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Purpose

This study determines the influence of employer image on industry attractiveness in small and medium-sized hospitality firms by using the instrumental-symbolic framework adapted from marketing literature.

Design/methodology/approach

A total of 405 employees and 429 family firm owners in Bavaria were surveyed using a quantitative research design. The authors used linear and hierarchical multiple regression analyses for hypothesis testing using the variables included in the instrumental-symbolic employer image framework.

Findings

The study revealed differences in perception between employees and owners. Data showed that employees' ratings for instrumental attributes, such as job security and income options, and symbolic attributes, such as industry attractiveness, significantly differ from those of owners. Consistent with the instrumental-symbolic framework, owners' perceptions of symbolic attributes predicted their perceived industry attractiveness.

Practical implications

Owners may examine how their industry's image needs to be changed to gain positive perception by current and potential employees. Policymakers may benefit from the study’s results that may help them find the right focal points for strategies in promoting Bavaria's hospitality sector. As a result, an adequate and positive image is created that attracts workers for this sector.

Originality/value

The study addresses the rather under-researched stakeholder group of existing hospitality employees, particularly with respect to employer image. Furthermore, owners and employees are compared, regardless of their individually different relationships to the business. Employer image is connected with overall perceived industry attractiveness, stating that the industry comprises individual employing businesses and thus depends on employer image.

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