Interrelationships Between Talent Management, Brand Equity, and Corporate Financial Sustainability

Abstract

With the growing competitive and knowledge-based global economy organizations are forced to combine their human capital plans with their brand positioning and financial sustainability plans. In this paper, the author explores the correlation between talent management (TM), brand equity (BE), and corporate financial sustainability (CFS), hypothesizing an interactive model that would make talent management a strategic antecedent to brand equity and long-term financial sustainability. Based on the Resource-Based Theory (RBT), the Signaling Theory and Stakeholder Theory, the study examines how the efficiency of talent acquisition, growth, engagement, and retention leads to the increase in the brand perception, customer loyalty, and, eventually, long-term financial success. A quantitative research method was applied and 250 managerial respondents in various industries took part in gathering the data. The relationships between variables were tested using Structural Equation Modeling (SEM). The results show that there is a strong positive correlation between talent management and brand equity (β = 0.62, p < 0.001), brand equity and corporate financial sustainability (β = 0.58, p < 0.001). In addition, the brand equity moderates the connection between talent management and financial sustainability to some extent, demonstrating the strategic importance of the employer branding and employee engagement in developing market perceptions. The paper adds to theory by combining the human resource and marketing thinking into one comprehensive sustainability concept. In practice, it highlights the fact that organizations need to align internal talent plans with external brand stories so as to achieve financial sustainability and competitive leadership. Long-term investment into talent ecosystems and open brand communication are highlighted as the policy recommendations that can support sustainable corporate development.