Employer Branding Full Size

8/11/2019 Employer Branding Full Size

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A Guide toEmployer Branding

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Introduction

Recruitment

Employee Engagement

Social Media

Career Website

How to develop an employer brand

Benefits

The risk of employer branding

Conclusion

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CONTENTS


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INTRODUCTION

The term employer branding is used to describe how a business or organisationmarkets itself and highlights what it has to offer potential and existing employees.The marketing industry has developed numerous techniques to attract, communicate

and maintain the loyalty of their customers to their consumer brand. Nowcompanies are finding ways to achieve these same aims for their current andfuture staff. The key areas that make up an employer brand is a comprehensiverecruitment and employee engagement strategy, a focused corporate messageand the long term vision of the company, such as policy, values and behaviourthat employers and employees expect from each other. 1 This helps in the longterm retention of the candidates that they recruit.

Effective employer branding is the combination of market research, advisoryservices, communications, and marketing2 to achieve a trustworthy anddesirable brand position. It means constantly measuring performance andadjusting activities and strategies to continuously improve performance. Employerbranding is there to improve business growth and to help achieve strategic businessgoals in the long term, this is done through talent acquisition and retention of staff.

Employer branding is extremely important to HR representatives as one of the

roles of a HR department is to carry out and manage the recruitment process.Employer branding is a tool that can be used to attract applicants to thecompany. Therefore the role o f developing, communicating and maintainingan employer brand is often assigned to the HR department.3 Employer brandingwill help HR departments to gain an insight into their employees, throughemployee attitude surveys and focus groups. This information should help themto inform their HR strategy, how internal communications are handled, and theHR departments ability to design effective people management initiatives.

The rationale behind employer branding is essentially to improve the growth of abusiness. Employer branding does this by attracting high quality candidates whohave the skills, experience and knowledge that suit the needs of a business. 4Highly skilled and motivated employees are becoming a scarce resource formany companies, especially with a growing willingness amongst job seekers tochange jobs with an upward trend of over 20% of employees under the age of 30

saying that they would prefer to have a lower-paying job with a brand that theybelieve in.5 Therefore it is even more important nowadays for companies to retainand attract the best employees.

Figure 1 shows a framework devised by Professor Kristin Backhaus Dr SurinderTikoo, which shows how an employer brand should work. It shows that brandassociation and employer image is vital to attracting candidates and that employerbranding can impact on organisation identity and culture, which helps to improveemployee loyalty, and consequently their productiveness. This framework highlightsthe key benefits of an employer brand and shows areas that need to beaddressed when creating such a brand.

1 Build your employer brand: A strategic approach to recruitment and retention,Ranstad, 2014, pg. 2,

available at: http://online.wsj.com/news/articles/SB123740504559375085 [accessed 11 August 2014]2 C. Van Mossevelde, What Is Employer Branding? Universum, 2014, available at:

http://universumglobal.com/2014/03/what-is-employer-branding/ [accessed 11 August 2014]3 J. Jonze and H. ster, EMPLOYER BRANDING IN HUMAN RESOURCES MANAGEMENT, Stockholm,

Stockholm Business School, 2013, pg. 7, available at: http://www.diva-

portal.org/smash/get/diva2:603822/FULLTEXT02.pdf [accessed 11 August 2014]4 L. Moroko and M.Uncles, Employer Branding, Wall Street Journal, 2009, available at:

http://online.wsj.com/news/articles/SB123740504559375085 [accessed 11 August 2014]5 Employer branding hit or miss? Boost the value of your brand by clearly positioning your company on

the job market, Interbrand, pg. 3, available at: http://www.interbrand.com/Libraries/Articles/Interbrand-

EmployerBranding-EN.sflb.ashx [accessed 11 August 2014]6K. Backhaus, S. Tikoo, "Conceptualizing and researching employer branding", Career Development

International, 2004, Vol. 9 Iss: 5, pp.501 - 517

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Figure 1: A framework on how employer branding should work6

