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Worker word of mouth on the internet. Influence on human resource image, job seekers and employees
Santiago Melián-González Jacques Bulchand-Gidumal
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To cite this document:
Santiago Melián-González Jacques Bulchand-Gidumal , (2016),"Worker word of mouth on the internet. Influence on human
resource image, job seekers and employees", International Journal of Manpower, Vol. 37 Iss 4 pp. -
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1 Introduction
Individuals build an organizational image trough the information that they
perceive about a firm. It has been suggested that organizational image should
refer to specific areas of organizational distinction. One of these areas is the
employer or human resource image (Highhouse et al., 2009). There is
agreement about the importance of this employer role for organizations’
reputation (Highhouse et al., 2009; Roberts & Dowling, 2002).
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Virtually nothing has been written about weWOM. Theoretically weWOM could
affect HR image and, also, applicants and employees; however, there are no
data that test these assumptions. With the exception of one study carried out
before 2005, to our knowledge there is no empirical data or research about the
impact of employees’ opinions on organizational image and workers. Without
the Internet, it was difficult to learn the opinions of employees, so the relevance
of this kind of information for the organizational image, job seekers decisions
1
and workers was low, but nowadays it is easily accessible. On the other hand,
research on organizational reputation is scant and more contributions are
needed (Ferris et al., 2007). HR image is important, since it produces HR
reputation (Hannon & Milkovich, 1996), and this is part of the organization’s
reputation.
2 Literature review
2.1 HR image
When considering how people perceive organizations, one key concept arises:
organizational image. Organizational image has been defined as “a dynamic
perception of a specific area of organizational distinction” (Highhouse et al.,
2009: 487). According to the Signaling Theory (Spence, 1973), organizational
image is built upon particular cues such as the organization’s product
development, public relations, advertising, word of mouth, and media exposure
(Highhouse et al., 2009). Highhouse et al. (2009: 1485) state that “Cues are
specific pieces of information about the organization that signal certain images
of the company (e.g., image as an employer, image as a provider of
goods/services) in the mind of the constituent”. Among these cues, word of
mouth and exposure media are highlighted since these remain out of the control
of the organization (Cable & Turban, 2001; Highhouse et al., 2009; Lievens et
al., 2007).
2
etc.). One of the types of organizational image is the employer or HR image,
which globally refers to the perception of the organization attractiveness as a
good place to work (Kanar et al., 2008; Lievens et al., 2007). This image is
usually operationalized through the perception of the quality of HR practices
from a worker’s point of view (Kanar et al., 2008; Lievens et al., 2007). HR
image is particularly important in the context of job searching and recruitment
(Cable & Yu, 2006). In addition, it has been suggested that people’s perceptions
about organizations are formed quite early, prior to any recruitment processes,
and may be very difficult to modify (Cable & Turban, 2001).
Except for the works of Kanar et al. (2008) and Van Birgelen et al. (2008) there
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is little research about the cues that induce a particular HR image. Kanar et al.’s
(2008) research was conducted out of the Internet world and regardless the
active role of job seekers. This feature is relevant, since job search literature
has shown that job seekers tend to search for information about positions
(Šverko et al., 2008) and that the Internet has become one of the main means
of searching for employment (Stevenson, 2009). Van Birgelen et al.’s (2008)
work was developed in a digital context and showed the influence of a particular
cue that is under the employer control: the corporate employment websites’
career section.
3
Hoye & Lievens, 2009). Since the information content is about the employer
behavior or job characteristics, this work-related WOM is a particular cue for the
HR image formation.
decide which jobs to apply for (Rynes, 1989; Turban & Cable, 2003; Van Hoye,
2012). The Internet has created an answer to this social demand for information
about job conditions and facilitated a large number of employment innovations
for jobseekers (Nakamura et al., 2009). Among these innovations are employer
review websites. These sites run similarly to the well-known product review
websites (e.g., TripAdvisor), but instead of consumers, it is employees and ex-
employees who review their employers and their HR practices, performing
weWOM.
With respect to work-related WOM, research is scarce (Van Hoye & Lievens,
2009). Considering different company information sources, Van Hoye (2012)
found that this was the most important predictor of organizational attractiveness.
