Leveraging Social Media to Build Online Social Capital and Employer Brand

Abstract

Organisations increasingly use virtual means to connect with stakeholders to project an employer image among job seekers. Social media-based networking and employer branding strategies to attract and retain talent are effective strategies in the post-COVID scenario. A proper context exists to explore networking activities’ role in building solid social media capital and how this contributes to employer branding efforts. The present study explains how social media activities affect social media capital generation and employer branding. Second, the research examines how social media activities by organisations may help them leverage online social capital resources to create a strong employer brand. Extant literature illustrates how social media has increased the reach and scope for meaningful networking and greater possibilities of reaching out to potential employees through employer branding initiatives. Innovative social media tools for messaging and communicating, such as hashtags, tweeting, pinning, posting, likes and sharing, have made the outcomes more tangible, measurable and reliable. This facilitates effective social capital management to generate an employer’s reputation and a superior employer brand.

Keywords

Social media capital employer branding virtual networking

Introduction

Companies are aggressively integrating innovative ways to draw the best talent in a hyper-connected world and technology-driven business environment. In this context, employer branding and social capital management are increasingly gaining prominence and proving effective (Cheung & Lee, 2010; Heidemann et al., 2012; Yoganathan et al., 2018). Organisations increasingly adopt employer branding to build their identity and attract a talented workforce. Post-COVID-19, organisations around the globe are increasingly shifting their attention towards social media platforms to attract potential customers and employees. One effective way to ensure that the relevant stakeholders are kept aware and interested is to strengthen one’s online presence, build a strong brand image and manage their social capital resources. Social networks help organisations reach out to current and potential employees, apart from facilitating customer acquisition and retention initiatives. Literature suggests that the concepts of social capital (Bourdieu, 1986; Coleman, 1988) and employer branding (Itam et al., 2020) can influence an organisation’s customers and its image (Saini, 2020). With the phenomenal rise in the usage of social media, it is imperative for organisations to strategically explore, build and monitor their virtual presence and expansion. There is an evident need for research in this area to explore the interlinkages among the concepts of social capital created through social media (referred to as social media capital subsequently in this article), employer branding and networking efforts to build a solid social media capital that is relevant for talent attraction. There is a shortage of research on the nature and implications of online social resources (Lee, 2022; Saxton & Guo, 2020) in the context of talent attraction and retention.

Research on social capital media has distinguished it as a particular form of social capital, with unique features and outcomes distinguishing it from traditional social capital generated through in-person interactions (de Zúñiga et al., 2017; Lee, 2022; Saxton & Guo, 2020). An organisation can also create social media capital through its social media efforts, which can be a differentiating factor in the new age technology-driven world. Social media capital is a relatively new form of wealth that can be tracked in real-time, is unequally dispersed, is gained through a distinct set of communicative practises, and calls for unique mechanisms for its acquisition and disbursement. These features add to its distinctive advantage as a potentially strategic resource. This article dwells on a conceptual framework that integrates social media and social capital creation through social media.

Further, the study discusses the uses of social media capital and its implications for employer branding. Specifically, this study aims to answer the following questions: How do social media activities generate social media capital and contribute to employer branding? And second, how do social media activities by organisations help them leverage online social capital resources to create and communicate their employer brand?

The next section of this article is structured as follows: The first part examines the research on social media, employer branding and social capital. Next, the study discusses the questions that are centred on social media, social capital and employer branding. Finally, the study concludes with the implications and future directions of the research.

Integrating Social Media, Social Capital and Employer Branding

The social capital theory propounded by Granovetter (1973, 1985) and expanded by others (Lin, 1999, 2002) provides a valuable framework for describing how people engage in social networks to reap psychological and practical rewards. In the context of business organisations, social capital resources have been accepted as a significant resource bundle of the firm (Barney & Arikan, 2001), which influence venture performance by providing access to critical information, financial capital, marketing benefits, goodwill, legitimacy and competitive capabilities, apart from the psychological benefits and emotional support (Batjargal, 2003; McEvily & Zaheer, 1999; Mukul et al., 2022). People and businesses connect on virtual platforms for personal and professional benefits, and virtual networking generates social capital formation (Lin, 1999; Tomai et al., 2010). Social media usage has also been found to produce social capital (Ellison et al., 2007). It has transformed the scale, scope and overall possibilities of constructive networking among organisations, customers, employees and other business partners.

