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Purpose – Based on the recent call to unfold the dynamics of employee psychological states in branding i.e. employee brand understanding and brand psychological ownership, this  study aims to investigate the relationship of brand empowerment, employee psychological states and its outcome i.e. employee brand equity. Moreover, the study tried to investigate the mediating role of employee psychological states i.e. employee brand understanding and brand psychological ownership in the relationship of brand empowerment and employee brand equity. Design/methodology/approach – Survey method was adopted to collect the data from the respondents of public sector banks. Data were collected from 374 employees working in the banking sector through proportionate stratified random sampling technique. Findings – Results of this study confirm the positive relationship among brand empowerment, employee psychological states i.e. employee brand understanding and brand psychological ownership and employee brand equity. Furthermore, employees’ psychological states have a mediating role in the relationship between brand empowerment and employee brand equity as illustrated in the job characteristics theory. Past studies in branding literature have revolved around employees’ psychological states and their impact on personal outcomes i.e. employee brand equity. Originality/value – Based on the recent call to explore the dynamics of employee psychological states, the present study tries to dig the theory by investigate the link between brand empowerment and employee brand equity.

“That’s my job” Exploring the effect of brand empowerment towards employee brand equity: Mediating role of employee critical psychological states