The role of Employer Branding and Electronic Word-of-Mouth (eWOM) in shaping job seekers’ perceptions

In today’s competitive labor market, employer branding and electronic word-of-mouth (eWOM) are important elements of a successful recruitment strategy. Drawing on Organizational Justice and Signaling Theory, employer branding involves the strategic communication of an organization’s value proposition, including its attractiveness and prestige. This study has two aims: (i) to test whether the valence of employer reviews (positive vs. negative) shapes perceived organizational prestige and recommendation intentions, and (ii) to assess whether the patterns observed replicate when eWOM refers specifically to the selection method (asynchronous video interviews, AVIs). These attributes significantly influence candidates’ intentions to apply and recommend the organization to potential applicants. Simultaneously, eWOM - especially through anonymous, peer-generated reviews on platforms like Glassdoor - has become a credible source of information that shapes job seekers’ perceptions of potential employers. We present two empirical studies examining the influence of employer reviews on candidates’ perceptions and behavioral intentions. In the first study (N = 329), using a within-subjects design, participants viewed a positive and a negative organizational review. Results showed that positive eWOM significantly increased perceived organizational prestige and recommendation intentions (with medium–large effects). These findings support and extend previous findings on the impact of organizational image and employer-related attributes on candidate behavior. The second study (N = 240) used a between-subjects design to assess how online reviews of asynchronous video interviews (AVIs) influence recommendation intentions and perceived organizational prestige (effects of comparable magnitude). Participants were exposed to one of two review conditions - positive or negative. Results indicated that review content significantly affected both recommendation intentions and perceptions of organizational prestige. Overall, our research highlights the importance of managing online employer reputation and ensuring a positive candidate experience. Negative eWOM about selection processes can harm organizational attractiveness, while positive reviews strengthen the employer brand and encourage job pursuit.