Niklas Heikkinen The Role of Company Image and Employee Perceptions in Attracting and Retaining Foreign Working-Level Talent in the Finnish Staffing Industry Vaasa 2023 School of Management and School of Marketing and Communication Master’s thesis in International Business Master’s Degree Programme in International Business 2 UNIVERSITY OF VAASA School of Management and School of Marketing and Communication Author: Niklas Heikkinen Title of the Thesis: The Role of Company Image and Employee Perceptions in At- tracting and Retaining Foreign Working-Level Talent in the Finnish Staffing Industry Degree: Master of Science in Economics and Business Administration Programme: International Business Supervisor: Anisur Faroque Year: 2023 Sivumäärä: 89 ABSTRACT: The Finnish staffing industry has been facing a shortage of skilled labor in recent years, with increasing competition for talent from other countries. In order to attract and retain foreign working-level employees, staffing companies in Finland must understand the factors that influ- ence the employee's decision to move to and stay in the country. This study aims to examine the role of company image and employee perceptions in attracting and retaining foreign work- ing-level talent in the Finnish staffing industry. The study will focus on the factors that affect the employee's decision to move to and stay in Finland, including company image, job satisfaction, career opportunities, and quality of life. The study will also examine the strategies that staffing companies in Finland are currently using to attract and retain foreign working-level employees and will provide recommendations for improving these strategies. The research design is qualitative in nature, and semi-structured interviews are conducted with foreign working-level talent. Working-level talent, also known as blue-collar employees, refers to individuals who perform manual or physical labor in industries such as manufacturing, con- struction, transportation, and maintenance. Interviewing working-level talent provides primary data, in-depth understanding, contextualization, and contributes to literature on employer at- tractiveness and retention in the Finnish staffing industry. The data collected from the inter- views will be analyzed using thematic analysis to identify key themes and patterns related to company image and employee perceptions that may impact the attraction and retention of for- eign working-level talent. This master's thesis reveals that a favorable company image and positive employee perceptions about a company significantly contribute to the attraction and retention of foreign working-level talent in the Finnish staffing industry. The study shows that employee satisfaction and trust, along with social support and professional growth opportunities, have significant importance for the working-level talent. These findings underscore the significance of creating a welcoming and inclusive work environment to effectively engage and retain foreign employees. The results sug- gest that staffing companies in Finland can improve their strategies by focusing on enhancing their employer brand, fostering a supportive and inclusive culture, and providing avenues for the professional development of their foreign workforce. KEYWORDS: Employer image, employer branding, employee retention, foreign working-level talent, staffing industry 3 TIIVISTELMÄ: Suomen henkilöstöpalvelualalla on viime vuosina ollut haasteita palkata pätevää työvoimaa kil- pailun kiristyessä muiden maiden työntekijöiden kanssa. Jotta suomalaiset henkilöstöpalveluyri- tykset voisivat houkutella ja pitää kiinni ulkomaisista työntekijöistä, heidän täytyy ymmärtää ne tekijät, jotka vaikuttavat työntekijän päätökseen muuttaa Suomeen ja pysyä siellä. Tämä tutki- mus keskittyy tutkimaan yrityksen maineen ja työntekijän näkemysten roolia ulkomaisen työ- voiman houkuttelussa ja säilyttämisessä Suomen henkilöstöpalvelualalla. Tutkimuksessa tarkas- tellaan erilaisia tekijöitä, jotka vaikuttavat työhön muuttoon ja Suomessa pysymiseen, kuten yri- tyksen maine, tyytyväisyys työhön, uramahdollisuudet ja elämänlaatu. Lisäksi tutkimuksessa tar- kastellaan niitä strategioita, joita suomalaiset henkilöstöpalveluyritykset käyttävät tällä hetkellä ulkomaisen työnvoiman houkuttelemiseksi ja säilyttämiseksi sekä annetaan suosituksia näiden strategioiden parantamiseksi. Tutkimus on toteutettu laadullisesti, ja ulkomaisille työntekijöille on tehty puolistrukturoituja haastatteluja. Työntekijätasolla tarkoitetaan yksilöitä, jotka työskentelevät manuaalisissa tai fyysisissä töissä teollisuuden aloilla, kuten valmistus, rakentaminen, kuljetus ja kunnossapito. Työntekijätason haastattelut tarjoavat ensisijaista tietoa, syvällistä ymmärrystä ja kontekstia liit- tyen yrityksen houkuttelevuuteen ja säilyttämiseen Suomen henkilöstöpalvelualalla. Haastatte- luista kerättyjä tietoja analysoitiin teema-analyysin avulla tunnistaaksemme keskeisiä teemoja ja kaavoja, jotka liittyvät yrityksen maineeseen sekä työntekijän näkemyksiin ja voivat vaikuttaa ulkomaisen työnvoiman houkutteluun ja säilyttämiseen. Tämän opinnäytetyön tutkimus osoittaa, että positiivinen yrityskuva sekä myönteiset työnteki- jän näkemykset yrityksestä ovat merkittävässä roolissa ulkomaisen työnvoiman houkuttelussa ja säilyttämisessä Suomen henkilöstöpalvelualalla. Tutkimukset viittaavat siihen, että työnteki- jän tyytyväisyys ja luottamus, sosiaalinen tuki ja mahdollisuudet ammatilliseen kasvuun ovat merkittäviä tekijöitä organisaatiotasolla. Tulokset korostavat suomalaisten henkilöstöpalveluyri- tysten mahdollisuuksia parantaa strategioitaan keskittymällä yrityksen maineen vahvistamiseen työnantajana, edistämällä avointa ja osallistavaa työympäristöä sekä tarjoamalla ulkomaisille työntekijöille mahdollisuuksia ammatilliseen kehittymiseen. 4 Contents 1 INTRODUCTION 6 1.1 Background of the study 9 1.2 Research question and objectives of the study 11 1.3 Limitations 12 1.4 Significance of the study 12 1.5 Structure of the study 13 2 THEORETICAL BACKGROUND 16 2.1 Employer image 16 2.1.1 Employer image within the staffing industry 17 2.2 Employer branding 19 2.2.1 Employer branding in the staffing industry 21 2.3 Employee Retention 23 2.3.1 Employee engagement 26 2.4 Foreign Working-level Talent 27 2.4.1 Foreign working-level employees in Finland 29 2.5 Staffing industry 31 2.5.1 Staffing agencies and foreign working-level talent 32 2.5.2 Foreign talent and Finland 34 2.6 Summary of theoretical background 35 3 RESEARCH DESIGN AND METHODOLOGY 38 3.1 Research design 38 3.2 Data collection methods 39 3.3 Selection of interviewees and interview process 41 3.4 Data analysis method 42 3.5 Validity and reliability 43 4 EMPIRICAL FINDINGS 45 4.1 Employer Attractiveness 45 4.2 Employee Retention 52 5 5 DISCUSSION AND CONCLUSIONS 62 5.1 Discussion 62 5.2 Answers to research questions 65 5.3 Conclusions 70 5.4 Practical implications 72 5.5 Future research suggestions 75 References 78 Appendices 88 6 1 INTRODUCTION The workforce worldwide is becoming more diverse as companies actively seek to attract and retain individuals, from parts of the world. This diversity is influenced by intercon- nected factors, including globalization, advancements in technology and shifts in de- mographics (Castells, 1996; United Nations, 2017). The diversity observed in the workforce can be attributed to a combination of factors. Globalization has facilitated the movement of people across borders creating an inter- connected world where talent can flow freely than ever before. Technological advance- ments, in communication and transportation have made it easier for individuals to ex- plore employment opportunities in countries. These technological advancements have also enabled work and virtual collaborations expanding the pool of talent even further. Moreover, shifts in demographics such as aging populations in some regions and an abundance of workers in others have created imbalances between labor supply and de- mand. As a result, there is a need for cross border mobility within the workforce to ad- dress skill shortages (United Nations, 2017). In Finland the staffing industry is not immune to these effects. The country experiences globalization impacts and an expanding labor market due to its location in Northern Eu- rope its membership, within the European Union and its robust economy. The combina- tion of these factors does not make Finland an interesting and relevant context to study the attraction and retention of workers but also a desirable destination, for those seek- ing job opportunities. The staffing industry refers to the provision of employees or hiring on behalf of clients covering fields such as general, professional and administrative roles (Theodore & Peck, 2002). This industry plays a role in generating revenue and employing a workforce in Western countries. It offers flexibility to both employers and employees on a scale. The- odore and Peck (2002) also highlight the connection between supply and demand within this industry its ability to adapt during periods of economic instability. 7 Furthermore, this industry is closely linked to the dynamics of the workforce. It acts as a link between talent supply and demand not within Finland but also internationally. Finn- ish staffing companies frequently recruit workers for positions in sectors, like manufac- turing, logistics and customer service. The impact of this industry extends beyond bor- ders by facilitating border employment opportunities (Theodore & Peck, 2002). Also, the staffing sector, in Finland interacts with a range of industries and economies both do- mestically and internationally by providing staffing solutions. This highlights the indus- try’s role in promoting growth and stability on a broader scale (European Confederation of Private Employment Services, 2019). In Finland staffing agencies are responsible for recruiting and retaining workers for their companies as well as other businesses (Confederation of Finnish Industries, 2019). These agencies offer staffing solutions to sectors such as manufacturing, logistics and customer service. These companies rely heavily on foreign workers to fill various positions, includ- ing cleaners, logistics workers, and customer service representatives. Therefore, staffing companies recruit and retain foreign working-level employees to meet the demand for flexible staffing solutions in various industries. However, staffing companies also provide recruitment services to other companies that require foreign workers to fill various po- sitions (Confederation of Finnish Industries, 2019). Henceforth this study encompasses both employees directly employed by staffing agencies as those recruited on behalf of other companies. The Finnish staffing industry has seen a rise in foreign workers, who bring valuable skills and expertise, contributing to the growth of the industry. As reported by the Finnish Association of Personnel Service Companies (Henkilöstöpalveluyritysten Liitto) the staff- ing industry, in Finland generated a revenue of €2.9 billion in 2020 employing over 85,000 individuals (Henkilöstöpalveluyritysten Liitto, 2021). This sector has played a role in supporting the economy by offering flexible staffing solutions to companies and cre- ating job opportunities for individuals. However, with increasing competition to attract 8 and retain workers companies need to find ways to distinguish themselves in the market. It is crucial for them to consider their company image and how employees perceive it when aiming to attract and retain workers from abroad within the staffing industry. According to research conducted by Lievens and Highhouse (2003) a company’s image significantly influences its ability to attract and retain talent. The perception of an organ- ization’s reputation, values, culture and service quality contributes to its image. A strong company image can enhance its appeal among employees. Various studies have ex- plored the connection between company image and its impact, on employee