Employer branding pinpoint

A Guide to Employer Branding

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CONTENTS P1

Introduction

P2 Recruitment P3 Employee Engagement P4 Social Media P5 Career Website P5 How to develop an employer brand P7 Benefits P8 The risk of employer branding P9 Conclusion

INTRODUCTION The term employer branding is used to describe how a business or organisation

markets 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. Now companies are finding ways to achieve these same aims for their current and future staff. The key areas that make up an employer brand is a comprehensive recruitment and employee engagement strategy, a focused corporate message and the long term vision of the company, such as policy, values and behaviour that employers and employees expect from each other.1 This helps in the long term retention of the candidates that they recruit. Effective employer branding is the combination of ‘market research, advisory services, communications, and marketing’2 to achieve a trustworthy and desirable brand position. It means constantly measuring performance and adjusting activities and strategies to continuously improve performance. Employer branding is there to improve business growth and to help achieve strategic business goals 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 the company. Therefore the role of developing, communicating and maintaining an employer brand is often assigned to the HR department.3 Employer branding will help HR departments to gain an insight into their employees, through employee attitude surveys and focus groups. This information should help them to inform their HR strategy, how internal communications are handled, and the HR department’s ability to design effective people management initiatives. The rationale behind employer branding is essentially to improve the growth of a business. Employer branding does this by attracting high quality candidates who have the skills, experience and knowledge that suit the needs of a business.4 Highly skilled and motivated employees are becoming a scarce resource for many companies, especially with a growing willingness amongst job seekers to change jobs with a 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 they believe in.5 Therefore it is even more important nowadays for companies to retain and attract the best employees.

Employer Brand Associations Employer Branding

Organisation Identity

Organisation Culture

Employer Brand Loyalty

Employer Image

Employer Attraction

Employer Productivity

Figure 1: A framework on how employer branding should work6

Figure 1 shows a framework devised by Professor Kristin Backhaus Dr Surinder Tikoo, which shows how an employer brand should work. It shows that brand association and employer image is vital to attracting candidates and that employer branding can impact on organisation identity and culture, which helps to improve employee loyalty, and consequently their productiveness. This framework highlights the key benefits of an employer brand and shows areas that need to be addressed 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. Öster, EMPLOYER BRANDING IN HUMAN RESOURCES MANAGEMENT, Stockholm, Stockholm Business School, 2013, pg. 7, available at: http://www.divaportal.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/InterbrandEmployerBranding-EN.sflb.ashx [accessed 11 August 2014] 6 K. Backhaus, S. Tikoo, "Conceptualizing and researching employer branding", Career Development International, 2004, Vol. 9 Iss: 5, pp.501 - 517

RECRUITMENT Recruitment is currently a vital aspect of employer branding due to a serious skills shortage in the UK labour force. This shortage is the result of a number of contributing factors including; the rapid growth of emerging economic powers, an ageing UK population, 1 and graduates who are increasingly unprepared and untrained for the workforce. This situation means that companies are under increasing pressure to attract and retain top talent. Developing employer branding not only enables 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 experience it has to offer, and the "customers" of this “product” are current and prospective staff. By highlighting the unique reasons why the company is a good place to work, it is hoped that skilled potential employees will be attracted to apply for positions. This is the cornerstone of employer branding; it allows you to attract top talent who have the right skills and cultural fit for your organisation. A company’s recruitment process is an important part of employer branding; every step of the 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 essential that the application process accurately reflects your brand in a positive way in order to attract skilled candidates. It is important that the job application process is designed in a way that will attract not only skilled candidates, but also candidates who are suited to the company’s outlook, ethos and general organisation. The ability to attract the ‘right’ candidates for a particular company will be reliant on the careful design and management of the application and recruitment process. Understanding the motivation and skill set of a company’s desired prospective employees is paramount when executing successful employer branding and ultimately, successful recruitment processes. Where a company choses to advertise a job is very important because candidates with different skill sets will be drawn to a specific recruitment websites. It is therefore necessary to understand the candidates who are applying to be able to target them 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 asked and the tasks set during this process can signify a company’s demand for highly skilled workers who are able to cope in high pressure environments. The way in which a company either accepts or rejects prospective candidates is an additional reflection of the company’s brand. A simple template email can come across as impersonal, shaping how the applicant views the organization as a whole. Finally, the communications conducted between a company and a new employee before their start date can have a very significant effect on the new recruit’s view of organisation. A lack sufficient information or contact conducted in an unfriendly manner is likely to give a 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; companies now need to tailor their value proposition to attract the right candidates for their organisation. When recruiting, it is necessary to take into account different values, ambitions and needs that candidates may have, depending on the industry and the role that is being advertised. For example, sales executives will place more value on salary than an academic applying to teach at a university. The millennial workforce as Figure 2 shows is a big driver of the employer brand. The graph shows the growing desire of millennials to work for an employer that has a good reputation and image. There has been a drop in the number of undergraduates that say that remuneration is the main driver behind the attractiveness of an employer. Job characteristics are still important, as are the people and culture. 30% 25%

