IMPACT OF EMPLOYER BRANDING ON EMPLOYEE ENGAGEMENT: THE MEDIATING ROLE OF EMPLOYEE ADVOCACY BEHAVIOUR IN THE BANKING SECTOR OF THE HATTON REGION

Abstract

Organisational performance and workforce stability are vital in the banking industry, where employee competence, trust, and commitment play a crucial role. Employer branding has emerged as a strategic approach for attracting and retaining top talent. However, despite significant investments in employer branding, banks often face persistent challenges such as low employee engagement and high turnover. This study investigates the relationship between employer branding and employee engagement, with a particular focus on the mediating role of employee advocacy behaviour a critical yet underexplored dimension. The main objective of this study is to examine the extent to which employer branding influences employee engagement and to assess whether employee advocacy behaviour strengthens this relationship. A quantitative, causal research design was adopted, and data were collected using a structured questionnaire. A convenience sample of 110 employees was drawn from six private banks operating in the Hatton area of Sri Lanka. Statistical tools such as regression analysis and mediation analysis (e.g., the Baron and Kenny method or Process macro) were employed to analyse the data. The findings reveal that employer branding has a significant positive impact on employee engagement. Furthermore, employee advocacy behaviour was found to serve as a strong mediator in this relationship. Employees who perceive their organisation as trustworthy and supportive are more likely to advocate for it, recommend it to others, and develop a strong emotional connection, which in turn enhances their engagement. This study contributes to the existing literature by providing empirical evidence on the effects of employer branding and internal brandingstrategies within the Sri Lankan banking sector. The practical implications highlight the need for human resource strategies that not only attract external talent but also foster internal brand alignment and advocacy among current employees, thereby enhancing organisational performance and long-term workforce stability.