Apart from connecting with stakeholders, firms need to build credibility and reputation through their branding efforts. Though the concept of branding was primarily restricted to products and services, it slowly started to refer to strategic actions to differentiate firms and people (Backhaus & Tikoo, 2004). The branding scope is now extended to include employer branding, apart from the traditional corporate or product branding perspective. While corporate branding and product branding attempts are focused on creating a favourable image of the company and its offerings in the eyes of customers, employer branding strategies strive to create a positive image of a company as an employer in the eyes of existing and aspiring employees and position the company as an attractive place to work.

The success or failure of any organisation’s recruitment strategy may hinge on an employer’s brand. The competition to win over the cream of talent from the labour market has been a perennial problem for organisations. Winning the ‘war for talent’ is often seen as the preeminent source of competitive advantage for firms (Axelrod et al., 2001). Employer branding helps a firm align people with the company’s core values and work culture. Candidates are likelier to choose an employer if the brand messages resonate with them. Employer branding through creative campaigns in social media may include critical themes such as the organisation’s value system, mission and purpose of business, benefits to employees, employee feedback and experiences. Prospective employees may get attracted to such messages and join such employers. Pirić et al. (2018) in their study found that companies using social networks, especially online networks, for recruitment are perceived to be more attractive than those using conventional means. Social networking sites have emerged as an effective channel to get information such as company characteristics, job content, feedback from other employees and growth opportunities provided by the company. This indicates the possibility of using networking and online social capital for more effective employer branding activities.

The extant literature has illustrated how social media, employer branding and social capital are related, and various scholars also provide cues about the benefits at the individual level (Ellison et al., 2007; Stefanone et al., 2011). A few studies have addressed how social media affects the creation of online social capital at the organisational level. According to Fischer and Reuber (2011), entrepreneurs use Twitter to communicate their thoughts and actions, leading to new opportunities and higher chances of success and improving their brand presence in the market. Top accounting firms use social media for knowledge sharing, branding and marketing their services and attracting potential employees (Blankespoor et al., 2014; Eschenbrenner et al., 2015). Evidences show that social media makes building intellectual, reputational and financial capital easier and helps organisations build a strong employer brand.

Role of Social Media in Leveraging Social Capital and Employer Branding

The Growing Significance of Social Media and Networking

Connecting is at the heart of any form of social or community living. Social networking and resource mobilisation via network conduits have been features of social life for ages. The mediation of technology and the popularity of internet-driven ‘virtual’ interaction have pushed networking to the forefront for any interaction and influence, whether social, political, economic, business or any other. Social media apps like Facebook, LinkedIn, Twitter, YouTube and Instagram have transformed how people connect, network and support one another for personal and professional reasons.

Besides the benefits of socialising, managing a virtual profile and connecting with personal and professional contacts, social networks have an impact on marketing and sales activities (Cheung & Lee, 2010) and aid in revenue growth (Heidemann et al., 2012). COVID-19 and the rise of the ‘gig economy’ have given impetus to virtual or online organisational support structures in the context of employer branding (Connaughton & Lewis, 2020; Schmidt et al., 2016). The significant benefits result from networking, necessitating due attention from organisational leaders. Hence, there is a need to investigate the relationship between online networking and employer branding.

Social Media, Networking and Online Social Capital

Social media has emerged as a tool in the hands of working professionals, assisting them in curating a professional image and effective relationship management for professional success and career advancement (Gandini, 2016). Because of these benefits, professionals are more likely to spend money on self-branding and impression management on online platforms. The result is expected to be an improved job market reputation, increased chances of being hired and prospects for better career growth. Employees use social media to connect with co-workers and grow their online social capital (Huang & Liu, 2017). Similar online branding activities by organisations have also proliferated, and the use of social media has been found to impact the reputation of employer brands (Walsh et al., 2016). According to Gandini (2016), such efforts on self-branding activities and resulting benefits equate branding with social capital creation. Individuals and organisations can create social capital at a greater scale and with a more focused application than conventional networking options through digital technologies and social media, resulting in increased credibility and reputation.

Scholars are increasingly interested in the concept of social media capital, which denotes the social media-based resource bundle an organisation acquires through its social media efforts (de Zúñiga et al., 2017; Lee, 2022; Saxton & Guo, 2020). This resource bundle may include tangible or intangible forms of capital to be attained through efforts like tweeting, pinning, posting, friending and sharing (Saxton & Guo, 2020). In line with a network view (Burt, 1992; Debreceny et al., 2017; Lin, 1999; Worrell et al., 2013),¹ there are visible characteristics of the network of connections created by an organisation through social media that define the social media resources available to it. For instance, the network size, the strength of the ties made, the centrality of the organisation’s network position, and the norms and values embedded in the network community are all important features of network connections and resultant social media resources (Saxton & Guo, 2020). If the firm can reach out to more relevant links through its social media efforts, it can use the scale and reach for talent search and other business requirements. If the firm is placed strategically in the network, then it can leverage more resources.

