Effects of Internal Communication to Employer Branding and Employee Retention mediated by Employee Engagement

Organization must rethink the relationship with its employees in order to compete in this rapidly changing business world. As market demands for innovation, this rapid change require employees to be involved in various ways with their work and company, communication is needed between the management and employees. Internal communication is one of the channel to influence employee engagement, improve employer branding and increase employee retention as attracting and retaining highly talented employees. The purpose of this study was to understand the effect of internal communication on employer branding and employee retention through employee engagement. Structural equation modeling (SEM) was served to analyze collected questionnaires at building industry. The results showed that the internal communication and engagement would be effective to retain the employees only if the employees felt safe in working for reputable companies.The results were expected to consider internal communication as strategic management tools.