Keeling et al. (2013) studied the effect of positive and negative work-related
WOM. The authors found significant relationships with organizational
attractiveness and that the impact of the negative messages was stronger than
the impact of the positive ones. Regarding weWOM, Cable and Yu’s (2006)
study includes what they called “electronic bulletin boards” such as Vault.com,
in which current employees of companies post messages about what it is like to
work there. Contrary to the authors’ predictions it was found that this site had
little impact on job applicants. Cable and Yu (2006) cite the fact that “electronic
bulletin boards” were not very familiar to job seekers as a possible explanation
for this result (their study was conducted before 2005). Instead of employer
review sites, Tan et al. (2014) include a social network like Facebook and
4
consider the influence of friends’ opinions on intended job choice. Although
friends’ opinions (e.g., My Facebook friends encourage me to choose the job)
do not necessary coincide with weWOM, the authors found that social networks
have significant impact on job choice intentions.
weWOM may also influence current employees’ attitudes. Although there are no
data in that regard, this expected influence is based on the importance that
outsiders’ opinions have for organization employees (Dutton et al., 1994;
Lievens et al., 2007; Smidts et al., 2001).
3 Research objectives
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The general objective of this study is to test if a new and unexplored worker
conduct such as weWOM constitutes a relevant behavior for human resource
management. This global aim is particularized in three specific objectives.
These objectives are to test if weWOM is:
5
job seekers decisions that literature foresees to be influenced by information
about organizations’ HR practices are intention to apply for a job (Rynes, 1989)
and intention to recommend a firm as a place to work (Ferris et al., 2007;
Highhouse et al., 2009). In addition, since weWOM may suggest a balance or
unbalance between what a worker aspires to and what a firm offers, we think
that it can condition the applicants’ compensation demands. This is because
workers seek and expect to be adequately compensated for their effort and
work (Gouldner, 1960).
Regarding the second objective, little has been done to explore what shapes
external constructed image (Carmeli & Freund, 2002). As an organization cue,
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Last, regarding the third objective, it has been suggested that firms deliberately
overstate their image (Cable & Yu, 2006; Kanar et al., 2008). Compared to
company-dependent information sources, company-independent sources are
likely to be perceived as providing more credible information because they do
not have the explicit purpose to promote the organization (Van Hoye & Lievens,
2007). Van Hoye (2012) found work-related WOM being more credible for
applicants than job fairs, firm publicity and recruitment advertising. According to
Joo and McLean (2006), companies often attempt to improve their employer
images and boast about the recognition accorded to their human resources
management (e.g., 100 Best Companies to Work For). These recognitions are
granted by consultant firms and companies must pay to participate in the
evaluation process. Unlike them, weWOM is a company-independent source.
Therefore, we posit that weWOM will be more credible than a traditional source
of organizations’ HR attractiveness like the recognitions awarded to firms for
their HR practices.
6
4 Research methodology
The research consisted in a Web-based experiment that involved showing three
different types of real weWOM to three different samples and analyzing their
reactions. Using real weWOM helps to the external validity of the experiment
context since the websites’ graphical characteristics and content influence the
Internet users trust. The website designed for the purpose of the experiment
randomly showed one of three types of weWOM: positive, negative, or
intermediate weWOM, respectively. These three kinds of weWOM were
constructed using real weWOM extracted directly from the employer review site
Glassdoor. In order to ascertain the relevance of this website, an analysis with
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two of the available tools to measure website popularity (Alexa and Google
Rank) was conducted. As of June 2011, the results showed that Glassdoor was
by far the most popular among the employer review websites.
The Web page designed for the experiment was a replica of the Glassdoor
format. Thus, it showed the following information: global rating of the firm;
number of ratings; CEO rating; and detailed rating of its human resource
practices, classified into the sections that Glassdoor shows. Additionally, the
rating and full review by one of the reviewers of the company were also shown.
This rating was chosen as the first one that appeared on the Glassdoor website
with the same valence as the global rating of the firm, since just one review was
7
going to be shown. For example, to illustrate positive weWOM, one review with
a rating of 4 or 5 was chosen. All the data were anonymous, so the organization
was not easily identified.
Measures
8
Research objective (a)
Intention to apply for a job. Measured through the interest in sending a résumé
to the firm if it was seeking candidates for a job (Q2 in Table 1). This measure
was similar to the one of indicating the probability of responding as a
percentage from 0 to 100% used by Gatewood et al. (1993), and to the two
items used by Taylor and Bergman (1987) and Kanar et al. (2008): “If I saw a
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job opening for this organization, I would apply for it” and “If I were searching for
a job, I would apply to this organization.”
9
measure of Johnson and Kaye (2002), consisting of a five-point scale ranged
from “heavily rely on” to “don’t rely at all.”
In this study, the population is individuals who want to know how companies
behave as employers. Most of these are persons who are looking for a job,
since job search literature has shown that job seekers tend to search for
information about positions (Šverko et al., 2008). Thus, if we exclude students
and people who can afford not to work, our population is any individual. When
laboratory researchers seek to include nonstudent subjects, they face a real
challenge in enticing such individuals to participate. We followed a self-selected
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sample procedure (Gosling et al., 2004). The process of survey distribution took
place via multiple channels (i.e., social networks such as Facebook and Twitter,
email, and blogs), in which the objective of the study and the instructions
requesting collaboration during the participation were posted together with a link
to the Web page that hosted the questionnaire. As the user logged in, the Web
page would choose randomly which of the three types of weWOM to show.
