Academic journal article International Journal of Business

Employer Branding for Talent Attraction in the Indonesian Mining Industry

Academic journal article International Journal of Business

Employer Branding for Talent Attraction in the Indonesian Mining Industry

Article excerpt

ABSTRACT

Many organizations have considered implementing employer branding (EB) to gain major advantage in the war for talent. One of the industries that needs to pay concern on EB is the mining industry in Indonesia, considering its talent scarcity and limited talent pool. There were, however, few empirical studies about it in Indonesia. Thus, this study is aimed to analyze the concept of EB in several mining companies in Indonesia, then comparing it with the potential talents expectation toward the companies. The research method used in this study is content analysis on companies' website and Focus Group Discussion to seven final year students majoring in Mining at ITB. The result shows that some of the potential talents expectations can be found on the website, while some of them are not. This study, therefore, suggests that company should provide clear information about its offers based on the potential talents' expectations in order to attract them.

JEL Classifications: M51, Mil, LOO

Keywords: employer branding; talent's attraction; talent's expectations; mining industry.

I. INTRODUCTION

As companies realized that human capital is one of the most important keys in achieving a company's goal, there is a competition among them in getting top talents called the 'war for talent'. This situation exists due to the short availability of skilled talent (Mosley, 2015), and it is worst in some particular fields like science, mathematics, and engineering. One of the industries that faces a skill shortage situation is the mining industry. This industry, where high skill talents are needed, is facing a Greybeard Phenomenon--a term for describing the condition of aging professional workforce and gender imbalance that exist in the mining industry (Gibson and Scoble, 2004). This phenomenon, along with the high demand on the mining sector, has created a skill shortage in mining industry (Bloomberg, 2014) and triggered a competition for talent attraction between the firms in the mining industry.

In Indonesia, where 133,000 more engineers are needed every year (Kompas, 2014), the high-skill-shortage in mining industry also existed. It is compounded by the small amount of university in Indonesia that offer mining related programs. From these limited universities, only small number of well-known university are considered as the potential talent pool by the industry. This situation may create a "war for talent" between the firms in mining industry within this limited talent pool. Therefore, in order to win the competition over high-skilled talents, these firms need to develop some strategies.

One of the suitable strategies in the war for talent is employer branding. Increasingly, many organizations are setting their budget and developing a program for this employer branding (Backhaus and Tikoo, 2004; Davies, 2008). Mosley (2015) also states it is the time for employers to strengthen their brand in order to compete effectively in the war for talent. By implementing an effective employer branding strategy, a company can gain more flexible and time effective recruitment, reduce the recruitment cost, and get a better quality of applicants (Heilmann et al., 2013). It also can be a tool of communication for the work environment, so the external people know what it is like to work for an organization (Love and Singh, 2011).

Then what is employer branding? The term employer branding was firstly used by Simon Barrow and Tim Ambler on the Journal of Brand Management in December 1996. They defined it as "the package of functional, economic, and psychological benefits provided by the employment and identified with the employing company" (Heilmann et al., 2013, p.285). It is like the "traditional" recruitment but aimed for a long-term goal. Employer branding cuts across the specialism of traditional human resource, then becomes an umbrella program for them (Edwards, 2010). The main objectives of employer branding are talent attraction and employee retention. …

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