WHERE WE ARE
What Is “Employ “Employer er Branding”?
Let’s start with what it is NOT – Employer Branding is NOT advertising • Advertising may or may not be a component of employer branding
– Employer Branding is NOT a corporate mission statement, nor a tag line, nor a slogan • All of these must reflect the employer brand, but they are not the brand itself
– Employer Branding is NOT something you create • It is something you discover or reveal; the employer brand already exists — you just have to find it
WHERE WE ARE
What Is “Employ “Employer er Branding”?
Let’s start with what it is NOT – Employer Branding is NOT advertising • Advertising may or may not be a component of employer branding
– Employer Branding is NOT a corporate mission statement, nor a tag line, nor a slogan • All of these must reflect the employer brand, but they are not the brand itself
– Employer Branding is NOT something you create • It is something you discover or reveal; the employer brand already exists — you just have to find it
WHERE WE ARE
Employer Branding Is About Relationships •
The relationship between an employer and employees… – Current – Past – Potential
•
The relationship between employees and… – Each other – Customers – Stakeholders • Investors / analysts • Suppliers / vendors • Community leaders
LOGO
WHERE WE ARE
ADVERTISING
COLLATERAL
WEB PORTAL SIGNAGE & ENVIRONMENT BRAND VISION RECRUITMENT & RETENTION QUALITY ASSURANCE
CUSTOMER RELATIONS
KNOWLEDGE MANAGEMENT BUSINESS PROCESSES INTERNAL COMMUNICATIONS TRAINING & DEVELOPMENT COMPENSATION & BENEFITS
WHERE WE ARE
Why Is Employer Branding Important? • •
Determines ability to deliver on corporate brand Affects ability to attract, retain talent – Better known / regarded employers have an easier time attracting top talent – Better known / regarded employers keep talent – Reduces cost-per-hire, time-to-fill, turnover
WHERE WE ARE
Nations Are Brands
10. New Zealand
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U.S. Workforce Trends
Source: U.S. Dept. of Defense
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New Zealand Workforce Trends •
Working age population growth fell to its lowest point since 2001— 1.3%— in June 2005
•
Net inflow of permanent / long-term migrants fell to 8,600 p.a. in June 2005, far below the three year average of 32,400 p.a. Preliminary figures for July show a net outflow, the first since 2001
•
New Zealand’s jobless rate of 3.7% is the lowest among the 27 nations in the Organisation for Economic Cooperation and Development
WHERE WE ARE
Net Permanent / Long-Term Migration
10 June 2005
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Unemployment Rate Historically Low
12 August 2005
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Labour Shortage Means Wage Inflation
09 August 2005
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Changing Psychographics The “Emerging Worker” – began with Gen X (1964 – 77); bled up into Baby Boomers, down to Millennials • mistrusts employers – no loyalty • “job security” = “marketability” • willing to wait for a good fit versus taking any job to get income
– brand-oriented due to media overexposure • 2,500 – 25,000 commercial messages DAILY • human brain has re-wired itself to recognize brands • brands used as guideposts in media jungle
WHERE WE ARE
“We live in a world today that is one giant commercial, and the customer by and large does not believe the message anyway. I would submit that there is a lack of trust about public institutions... More than ever before, people want to have a relationship with a company, and a company is represented by its people.” Howard Schultz Chairman and CEO Starbucks Coffee Co. March, 2000
WHERE WE ARE
What Relationship Exists Between Corporate Brand and Employer Brand? •
Millward-Brown 2001 BRANDZ™ Survey – 35,600 people surveyed in 16 countries – Survey examined 18 indices of brand – 1,317 brands • McDonald’s • Nokia • Wal*Mart
• •
• Bank of America • Nordstrom • Mercedes-Benz
Employers with strong brands are seen as good places to work Employers with weak or unfamiliar brands must use recruitment communications to build the brand
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The Brand Pyramid
Source: Walshe, Peter and Natalie Purdie, “‘I like your company– gi’ us a job!’: Evaluating the Assets of Your Company” (London: Millward Brown, March, 2002)
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Impact of Brand on Employer Preference
Source: Ibid.