percep- tions and overall job satisfaction. There are some studies, in this field that're worth men- tioning. One of them is the research conducted by Glavas and Kelley (2014) titled 'The Effects of Perceived Corporate Social Responsibility on Employee Attitudes. Another study worth noting is the work done by Bauman and Skitka (2012) titled 'Corporate So- cial Responsibility as a Source of Employee Satisfaction'. It's important to understand that how employees perceive their workplace has an impact on attracting and retaining talent. When employees are satisfied, they tend to promote their organization to candidates, which helps attract talented individuals (Saks, 2006). Additionally satisfied employees are more likely to stay with the organization for a period contributing to talent retention (Harter, Schmidt, & Hayes, 2002). While there have been studies examining the role of company image and employee per- ceptions in talent attraction and retention in contexts like McKinsey & Company’s report 'The War for Talent' (1998) or Gilani and Cunninghams literature review on employer branding and its impact on employee retention (2017) there is a scarcity of research spe- cifically focused on employee perceptions within the staffing industry, within the Finnish staffing industry. By comprehending all the factors discussed in the paragraphs compa- nies operating in the staffing sector can devise effective strategies to attract and retain such skilled individuals thereby gaining a competitive edge, in the market. Furthermore, since the industry relies on workers for its growth understanding what motivates their 9 decisions can enhance their experience, satisfaction and commitment. Consequently, this can contribute to an employer reputation, employee loyalty and reduce turnover rates. Through exploring the impact of company perception and employee attitudes in this context this study seeks to shed light on areas for improvement and offer evidence- based practices within Finland’s staffing industry (Peck et al., 2005). It is evident that there is a research gap concerning perceptions, attitudes, and satisfac- tion within staffing industries. Henceforth this study aims to bridge this gap by examining how company image and employee perceptions play a role in attracting and retaining talent at working level positions, within Finland’s staffing industry. By conducting, in depth interviews with employees and managers of staffing companies who're from countries this research aims to gain insights into the factors that influence their decision to join or stay with a staffing company, as well as how the company’s reputation and employees’ perceptions impact these choices. The findings of this study can assist staff- ing companies in developing strategies to attract and retain talented foreign workers thereby strengthening their competitive edge in the market. Moreover, this research can contribute to an understanding of the factors that influence workers when deciding whether to join or stay with a staffing company. This understanding can help enhance their experience, satisfaction, and engagement. Consequently, it can also contribute to fostering an employer brand image while increasing employee loyalty and reducing turn- over rates. 1.1 Background of the study The staffing industry in Finland has experienced significant growth in recent years, with an increasing demand for foreign working-level talent to fill various positions (Statistics Finland, 2021). However, despite this rising demand for talent Finnish staffing companies face challenges in attracting and retaining individuals. The competition, for talent is in- tense; hence employers must set themselves apart to attract and retain top notch pro- fessionals. This is particularly significant within the context of the COVID 19 pandemic as 10 it has caused disruptions, in the job market and heightened the need for staffing solu- tions. The ability to attract and retain workers at skill levels is vital for the success of Finland’s staffing industry. This industry heavily relies on employees to fill positions such as clean- ers, logistics personnel and customer service representatives. However, there is research regarding the specific factors that contribute to employer appeal and employee reten- tion within Finland’s staffing industry particularly from the perspective of foreign work- ers. According to a study conducted by the Finnish Ministry of Economic Affairs and Employ- ment in 2019 Finland’s labor market faces challenges due to an aging population, birth rates and a shortage of workers. These challenges have increased reliance on hiring workers across sectors including staffing. Nevertheless, with competition for talent em- ployers must stand out to attract and retain top notch individuals. International recruiting has become an important strategy for employers in the Finnish staffing industry to attract and retain foreign working-level talent. According to a study conducted by the Confederation of Finnish Industries in 2019 there has been an increase in the international recruitments in recent years. Employers are now utilizing channels such as media, job fairs and recruitment agencies to hire foreign workers. However, the success of recruitment depends on factors like employer reputation and image effective communication and transparency opportunities for professional growth and career ad- vancement as well as fostering a positive and inclusive workplace culture (Breaugh & Starke, 2000; Cable & Turban, 2001; Turban & Cable, 2003). Therefore, this study aims to examine how employer image and employee perceptions play a role in attracting and retaining foreign workers within the Finnish staffing industry. The objective is to gain insights into the elements that contribute to employer appeal and employee retention within this industry. These findings can provide guidance for 11 employers looking to develop strategies for attracting and retaining skilled foreign work- ers at various levels within the current labor market. 1.2 Research question and objectives of the study What is the role of company image and employee perceptions in attract- ing and retaining foreign working-level talent in the Finnish staffing in- dustry? The answers to the main research question are obtained through semi-structured inter- views of the working-level employees who have moved to Finland and from researching the theoretical aspects of employer image, employee retention, employer branding and finally combining them together. Sub-research questions: How do Finnish staffing companies engage its employees? How does the employer’s reputation (company image and employee per- ceptions) affect employee retention and commitment? To address this research question, the following objectives will be pursued: To investigate how company image affects the attraction and retention of foreign working-level talent in the Finnish staffing industry. To examine how employee perceptions of their employer and job satis- faction influence the attraction and retention of foreign working-level talent in the Finnish staffing industry. To explore the cultural factors that may impact the attraction and reten- tion of foreign working-level talent in the Finnish staffing industry. 12 1.3 Limitations Similar to any research, this study is not without its limitations. Firstly, the sample size of working level employees and managers, from staffing companies who will be participat- ing in the semi-structured interviews is relatively small. Although efforts will be made to ensure diversity and representation of the population of interest it's important to note that the findings may not be applicable to the staffing industry. Another limitation of this study is the use of a qualitative research method, specifically in-depth semi-structured interviews. While these interviews provide an understanding of participants experiences and perceptions, they may not capture all factors that influ- ence decision making for working level employees and managers within the Finnish staff- ing industry. Lastly, it's important to acknowledge that this study focuses on company image and em- ployee perceptions as factors for attracting and retaining foreign working level talent in the Finnish staffing industry. Though these factors hold significance it's worth noting that other elements such as job satisfaction, compensation and career development oppor- tunities could also play a role in workers decision making processes. 1.4 Significance of the study The staffing industry is a crucial sector for the Finnish economy, generating significant revenue and employment opportunities for individuals. However, there are challenges faced by the industry when it comes to attracting and retaining workers, which is crucial for the growth and success of the industry. The purpose of this research is to address a gap in existing literature by examining how company image and employee perceptions contribute to the attraction and retention of workers at the working level within the staffing industry. 13 The results of this study can offer insights that can help staffing companies enhance their recruitment and retention strategies ultimately creating a positive work environment for their employees. Additionally, this research can assist in shaping policies and strategies that facilitate the staffing industry’s ability to attract and retain working level talent thus contributing to its overall growth and success. Furthermore, this study aims to provide insights into the decision-making process of working level talent when it comes to selecting an employer within the Finnish staffing industry. By comprehending these factors staffing companies can customize their recruit- ment and retention strategies accordingly to meet the needs and preferences of this demographic. The study can also contribute to the academic literature by adding to the existing body of knowledge on the role of company image and employee perceptions in attracting and retaining talent. More specially, this study focuses on the Finnish staffing industry, providing insights into a sector that has received little attention in the literature. 1.5 Structure of the study The opening chapter of this study delves into the background that sets the stage for the entire research. It outlines the research's foundation, emphasizing the importance of exploring employer image, employer branding, employee retention, and foreign work- ing-level talent within the context of the staffing industry in Finland. The chapter pre- sents the core research question and objectives that guide the study's direction. Addi- tionally, it acknowledges the study's limitations and highlights the significance of the re- search. The second chapter lays the theoretical groundwork for the study, focusing on key con- cepts related to employer image, employer branding, employee retention, and foreign 14 working-level talent. It provides a comprehensive understanding of how these concepts interrelate and play essential roles in the staffing industry in Finland. Within this chapter, sub-sections explore these topics in depth, particularly within the context of the Finnish staffing industry. By examining the theories and concepts presented in this chapter, read- ers gain essential knowledge needed to comprehend the subsequent re-search findings and discussions. Chapter three elaborates on the methodological aspects of this study. It clarifies the re- search design adopted for this project, which underpins the empirical analysis of the staffing industry. The chapter explicates the data collection methods used, discusses the selection process for interviewees, and outlines the approach to data analysis. Further- more, the chapter addresses issues of validity and reliability, ensuring that the re-search results are credible and accurate. This chapter serves as a crucial bridge, linking the the- oretical framework of Chapter two to the empirical findings of Chapter four. The fourth chapter is dedicated to presenting the empirical findings of this research. It investigates the employer attractiveness in the Finnish staffing industry, highlighting the factors that contribute to this attractiveness. Furthermore, the chapter delves into em- ployee retention, examining the role of employee engagement in maintaining a sustain- able workforce. Drawing from real-world data, this chapter delivers insights into the staffing industry's dynamics, identifying trends and factors relevant to employer brand- ing and employee retention in the Finnish context. The final chapter of the study, Chapter five, offers a comprehensive discussion and con- clusion section that summarizes the study's findings. It scrutinizes the answers to the research questions posed earlier in the research, drawing meaningful insights from the empirical results. By examining the collected data, this chapter aims to present a deep discussion that aligns with the theoretical background presented in Chapter two. The chapter also provides conclusions, emphasizing key takeaways from the study, practical implications, and suggestions for future research directions in the realm of employer 15 branding, employee retention, and foreign working-level talent in the Finnish staffing industry. 