Using Employer Brand to Attract Talent

Using Employer Brand to attract talent

Or… have I stumbled into a Marketing presentation?

TALENT MATTERS

So, as we’re talking about brands…..

Do you know which are top 10 Best Global Brands in the world (Interbrand 2006)?

Or which are the 10 most Respected companies in the world (PWC 2004)?

Or which are the top 10 MBA Employers in the world (Universum 2006)?

Best Global Brands

1 – Coca Cola2 – Microsoft3 – IBM4 – GE5 – Intel 6 – Nokia7 – Toyota8 – Disney9 – McDonalds10 – Mercedes

World’s most respected Co’s

1 – GE2 – Microsoft3 – Toyota4 – IBM5 – Coca-Cola6 – Dell7 – Wall-Mart8 – Citigroup9 – Procter & Gamble10 – Hewlett-Packard

TALENT MATTERS

Top 10 MBA Employers in the world

TALENT MATTERS

Aging populations

Decreasing birth-rates

Increased life expectancy

Reduced talent pool

There will be “a significant exodus of talent and experience in the next two decades and a dearth of new employees to step into roles that require specialized skills”

Accenture (2005)

TALENT MATTERS

Global employee engagement levels

Towers Perrin global workforce study (2005)

TALENT MATTERS

Maslow’s hierarchy of needs

TALENT MATTERS

Together… an attraction and retention issue

CIPD 2006 recruitment, retention and turnover survey: 82% of organisations reported difficulties in

recruiting 69% reporting difficulties in retaining

RightCoutts 2006, in Management Issues 2006 41% of Senior HR professionals thought retention of

key staff was their most critical HR issue

Accenture on-line survey 2006 67% of senior directors in N. America, Europe and

Asia think the inability to attract and retain the best talent is one of their top 3 threats to success

TALENT MATTERS

Values and Culture

Performance Review

HRProcesses

Leadership

Organisation,Team and Job

Design

Individualand Team

Competence

Core WorkProcesses

Some HR LeversEmployer Brand“what do people think of us?”

Recruitment Processes“how we do attract talented people to us?”

Reward & Recognition“what keeps our talent with us?”

Performance Management“where is our talent in the organisation?”

Talent Management“how do we manage our talent?”

Communication“how do we talk to our talented people?”

TALENT MATTERS

What is it?

“The package of functional, economic, and psychological benefits provided by employment, and identified with the employing company”, Ambler & Barrow 1996

A long term strategy that establishes an organisation’s identity as an employer

Which differentiates them from competitors in the employment market

TALENT MATTERS

Where do you start?

The development of an employee value proposition (EVP)

Capturing in one statement, the sum of “everything that people experience and receive while they are part of the company”

It must be aligned to the overall brand and reputation

TALENT MATTERS

Who is it for?

Potential employees – to persuade more and better applicants to apply and accept offers

Current employees – to reduce turnover, increase employee motivation, a sense of belonging and align behaviour to the organisation’s needs

Consistency of messages across both groups is vital as the organisation has to deliver what it promises

Projecting an unrealistic image may improve recruitment but can increase attrition

Employer Brand

The unique and differentiating promise a business makes to its employees and

potential candidates

Employer Brand

The unique and differentiating promise a business makes to its employees and

potential candidates

Employee experience

Actual delivery of the promise throughout the

employee lifecycle

Employee experience

Actual delivery of the promise throughout the

employee lifecycle

Brand strength

Attraction of the right candidates

Employee engagement and retention

Differentiation from competitors

Customer engagement and retention

Brand strength

Attraction of the right candidates

Employee engagement and retention

Differentiation from competitors

Customer engagement and retention

+

Attraction of high quality employees is a competitive necessity

Engagement of high quality employees is a bottom line issue

Brand Strength

TALENT MATTERS

Employer brand – a three step process1.Brand insight1.Brand insight 2. Brand development2. Brand development 3. Implementation3. Implementation

• Competitor analysis• Brand positioning vs competition• Understanding vision for the business and employees• Understanding best of the current employee experience and improvements

• Alignment of the consumer brand/ employer brand• Concept development• Concept testing• Refinement and development

• Recruitment guidelines and roll out for recruitment advertising• Design of internal launch process• Production of comms materials, internally and externally

Employee vision

Personality

Key messages

Strengths/areas to improve

Employee Value Proposition

Brand book Communication strategy

Communication tools

TALENT MATTERS

Employer brand benefits

Significant decreases in cost per hire Reduced cost of recruitment - efficiencies maximised

throughout the recruitment process Reduction in recruitment marketing costs over time Greater numbers of higher quality applicants Higher performing employees Increased retention rates Stronger reputation in the marketplace Increased ability to attract specialist talent in a difficult

market

TALENT MATTERS

Employer brand benefits at our clients

Diageo - Began with an attrition rate of 18%, costing £4 million. In 14 months they reduced attrition rates to 7%, recouping the costs of the initial research 30 times over.