Employer

Branding Organisation

Identity

Organisation

Culture

Employer

Brand

Associations

Employer

Brand

Loyalty

Employer

Image

Employer

Productivity

Employer

Attraction


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RECRUITMENT

Recruitment is currently a vital aspect of employer branding due to aserious ski lls shortage in the UK labour force. This shortage is the resultof a number of contributing factors including; the rapid growth ofemerging economic powers, an ageing UK population, 1and graduateswho are increasingly unprepared and untrained for the workforce.This situation means that companies are under increasing pressure toattract and retain top talent. Developing employer branding not onlyenables companies to attract the best employees for their organisation,it can also help to retain top talent and skilled workers.

When a company undertakes employer branding the "product" is the employment experienceit has to offer, and the "customers" of this product are current and prospective staff. Byhighlighting the unique reasons why the company is a good place to work, it is hoped thatskilled potential employees will be attracted to apply for positions. This is the cornerstoneof employer branding; it allows you to attract top talent who have the right skills and culturalfit for your organisation.

A companys recruitment process is an important part of employer branding; every step ofthe recruitment method will shape the candidates impression of the company and will

influence them on their final decision to accept or decline a job offer. It is therefore essentialthat the application process accurately reflects your brand in a positive way in order toattract skilled candidates.

It is important that the job application process is designed in a way that will attract not onlyskilled candidates, but also candidates who are suited to the companys outlook, ethos andgeneral organisation. The ability to attract the right candidates for a particular companywill be reliant on the careful design and management of the application and recruitment process.

Understanding the motivation and skill set of a companys desired prospective employeesis paramount when executing successful employer branding and ultimately, successfulrecruitment processes. Where a company choses to advertise a job is very important becausecandidates with different skill sets will be drawn to a specific recruitment websites. It istherefore necessary to understand the candidates who are applying to be able to targetthem successfully. Careful thought should be put into the method used to respond to a candidate

to invite them for interview, be it by letter, email or more modern methods such as social media.

The interview process is of high importance. The questions askedand the tasks set during this process can signify a companysdemand for highly skilled workers who are able to cope in high pressureenvironments.

The way in which a company either accepts or rejects prospectivecandidates is an additional reflection of the companys brand. A

simple template email can come across as impersonal, shaping howthe applicant views the organization as a whole.

Finally, the communications conducted between a company and anew employee before their start date can have a very significanteffect on the new recruits view of the organisation. A lack of

sufficient information or contact that is conducted in an unfriendly manner is likely to givea negative impression before the employee has even started working in their new job.

All job seekers hear the advice of tailoring their CV to suit the company needs; companiesnow need to tailor their value proposition to attract the right candidates for theirorganisation. When recruiting, it is necessary to take into account different values,ambitions and needs that candidates may have, depending on the industry and the rolethat is being advertised. For example, sales executives will place more value on salarythan an academic applying to teach at a university.

The millennial workforce as Figure 2 shows is a big driver of the employer brand. Thegraph shows the growing desire of millennials to work for an employer that has a goodreputation and image. There has been a drop in the number of undergraduates that saythat remuneration is the main driver behind the attractiveness of an employer. Jobcharacteristics are still important, as are the people and culture.

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1C. Van Mossevelde, Employer Branding: Five Reasons why it Matters & Five Steps to Action, Employer Brand

News, 2010, available at: http://www.employerbrandingtoday.com/uk/2010/03/25/employer-

branding-five-reasons-why-it-matters-five-steps-to-action/ [accessed 14 August 2014]

Figure 2: Shows undergraduate students drivers of employer attractiveness2

2M. Bailey, What Millennials Want, Universum, 2014, available at: http://universumglobal.com/2014/07/what-

millennials-want/ [accessed 15 August 2014]

Employer reputation and image People and Culture

Job characteristics

Rammeration and advancement opportunities

2008 2009 2010 2011 2012 2013

30%

25%

20%


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EMPLOYEE ENGAGEMENT

Current employee engagement in the brand can be overlooked, asemployer branding is often focused primarily on candidates. However,this approach misses the potential that employer branding has in terms

of retaining current talent. Employer branding is about getting the bestout of your talent and keeping them wanting to work for you.1Employeeengagement in the brand requires entrenching it into the companyculture and organisation. The employer brand is only as good as theemployee experience; if the reality of working for the company is notthe same as the brand, the organisation can find themselves losingtalented employees and potential candidates.