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Generalized Impact of Brand on Employer Preference
Source: Ibid.
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Likelihood of Voluntary Turnover 70 60 50 40
HR Pros
30
Employees
20 10 0 Extremely Somewhat Somewhat Extremely Likely Likely Unlikely Unlikely
Source: Collison, Jessica and Mary Elizabeth Burke, “Job Recovery Survey” (Alexandria, VA: Society for Human Resource Management, Sept. 2003)
WHERE WE ARE
Reasons People Will Leave • Better comp / bene 63% • • • • • • • • •
Career dev 35% New experience 32% Job security fears 21% Career change 21% Poor management 20% Boredom 18% Values 18% Move 16% Burnout 15%
• Unappreciated 14% • Work / Life Issues 12% • Discrimination 8% • Hvy workload 7% • Start own business 6% • Conflict w/ supv 6% • Return to school 5% • Viability of org 4% • Other 13%
Source: Collison
WHERE WE ARE
The Economist Global Employment Brand Survey •
Panel of readers who agreed to complete series of surveys on behalf of The Economist’s advertising clients
•
Only panel members with specific job titles (‘c suite’ or heads of department) sampled
•
Questionnaires distributed by e-mail 24th April 2003 to 1,745 panel members
•
937 completed questionnaires returned by 21st May - 54% response rate
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Profile of respondents Chairman/ Pres/CEO 11%
MD/Vice Pres. 15%
Mgr/Dept Head 33%
Retail/Dist. 4%
Director/Gen Mgr/Co. Officer 19%
UK 42% Asia-Pacific 16%
Owner/Partner 22%
Financial 17%
Manufacturing 16%
Mgmt Cons. 12% Transport 3%
USA 29%
HR = main part of job function 4%
Continental Europe 13%
HR = part of job function 53%
Mktg, media & other bus. 15%
Other 7% IT/Telecoms 16%
Professions Government8% 2%
HR not part of job 43%
Base: all respondents (933) The Economist, May 2003
WHERE WE ARE
“Employer branding is too much of an important issue to be left solely to a HR dept” Agree?
HR is main part of my job function
HR is part of my job function
HR not part of my job function
Agree strongly
20%
59%
18%
44%
38%
Agree
44%
51%
Disagree
3%
10% 2%
10%1%
Disagree strongly Base: all respondents (933) The Economist, May 2003
WHERE WE ARE
Responsibility for Day-to-day Management of Employer Brand Nobody specific
21%
CEO/MD
15%
Board/Snr Mgmt
8%
Partners/Owners
7%
Middle mgmt 4% HR & bus. heads HR dept/head Marketing dept
8% 11% 5%
PR/Corp Com dept 3% Other No answer
5% 13% Base: all respondents (933) The Economist, May 2003
WHERE WE ARE
Anticipated Cost of Full-scale Employer Brand Development USA
Cont. Europe
Asia-Pacific
UK
$164,000
$160,000
$151,000
$140,000
Base: all respondents (933) The Economist, May 2003 US Dollars
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Expected benefits of development of employer brand 51% UK 29% 32% USA
Continental Europe
Asia-Pacific
76% 71% 55%
56% 70% 71% 58% 34% 29% 50% 70% 61% 58% 39% 43% 54% 74% 72% 67% 38% 36%
Reduced recruitment costs Higher staff retention Employees recommending org as place to work Employees committed to organisational goals Enhanced general marketing communications Increased profitability
Base: all respondents (933) The Economist, May May 2003 2003
Where We’re Headed
i l l e c c u n o B a n o z i r A c i n i m o D © o t o h P
Employment Branding Using the Web
Relationship Marketing Alumni Marketing Chat / Forums / Blogs Job Agent | Profiling
WHERE WE’RE HEADED
Employment Branding Using the Web vs. Traditional Web Recruiting •
Your site is the destination – All media, promotions, PR, etc., point to your site – Goal: create and nurture a relationship with visitors
•
You own the audience – People who want to work for your organization, vs. people who simply want a job – You can sustain interest even when the prospect isn’t actively looking • Relationship marketing – newsletters, job alerts, referral bonus offers, etc. • Alumni marketing – boomerang employees, networking • Forums / chats – build communities to which people feel kinship