Similarly, resource mobilisation will be effective if the norms and values align with the organisational values. If continuous exchanges and trust are developed among the network actors, stronger ties will be created, which will eventually help in creating a stronger employer brand. If the organisation consistently takes care of all the above aspects in its social media activities, it will likely make substantial social media capital.

The brand image and credibility of organisations built on social media platforms are more easily traceable and replicable. The social media-based reputation of business firms is demonstrated by tools such as hashtags, likes, shares and so on, which provide a sense of objectivity and measurability. The simplicity of use of these tools and the ease of communicating messages creatively and effectively make it easier for employees to channel their online efforts in more concerted ways. These features associated with social media communication also make assessing the created social capital possible. Social capital components such as reputation, goodwill, credibility and trust are becoming more tangible through various unique, valid and reliable indicators (Gandini, 2016).

Social Networks, Recruitment and Employer Branding

Social networks are instrumental in realising a firm’s human resource strategies (Heidemann et al., 2012). One such approach is attracting the best talent through effective ‘employer branding’. Employees generate online social capital by establishing connections with their peers through social media, which also has implications for the employer brand’s reputation. Employees’ online conduct is critical for building a firm’s employer brand (Yoganathan et al., 2021). Employer branding literature has highlighted the role of employee comments, and reviews on social media make an organisation an ‘employer of choice’ (Saini & Jawahar, 2019). When physical socialising is restricted due to the COVID-19 pandemic, responsible employer brands need to ensure the wellbeing of their employees through employer–employee and employer–employee socialisation and networking through social media. Thus, knowing the employees’ online social capital is crucial for the company’s branding (Yoganathan et al., 2021).

Researchers have investigated the connections between social media, hiring and employer branding (Girard et al., 2014). Job seekers increasingly use social networking sites, mainly LinkedIn, to find employment opportunities. Social networks assist organisations in creating visibility and a positive reputation among potential job seekers (Girard et al., 2014). Due to their impact on clients and other stakeholders, employee behaviour on social media is crucial for a company’s employer brand. As social media has seen unprecedented popularity, it is now well accepted that employees’ online behaviours are important for building and preserving the reputation of employer brands (Osburg et al., 2020; Schaarschmidt & Walsh, 2018). Employees and their company’s brand must have a positive relationship internally before developing a strong employer brand image externally (Yoganathan et al., 2018), which calls for organisational support structures to guarantee employee resilience and welfare.

The employees are the first ambassadors and the face of the company to the outside world. Their networks are most likely to get attracted or repelled towards the organisation through the messages they convey amongst their connections. Through referral programmes, employees have historically been a source of new hires, and employers have rewarded such efforts. Despite the popularity of the referral system, employers are less reliant on workers now that social media platforms are available as alternatives for finding potential employees. These online channels give hiring companies access to a broader range of candidates and allow them to leverage artificial intelligence and other technological innovations for faster and more accurate assessments.

Applications for web-based networking also increased the likelihood of luring ‘passive jobseekers’, who are talented but already employed. Social networking sites are unquestionably necessary for such recruitment techniques because attracting talent from a rival company can be pretty profitable for the recruiting organisation. Additionally, social networking sites give hiring companies access to other crucial ‘background information’ (personal attributes, life experiences, socio-religious preferences, moral-ethical orientation, ethnic background, online activities, etc.) that can be helpful to predictors of candidates’ quality and ‘employee-culture fit’. It might not be possible to gather comparable data through one-on-one interactions in a traditional interview format.

Talent issues are even more critical for resource-starved startups. Startups operate in an organisational context distinct from established companies and entrepreneurs. The ability to attract, acquire and retain superior human capital is one of the critical success factors for startups (Mukul & Saini, 2021). Without sufficient resources, established systems and brand names, these startup ventures are generally less known to job seekers and are less likely to use sophisticated recruitment processes. Reaching out to job aspirants at lesser costs becomes much more feasible when they shift their talent search efforts to social media platforms. Social media efforts are likely to increase the reach and range of contacts for entrepreneurs beyond reach through traditional means. Being youth-friendly and technology startups mainly seeking youngsters as potential employees, social media efforts are likely to be more effective.