Employee loyalty and a job for life culture are increasingly scarce inthe modern labour force. Over a quarter of the workforce aged 16-34have said that they want to change jobs between eight and twelve timesduring their working lives, with only one in ten employees nationallyexpecting to stay in one job or at one company for their whole career.2This increasingly mobile workforce, with higher expectations of their

employers is forcing employers to focus their efforts on engaging andretaining their skilled employees.

Generating an engaged workforce requires creating opportunities foremployees to engage with their colleagues, managers and the widerorganisation in general. Creating a workplace where employees aremotivated and take pride and care in their work is also very important inemployee engagement; committed employees are more loyal, productiveand will act as fans and ambassadors of the company, further generatinginterest from the right candidates for future jobs.

Employee engagement is primarily about employee retention. The waysto keep employees engaged, happy, and taking care and pride in theirwork will lead to increased productivity. Implementing effective leadershipwhich values employees, offers them promotional and trainingopportunities and acknowledges success with rewards, helps improveemployee engagement throughout a company.

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1Employee Engagement & Employer Branding, CSA Recruitment, 2012, available at:

http://www.csarecruitment.com/employee-engagement/ [accessed 12 August 2014]2

D. Woods, No such thing as a 'job for life' for young people - and HR staff - according to Hyphen, HR Magazine,2001, available at: http://www.hrmagazine.co.uk/hro/news/1020164/no-job-life-

youn-people-hr-staff-hyphen#sthash.PRiRVhYg.dpuf [accessed 14 August 2014]


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SOCIAL MEDIA

A crucial part of the candidate attraction process is having a positive brand experiencewhen potential employees research the company online. To attract the best candidates, avisible and interactive online presence is vital, as people want to work for an organisationthat they have heard of and trust. Having an online presence is essential nowadays as it

allows companies to engage with potential and current employees. Figure 2 shows that 76%of companies in 2014 communicate their employer brand through social media, whichemphasises how important it is in todays world.1

There are many different social media options available for companies to engage withpotential candidates, some are much more industry specific than others. The main socialmedia tools that companies use across the board are LinkedIn, Facebook, twitter, YouTube,blog sites and their own company website.

LinkedIn is a business oriented social networking service and is seen as being at forefront ofsocial media use in a B2B context. It has been one of the fastest growing professionalnetworks over the past few years, especially with the younger generation. LinkedIn allowscompanies to showcase themselves through articles, video and employee testimonials.LinkedIn also allows you to customise your brand message, offers a talent brand index, andvery importantly it allows you to advertise and receive applications for job vacancies.

Facebook is an online social network service that has the ability to share photos of staffand company events. It also allows a more human communication through posting on acompanys wall and having more than 140 characters to communicate with, unlikeTwitter. Over half of jobseekers will Like a company on Facebook hoping that they willfind a job from the companys newsfeed.3 Facebook is a fantastic way to promote acompany and get people to follow your page, however, many people will be wary of

using Facebook for recruitment as the platform is often seen as a more personal socialmedia network.

Twitter is an online social network and a microblogging service that is used by over twothirds of FTSE 100 companies. Twitter allows a company to reach a huge amount ofpeople and it can be used to target specific audiences by tweeting people or companiesand by using hashtags. Encouraging a cross section of a company to tweet builds amore rounded perspective of the company as more people are likely to tweet about avariety of subjects such as sector and career news.4