20%

2008 2009 2010 2011 2012 2013 • Employer reputation and image People and Culture • Job characteristics • Rammeration and advancement opportunities Figure 2: Shows undergraduate students drivers of employer attractiveness2

C. 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/employerbranding-five-reasons-why-it-matters-five-steps-to-action/ [accessed 14 August 2014] 1

M. Bailey, What Millennials Want, Universum, 2014, available at: http://universumglobal.com/2014/07/whatmillennials-want/ [accessed 15 August 2014]

EMPLOYEE ENGAGEMENT Current employee engagement in the brand can be overlooked, as employer 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 â&#x20AC;&#x2DC;getting the best out of your talent and keeping them wanting to work for you.1 Employee engagement in the brand requires entrenching it into the company culture and organisation. The employer brand is only as good as the employee experience; if the reality of working for the company is not the same as the brand, organisation can find themselves losing talented employees and potential candidates. Employee loyalty and a â&#x20AC;&#x153;job for lifeâ&#x20AC;? culture are increasingly scarce in the modern labour force. Over a quarter of the workforce aged 16-34 have said that they want to change jobs between eight and twelve times during their working lives, with only one in ten employees nationally expecting to stay in one job or at one company for their whole career.2 This increasingly mobile workforce, with higher expectations of their employers is forcing employers to focus their efforts on engaging and retaining their skilled employees. Generating an engaged workforce requires creating opportunities for employees to engage with their colleagues, managers and the wider organisation in general. Creating a workplace where employees are motivated and take pride and care in their work is also very important in employee engagement; committed employees are more loyal, productive and will act as fans and ambassadors of the company, further generating interest from the right candidates for future jobs. Employee engagement is primarily about employee retention. The ways to keep employees engaged, happy, and taking care and pride in their work will lead to increased productivity. Implementing effective leadership which values employees, offers them promotional and training opportunities and acknowledges success with rewards, helps improve employee engagement throughout a company.

Employee Engagement & Employer Branding, CSA Recruitment, 2012, available at: http://www.csarecruitment.com/employee-engagement/ [accessed 12 August 2014] 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-lifeyoun-people-hr-staff-hyphen#sthash.PRiRVhYg.dpuf [accessed 14 August 2014]

SOCIAL MEDIA A crucial part of the candidate attraction process is having a positive brand experience when potential employees research the company online. To attract the best candidates, a visible and interactive online presence is vital, as people want to work for an organisation that 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, which emphasises how important it is in today’s world.1 There are many different social media options available for companies to engage with potential candidates, some are much more industry specific than others. The main social media 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 of social media use in a B2B context. It has been one of the fastest growing professional networks over the past few years, especially with the younger generation. LinkedIn allows companies to showcase themselves through articles, video and employee testimonials. LinkedIn also allows you to customise your brand message, offers a talent brand index, and very importantly it allows you to advertise and receive applications for job vacancies.

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

43% 40% 39% 38% 37% 34% 33% 32% 32% 31% 22% 22% 22% 22% 19% 16% 16% 11% 11% 10% 4%

64%

76%

Social Media 5 Year Trend

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

44 percentage

14 2009

D. 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]1 2 D. Smooke, The State of Employer Branding Strategy, Smart Recruiters, 2014 3 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/howto-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] 1

2011

2014

Figure 3: Shows employer brand communications2

©Employer Brand International 2014 Employer Branding Global Trends Study

Facebook is an online social network service that has the ability to share photos of staff and company events. It also allows a more human communication through posting on a company’s wall and having more than 140 characters to communicate with, unlike Twitter. Over half of jobseekers will ‘Like’ a company on Facebook hoping that they will find a job from the company’s newsfeed.3 Facebook is a fantastic way to promote a company 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 social media network.

CAREERS WEBSITE

HOW TO DEVELOP AN EMPLOYER BRAND

A company’s career website is a vital cog in a company’s 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.

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

If the company’s 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 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 company blogs all help to build a hugely positive image of the company, with very little time and money spent.

