Employer Branding Strategies and Their Impact on Talent Acquisition and Retention in Indian Small and Medium Enterprises (SMEs)

The MSME sector plays a vital role in the Indian economy, contributing nearly 30% to GDP and generating employment across industries (Ministry of MSME, 2021). Acknowledging people as a key source of competitive advantage (Wujarso et al., 2023), organizations increasingly focus on attracting and retaining skilled talent (Chambers et al., 1998; Martin, 2008; Moroko & Uncles, 2008; Zivnuska et al., 2001). Employer branding has emerged (Lievens et al., 2007; Moroko & Uncles, 2008) as an important talent management tool (Backhaus & Tikoo, 2004). While large firms possess structured employer branding systems, MSMEs face challenges due to low market visibility and limited resources (Das et al., 2024; Łazorko, 2023). Existing models reflect large firm’s context creating a gap in understanding the applicability to MSMEs (Collins & Kehoe, 2009). This article explores how employer branding approaches in MSMEs differ from large organizations, drawing on established models (Backhaus & Tikoo, 2004; Gaddam, 2008) and theories (Psychological Contract [Rousseau, 1989], Signalling Theory [Spence, 1973]).