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1D. Smooke, The State of Employer Branding Strategy, Smart Recruiters, 2014, available at:

http://www.smartrecruiters.com/blog/the-state-of-employer-branding-strategy/ [accessed 12 August 2014]12D. Smooke, The State of Employer Branding Strategy, Smart Recruiters, 20143 C. Gutsell, How to use social media to strengthen your employer brand in 2012, CK Group, 2012, available at:

http://ckagroup.co.uk/social-media-and-staff-retention/how-

to-use-social-media-to-strengthen-your-employer-brand-in-2012/ [accessed 12 August 2014]4 Social media and Employer Branding, Employer Brand News, 2013,available at:

http://www.employerbrandnews.com/social-media-and-employer-branding/ [accessed 12 August 2014]

Figure 3: Shows employer brand communications2

Social Media

Career website

Training & development programmes

Internal Newsletters

Employee referral programme

Online job Board

Company brochures

Career fairs

Employee video testimonials

On campus activities

Graduate programme

Induction process

Performance appraisal

Company events

Blogs

Mobile career site

Sponsorship

Alumni events

External newsletters

Mobile app

Newspaper job ads

Trade shows

I don't know

76%

64%

43%

40%

39%

38%

37%

34%

33%

32%

32%

31%

22%

22%

22%

22%

19%

16%

16%

11%

11%

10%

4%

2009 2011 2014

14

44

76

Social Media 5 Year Trend

Employer Brand International 2014 Employer Branding Global Trends Study

percentage


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CAREERS WEBSITE

A companys career website is a vital cog in a companys employer brand. This is

where a company can really differentiate itself from its competitors and sell the

company to a prospective candidate. For small and medium sized businesses a

good careers page has added significance as it is a very cost effective way of

developing employer branding.

If the companys career page has attracted a candidate to look at possible job

vacancies within the company and then potentially apply for a job, the career

page has worked. If it has not, then the message portrayed by the career page

may need to be altered. It is vital that the careers page of your company is

consistent with the employer brand message; if the message that attracted the

candidate to apply in the first place changes, it can easily deter these potential

employees.

A good employer brand can help to create a great career website as it can supply

useful material for the careers page. Employee testimonials are also useful and

can help inform potential candidates about what it is like to work at that company

on a normal day. Increasing ways that the company can communicate with

applicants through technology such as live chat on the careers page, can give a

more personal approach to the application process. These kinds of tools and

showcasing how employees can produce their own material through companyblogs all help to build a hugely positive image of the company, with very little time and

money spent.

HOW TO DEVELOP AN EMPLOYER BRAND

Figure three shows the four main steps that need to be taken to create an employer brand.

Discovery

The first stage to building an employer brand requires extensive research, in order to

understand how the employer brand is perceived by various stakeholders. It is key when

designing the employer brand to think who you are looking to attract, what these people

want and most importantly, looking at what your competitors are doing. 1 This will help you

to gain an idea of what needs to be done and an insight into how to target the candidates

you want.

This stage is of vital importance because if it goes wrong, no matter how good the brand

ends up being, it will still attract candidates who lack the required skills at the recruitment

stage. Another negative impact of failing to develop the employer brand effectively is thatyou risk hiring people who do not want to work for your company because they do not

identify or fit in with the companys culture. These people will not be engaged and may

leave, causing a high turnover of staff.

Figure 4: The 4 main stages in developing an employer brand

Discovery

Analysis, Interpretation and Creation

1.

2.

3.

4.

Implementation and Communication

Measurement, Optimisation and Maintenece

1 Build your employer brand: A strategic approach to recruitment and retention, Ranstad,2014, pg. 4

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Analysis, Interpretation and Creation

The next stage requires further research, but this time into building a clear and simple

understanding of what the companys values, culture, and aims are. For prospective candidates

it is also necessary to know what you, as a company, can offer them and in turn what you

require of candidates. This is very important, as to create an effective employer brand that

attracts the correct candidates, it is necessary to know the reasons why people want to

work for you. It is imperative to create a distinctive and, if possible, unique brand to differentiateyourself from your competitors.

