CHAPTER 1 INTRODUCTION 1.1 Research Background After graduating from college, there are several things that will be faced by students such as continue study to the next degree, work on corporate, get married, and being voluntary for country (Sci-Tech, 2017). The career choice of the students are diverse, and it depends on their interest. According to (Simpson, 2016) career is the profession that has been taken within the certain period of time in the person’s life with the expectation it has an opportunity to increase. In more specifically, the survey about career choices that was conducted by Tracer Study ITB, 2016 to 144 students management batch of 2009, showed that 51% choose to work, 13 % choose to be work and self-employed, 17% choose to continue the study, and the rest is 19% of them choose to built their own business. Linking to the survey results, most of students of the management batch of 2009 decided to go for work after graduated from ITB. In order to ensure the previous result by Tracer ITB, the researcher conducted the pilot test to 56 students of SBM ITB batch 2018 showed that 82, 1% of them choose to work, 10,7 % of them choose to continue their study to master degree and the rest of them 7,1 % etc (various choices).The survey which conducted by Tracer Study ITB and the pilot test showed similar result that the students choose to work on corporate after graduated from SBM ITB. In more deeply, the pilot test showed that 35,7 % of them choose to work at POE’s (Private own- Enterprises) ; 28,6% choose to work at SOE (State- owned Enterprises); 19,6 % choose to work at Foreign-owned companies, and 16,1% choose to establish the business (such as fashion, culinary, etc). Refers to the results, showed that the management students of class 2018 are tend to work at POE’s compares with SOE’s with several reason. Here is the several reason which shows the preferences of management students batch 2018 to work at SOE’s or POE’s which can then be summed up as a working benefit of both institutions : Table I. 1 Reason of Management students of SBM ITB batch 2018 carrier for work The reason of SBM ITB 2018 students choose to work at SOE’s The reason of SBM ITB 2018 students choose to work at POE’s 1. They wants to serve the country because getting the scholarship during college 2. The salary are fixed and guaranted 3. Think of long term life 4. Because SOE’s has the same vision with them 5. The culture of companies are fit with the student 6. The SOE’s can give chance for student to continue their study to the next level such as master degree or doctoral degree 1. The salary offered are high 2. The opportunity to build faster career 3. To challenge own self 4. The culture of companies are fit with the student 5. Prestige and salary are high In fact, there are the statistic which showed the comparison numbers of SOE’s and POE’s. Refers to the data from Ministry SOEs, number of SOEs institution are 115 in the year of 2017, which shows on figure : Figure I. 1 The data sum of BUMN from 2004-2007 The figure above shows the number of SOE’s in Indonesia, which are divided in to several types ; Perjan, Perum, Persero, Persero (Tbk) from 2004-2017. The number of SOE’s in Indonesia has decreased from the year of 2004-2005 which are from 159 fell to 140. It became stable on 2004 – 2012 that shows the number of adjacent ranges from 140-142. But, suprisingly fell on 2013 - 2017 which are from 139 until the lowest number 115 on 2017. Meanwhile the number of SOE’s in Indonesia has been decreased in every year, with the biggest drop rate on 2017 which at 115 point, SOE’s still became one the business entity with the largest number in Indonesia. Whereas, the privately owned enterprises (POEs) has the statistic around 25 corporations (Brainly, 2014). Which divided into several sectors such as banking, food and beverages, transportation, communication, cigarettes, etc. So, when viewed in terms of quantity the number of SOE (State – owned Enterprises) is higher than POE (Private – owned Enterprises) in Indonesia. 0 50 100 150 200 250 300 350 20042005200620072008200920102011201220132014201520162017* Mapping The Development of BUMN Number from 2004-2017 PerjanPerum PerseroPersero TbkTotal BUMN Surprisingly, after several benefits which offered by both institutions also the amount of companies sector, it does not give the guarantee to attract high qualified people to become the new employee. It is strengthened from pilot test result which showed that students prefare to work at the POE’s than SOE’s. One of the reason those problem can happen is the “employer branding” issue that has been made by the companies. Employer Branding is one of the important things that will affect the employee decision in order to enter one corporation. Employer branding is the promoting of company or the organization which opens employment for the job seekers who in the next are become the desired target of company to be recruited and retained ( Mossevelde , 2014). Employer branding also needed to attract the prospective employee and ensure the current employee feels engaged and in line with the culture also strategy of working in the company. In addition, employer branding is interpreted as the expected, long-term strategy to maintain the awareness and perceptions of current employees, prospective employees, and all the stakeholders in relation with the particular corporation (Sullivan, 2004). Many corporations spend significant resources in order to do the campaign of employer branding, this further indicates that corporations finding the benefit of it in practice. In facts, organization found that the effective employer branding aid the competitive advantage, helps the employees in order to internalized the value of corporations and support employee retention (Conference Board, 2001). The study which has been conducted by Ambler and Barrow (2016) indicates the usefulness of employer branding, the report was construct with semi-structured depth interviews with 27 companies as the respondents, the study was about the relevance of branding to human resource management. In further, these study concluded that branding has relevance in employment context. To strengthen the issue and find out the importance of employer branding, the researcher conducted the interview with several parties at one of SOE’s as the sampling, where at PT Telkom Indonesia, Tbk. The problem of PT Telkom Indonesia Tbk, was the lack of promotion which furthermore give bad impact to their corporate brand name. After doing interview process with several important parties of PT Telkom Indonesia Tbk. Such as The Head of Training program at PT Telkom Indonesia Tbk at Corporate University on July, 6th 2018, he said that PT Telkom Indonesia, Tbk actually has several program in order to increase the company brand name, in examples : giving the chance to employee to continue their study program until master degree or if the employee has the ability might be until doctoral degree to overseas, the people development is one of concern of PT Telkom Indonesia. Tbk. But this image is very rare being listened to the public, therefore not many people know the strength of PT Telkom Indonesia, Tbk. It was also strengthen by the opinion of the employee from Reward Management Unit who said according to the survey result, public is not prefare to work at PT Telkom Indonesia, Tbk are because of several reasons : 1. Lack of transparency between units and too bureaucratic 2. Mostly people wants to work at International Company 3.