Discovery

Analysis, Interpretation and Creation

Implementation and Communication

Measurement, Optimisation and Maintenece Figure 4: The 4 main stages in developing 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 that you risk hiring people who do not want to work for your company because they do not identify or fit in with the company’s culture. These people will not be engaged and may leave, causing a high turnover of staff. 1

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

Analysis, Interpretation and Creation The next stage requires further research, but this time into building a clear and simple understanding of what the companyâ&#x20AC;&#x2122;s 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 differentiate yourself from your competitors.

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. Employer Branding Activity

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

Brand Awareness Furture employees

Implementation and Communication

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 a company 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

Current employees

Previous employees

Recruitment

Retertion

Productivity

Performance of recruting tools (e.g. clicks on job-ads, applications by channel) and recruitment (e.g. time to hire, quality of applications)

Direct employee retention indicators (e.g. turnover) and indirect indicators (e.g. employee satifaction) and motivation)

Productivity managment indicators depending on industry and function / department (e.g. error rates or sales figures)

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

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 there are risks that during an interview candidates will see the brand is different to the reality and that could decrease their willingness to work there. The communication aspect should also 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.

Potential employees

Performance Measures

Brand Awareness surveys segmented by the different target groups

Figure 5: A measurement tool for employer branding activities3

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. Social media and Employer Branding, Employer Brand News, 2013 Build your employer brand: A strategic approach to recruitment and retention, Ranstad, 2014, pg. 5 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] , 1

BENEFITS An effective employer brand will help organisations to compete more effectively in the 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’1 and companies that only have a consumer brand will have hiring costs that are twice that of a company which possesses an effective consumer and employer brand. Reducing the cost-per-hire is also about increasing the number of referrals from employees. If employees are happy and invested in the company they work for they will sell it to people they know, and will become a force of attraction themselves. An effective employer brand that employees can identify with will result in a lower turnover of staff and a more loyal, engaged workforce. A lack of staff turnover will also be a big help in the employer brand, proving that employees like to work for the company. If there is a high turnover of staff prospective candidates may feel uneasy about working there, as a high staff turnover leads to concerns over why this is happening. 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 day to day running of a business. However, if employees stay company knowledge will grow, productivity will also increase and there will be a very low cost in turnover or for recruitment purposes.

“if employees stay company knowledge will grow, 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 highly skilled individuals that contribute to the growth of the company, as well as improving your customer brand. Companies that treat their employees well and are seen as a reputable; this can have a positive impact on sales. The opposite has been seen when some large and worldwide companies were seen as taking advantage of their employees. These companies received a negative backlash from consumers that impacted their growth.

C. Peyron, The war for survival starts with the Fight for Brainpower, Universum, 2012, available at: http://universumglobal.com/2012/10/the-war-for-survival-starts-with-the-fight-for-brainpower/ [accessed 12 August 2014] ,

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 highquality 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 companyâ&#x20AC;&#x2122;s 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 they engage 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 companyâ&#x20AC;&#x2122;s 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 the company. 2

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 companyâ&#x20AC;&#x2122;s 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 should train their staff to use social media. 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.

Employer branding attracting 'more, not better' candidates, London, HR Grapevine, 2014, available at: http://www.hrgrapevine.com/markets/hr/article/2014-07-28employer-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 August 2014] 1

CONCLUSION Employer branding is becoming a mainstay for companies of all sizes in the UK. Skills gaps are increasing, which means the need to attract the best and brightest is more important than ever before. Employer branding also has a vital a role to play in employee retention; attracting top talent is one battle but keeping them is another. If an employee is engaged and happy at work then they will be more efficient and productive. These are the core aims of an employer brand which can help to improve the growth and success of a company. Hiring and retaining highly skilled individuals is crucial to the continued success of any company. In the current climate social media plays a huge role in the employer brand, both for recruitment purposes and employee engagement. There are many different forms of social media but LinkedIn, Facebook and Twitter are the most used and they are the principle tools of engagement with current and potential employees. If they are used correctly they can deliver good quality candidates, and allow staff to be more engaged and active within the company. The building of an employer brand is crucial to its success in its core aims, as if it is done wrong talented candidates and employees will slip through the net. It is therefore vital to identify early on the company culture and principles and define who you want to attract. This shows the importance of employer branding and getting it right, as competition for highly skilled candidates is up, employees willingness to stay in a job for life are down, and what workers want from work is not just about money, for many their main priority is working for a brand that they believe in and want to be part of.