At this stage it also worth looking at what is already being said about your company on

social media and the internet. By looking at sites such as Glass Door, Social Mention and

Google Alerts you can find out what current and even former employees are saying about

the company. This can all help in the formulation of the employer brand which finds the

correct tone, voice and authenticity.1

Implementation and Communication

After that the next step is the implementation of the brand in the organisation for the first

time. It is best to release it internally at first to get feedback from staff and to make sure the

message is on target. If it is released publically, first there are risks that during an interview

candidates will see the brand is different to the reality and that could decrease their willingness towork there.

The communication aspect should also be kept internal at first to gain current employees

opinions and insights. It is also beneficial to make sure they understand the brand by

offering orientation and training programmes. Later, the external communication should be

conducted through recruitment advertising, social media, the company web site, jobs fairs

and other recruitment events to build awareness and promote the company.

Measurement, Optimisation and Maintenance

Lastly, there is a need to consistently monitor and check the progress of the company

brand. It is important to keep the momentum going by making sure that the message stays

on track and adapts to any significant changes that occur. There are a number of ways to

measure the success of an employee brand. Analysing staff turnover and retention rates is

often a good indicator as to how the brand is performing; if employees are staying at acompany it shows that they are content and believe in the brand. Another way of measuring

the success of the brand is to carry out employer satisfaction surveys, to understand what

is working well and what is not.2

To measure the effectiveness of an employer brand it is necessary to look at the flow

and number of applications received, the cost per hire ratio for each hire and also the

quality of candidates that apply. As for some companies employer branding is needed

to attract the best talent to fill highly skilled positions. Figure five shows that to build an

effective picture of how successful an employer brand is recruitment, retention, and

productivity rates all need to be measured in terms of performance. Also, measuring

future, potential, current and previous employees and other stakeholders is vital to gain

views on the brand and what people think of it through surveys and other measures.

There are many ways to measure the effectiveness of your employer brand. Google

Analytics is a useful online tracking tool as is Applicant Tracking Systems. These tools

will allow you to measure the strength of your recruitment pipeline and the quality of

the candidates that your brand attracts. Another simple and free way of measuring is to

take qualitative feedback at the interview stage for prospective candidates. The success

of a consistent employer brand cannot be measured overnight, which means that the

implementation of a tracking process is needed from the outset to measure how

effectiveness.

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1 Social media and Employer Branding, Employer Brand News, 20132 Build your employer brand: A strategic approach to recruitment and retention, Ranstad, 2014, pg. 53 K. Buttenberg, Employer Branding: Objectives, Channels and Performance Indicators, academia.edu, pg. 6,

available at:http://www.academia.edu/1751011/EMPLOYER_BRANDING_OBJECTIVES_

CHANNELS_AND_PERFORMANCE_INDICATORS [accessed 15 August 2014]

,

Figure 5: A measurement tool for

employer branding activities3

Employer Branding Activity

Brand Awareness Performance Measures

Furtureemployees

Potentialemployees

Currentemployees

Previousemployees

Brand Awareness surveys segmented by thedifferent target groups

Other stake holders(media, supplies, government, investors, competitors)

Recruitment Retertion Productivity

Performance of

recruting tools(e.g. clicks on

job-ads,applications bychannel) andrecruitment(e.g. time to

hire, quality ofapplications)

Direct

employeeretention

indicators (e.g.turnover) and

indirectindicators (e.g.

employee

satifaction)and motivation)

Productivity

managmentindicators

depending onindustry and

function /department

(e.g. error rates

or salesfigures)


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BENEFITS

An effective employer brand will help organisations to compete more effectively inthe labour market and will build employee loyalty through effective recruitment,engagement and retention practices.

Those with effective employer brands will reduce their time-to-fill and cost-per-hire 1and companies that only have a consumer brand will have hiring costs that are twicethat of a company which possesses an effective consumer and employer brand.Reducing the cost-per-hire is also about increasing the number of referrals fromemployees. If employees are happy and invested in the company they work for theywill sell it to people they know, and will become a force of attraction themselves.

