This research explores the impact of employer branding and psychological contracts on employees’ turnover intentions in the banking sector of Medan City. Adopting a quantitative method with a cross-sectional survey design, data were gathered from permanent employees using a structured questionnaire and analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings confirm that employer branding and psychological contract significantly influence turnover intention. Strong employer branding fosters employee loyalty by enhancing organizational commitment and person-organization fit, while fulfilling psychological contract obligations reduces employees’ desire to leave. The study also highlights the moderating effects of contextual factors such as industry characteristics, generational differences, and organizational tenure on these relationships. The research fills gaps by integrating employer branding and psychological contract into a single model within the banking industry context, specifically in an emerging market setting. Practical implications suggest that banks should develop comprehensive employer branding strategies, strengthen internal communications, and ensure the fulfillment of psychological contracts to reduce turnover intention effectively.

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Employer Branding and Psychological Contract in Reducing Turnover Intention: A Systematic Literature Review

  • Magdalena Linda L. Sibarani,
  • Yeni Absah,
  • Iskandar Muda,
  • Endang Sulistya Rini

摘要

This research explores the impact of employer branding and psychological contracts on employees’ turnover intentions in the banking sector of Medan City. Adopting a quantitative method with a cross-sectional survey design, data were gathered from permanent employees using a structured questionnaire and analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings confirm that employer branding and psychological contract significantly influence turnover intention. Strong employer branding fosters employee loyalty by enhancing organizational commitment and person-organization fit, while fulfilling psychological contract obligations reduces employees’ desire to leave. The study also highlights the moderating effects of contextual factors such as industry characteristics, generational differences, and organizational tenure on these relationships. The research fills gaps by integrating employer branding and psychological contract into a single model within the banking industry context, specifically in an emerging market setting. Practical implications suggest that banks should develop comprehensive employer branding strategies, strengthen internal communications, and ensure the fulfillment of psychological contracts to reduce turnover intention effectively.