16 2 THEORETICAL BACKGROUND Companies, around the world strive to attract the individuals available to them. Accord- ing to Sivertzen et al. (2013) recruiting is the process of identifying employees evaluating their qualifications and selecting those who are best suited for the organization. The re- cruitment process involves attracting candidates through means such as job postings, social media, and employee referrals. While hiring experts has always been challenging for companies it has now become equally difficult to recruit working level employees due to their increasing options and choices, in employers. How can companies effectively attract working level employees in such a landscape? This section explores theories re- lated to employer image, employer branding, employee retention foreign working level talent and the staffing industry. 2.1 Employer image Employer image, also referred to as employer branding, is a concept that has gained significant attention in the literature on human resource management and recruitment. In today's competitive job market, where top talent is highly sought after by organiza- tions, the development of a strong employer image is essential. According to Lievens and Slaughter (2016), employer image refers to "the set of beliefs, attitudes, and impressions that individuals hold about an organization as a potential employer" (p. 109). In other words, it is the perception that individuals have of an organization as a place to work, and it can have a significant impact on an organization's ability to attract and retain talent. A positive employer image helps an organization stand out from its competitors and at- tracts candidates who align with its culture and values. Additionally, it fosters employee engagement leading to increased productivity and job satisfaction (Lievens & Slaughter, 2016). Several factors contribute to building an employer image. These factors include the or- ganizations reputation, the quality of its products or services its social responsibility 17 initiatives and how it conducts recruitment and selection processes. Notably the recruit- ment and selection processes employed by an organization significantly impact its em- ployer image. According to Lievens and Slaughter (2016) the methods an organization uses for recruiting and selecting employees can communicate its values, culture, and commitment to employee growth. These processes have an impact, on how individuals perceive the organization as an employer. Furthermore, the experiences of former employees can influence the image of an em- ployer. When employees have experiences, they are likely to share their opinions about the organization, which can improve its reputation as an employer (Collins & Stevens, 2002). Conversely, negative experiences by employees can damage an organization's employ-er image and make it more difficult to attract and retain top talent (Lievens & Slaughter, 2016). In summary employer image is a critical concept in human resource management and recruitment literature. A strong employer image assists in attracting and retaining talent while contributing to organizational success. According to Lievens and Slaughter (2016) developing an employer image requires attention to factors such, as reputation, product or service quality corporate social responsibility initiatives and recruitment and selection processes. By prioritizing these factors and ensuring a positive employee experience, or- ganizations can strengthen their employer image and attract the best candidates in to- day's competitive job market. 2.1.1 Employer image within the staffing industry While there is information regarding employer reputation specifically within the staffing industry it remains a critical aspect of the recruitment process. According to Breaugh & Starke (2000) companies that have an employer reputation are more likely to attract and retain employees in the labor market of the staffing industry. 18 The staffing industry is characterized by the temporary nature of employment, which can have implications for employer image (Lee, 2019). Temporary employees may feel less committed to the company, which can negatively impact the employer image (Lee, 2019). Additionally, the staffing industry often relies on referrals and word-of-mouth to attract new employees (Breaugh & Starke, 2000). Therefore, a positive employer image can lead to increased referrals and, consequently, more applicants (Sivertzen et al., 2013). Moreover, studies have shown that a positive employer image can have several benefits, such as increased employee commitment, reduced turnover intention, and increased job satisfaction (Lievens & Highhouse, 2003). The concept of an employer image holds importance within the staffing industry, where companies rely on their reputation to attract and retain clients and employees alike. Lievens and Slaughter (2016) highlight that staffing firms face challenges when it comes to managing their employer image requiring a balance, between the expectations of var- ious stakeholders such as clients, candidates, and their own workforce. One of the hurdles for staffing firms is establishing an employer brand that appeals to candidates while differentiating themselves from competitors. Research by Lievens and Highhouse (2003) suggests that an employer image can influence job attractiveness and the likelihood of candidates applying for positions. In the context of the staffing industry, an employer's image can be shaped by factors such as the quality of the temporary work- ers they provide, the extent to which they offer benefits and training, and the reputation they have for placing workers in desirable jobs and locations. Considering these factors, it becomes evident that maintaining a positive employer im- age is pivotal for the success of a company in the staffing industry. It is crucial for com- panies to actively manage their reputation and project an image to both clients and can- didates This could involve strategies, like investing in the training and development of workers building strong relationships, with clients and candidates and participating in social responsibility initiatives that positively reflect on the company image. By managing 19 their image as an employer staffing firms can enhance their ability to attract and retain both clients and employees ultimately leading to success in the competitive staffing in- dustry. 2.2 Employer branding Employer branding encompasses activities and processes aimed at establishing and up- holding a positive perception of employers among current and potential employees (Backhaus, 2016). Essentially it can be viewed as a form of communication with the pur- pose of attracting and retaining highly skilled personnel. As noted by Backhaus (2016) the concept of employer branding has gained attention in recent times due to shifts in the labor market such as skill shortages and demographic changes. Companies now un- derstand the significance of developing an employer brand to set themselves apart from competitors and attract top notch talent. One crucial aspect of employer branding is the employer value proposition (EVP) which pertains to the array of benefits and rewards that an employer offers to its employees in exchange for their skills and contributions (Backhaus, 2016). According to Backhaus (2016) it is essential for the EVP to be rooted in an understanding of employee needs, expectations as well as the unique strengths and culture of the company. By crafting an EVP companies can effectively convey their value proposition to potential employees while distinguishing themselves from other employers, in the market. Employer branding includes an element which involves utilizing social media and other digital platforms to convey the employer brand (Backhaus, 2016). Backhaus (2016) points out that LinkedIn, Twitter and Facebook have become channels for establishing and promoting an employer’s brand. These platforms allow companies to share infor- mation about their values, culture, job opportunities and engage with current employ- ees in a more authentic and personal manner. 20 Furthermore, Backhaus (2016) highlights the significance of measuring the effectiveness of employer branding strategies. She suggests that companies should develop metrics to track performance indicators (KPIs) like employee retention rates, applicant quality and employee engagement levels. By assessing the impact of their employer branding efforts companies can identify areas for improvement. Refine their strategies over time. Backhaus (2016) further elaborates on the concept of employer branding by categorizing it into three dimensions; symbolic and cultural. The functional dimension pertains to benefits offered by employers such, as compensation packages, benefits coverage, and job security. The aspect of symbolism on the hand refers to the intangible elements of an employer that establish emotional connections with potential and current employees. This includes aspects like the company’s vision, values, and reputation. Additionally, the cultural dimension encompasses the culture and work environment, such as career de- velopment opportunities and maintaining a healthy work life balance. According to Backhaus (2016) internal branding also plays a role in employer branding efforts. Internal branding involves aligning employees’ attitudes and behaviors with the organization’s values and brand identity. By creating a strong internal brand, organiza- tions can ensure that employees are com-mitted to and passionate about their work, which can in turn enhance the organization’s external employer brand. In essence employer branding represents an approach for organizations to position themselves as attractive employers in the labor market. Through developing and effec- tively communicating a robust employer brand organization can retain and attract top talents. Backhaus (2016) emphasizes that employer branding is more than creating an image; it revolves around building an authentic and consistent identity that aligns with the organization’s values and objectives. Overall, the concept of employer branding plays a role in human resource management and has significant effects, on recruitment, employee retention and organizational 21 culture. A strong and clear employer brand can give organizations an edge when it comes to attracting and keeping talented individuals in today’s fiercely competitive job market. 