Once the respondents read the weWOM information, they were asked to
answer the questionnaire. This kind of convenience sampling is frequent in
experiments about eWOM (Gupta & Harris, 2010) and firm image (Cable & Yu,
2006; Kanar et al., 2008; Turban & Cable, 2003) due to the population’s
vagueness (Baltar & Brunet, 2012). Gosling et al. (2004) demonstrated that the
validity of self-selected samples is not adversely affected by
non-responsiveness (unmotivated, repeated or non-interpretable responses).
Furthermore, previous research has shown that participants from self-selected
samples provide clearer and more complete responses than participants who
are not self-selected volunteers, such as undergraduate students (Pettit, 2002).
Data were collected during November 2011. A total of 238 valid responses were
received distributed in the following manner: 85 had been presented positive
weWOM, 77 intermediate weWOM, and 76 negative weWOM. The three groups
χ2=1.137; p=0.567).
did not show statistically significant differences by sex (χ
10
89.1% of participants had a university degree (without significant differences
between the three groups, χ2=5.972; p=0.426) and worked mainly in private
firms (40.3%), followed by unemployed (27.4%), employees in public
organizations (21.8%), and self-employed workers (10.5%) (once again, without
statistically significant differences between the three groups, χ2=9.013;
p=0.702). Technical and qualified personnel accounted for 46.3%, executives
18.5%, and middle managers 16% (without significant differences between
groups, χ2=7969; p=0.788). Their ages ranged between 18 and 25 years
(8.9%), 26 and 35 years (36.2%), 36 and 45 years (40.4%), and more than 45
years (14.5%) (without significant differences between groups, F=0.183;
p=0.833). Although not representative of the general population, the sample
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qualitatively fitted in the population of our study, since all the respondents
worked or were unemployed and none was a student.
5 Results
Table 2 shows correlation between variables, and variance inflation factors
(VIF). VIFs are all far below 10 indicating the absence of serious
multicollinearity problems (Kleinbaum et al., 2007). Regarding that, Table 2
shows that most of the dependent variables’ correlations intensity were between
0.30 and 0.73, which usually statistics manuals describe as moderate and
appreciable (Morales-Vallejo, 2008). Therefore, although some variables’
correlations are relatively high (e.g., HR image and external constructed image)
we can assume a sufficient independence among them.
Table 3 shows the means, standard deviations and Tukey HSD post-hoc test of
all the comparisons made. The results of MANOVA’s multivariate test support
the influence of the different types of weWOM on the considered dependent
variables, since all multivariate tests were significant at p=0.000 (Pillai's Trace,
11
F=16.246; Wilks' Lambda, F=21.835; Hotelling's Trace, F=28.027; Roy's
Largest Root, F=55.388).
12
of the evaluated firm. Positive external image was generated by positive
weWOM, negative by negative weWOM, and an intermediate position by
intermediate weWOM (F=27.10; p=0.000). Additionally, weWOM may influence
the employee’s pride in being part of an organization. Those exposed to positive
weWOM stated that if they worked for the firm and knew that weWOM was
available on the Internet, they would feel proud of belonging to the company.
Negative weWOM induced the opposite reaction; respondents said weWOM
would negatively affect their pride in belonging to the company. Last, as with the
rest of the reactions, those exposed to intermediate weWOM showed
responses in between the other two (F=81.506; p=0.000).
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Finally, research objective (c) was to test weWOM credibility. In doing so, it was
compared to a well-known way used by companies to obtain a good HR image:
recognitions awarded to firms for their human resource management practices.
All participants agreed on weWOM’s superior reliability. Thus, independently of
which weWOM they were exposed to, there were no opinion differences about
the superior reliability of the reviews of current and former employees compared
to the prizes and recognition awarded for human resource practices developed
by the firm (F=1.366; p=0.257).
6 Conclusions
The main conclusion of our study is that weWOM is a relevant behavior that
must be taken into account by firms. Just as the Internet has generated many
opportunities for people to participate and voice their opinions in other areas,
employer review websites allow employees to do the same regarding their work
conditions. weWOM hosted in these sites can improve or complicate their
recruitment processes. Furthermore, their staff attitudes may be affected too. It
must be borne in mind that, in most cases, these websites can be freely
accessed by anyone.