These findings have implications for entrepreneurs, as they must start investing in their employer branding strategies, primarily through online social capital management. They must look at innovative ways to reach youngsters who prefer working in a challenging and unpredictable startup space rather than with established brands for stable jobs.

Bonding and Bridging of Social Media Capital and Employer Branding

Constant Contact’s¹ slogan, ‘transform followers into clients’, succinctly highlights its core philosophy of helping organisations convert their social media followers into tangible (financial or non-financial) results. By converting ‘followers into clients’, an organisation can convert its social media following into hard cash. Entrepreneurs in the social media space might amass social capital through well-defined campaigns or continuous outreach and community building. In either case, the accumulated social media currency can be put to use. Evidence shows that small firms successfully utilise social media capital. These initiatives vindicate the proposition that social media capital is a valuable startup resource.

Individuals with a prominent presence in the virtual space and several connections have great potential to promote themselves online. Similarly, in the case of employees, committed employees with creative online efforts such as contributing positively to their employer’s social media pages and supporting their co-workers (e.g., by sharing vital information) may effectively promote their employer brand on social media (Huang & Liu, 2017; Schaarschmidt & Konsgen, 2019). Consequently, from a social identity theory perspective, employees’ bonding social capital (i.e., arising from strong ties with co-workers) is likely to motivate their brand citizenship behaviour, which includes behaviours that go beyond formal contractual duties, such as regularly promoting the brand, disseminating information about the brand, and voluntarily solving problems to assist co-workers (King & Grace, 2010; King et al., 2012). In social media, brand citizenship can be seen as active engagement with an employer’s social media group and co-worker groups online, participating in activities such as knowledge exchange and problem-solving in these social media groups (Chang et al., 2012).

Bridging in networks happens when connections are made among diverse actors with unique offerings and a wide range of possibilities. Granovetter (1973) first illustrated ‘the strength of weak ties’ by pointing out the functional benefits of connecting with distant and distinct people. Putnam (2000) reemphasised the benefits of such bridging among weak ties or creating heterogeneous networks for ‘getting ahead’ with weak ties and vital information exchanges across distant boundaries. Bridging connects people from different life situations and thus to a broader set of information and opportunities’ (Williams, 2006). The phenomenon of bridging weak ties is very much evident in the case of virtual networks. The avenues of creating multiple weak ties by reaching out to distant members across different networks have increased manifold through internet-based social media networking.

Virtual networking allows organisations to connect with widely spread existing and interested stakeholders, engage them in meaningful information exchanges and strategically convey their messages. This lays a platform for organisations to build credibility across wider network spans and mobilise more resources and talent. Communicating and collaborating with a diverse set of geographically dispersed networks has potential advantages for firms, and social media facilitates that process.

Future Research Directions and Conclusion

This study shows the linkages between social media capital and employer branding. The study identified how an organisation’s concerted initiatives on social media lead to social media capital creation, which contributes to creating and strengthening the organisation’s employer brand.

In this study, researchers suggest that the resource organisations gain through concerted social media activities create social media capital. The resource gained from social media initiatives is social media capital, which can be leveraged to build employer branding and reputation. We outline several promising avenues for further study, categorising them into three main groups: creating, accumulating and dispersing social media capital for employer branding.

Creation and Accumulation of Social Media Capital

Studying the strategies and mechanisms by which various messaging and network behaviours cultivate social media capital is a rich field of inquiry. Topics of inquiry range from the effects of various message-based emotions, sentiments and appeal types to the optimal timing and volume of new messages and connections. While this study’s first research question concentrates on the organisation’s messaging and connecting actions, further research could build on results from other disciplines that include audience characteristics as moderators of the efficacy of organisational messaging and connecting activities.

In addition to such tactical, micro-level investigations, we require explanations that aggregate communication elements and associated behaviours at the organisational level and investigate organisational methods for creating and utilising social media capital. To establish effective social media capital strategies, a company must work backwards from desired outcomes to the type of audience network it must build and the kind of messages and connections it must have to attain desired audience interest. Based on this view, researchers suggest future possibilities of identifying the various stages involved in creating social media capital and developing a theoretical framework based on the same. Also, there is a need to examine and identify the elements of social media interactions, the constituents of online social capital, the tools that facilitate social media interaction and social capital creation, the parameters used to assess the amount of social capital generated, the emerging innovations in online communication that attract specific stakeholders and the factors that draw and retain stakeholders’ attention. With technological advancements witnessed today, these possibilities are likely to rise.