2.2.1 Employer branding in the staffing industry The staffing industry places importance on employer branding due to its highly compet- itive and constantly changing nature. It heavily relies on attracting and retaining talent (Backhaus & Tikoo, 2004). As stated by Hiltrop (1999) a strong employer brand in this industry can enhance recruitment efficiency, employee loyalty and reduce turnover. The staffing sector is distinguished by its emphasis on service orientation, where individuals play a critical role in delivering services to clients (Ramaswamy & Singh, 2009). Conse- quently, the employer branding strategy within this industry should not target external audiences but also prioritize internal stakeholders such, as temporary employees who form a significant portion of the workforce (Ramaswamy & Singh, 2009). To establish a brand presence in the staffing industry employers must thoroughly under- stand the unique needs and expectations of their target audiences. According to the re- search conducted by Backhaus and Tikoo in 2004 when it comes to employer branding in the staffing industry attention should go to these areas: (1) differentiation from com- petitors, (2) alignment with the company’s core values and mission, (3) attractive com- pensation and benefits packages, (4) opportunities for learning and development, (5) positive work environment and culture, (6) transparent and fair HR policies, and (7) ef- fective communication and feedback mechanisms. Apart from the theoretical concepts mentioned earlier, employer branding in the staffing industry involves unique elements that require further analysis. Firstly, due to the nature of staffing services there is a need to attract both clients and candidates. Hence it is crucial for staffing firms to have a favorable employer brand that can entice job seekers as well as clients looking to outsource their staffing requirements (Coe et al., 2007). 22 Secondly, since the staffing industry comprises both temporary workers and permanent staff members with diverse backgrounds, it becomes essential to ensure that the em- ployer branding strategy caters adequately to both groups. This implies that a staffing firms’ efforts towards employer branding should be tailored specifically to address the needs and expectations of these two categories of employees (Burgess & Connell, 2006). For instance, temporary employees often value the flexibility training opportunities and supportive work environments they receive (Burgess & Connell, 2006). On the hand per- manent staff members tend to prioritize job security, career advancement prospects and maintaining a healthy work life balance (Cropanzano et al., 2023). Additionally, the staffing industry is known for its strong competition, both among the staffing firms and between staffing firms and clients' in-house recruitment teams (Fer- reira, 2016). Consequently, it is crucial for staffing companies to set themselves apart from their competitors by establishing a distinctive employer brand. This can be accom- plished by highlighting selling points such as exceptional service quality the ability to find niche talent efficiently or specialized knowledge of specific industries (Ferreira, 2016). Lastly, it's important to recognize that employer branding in the staffing industry does not only focus on attracting candidates but also on retaining them. A positive employer brand can contribute to employee satisfaction levels which ultimately lead to improved retention rates reduced turnover costs and increased productivity (Keller & Richey, 2006). Therefore, staffing firms must monitor and manage their employer brand ensuring that they fulfill their commitments and create a positive work experience, for their employ- ees. In summary, employer branding plays a role in the staffing industry, and it is crucial for staffing firms to have a well-crafted employer branding strategy that caters to the unique needs and expectations of both temporary workers and permanent staff. By highlighting their strengths creating a positive work experience and actively managing their employer 23 brand staffing firms can attract and retain top talent stand out from competitors and build a strong reputation in the market. 2.3 Employee Retention Employee retention is a huge concern in today’s business landscape due to the high costs associated with employee turnover. Kossivi et al. (2016) defines employee retention as an organizations ability to retain its employees over time. Retaining employees is essen- tial for term organizational success since excessive turnover can be costly and disruptive. It is crucial for organizations to implement retention strategies that help reduce recruit- ment and training expenses. Kossivi et al. (2016) emphasizes the importance of under- standing the factors contributing to employee retention as it enables organizations to develop strategies, for keeping their employees engaged. According to Kossivi et al. (2016) there exists several factors that influence employee retention. Job satisfaction plays a role in employee retention. It refers to how content an employee feels with their job. When employees are satisfied, they are more likely to remain committed to the organization. Another significant aspect is commitment, which pertains to the emotional attachment employees have towards their organization. Em- ployees who feel emotionally connected to their employer, tend to stay loyal. Compensation and benefits also play a part in influencing employee retention. According to Kossivi et al. (2016) employees who are satisfied with their compensation and benefits are more inclined to stay with their organization. Additionally achieving work life balance is another factor that impacts employee retention. Employees who can effectively man- age both their personal lives are more likely to remain dedicated to their organization. Furthermore Kossivi et al. (2016) highlighted that career growth opportunities, job secu- rity, well as healthy relationships with supervisors and coworkers also contribute signifi- cantly to retaining employees. 24 Cloutier et al. (2015) stress the importance of developing strategies for retaining em- ployees based on an understanding of the key drivers, behind employee engagement and loyalty. According to Cloutier et al. (2015) job satisfaction plays a role in employee engagement and retention. Several factors, including job design, compensation, recog- nition and work life balance, influence job satisfaction. Effective leadership and commu- nication are also highlighted as factors in fostering employee engagement and retention along with the provision of ongoing learning and development opportunities. In relation to Kossivi et al. (2016) study on determining factors of employee retention, Cloutier et al. (2015) findings suggest that factors such as compensation, recognition, work-life balance, leadership, communication, and learning and development opportu- nities are all important to consider when developing strategies for employee retention. Kyndt et al. (2009) argue that employee retention is a process that involves both organ- izational and individual perspectives. The authors emphasize the importance of factors such as job satisfaction, work life balance and career development in retaining employ- ees. Organizational aspects like leadership style, company culture and job design also play a significant role, in retaining a skilled workforce. This aligns with the findings of studies such as the research conducted by Latham and Pinder (2005) on employee mo- tivation theories. Their review emphasizes the significance of job design, recognition, and feedback in motivating employees. Furthermore, Meyer and Allens (1991) study on commitment suggests that employees are more likely to remain loyal to an organization if they feel a strong sense of attachment and identification. In addition, the study by Saks and Gruman (2014) on employee engagement highlights the importance of employee well-being and work-life balance in retaining employees. They suggest that organizations should offer opportunities for growth, development and support for work life balance to enhance employee engagement and retention. Similarly Kooij et al. (2017) study on age diversity in the workplace suggests that organizations 25 should provide career development prospects and training programs tailored to meet the needs and expectations of older workers. Therefore, by incorporating both perspectives as well as individual considerations such, as job design, recognition, feedback, employee wellbeing, and career development op- portunities can be leveraged effectively to develop strategies aimed at retaining employ- ees. It is important for organizations to take measures in identifying and addressing the factors that contribute to employee turnover. By offering employees opportunities for growth and development organizations can enhance job satisfaction and improve em- ployee retention. As stated by Bratton (2021) Human Resource Management (HRM) plays an important role in keeping employees within a company. HRM encompasses practices and policies aimed at effectively managing an organizations workforce, including recruitment, selec- tion, training, development, compensation and benefits. Also, HRM involves creating an organizational culture that fosters employee engagement, job satisfaction and commit- ment. This can be achieved through initiatives like providing opportunities for employee development and career advancement, offering competitive compensation and benefits packages, and fostering a supportive and inclusive work environment (Bratton, 2021). Research indicates that successful implementation of HRM practices is associated with employee retention rates (Huselid, 1995). For example, providing training and develop- ment opportunities to employees has been proven effective in improving their skills and knowledge levels, which in term leads to increased job satisfaction and loyalty towards the organization (Eisenberger et al., 1990). Similarly, providing salary and benefits pack- ages can attract and keep high quality employees while also supporting their well-being and job satisfaction (Huselid, 1995). Moreover, HRM also plays a role in establishing a supportive and inclusive work environ- ment, which has been proven essential for retaining employees (Kyndt et al., 2009). This 26 involves fostering relationships between employees and their supervisors as well as pro- moting teamwork, communication, and collaboration (Bratton, 2021). HRM can also ad- dress matters like work life balance employee well-being and job security that greatly impact employee retention (Huselid, 1995). Ultimately effective HRM practices are vital for retaining employees and ensuring success. 