GSK - applied the proposition and guiding principles to their recruitment process, increasing the number of offers accepted from 83% to 96%

Philips - are now receiving 10 times as many quality applications from graduates and MBAs

TALENT MATTERS

Philips: The background

2002 global recruitment redesign programme found quality of service could be improved and needed to focus on proactive talent recruitment

Identified inconsistent positioning of messages to prospective employees – not addressing them as “One Philips”

They weren’t reaching targets they’d set to attract/ retain the best talent

They also wanted to find out how potential employees regarded the company as an employer

TALENT MATTERS

Philips: their vision

“To be certain that we are able to attract, recruit and retain the sort of talent that will give our business competitive edge.”

“To be sure that our employer experience will enable and motivate our talent to work in a way that is ‘one Philips.’ Providing maximum satisfaction for both the organisation and the individual.”

TALENT MATTERS

The research

29 internal focus groups 18 external focus groups 3500 internal survey respondents 1000 external survey respondents Both Sales/Mktg and R&D people,

different ages, length of service Netherlands, Germany, France, UK,

Poland, USA, India, China

TALENT MATTERS

Some of the outputs

Employees didn’t not know the full range of products/services Everything Philips makes impacts every aspect of consumers’

lives, something to be proud of and make more of Philips could be too formal – there needed to be more

personality in the way the brand was communicated

They wanted Philips to be One company – all working together, united in one purpose Proud and confident about what it does, passionate People and products could have equal and united prominence Offer great reasons for coming to work everyday An “icon of innovation” Global and diverse

TALENT MATTERS

TALENT MATTERS

“Touch lives every day” – The Trial

TALENT MATTERS

“Touch Lives every day”

“ Is not only a description of how Philips should approach prospective and existing employees, but also a call for managers to ensure the company delivers on its promises “

Jo Pieters, Global Vice President Recruitment, Philips, The Netherlands

TALENT MATTERS

Post-Application Experience

Pre-Application Experience

Application Experience

Campus recruitment Awareness

Engagement

Commitment

Retention

Consideration

Preference

Internship

Career site

Invitationletter

Introduction

Performancereview

Interview

Rejectionletter

Exitinterviews

Informing /Involvingpeople

Careerdevelopment

Managementbehavior

AssessmentContract handling

Employer Brand

Company brand

Philips Touchpoint Wheel

TALENT MATTERS

Ensuring Global Consistency – The Toolkit

TALENT MATTERS

Ensuring Global Consistency – Deployment

TALENT MATTERS

Guide for Hiring Managers

TALENT MATTERS

Building brands from the inside out

“ Winning the war for talent means primarily focusing on the retention of your current talent and [then], building a strong position in your key labour markets…

…a brand that is only visible in external communications is less valuable than a brand that is truly lived inside.

Each and every employee should act as an ambassador of your brand and that requires a strong recognized internal and external employee value proposition ”

Jo Pieters, Global Vice President Recruitment, Philips, The Netherlands

TALENT MATTERS

Philips Labor Market Ranking – ChinaEmployer brand launch Dec 2003

Engineering & Science Discipline 2003 2004 2005

Familiar with Philips 17 11 9

Considered employer 15 9 6

Ideal employer 14 8 4

Business Discipline 2003 2004 2005




TALENT MATTERS

Philips Labor Market Ranking – EuropeEmployer brand launch Dec 2003

Engineering & Science Discipline 2003 2004 2005




Business Discipline 2003 2004 2005




TALENT MATTERS

Lessons learned

Don’t underestimate the size of such an initiative

Even if you have clearly defined the scope, focus and approach, you have to make tough choices along the way about what to keep in or leave out

Getting the whole organization behind the Employer Brand is critical to making it a success

You must get commitment and involvement of people beyond HR, particularly in marketing, and get it early on!

TALENT MATTERS

So what does this mean for you… …and your Employer Brand?

TALENT MATTERS

Some final questions for you

Do you know what your organisation represents? Have you tested out your values, your culture? Have you looked at your brand values? What does this say about your organisation? Who is the real competition in the employment market (not

just

the ones you know or think it should be?) Is your brand attractive to new recruits? Does it help you present a strong employer brand in the

marketplace? Who manages your Employer Brand – HR or Marketing? What are you going to do with this information when you get

home?

Using Employer Brand to Attract Talent

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