An effective employer brand that employees can identify with wil l result in a lowerturnover of staff and a more loyal, engaged workforce. A lack of staff turnover willalso be a big help in the employer brand, proving that employees like to work for thecompany. If there is a high turnover of staff prospective candidates may feel uneasyabout working there, as a high staff turnover leads to concerns over why this ishappening. The benefits of employee retention are that there is a low turnover cost,company knowledge will not be lost, and losing staff members can disrupt the dayto day running of a business. However, if employees stay company knowledge willgrow, productivity will also increase and there will be a very low cost in turnover or

for recruitment purposes.

An effective employer brand can improve the productivity of staff, recruit highlyskilled individuals that contribute to the growth of the company, as well as improvingyour customer brand. Companies that treat their employees well and are seen asreputable; this can have a positive impact on their sales. The opposite has been seenwhen some large and worldwide companies were seen as taking advantage of theiremployees. These companies received a negative backlash from consumers thatimpacted their growth.

if employees stay companyknowledge will grow,

productivity will also increaseand there will be a very lowcost in turnover or forrecruitment purposes.

1 C. Peyron,The war for survival starts wi th the Fight for Brainpower, Universum, 2012, available at:

http://universumglobal.com/2012/10/the-war-for-survival-starts-with-the-fight-for-brainpower/ [accessed 12August 2014]

,

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THE RISKS OF EMPLOYER BRANDING

Despite the potential benefits of employer branding there are some substantial risks

involved in creating a brand. One of the big problems that companies who are investing in

employer branding are facing is that they are not attracting better candidates, just a higher

number of average applicants. In a CEB report it found that 78% of companies that used

formal employer branding had attracted more, but not better candidates. As the number of

applications for open positions rose by 33%, but only

28% of applicants in the larger number are high-

quality contenders. Therefore companies need to

build a brand that attracts the best candidates only,

whilst simultaneously dissuading other applicants.

This would help improve the quality of applicants by

54% and quality of hire by 9%. 1

Attracting more, and not better candidates can put a

company at risk of missing out on talent, and can lead

to rival companies taking them, which can in the end

negatively affect the companys growth. 60% of CEOs

are worried about attracting and retaining the right

people. This war for talent shows that there is a need

for companies and employers to reassess how theyengage with employees and candidates. If the branding

is not spot on then the chances are the best talent will

go elsewhere.

Another issue that HR departments who are involved

in employer branding face is building an inauthentic

brand image. A companys brand image needs to be

representative of the company and its industry. For

example, a tech start-up will have and need an entirely

different employer brand from an established

insurance agency; having a fake employer brand, will

attract candidates that are ill suited to the company. 2

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Another risk is that companies do not fully engage with social media and sometimes rely on

older forms of communication such as e-mail. Steps to improve a companys social media

brand and appeal is to put a human face to it. Companies should hire someone to manage

social media, promote social media communications and train their staff to use It. It is also

helpful to create a clear social media policy which defines how employees should use social

media whilst working for an organisation. For example, social media bloggers and twitter

users should state that they are expressing their personal view.

The brand message needs to be consistent and fit in

with the employer brand, while also fitting in with the

industry of the company. An inconsistent brand can

lead to potential candidates being unimpressed and

even mean that they will reconsider working for that

company. Hence, an inconsistent brand message

means that the company is failing to deliver its best

possible impression to potential candidates. Inconsistent

branding can be a waste of valuable time and money

as it will not target the desired calibre of candidates.

Current employees may feel overloaded with

inconsistent and irrelevant information from a variety

of sources, leading to frustration and a lack of trust.

1 Employer branding attracting 'more, not better' candidates, London, HR Grapevine, 2014, available at:

http://www.hrgrapevine.com/markets/hr/article/2014-07-28-

employer-branding-attracting-more-not-better-candidates#.U-iJkfldXDZ [accessed 11 August 2014]2 S Rizvi, Truly Social Employer Branding, Employer Banding Today, 2012, available at:

http://www.employerbrandingtoday.com/blog/2012/10/29/social-employer-branding/ [accessed 13 August2014]


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