2.3.1 Employee engagement Employee engagement plays crucial part in an organization's success. It refers to the level of commitment employees have towards their work and their willingness to go above and beyond to achieve objectives. William Kahn, a researcher from Boston University in 1990 is widely recognized for his work in the field of employee engagement. He defined employee engagement as "The harnessing of organization members' selves to their work roles; in engagement, people employ and express themselves physically, cognitively, and emotionally during role performances." (p. 694). This definition emphasizes the im- portance of an employee's emotional connection to their work, which is a key compo- nent of engagement. Kahn also highlights the role of organizational support and re- sources in facilitating engagement. According to McBain (2007) employee engagement extends beyond job satisfaction or motivation; it encompasses a deeper emotional connection between employees and their organizations. McBain underscores that engagement is a concept that involves cog- nitive, emotional and behavioral components. It is important to recognize that employee engagement is not relevant for employees themselves but also for organizations since it profoundly influences performance outcomes, productivity levels and overall organiza- tional success (Saks, 2006). Therefore, organizations must comprehend the factors driv- ing employee engagement and develop strategies to promote it effectively. Several factors contribute to employee engagement, including job characteristics, work environment, leadership, and communication. Job characteristics refer to the nature of the work and the level of autonomy and responsibility that employees have in their role 27 (Bakker & Demerouti, 2008). Work environment refers to the physical and social envi- ronment in which employees work, including the organizational culture and the relation- ships between colleagues (Saks, 2006). Leadership plays a crucial role in employee en- gagement, as managers can create a supportive work environment, pro-vide feedback and recognition, and empower employees (Mann & Harter, 2016). Effective communica- tion is also critical for engagement, as it helps employees understand their role, goals, and expectations, and it provides them with feedback and opportunities to contribute (Saks, 2006). Another important contribution to the field of employee engagement is the work of Macey and Schneider (2008), who developed a comprehensive model of engagement. Their model includes four dimensions of engagement: vigor, dedication, absorption, and social support. These dimensions reflect the degree to which employees are physically, emotionally, and cognitively invested in their work, as well as the degree to which they receive support from their colleagues and supervisors. Macey and Schneider's model provides a useful framework for understanding the different components of engagement and how they can be fostered within an organization. In summary, employee engagement is extremely important for the success of any organ- ization as it relies on establishing an emotional bond between employees and the com- pany. The HRM department plays a role in nurturing employee engagement by fostering a workplace environment that is supportive offering feedback and recognition empow- ering employees and facilitating effective communication. To create strategies, for en- gagement organizations must gain insight into the different factors that contribute to engagement and implement programs and initiatives to address them accordingly. 2.4 Foreign Working-level Talent Foreign workers in industrial jobs commonly referred to as blue collar employees are individuals employed in foreign countries with lower levels of education and skills 28 compared to white collar workers. These workers can be found in industries such as con- struction, manufacturing, hospitality, and agriculture. They often migrate to host coun- tries in search of job opportunities or to escape political, economic or social instability in their home nations (Rose, 2005). The decision to migrate is influenced by a range of factors including conditions, political situations and social circumstances. Economic factors like wages improved job prospects and the possibility of upward mobility are frequently the main drivers for migration among individuals (Massey et al., 1993). Political factors such as persecution, violence and conflicts can also serve as motivations for people to relocate (Koser, 2016). Addition- ally, social factors like family reunification, education opportunities and cultural ties may also contribute to the decision-making process (Borjas, 1989). Foreign workers at the working level face a variety of challenges such, as language bar- riers cultural disparities discrimination and exploitation. Language barriers can hinder communication between foreign workers and their employers and colleagues leading to misunderstandings and potentially compromising their safety in the workplace (Acharya et al., 2018). Cultural differences can also pose challenges for workers who may not be familiar with local customs and practices. Discrimination, including wage disparities, em- ployment bias and social exclusion can significantly impede the integration of workers into the host society (Zhang & Peltokorpi, 2015). Exploitation is another obstacle faced by foreign blue-collar employees at working level positions especially those, without proper documentation or limited legal protections (International Labour Organization, 2017). Integration refers to the process through which individuals and groups become part of the host society and actively engage in its social and cultural aspects (Castles et al., 2014). It is a process involving both the host society and migrants themselves. The host society must offer opportunities and support for migrants to fully participate in society while migrants also need to make efforts to learn the language, culture and norms of the host 29 society. Integration plays a role in ensuring the well-being of both migrants and the host society, as it can lead to greater social cohesion, reduced social tensions, and improved economic outcomes. To support the integration of working level/blue collar employees, governments, em- ployers, and civil society organizations have important roles to play. Practices that pro- mote integration encompass language training, cultural orientation programs, access to education and skills development opportunities as well as legal safeguards against dis- crimination and exploitation (OECD, 2018). Employers can contribute to integration by offering working conditions, fair wages, and avenues for career growth (Pouliakas & The- odossiou, 2010). Civil society organizations can provide services such as legal advice, counseling support and social integration programs for foreign workers (Perkins & Scu- tella, 2008). 2.4.1 Foreign working-level employees in Finland In our globalized world, with increasing mobility, migration has become a common phe- nomenon worldwide, including in Finland (Castles et al., 2014). Various factors influence workers decision to migrate to a new country; these factors include economic consider- ations as well, as social, cultural and political aspects. This sub-chapter focuses on the factors that influence the decision of foreign working-level employees to move to Fin- land. One of the most important drivers for migration is economic factors (Borjas, 1989). Fin- land, with its economy and well-established welfare system has seen an influx of foreign workers in recent years (OECD, 2018). The country offers a high standard of living, abun- dant employment opportunities and comparatively higher wages. These factors make it an appealing destination for individuals from countries with wages and less favorable economic conditions. Moreover, Finland boasts a low unemployment rate making it eas- ier for foreign workers to secure jobs (OECD, 2018). 30 Social factors also play a significant role in the decision to migrate. Finland is known for its high quality of life, social equality, and safety (OECD, 2018). These factors make it an attractive destination for foreign workers, particularly those from countries with lower levels of social welfare and safety. Additionally, Finland is a culturally diverse country with a welcoming attitude towards immigrants (Koser, 2016). This makes it easier for foreign workers to integrate into Finnish society and feel at home. Cultural factors can also have an impact on the decision-making process for workers con- sidering relocation, to Finland. Finland’s distinctive culture, encompassing its language, customs and way of life might be appealing to foreign workers (Koser, 2016). Nonethe- less cultural disparities can also present a hurdle to integration. Potentially discourage some foreign workers from relocating to Finland. Political factors also play a role in the decision-making process for migration. Finland boasts a stable political system, strong adherence to the rule of law and a reputation for good governance (OECD, 2018). These aspects can make it an enticing destination for workers especially those hailing from countries marred by political instability or inade- quate governance. To sum up, the choice made by employees at working-level positions to move to Finland is influenced by various factors such as economics, social dynamics, culture considera- tions as well as political circumstances. The nations robust economy, quality of life and inclusive attitude towards immigrants render it an attractive option, for foreign workers. Nevertheless, cultural disparities and language barriers may present integration chal- lenges. Additionally, political stability and effective governance are also important which can significantly sway the decision to migrate towards Finland. 31 2.5 Staffing industry The staffing industry, also known as the temporary employment industry or the gig in- dustry has become increasingly widespread, in labor markets. It encompasses different types of work arrangements, such as agency work, contract work and part time work, in which workers are employed by a staffing agency and assigned to work for client com- panies. The staffing industry plays a role in economies as it offers employers flexibility and provides valuable job opportunities for employees (Bryson, 2012). One of the aspects of the staffing industry is the triangular relationship between the staffing agency, client companies and the temporary workers. This relationship presents challenges and opportunities for all parties involved. These include concerns related to job security, working conditions and employment rights (International Labour Organiza- tion, 2016). The staffing industry has received acclaim for its ability to address skills shortages and labor market imbalances. By offering employers a labor supply pool staffing agencies assist businesses in adapting their workforce according to changes, in demand (OECD, 2016). Staffing agencies also offer employment opportunities, for individuals seeking part time work. This includes students, retirees and those looking to supplement their income (European Commission, 2016). However, the growth of the staffing industry has raised concerns regarding job quality and employment rights for agency workers. Research indicates that these workers are more likely to experience job insecurity, wages and unfavorable working conditions com- pared to employees (International Labour Organization, 2016; Kalleberg, 2011). As a re- sult, there have been calls for enhanced regulations and protections for workers. One such provision is treatment requirements that ensure temporary agency workers receive the pay and working conditions as permanent employees (European Commission, 2016). 32 In response to these concerns, governments and labor organizations have implemented policy measures aimed at improving job quality and employment rights for agency work- ers. These measures include heightened monitoring and enforcement of employment regulations the establishment of minimum standards for work arrangements and efforts to enhance protections, for these individuals (International Labour Organization, 2016; OECD, 2016). In summary, the staffing industry has become a vital player of labor markets providing valuable flexibility, for employers and creating work opportunities for employees. How- ever, the industry’s growth has also sparked concerns regarding job quality and employ- ment rights for agency workers. Ongoing efforts are being made to enhance regulations and safeguards for workers ensuring that all individuals in the staffing industry are treated fairly and equitably. 2.5.1 Staffing agencies and foreign working-level talent Foreign working-level employees are individuals who are employed in low-skilled or blue-collar jobs, often in sectors such as manufacturing, construction, or hospitality. They may be employed by staffing agencies and assigned to work for client companies. The relationship between staffing agencies and foreign working-level employees can cre- ate unique challenges and opportunities, including issues related to job security, working conditions, and employment rights. One advantage of collaborating with a staffing agency, for working-level employees is the chance to access work opportunities that they might not have otherwise had. Staff- ing agencies offer a variety of job opportunities that align with the skills and experience of workers including both term and long-term contracts (Kouba & Baruah, 2019). This can be especially advantageous, for workers who might encounter language or cultural obstacles during their job search. 