DEVELOPMENT OF THE EMPLOYER BRANDING MODEL IN INDONESIAN DEFENSE MANUFACTURING INDUSTRY SOES

• Main Author: Natanael Mountana, Harry
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/69883
• Institution: Institut Teknologi Bandung

In today's competitive labor market, companies need core values that are embraced as attractiveness to retain their human resources to achieve better performance - this is known as employer branding. However, the understanding of the role of employer branding in the defense manufacturing industry sector in Indonesia is still very limited. This study aims to determine the main values that are the focus of Indonesian defense manufacturing companies to maintain their talented human resources to achieve better performance. This research was conducted considering the high employee turnover rate in BUMN in the Indonesian defense manufacturing sector. Companies in this sector have sought several values as an attraction to retain their employees in order to achieve better performance, such as career development, giving compensation and punishment, and improving organizational culture. However, the values above have not provided optimal results in retaining employees and getting better productivity. Therefore, this study wants to develop existing values by considering other values such as interest values, application values, work-life balance, and transformational leadership. This study will also investigate the importance of employee retention to strengthen the relationship between employer branding and company productivity in the Indonesian defense manufacturing sector. The survey was conducted on the internal employees of SOEs in the Indonesian defense manufacturing industry in 3 (three) main equipment companies, namely PTDI, PT Pindad, and PT PAL. The data collected came from 293 respondents. The method used is PLS-SEM, which is useful for predicting the main value of employer branding in state-owned companies in the defense manufacturing industry. Then, structural modeling on the PLS-SEM method was carried out to test the hypotheses compiled from the relationship between employer branding, employee retention and company productivity. The results of this study indicate that there are different values in each company, where PTDI can focus on increasing cultural values, career development, and interest values. PT Pindad can implement an increase in cultural values and leadership values. Furthermore, PT PAL can focus on implementing compensation values, culture, interests, and leadership. This study also found that employer iv branding can increase both employee retention and company productivity. In addition, employee retention can directly increase company productivity. Employee retention is also able to strengthen the relationship between employer branding and overall company productivity in the Indonesian defense manufacturing sector. Therefore, this study provides recommendations for PTDI to maintain a family culture and existing teamwork, as well as a training system through learning and knowledge programs. However, PTDI needs to be equipped with efforts to increase employee aggressiveness at work, increase innovation, and improve employee career paths. PT Pindad can maintain its career path system and family culture. However, PT Pindad must increase the aggressiveness of employees at work, as well as develop a transformational leader’s program. Finally, PT PAL can maintain the existing reward system and culture of family and teamwork. However, PT PAL needs to improve innovation, work aggressiveness, and leadership training.