Employer attractiveness of new businesses: a study of compensatory patterns in job applicants' intentions to apply

Purpose The study investigates how new businesses can strengthen their employer attractiveness at early stages, despite the risks associated with employment in such ventures. Specifically, it examines whether employer-related attributes in startup-like job ads are associated with higher intention to apply and explains how this pattern aligns with prominent theories of work design and motivation. In addition, it examines whether the strength of these associations differs across attributes, in order to identify which aspects new businesses could prioritize in their employer branding strategies. Design/methodology/approach Data were collected from 402 participants via Prolific. In this online experiment with nine groups, each participant was presented with job postings from two fictitious new businesses: one without any attractiveness attribute and the other featuring one of nine different start-up-specific attributes. Findings The findings revealed that when a new business incorporates such attributes into job postings, its perceived attractiveness and applicants' intention to apply increase significantly. Moreover, attributes such as flexible work schedules and team climate were more strongly associated with intention to apply than other attributes (e.g. flat hierarchies) in this high-risk, new-business context. Originality/value This paper contributes to the discussion of employer attractiveness in new businesses by providing evidence that certain attributes in startup-like job ads are associated with stronger intention to apply, consistent with the idea of compensatory patterns under heightened risk and uncertainty. It also links these attributes to work design and motivation theories, offering a new theoretical perspective. The findings can be valuable for early-stage businesses in developing employer branding strategies to attract employees despite the absence of traditional advantages.