33 However, the relationship between staffing agencies and foreign employees at the work- ing-level can also present challenges concerning job security and employment rights. Temporary agency workers, including foreign working-level employees often face risks of insecurity in their jobs, lower wages and unfavorable working conditions compared to permanent employees (Countouris et al., 2017). Staffing agencies might have limited motivation to invest in training and development for agency workers since their main focus is on meeting the needs of their client companies. Foreign working level employees may also encounter difficulties due to language barriers, cultural differences, and potential exploitation by employers. Carzedda (2023) empha- sizes the importance of clarifying employment practices, for workers through staffing agencies while stressing the need to ensure ethical treatment. Segal and Sullivan (1997) conducted research, on the growth of temporary services work, using data and trends to explore how it has rapidly expanded. Their study sheds light on the impact this type of work has had on labor markets, particularly highlighting the chal- lenges faced by foreign workers at the working level in this ever-changing landscape. In response to these challenges, governments and labor organizations have taken policy measures aimed at enhancing job quality and employment rights for workers in the staff- ing industry. These measures include monitoring and enforcement of employment reg- ulations, setting standards for temporary work and initiatives to improve social protec- tions for temporary workers (Kouba & Baruah, 2019; Countouris et al., 2017; Carzedda, 2023). To summarize the relationship between staffing agencies and foreign workers at the working level presents both challenges and opportunities concerning job security, work- ing conditions and employment rights. Ongoing efforts are being made to improve reg- ulations and protections for these workers in the staffing industry. Policy makers must continue their work to ensure treatment and equality, for all employees. 34 2.5.2 Foreign talent and Finland Foreign working level employees choose to relocate to Finland for various reasons, in- cluding economic opportunities, social and cultural factors, and personal motivations. It is important for policymakers and employers to understand these factors in order to ef- fectively attract and retain this workforce. When considering a move to Finland, economic factors often play a role for working level employees. Finland boasts an economy compared to other countries offering a high standard of living and favorable employment prospects. A report by the Ministry of Eco- nomic Affairs and Employment of Finland (2019) highlights that availability of work, wage levels and social benefits are commonly cited reasons for choosing Finland. In addition to economic factors, social and cultural factors also influence the decision- making process of working-level employees considering relocation to Finland. The coun- try is renowned for its quality of life characterized by a social welfare system, reliable healthcare services, as well, as a safe and politically stable environment (Kvist et al., 2011). These factors can be especially appealing to workers who are looking for an im- proved quality of life for themselves and their families. Personal motivations can also play a role in the decision of working-level employees to relocate to Finland. These motivations may include factors like seeking experiences the chance to learn a language or the desire to acquire new skills or knowledge. For instance, according to a report by Finland’s Ministry of Economic Affairs and Employment (2019) some foreign employees at the working-level were enticed by the opportunity to learn a language or gain experience working in a cultural setting. It is important to note that the decision to move to Finland is often influenced by multi- ple factors not just one isolated factor. For example, a foreign worker might be attracted 35 by the higher wages, in Finland, but may also be drawn towards its social and cultural environment. In conclusion, the decision of foreign working-level employees to move to Finland is in- fluenced by a range of economic, social, and personal factors. Understanding these fac- tors can help policymakers and employers better attract and retain this valuable work- force and ensure that foreign workers are able to thrive and contribute to the Finnish economy and society. 2.6 Summary of theoretical background Employer image, also known as employer branding, refers to how individuals perceive an organization as a workplace. It plays a role in attracting and retaining talent. A positive employer image helps differentiate an organization from its competitors and attracts candidates who align with the organizations culture and values. In the staffing industry having an employer image is especially important as it leads to more referrals increased applicant numbers, enhanced employee commitment, reduced turnover intention and higher job satisfaction. Managing employer image in the staffing industry comes with challenges since it requires balancing the needs and expectations of various stakeholders. Effectively managing employer image in this industry involves investing in training and development for workers building strong relationships with clients and candidates and engaging in social responsibility initiatives that positively reflect on the company’s brand. Employer branding is a communication approach aimed at creating and maintaining a favorable perception of employers among both potential and existing employees. Its sig- nificance has grown due to labor market changes such, as skill shortages and demo- graphic shifts. An effective employer branding strategy comprises the employer value proposition (EVP) social media utilization and measurement. It can be categorized into three dimensions; symbolic and cultural. In the staffing industry a robust employer brand can enhance recruitment efficiency, foster employee loyalty, and diminish employee turnover. To develop a successful employer branding strategy in this field it is crucial to 36 focus on distinguishing oneself from competitors aligning with the company’s core val- ues and mission offering compensation and benefits packages providing opportunities for learning and development cultivating a positive work environment and culture im- plementing transparent and fair HR policies, as well as establishing effective communi- cation channels and feedback mechanisms. Given that staffing services require attrac- tion of both clients and candidates it becomes imperative for staffing firms to cultivate a strong and favorable employer brand. Employee retention refers to an organizations ability to retain its employees over a pe- riod of time. It is essential for organizations to implement strategies that promote em- ployee retention since high employee turnover can be costly and disruptive. Several fac- tors influence employee retention including job satisfaction levels, organizational com- mitment, compensation and benefits, work life balance, career development opportuni- ties, job security, well as maintaining good relationships, with supervisors and coworkers. To develop employee retention strategies, it is important to understand the factors that drive employee engagement and job satisfaction. These factors include compensation, recognition, work life balance, leadership, communication and opportunities for learning and development. The implementation of HRM practices such as recruitment, selection, training, development, compensation, and benefits plays a vital role in creating a posi- tive organizational culture that fosters employee engagement and commitment. Addi- tionally creating an inclusive work environment is crucial for retaining employees. Foreign working-level employees refer to individuals employed in manual or industrial jobs in a foreign country, usually with lower education and skills than white-collar work- ers. Economic factors such as higher wages, better employment opportunities, and po- tential for upward mobility are often the primary motivators for migration. Challenges faced by these employees include language barriers, cultural differences, discrimination, and exploitation. Integration is essential for their well-being and the host society. Fin- land's thriving economy, high living standards, and open approach to immigrants make 37 it an appealing place to settle. However, cultural disparities and language differences can be stumbling blocks to successful integration. The staffing industry offers multiple different employment options, such as temporary agency work, contract work and part time positions. It plays a role in many economies by providing flexibility for employers and valuable work opportunities for employees. However, the industry’s growth has raised concerns regarding job quality and employ- ment rights for temporary agency workers, especially those who are foreign and may face language or cultural barriers, and the risk of exploitation by unscrupulous employers. To address these issues governments and labor organizations have implemented policy measures aimed at improving job quality and employment rights, for workers. When considering whether to move to Finland foreign workers often prioritize factors. Under- standing the factors that influence their decision can help policymakers and employers attract and retain this workforce more effectively. 38 3 RESEARCH DESIGN AND METHODOLOGY The aim of this research is to investigate the role of company image and employee per- ceptions in attracting and retaining foreign working-level talent in the Finnish staffing industry. Specifically, the research aims to explore the importance of company image and employee perceptions in the decision-making process of foreign working-level talent, as well as to identify recruitment and retention strategies that can be used by HR man- agers in the industry to address the challenges of attracting and retaining foreign talent. To achieve this aim, a qualitative research approach will be used, consisting of semi- structured interviews with foreign working-level talent and HR managers in the Finnish staffing industry. This chapter outlines the research design, including the research ques- tions, sample, data collection, data analysis, validity and reliability, and ethical consider- ations. 3.1 Research design Qualitative research method is used as the research method of this master’s thesis. Ac- cording to Hodges (2011), qualitative research methods can be used in several cases to understand the experiences and perspectives of individuals, to explore the underlying meanings and motivations behind behavior, and to gain insights into complex social phe- nomena. Qualitative methods such as in-depth interviews, focus groups, and observa- tion allow for a more nuanced and comprehensive understanding of the phenomena being studied compared to quantitative methods. They also allow for the exploration of experiences and perspectives in a more natural and context-specific manner, leading to a rich and in-depth understanding of the subject matter. Qualitative research is often used when researchers seek to comprehend phenomena or delve into uncharted areas with limited knowledge. These methods prove advantageous in collecting detailed data about individuals’ experiences, beliefs and behaviors. 