed the researchers to investigate the influence of employee-generated star-ratings (across three levels) and employer awards on application intentions. The study explored the mediating role of organizational prestige and the moderating effect of hospitality work experience, differentiating between novice and experienced job seekers. By simulating a job search scenario, the research aimed to uncover the psychological mechanisms through which these external signals impact a candidate's decision-making process. The findings indicate that both employee star-ratings and employer awards positively influence job seekers' application intentions, with organizational prestige serving as a key mediating factor. Specifically, higher star-ratings and the presence of employer awards contribute to a perception of greater organizational prestige, which in turn increases the likelihood of job applications. A significant finding is the moderating role of hospitality work experience: the positive relationship between star-ratings and organizational prestige is stronger for novice job seekers compared to experienced ones. Conversely, employer awards positively affect job seekers' application intentions regardless of their prior work experience. This suggests that novice job seekers are more swayed by peer reviews, while employer awards serve as a strong signal for all applicants. Practically, organizations are advised to compete for recognized awards and include them in job advertisements, especially those with low familiarity, and to monitor and manage online employee reviews to enhance their brand and attract talent. Encouraging long-tenured employees to share positive, detailed reviews can also be beneficial, as these are perceived as more helpful by prospective employees.