This study also recognises that an organisation’s social media activities and social media capital demonstrate a cyclical interface, with messaging and connecting actions contributing to the acquisition of social media capital in specific networks, which in turn influences further messaging and connecting efforts, etc. So, organisations must adapt their messaging and linking tactics to ‘on-the-ground’ social media trends.

Dispersion of Social Media Capital for Employer Branding

The present research illustrates how social media-based resources are created and then accumulated. In the second research question, we proposed employer branding as a strategic outcome through social media capital creation and management. Yet, these processes still need to be more adequately discussed in the existing body of knowledge. Future research issues pertinent to elucidating the mechanism of integrating social media, social capital and employer branding may build on some of the ideas discussed in the article. We suggest that researchers identify the kinds of business results that are most and least likely to be accomplished with the help of social media resources. Further, future studies can also explore the moderating factors of social media capital conversions and to what extent social media capital relates to other intangible assets a business creates. Similarly, studies can extend towards brand loyalty, political capital, reputation, legitimacy and integration with social capital management.

Scholars and practitioners have devoted much effort to identifying the ‘correct’ approach and employer brand attributes that will attract suitable employees. Years of research on person-organisation fit have revealed that there is no ‘right’ brand. When brand messaging is transparent and authentic on social media platforms, social capital is built, and the most qualified candidates are attracted to the organisation. Hence, the emphasis must shift from determining the ‘best’ brand message to determining how to deliver the message properly, conveying what it is like to work for the organisation.

Another valuable area of research for the future could be the dangers associated with social media capital and how it may harm the reputation of business firms if not appropriately handled. In previous studies, scholars have pointed out the considerable reputational and productivity-related risks involved with social media use (Brivot et al., 2017; Demek et al., 2018). Scott and Orlikowski (2012, p. 38) argue that social media can be ‘both a blessing and a curse’ for organisations. This opens many opportunities for researchers to explore both the positive and negative outcomes of social media capital management and employer branding.

To conclude, the need for networks to build social capital, credibility and reputation is central to humans. The face of networking is undergoing transformational changes through social media platforms and deserves continued attention from researchers and the academic fraternity. In a highly uncertain and dynamic environment post-COVID crisis, organisations need to reinvent their strategies and offerings. In this direction, one key differentiating factor will be their ability to connect with stakeholders and create a credible brand image. What will test them further is the challenge to be effective with efforts in this direction in virtual spaces too. Proper alignment among social media capital, branding activities and organisational goals will likely result in a sustainable competitive advantage.

Footnotes

Declaration of Conflicting Interests

The authors declared no potential conflicts of interest with respect to the research, authorship and/or publication of this article.

Funding

The authors received no financial support for the research, authorship and/or publication of this article.

Note

Bio-Sketch

Kumar Mukul is a Professor and Area Chair, Entrepreneurship and New Venture Creation (ENVC) at CMS Business School, Faculty of Management, JAIN (Deemed-to-be University), Bengaluru, Karnataka. He is a postgraduate from Jawaharlal Nehru University (JNU), New Delhi, and holds a PhD (management) from Tata Institute for Social Sciences (TISS), Mumbai. He was a UGC research fellow and an academic associate in the Organizational Behaviour area at the Indian Institute of Management (IIM), Ahmedabad. He also worked at the Entrepreneurship Development Institute of India (EDII), Ahmedabad, and the KLE Society’s Institute of Management Studies and Research (IMSR), Hubli, affiliated to Karnatak University, Dharwad. He is a life member of the National HRD Network (Bengaluru chapter). He writes blogs and engages in social cause activities. His academic and research interest areas include entrepreneurship, startups, social capital and networking in the case of entrepreneurs and talent management in the case of startups.

Urmila Jagadeeswari Itam is an Assistant Professor in the OB & HRM Department at CMS Business School, JAIN (Deemed-to-be University). She received her PhD in 2017 from the Central University of Hyderabad and a Master’s degree in 2012 from Andhra University, India. She previously worked as a junior and senior research fellow at the Central University of Hyderabad. Her research focuses on employee experience management, employer/employee branding and leadership. Urmila’s work has been published in key journals in the field, such as the TQM Journal, the European Journal of Training and Development and International Journal of Manpower. Her interests include social and women entrepreneurship, sustainable business models, work from anywhere trends, psycho-social wellbeing of employees and quality/technology and innovation 4.0.

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