39 According to Creswell (2013), qualitative research methods are particularly useful when the goal is to understand "the meaning that people make of their experiences, how they construct their worlds, and what they feel and believe" (p. 20). Similarly, Morse (1994) notes that qualitative research is particularly useful for generating new insights and hy- potheses that can be further tested using quantitative research methods. Moreover, qualitative research methods offer researchers flexibility and openness in ap- proaching research questions especially when dealing with hard-to-reach or marginal- ized populations (Morse, 1994). Qualitative research methods also provide opportuni- ties for building rapport with participants enabling an understanding of their perspec- tives and experiences (Creswell, 2013). The main research question of this thesis aims specifically to explore how foreign em- ployees at the working-level perceive and experience their work in the staffing industry, as well as how the company’s image influences their decision to stay or leave. Qualitative research methods like in depth interviews and focus groups are ideal for collecting de- scriptions of participants experiences and perspectives on these topics. Additionally qualitative research methods can be particularly valuable for generating theories or hypotheses and delving into areas with limited existing research. This be- comes crucial within industries like staffing where there may be limited studies on the experiences of foreign working-level employees in Finland. In general, qualitative re- search methods have the potential to offer a profound comprehension of the experi- ences and perspectives of foreign employees at working level positions in the staffing industry of Finland. This in turn can assist staffing companies in Finland in devising strat- egies, for both attracting and retaining talented individuals. 3.2 Data collection methods Sutton (2014) outlines several data collection methods in qualitative research, including interviews, observation, documents, and audiovisual materials. Interviews, in particular, 40 are a commonly used method for collecting qualitative data. This method allows re- searchers to gain in-depth insights into participants' thoughts, experiences, and perspec- tives (Kvale & Brinkmann, 2009). Sutton acknowledges that interviews come in types such as structured, semi-structured and unstructured. Structured interviews involve pre- defined questions while semi-structured and unstructured ones provide flexibility in both the questions asked and the responses given. Observation entails observing and documenting participants behaviors, interactions and activities in simulated environ- ments (Hammersley & Atkinson, 2007). Additionally, documents and audiovisual mate- rials like archival records, photographs, videos and audio recordings can also serve as sources of data. For this research, the data collection method used is qualitative interviews, using a semi- structured format. According to Sutton (2014), qualitative interviews are appropriate for collecting data that explores individual experiences and subjective perspectives. Semi- structured interviews provide a flexible and adaptable framework that al-lows for explo- ration of these experiences and perspectives, while still providing some structure to the interview process. The recruitment of participants was conducted using purposive sampling, a non-random sampling technique that is commonly used in qualitative research (Kvale & Brinkmann, 2009). This method suits the study as it allows to target individuals with experience in working as foreign talent within the Finnish staffing industry. Interviews was conducted through three means: face to face, telephone, and video calls. According to Hammersley and Atkinson (2007), the choice of interview method should be guided by the research question and context. Data saturation was used as a criterion to determine the sample size for this study (Guest et al., 2006). Data saturation occurs when new data no longer provides additional in- sights or themes that are relevant to the research topic. The data collected from the interviews was transcribed verbally and checked for accuracy. The transcripts will be 41 stored in a password-protected computer, and the anonymity and confidentiality of the participants will be ensured throughout the research process. In summary, the use of qualitative interviews is a valid method for this study, because they enable delving into complex phenomena and gather extensive and in-depth infor- mation, from participants. By employing sampling and data saturation techniques we can ensure that the gathered data accurately represents the intended population and provides comprehensive insights. Throughout the research process the researcher will prioritize safeguarding the anonymity and confidentiality of all participants. 3.3 Selection of interviewees and interview process In this study, the sample selection process used a purposive sampling to target partici- pants who have experience working as foreign working-level talent in the Finnish staffing industry. The sample size was determined by data saturation, which is the point in the research process were acquiring new data, no longer provides additional insights or themes that are relevant to the research topic (Guest et al., 2006). This method of sam- ple selection is appropriate for this study, as it will provide a rich and diverse set of ex- periences and perspectives related to the research topic. The participants are recruited using a multi-stage process. Firstly, a list of staffing agen- cies in Finland is generated, and then narrowed down to those agencies that have em- ployed foreign working-level talent. Secondly, the researcher contacts these agencies and request permission to conduct interviews with their foreign working-level employ- ees. Lastly, the researcher explains the research topic, objectives, and the participant's rights, and seek their informed consent to participate in the study. The interviews were conducted with semi-structured format, which provides a flexible framework for exploring the experiences and perspectives of the participants (Sutton, 2014). The interview questions are developed based on the research objectives and are 42 piloted before the actual interviews are conducted to ensure their relevance and clarity. The interviews are conducted using different methods, including face-to-face, telephone, or video call interviews, depending on the preference and availability of the participants. The interviews were audio-recorded, and the data was transcribed verbally. The tran- scripts were checked for accuracy, and any identifiable information has been removed to ensure anonymity and confidentiality. 3.4 Data analysis method Data analysis plays a role in every research process as it helps researchers to extract meaningful insights from the data they have collected. In a qualitative research, data analysis involves systematically categorizing, coding and interpreting the gathered infor- mation to identify themes, patterns and relationships (Braun & Clarke, 2006). The objec- tive of this study was to investigate how company image and employee perceptions in- fluence the attraction and retention of foreign working level talent in the Finnish staffing industry. To achieve this goal, thematic analysis will be used as the data analysis method. Thematic analysis is a systematic approach that entails identifying, analyzing, and report- ing patterns/themes within the data (Braun & Clarke, 2006). It is widely used in qualita- tive research, due to its ability to provide a comprehensive understanding of the phe- nomena being investigated with rich details. The process of conducting thematic analysis involves various steps such as including familiarization with the data, generating initial codes, searching for themes, reviewing, and refining themes, defining and naming themes, and producing the final report (Braun & Clarke, 2006). To begin the data analysis process, for qualitative study specifically, it requires getting acquainted with the collected information by transcribing interviews and reviewing field notes. First, initial codes are generated through the identification of important state- ments and assigning them specific codes. These codes are then carefully, compared to 43 identify any similarities or differences which helps in developing broader themes. These themes are then reviewed and refined to ensure their coherence and consistency. The final step is defining and naming the themes and produce the final report. The data anal- ysis process is iterative, and the findings are constantly compared with the research questions and existing literature (Braun & Clarke, 2006; Nowell et al., 2017). Therefore, thematic analysis proves to be a method for analyzing data in this study as it allows for a systematic and rigorous exploration of how company image and employee perceptions play a role, in attracting and retaining foreign working level talent within the Finnish staffing industry. 3.5 Validity and reliability In qualitative research it is crucial to ensure that the outcome of the study produces reliable findings. Validity refers to the correctness and accuracy of the research out- comes while reliability focuses on the consistency and stability of the results (Hirsjärvi et al., 2009). To increase the validity of the study, researchers need to ensure that their research design aligns with their chosen objectives, chosen data collection methods are appropriate for their research questions, and the data analysis process is systematic and clear (Hirsjärvi et al., 2009). One method to establish reliability of a study is through inter-rater agreement. This re- fers to how researchers who code or analyze data agree with each other’s findings (Hirsjärvi et al., 2009). In this study inter-rater reliability can be achieved by involving researchers, in the data analysis phase and comparing their results to identify any incon- sistencies or variations. Additionally using a coding framework or system, can help main- tain consistency and accuracy during the coding process (Hirsjärvi et al., 2009). To enhance both validity and reliability it is also essential to ensure that the study main- tains credibility. Credibility refers to how believable and trustworthy the research find- ings are. (Hirsjärvi et al., 2009). To ensure credibility the researcher needs to build a 44 relationship, with the participants and use data collection methods that align with their experiences and perspectives (Hirsjärvi et al., 2009). Additionally, it is helpful for the re- searcher to member checking to confirm the accuracy of the findings by presenting the results to the participants and allowing them to provide feedback (Hirsjärvi et al., 2009). Ensuring validity and reliability is critical to the success of any qualitative research, espe- cially in this one. By following research design, data collection and analysis methods, as well as establishing inter-rater reliability, the researcher can enhance the accuracy and credibility of the research findings. 45 4 EMPIRICAL FINDINGS In this chapter, the empirical findings and research results are presented. The results and findings from the interviews are divided into two themes: employer attractiveness and employee retention. These two themes are closely related because employer attractive- ness represents the pull power of the employer, or how well it can attract employees, while employee retention focuses on why employees choose to remain with the organi- zation and find their job meaningful under a particular employer. The interview ques- tions were designed based on literature review, as described in sub-chapter 3.3. The first questions are excluded since they contain sensitive information about the participants. 