The results regarding the influence of weWOM are clear. Depending on the kind
of weWOM people see, perceived HR image changes. Furthermore, positive,
intermediate and negative weWOM produce different behavioral intentions with
respect to different recruiting aspects. There are three such intentions: intention
13
to apply, intention to recommend a company as a place to work, and
compensation demands. Regarding the last intention (compensation demands)
we provide empirical evidence for an unexplored job seeker evaluation.
Therefore, if we consider that two of the challenges that organizations face
today are the talent flow between countries and the lack of suitable talent
available in their markets (Tarique & Schuler, 2010), the importance of weWOM
for firms is evident.
aforementioned evaluations. The relevance of these results lies in the fact that a
positive constructed external image can influence identification with the
organization (Buonocore, 2010; Dutton et al., 1994). It has indeed been shown
that strong identification on the part of employees may positively contribute to a
company’s success (Mathieu & Zajac, 1990) and may explain the superior and
sustained performance of some corporations (Hunt et al., 1989). For their part,
the pride of belonging to a company creates psychological conditions that
promote affective commitment (Foreman & Whetten, 2002), which, in turn, has
been associated with employee performance (Vandenberghe, 2009).
This study contributes to strengthen the theory about how organizational image
is built showing that a type of WOM (i.e., weWOM) and social media exposure
(i.e., employer review websites) are significant determinants of two kind of
organizational images (i.e., employer and external constructed images). These
relationships had been proposed previously (Highhouse et al., 2009; Lievens,
Van Hoye, & Anseel, 2007) and our findings support them. Furthermore we
have indicated specific information (i.e., HR practices) that resulted relevant in
terms of work related WOM content for both organizational image and
recruitment literature. Regarding the last, our results respond empirically to the
demand for research about both work related WOM and initial applicant
decisions (Turban & Cable, 2003; Van Hoye, 2012). We contribute to the theory
about recruitment showing detailed information about what may occur during
the first phases of this HR practice. People search for jobs on the Internet and
14
what they are going to see is weWOM about companies. The potential
candidates’ behavior is more probably going to be driven by weWOM than by
the popular reputation lists, since these lists are static (e.g., annual publishing),
only include a very small number of companies and are geographically limited
(Carmeli & Freund, 2002). Further, given the lower reliability ascribed by the
participants to recognition for human resource practices in comparison to
weWOM, companies should analyze whether these recognitions are adequate
to create or maintain their image as employers. Our results suggest that these
prizes should be supported and accompanied by positive weWOM to reinforce
their credibility.
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Thus, first, companies should generate relevant and attractive information about
the most common categories of weWOM (usually HR practices) and place that
information on the employer review websites. Second, just as the marketing
15
field has documented that company interventions against negative WOM on
product review sites can generate positive WOM (Pantedilis, 2011), the same
could also be the case with respect to weWOM. For example, explaining the
reason for certain criticisms and the solutions implemented to overcome them
can transmit an image of a company that pays attention to the opinions of their
employees and takes actions accordingly. Third, if weWOM is positive it can be
showed to employees in order to create a positive constructed external image,
which may influence their identification with the organization, and to improve
their sense of belonging. If weWOM is negative it may represent an opportunity
for companies to understand and improve their HR practices, as well as to show
that they care about the welfare of their staff.
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Author Biographies:
22
entrepreneurship. He is focused in the tourism sector and in the start-up
sector. He has published several papers in the previous topics.
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23
Table 1. Questions and scales used
2. If you were looking for a job and the rated firm was Scale from 1 to 5, where 1 was “I would not
seeking candidates for a job in which you feel you send it” and 5 “I would be very interested in
would fit, how interested would you be in sending sending it”
your résumé?
3. Would you recommend this company to people you Scale from 1 to 5, where 1 was “Never” and
know, as a place to work? 5 was “Yes I would”
4. Suppose you are working for a firm and you are The scale ranged from 1 to 14. 1 represented
satisfied with your job, what minimum wage “Any increment”, 2 corresponded to “10%
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increment would you demand to accept an offer from increment” and then it went up to 14 that
the firm displayed above for a job similar to the one meant “more than 70%” in 5% increments for
you are supposedly doing now? each level.
5. If you worked for this company and knew that this Scale from 1 to 5, where 1 was “It would very
information is published on the Internet, overall, how negatively affect my pride in being a part of
do you think it would affect you? this firm” and 5 was “It would very positively
affect my pride in being a part of this firm”
6. Overall, what picture do you think people who have Scale from 1 to 5, where 1 was “Very
read the review formed about this company? negative” and 5 was “Very positive”
7. What do you think gives more reliable information on Scale from 1 to 5, where 1 was “The opinions
the behavior of a company as an employer—the of employees and ex-employees” and 5 was
opinions of employees and ex-employees or the “The recognition awarded for their human
recognition awarded for their human resource resource practices”
practices?