craiglist
Craigslist - auckland
oodle
Oodle results
google
Google results
WHERE WE’RE HEADED
Search Engine Optimization (SEO) •
Configuring Your Employment Web Site to Be More Visible to Search Engines – Content tailored to appear to search engine “spiders” that “crawl” the Web – Establish greater number of inbound links from other Web sites – Notify search engines of your existence (e.g., DMOZ) – Provide fresh content, a site map, and judicious use of keywords people will use to search
WHERE WE’RE HEADED
Search Engine Marketing (SEM) •
Marketing Your Web Site Using Search Engines – Paid search results – Pay-per-click (PPC) • Fee-based • Auction-based
– Research into How People Search • What words they use • Which search engine(s) they use
Simply hired
Simply hired results
indeed
Indeed results
rss
WHERE WE’RE HEADED
Really Simple Syndication (RSS) •
Syndicating Web Site Content – Content is fed automatically to subscribers – Underlying technology of blogs – Job seekers can “subscribe” to their job, receive updates every time a new opening posts
•
XML Based – eXtensible Mark-up Language, successor to HTML – Disputes about standard • 0.7, 1.0, 2.0 versions in release independently
•
NB: The New York Times Bought 30% of indeed.com for US$3.5M
WHERE WE’RE HEADED
Blogs •
Web Logs Published by Individuals (“online journals”) – Phrase originated 1999; adopted by OED in 2003
•
Social Impact Widespread – Kryptonite bicycle lock recall – Politics: Trent Lott, Dan Rather – Employment: Microsoft gay partners policy
•
Blog Sites Popular – Blogger, Xanga, GreatestJournal
WHERE WE’RE HEADED
Blog Implications for Employer Branding •
Your Employees May Rat You Out! – You must “walk the talk” of your employment brand lest your employees reveal hypocrisy
•
You May Not Be Able to Stop Blogs – Employees can blog without your knowledge or assistance – U.S. employers have fired employees who wrote negative blogs; result: negative P.R.
•
Encouraging Blogs Is Strategically Smart – Shows organization has “nothing to hide” – More credible than paid advertising, P.R.
Google blog
Microsoft blog
Peer-to-Peer Networks •
Same Technology as Napster, LinkedIn – People join a community and agree to share… • Content • Music • Contacts
•
Jobster Allows Employers to Network to Top Talent Through Existing Employees
jobster
WHERE WE’RE HEADED
How Do You Start Building and Maintaining Your Employer Brand? •
Start with the Status Quo – What is the reputation of the organization as an employer? – How well known is your organization? – What’s working? What isn’t? – What helps your employees deliver your brand to your customers? What gets in their way? – Are your compensation and benefits programs aligned with your brand?
•
What do people outside of your organization think of you as an employer?
WHERE WE’RE HEADED
Establish a Goal •
What do you want your organization to be as an employer? – High performance? – High touch? – Resume Star? – Learning organization?
• •
What are the gaps between where you want to be and where you are? What specific steps do you need to take to get from where you are to where you want to be?
WHERE WE’RE HEADED
Plan Your Communications • •
Don’t say anything until you have something to say Plan your internal communications one year in advance – Important communications – 9x – Routine communications – 3x
•
Recruitment communications – Be authentic – Be relevant – Be different
WHERE WE’RE HEADED
The Big Question • •
How Much Will It Cost? The Economist - $164,000 avg. (US) – For every employer that spends $300,000 there’s one that spends $25,000
•
How Strong Is Your Corporate Brand? – If your organization is well-known and well-respected, leverage that brand equity – If your organization is not well-known or has image problems, you will have to spend more