4.1 Employer Attractiveness Understanding how foreign employees first discovered their employers and what initially drew them to the company is an aspect to consider when analyzing the influence of company image and employee perceptions, in attracting and retaining talent. In the semi-structured interviews, the participants shared their experiences and insights on this topic. As Interviewee 1 stated, "I first learned about my current employer through online research. I was attracted to the company because they had a good reputation for treating their employees well and providing opportunities for growth and development." This suggests that online presence and reputation play an important role in attracting foreign working-level talent. Similarly, Interviewee 3 explained, "I learned about my cur- rent employer through a friend who already worked there. I was attracted to the com- pany because my friend told me that they valued their employees and provided good working conditions." This suggests that personal connections can also play a role in at- tracting talent. Moreover Interviewee 2 mentioned that "I found my current job through a recruitment agency. I was attracted to the company because they had a good reputation in the in- dustry and provided opportunities for growth and development." They were attracted to the company because of its industry reputation as its commitment to providing 46 growth opportunities, for employees. This showcases the role that recruitment agencies can play in connecting workers with potential employers. In general, the individuals in- terviewed emphasized factors that initially attracted them to their employers, such, as personal connections, job postings, industry reputation and opportunities for growth and development. The importance of employer reputation and employer image emerged as a factor in the decision-making process for workers when selecting a staffing company in Finland. All six interviewees agreed that considering the employers reputation was vital when choos- ing where to work. As Interviewee 3 explained, "The company’s reputation mattered a lot to me. I wanted to work for a company with a good image not only in Finland but also in my home country. It is important for me to take pride in the company I work for and know that others respect and value it too." Interviewee 1 also stressed the significance of employer reputation, by stating, "Before deciding to join this company I conducted some research about their reputation. I wanted to ensure that the company had a reputation both in terms of how they treat their employees and how they conduct their business. These things are important to us.” Additionally, interviewee 5 emphasized the significance of an employer image when de- ciding to work for a company. "The company's reputation was definitely a big factor for me. I wanted to work for a company that had a good track record and was known for treating their employees well. It gave me a sense of security and confidence that I was making the right decision," she explained. These responses indicate that foreign work- ing-level talent considers their employers reputation as crucial when choosing to work for a staffing company in Finland. Employers must maintain an image to attract and re- tain talent in this competitive industry. When asked about what makes their employers appealing, the interviewees provided mixed responses. However, one common aspect was highlighted, communication and transparency. Interviewee 2 mentioned, "I think one of the factors that makes my 47 employer attractive to foreign workers is that they are very transparent about their ex- pectations and policies. They also make an effort to communicate with us in our own languages, which helps us feel more comfortable and included." Similarly, interviewee 5 commented, "I appreciate that my employer is very clear about what is expected of me and what I can expect in return. There are no surprises or hidden agendas, which makes me feel like I can trust them." Another point those multiple interviewees brought up, was the significance of opportu- nities for growth and advancement. Interviewee 3 expressed, "I believe one of the rea- sons this company attracts workers is because it focuses on career development. They offer training and chances for progress, which is crucial for those seeking to establish a career in a new country." Interviewee 4 also emphasized the importance of career growth by stating, "What I appreciate is that my employer encourages us to acquire skills and take on challenges. It makes me feel valued as an employee and shows their com- mitment, to helping me succeed." A third factor that emerged from the interviews was the significance of an inclusive and a positive workplace culture. As Interviewee 5 pointed out “I admire how my employer cultivates a sense of community among its employees. We are constantly encouraged to collaborate and support one another which enhances our sense of connection and en- gagement in our work.” Similarly, Interviewee 1 mentioned that their employer appeals to foreign employees because they are actively creating a welcoming work environment. “There is a sense of respect and camaraderie among the staff, which makes it a pleasant place to work." In general, the interviewees identified a range of factors that make their employers ap- pealing to foreign working-level talent. These factors include communication and trans- parency, opportunities for growth and advancement, as well as a workplace culture that fosters positivity and inclusivity. These findings can be valuable for staffing agencies and employers seeking to attract and retain workers in Finland. 48 Communication from employer to its employees and its impact on job satisfaction emerged as a significant theme among the interviewees. The majority of respondents stressed the significance of efficient communication from their employers. For instance, Interviewee 5 highlighted that their company excels at keeping employees informed about any changes or updates while being readily available to address inquiries. This proactive communication fosters a connection, with the company, while motivating em- ployees to perform at their best. One of the interviewees also expressed feelings stating that "My employer is really good at communicating with us. They make sure to provide us with regular updates and feedback, which helps us to know where we stand and what we need to improve on. It also helps us to feel valued and appreciated." Moreover, effective communication also affects significantly to the job satisfaction. The interviewees emphasized that when communication is clear and efficient it boosts their engagement and motivation at work. It also enables them to grasp the company’s ex- pectations and goals which holds importance for them. Conversely some interviewees shared experiences regarding communication from their employers leading to a decline in job satisfaction. For instance, interviewee 1 mentioned that "In my previous job, there was a lack of communication between management and employees. It was really frustrating because we never knew what was going on and it made it difficult to do our jobs effectively, even though it did not directly affect what we were working on.". Overall, the interviewees stressed that clear and effective communi- cation, from employers significantly contributes to their job satisfaction. The question of whether the interviewees observed any cultural disparities, between their employer and previous employers surfaced repeatedly during the interviews. The responses unveiled a range of distinctions spanning from communication styles to main- taining a work life balance. 49 For instance, interviewee 3 pointed out "I've noticed some disparities between my em- ployer and my past employers. One significant difference lies in communication. My cur- rent employer places importance on honest communication whereas my previous em- ployers tended to be more hierarchical and formal. This has fostered an inclusive work environment." Interviewee 5 also shared her experience regarding differences by stating "I've noticed variations in terms of work life balance. My current employer seems to prioritize work life balance than my employers, which has been tremendously valuable for me. They offer working hours. Encourage employees to take breaks and rejuvenate themselves which helps me maintain focus and productivity." Overall, the interviewees highlighted the importance of cultural differences in their ex- perience of working for different employers. The variations, in communication styles, work life balance and collaboration had an impact on how they experienced their time in the workplace. The insights gathered from these responses can be valuable for em- ployers in the staffing industry as they develop strategies to attract and retain employees at the working level. How employers support their employees' professional development and career growth was a recurring question theme in the interview as well. All six interviewees provided valuable insights into the various ways their current employers support their profes- sional growth and development. Interviewee 5 mentioned that her company offers training sessions to enhance employ- ees’ skills. She stated, "Our company organizes training sessions for us with a focus on skill enhancement. This has greatly contributed to my growth by increasing my knowledge." Similarly, Interviewee 3 shared that his employer has a defined career pro- gression plan for employees. He explained, "My employer has a plan for career develop- ment that outlines steps and required skills, for advancing within the company. It gives me a sense of direction. Helps me identify which skills I need to develop for career 50 advancement.” Interviewee 1 emphasized the significance of receiving feedback and support from their manager mentioning that their manager regularly provides feedback on their performance and suggests areas, for improvement. This has been beneficial in helping them identify both their strengths and weaknesses enabling them to work to- wards enhancing their skills. In general, the interviewees highlighted the importance of employers supporting the growth and advancement of their employees. This can be achieved through training op- portunities defined career progression plans, as well as feedback and support from man- agers. These findings suggest that employers who prioritize the development of their staff are more likely to attract and retain individuals from foreign backgrounds within the Finnish staffing industry. The question of describing interactions with colleagues and how they contribute to job satisfaction was a theme that arose in the interviews with the foreign working-level tal- ent in the Finnish staffing industry. All interviewees stressed the significance of main- taining relationships with colleagues for a fulfilling work experience. Interviewee 1 ex- pressed, "I really enjoy working with my colleagues. We have a good team dynamic, and we support each other. It makes coming to work more enjoyable." Interviewee 3 also had the same thoughts, "Having good relationships with my colleagues is very important. We work together a lot, so it's important to have a positive and collaborative atmosphere. It contributes to my job satisfaction and makes me feel more engaged at work." Interviewee 5 stressed the significance of having a supportive work environment saying, "My colleagues are incredibly supportive, and we have a team culture. We assist each other. Celebrate each other’s achievements, which creates a work environment." An- other interviewee, Interviewee 4 highlighted the value of interactions with colleagues by stating, "I genuinely appreciate the diversity among my colleagues; we all bring perspec- tives to our work. This leads to discussions and fosters an excellent team atmosphere." Overall, almost all of the interviewees underlined the importance of having relationships 51 with colleagues for job satisfaction. Key themes that emerged were the significance of a work environment, collaborative teamwork dynamics and appreciating diversity among colleagues. When asked about their advice for working-level talent considering working for a staffing company and moving to Finland, all six interviewees shared insights based on their per- sonal experiences and observations. One of the key takeaways was the importance of conducting some kind of research on the company prior to accepting a job offer from them. According to Interviewee 1 it is crucial to "Do your homework before accepting a job offer. Look into the company’s reputation, employee benefits and work culture. En- sure that you feel comfortable with what you discover." Interviewee 3 also advise