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8/8/2019 O.D Employer Branding by Nitish Arora
http://slidepdf.com/reader/full/od-employer-branding-by-nitish-arora 1/17
ORGANIZATION DEVELOPMENT
ASSIGNMENT -2
TOPIC - EMPLOYER BRANDING
SUBMITTED TO SUBMITTED BY
Mr. SUSHANTA BOSE NITISH ARORA
ROLL NO – 21
REG -10806134
LALTHALMUANA
ROLL NO – 15
SECTION – RQ1809
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INTRODUCTION
The term employer brand was first used in the early 1990s to denote an organization‘s reputation
as an employer. Since then, it has become widely adopted by the global management
community. The art and science of employer branding is therefore concerned with the attraction,engagement and retention initiatives targeted at enhancing your company's employer brand. Just
as a customer brand proposition is used to define a product or service offer, an employer brand
proposition (otherwise referred to as an employer value proposition, employee value proposition
or EVP) is used to define an organization‘s employment offer. Likewise the marketing
disciplines associated with branding and brand management have been increasingly applied by
the human resources and talent management community to attract, engage and retain talented
candidates and employees, in the same way that marketing applies such tools to attracting and
retaining clients, customers and consumers.
Origin and adoption of the employer brand concept:The term ‗employer brand‘ was first publicly introduced to a management audience
in 1990, and defined by Simon Barrow, chairman of People in Business. Senior Fellow of
London Business School, in the Journal of Brand Management in December 1996.
While the term ‗employer brand‘ denotes what people currently associate with an
organization, employer branding has been defined as the sum of a company‘s
efforts to communicate to existing and prospective staff what makes it a
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desirable place to work, and the active management of a company‘s image as
seen through the eyes of its associates and potential hires .
EMPLOYER BRAND MANAGEMENT
Employer brand management expands the scope of this brand intervention beyondcommunication to incorporate every aspect of the employment experience, and the people
management processes and practices (often referred to as ‗touch- points‘) that shape the
perceptions of existing and prospective employees.In other words, employer brand management
addresses the reality of the employment experience and not simply its presentation. By doing so
it supports both external recruitment of the right kind of talent sought by an organisation to
achieve its goals, and the subsequent desire for effective employee engagement and employee
retention.
REVIEW OF LITERATURE:
2001 American Express, Cisco Systems, Amgen, Starbucks, and Intel, all of which have received
recognition on The List of 100 Best Companies to Work for in America are leaders in EmployerBranding as well. "They all share the common trait of treating employees better than their peers
in industries, and all invest heavily in employee training and development," states Horning.
Companies who don't invest in developing an effective Employer Brand will, in the long run, be
less financially successful than those who are. As stated by States Woltzen, "They will not be
able to recruit or retain the high- performing‖
2002 Gallup survey reported that less than a quarter of American workers are fully "engaged" intheir work, costing the US economy $300bn (and £50bn in the UK) per year. Gallup surveys in
Great Britain, France and Singapore revealed similar findings in 2003.
The surveys revealed that more than 80% of British workers lack any real commitment to their
jobs, with a quarter of those being "actively disengaged," or truly disaffected with their
workplaces. Gallup estimates that actively disengaged workers cost the British economy
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between£37.2 billion ($64.8 billion U.S.) and £38.9 billion ($66.1 billion U.S.) per year due to
low employee retention, high absentee levels, and low productivity.
Gallup survey results in 2003 also showed that only 12% of French workers are engaged in their
work, with approximately 2.5 times as many workers (31%) being actively disengaged, or
disconnected from their jobs. In Singapore's workforce, the percentage of actively disengaged
employees is on the rise. At 17%, this figure is up five percentage points from 2002. Gallup
estimates that the lower productivity of actively disengaged workers penalizes Singapore's
economic performance, costing between $4.9 and $6.7 billion annually.
Recruiters in IT/ITES sectors are increasingly advising companies to hire expert help for
employer branding. "If you are not a first-mover like Infy or Wipro, then where is your USP?"
asks Mr. Gautam Sinha, CEO, TVA Infotech, one of the largest IT recruitment firms in the
country.
2002 Mr. Harish Bijoor, CEO of Harish Bijoor Consults Inc, calls this a cusp activity between
HR and marketing. "Internal branding is all about activation of solutions that can be seen,
touched, felt and literally smelt by the employee every single day. Branding from the external
perspective is all about top-down branding. Internal branding is a very bottom-up process."
2001 Gautam Sinha, CEO, TVA Infotech, a Bangalore-based IT recruitment firm, says the
brand name is the most important factor at entry level. On a scale of 1-10, he says, most students
would place brand name on top. An opinion that is also influenced by parental views, he says.
"At campus placements, parental consent plays a critical role. Most candidates choose big brands
because of this, unless of course they have specialized in niche subjects like robotics which big
brands may not offer. Thus as per the organization requirements employer brand or the Trust
generating factors should be culminated in the system.
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Benefits Of Employer Branding
The major benefits of employer branding include:-
Increased Productivity and Profitability.
Increased Employee Retention.
Highly ranked for Employer Attractiveness.
Increased level of staff engagement.
Lower Recruitment Costs.
Minimized loss of talented employees.
Employees recommending organization as a ―preferred ―place to work.
Maintenance of core competencies.
Employees committed to organizational goals.
Shorter Recruitment time.
Ensured long term competitiveness.
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Improved employee relations.
Decreased time from hire to productivity.
The employer branding is an authentic description of an experience, similar to a consumer brand.
It includes pay, working conditions, culture, job title, intangible rewards, and the emotional
connection employees have with the organization and manager. It tells candidates who you are,
what you want, and what you stand for. As a marketer attracts customers with a compelling
product brand, a company attracts candidates with a compelling employer brand.
Think an employer brand is more than a one-way description of ―what it‘s like to work there.‖
It‘s a multidimensional conversation among the company‘s leadership, its employees, candidates
in the marketplace, alumni, and even outsiders such as the press, bloggers, and anyone else whohas an opinion. The employer brand includes:
The Company’s professional reputation
A description of company culture.
News reports about the company, both good and bad.
Word-of-mouth statements about the company.
A description of the company‘s future.
How the employer‘s brand compares to the competition.
Beyond conversation, it’s also a set of subjective candidate experiences, such as
Applying for a job on your Web site or via e-mail.
Interviewing for a position.
Talking to employees and walking through the workplace sites.
Using products, services, or customer help.
The company‘s impact in the candidate‘s community.
What emerges in the candidate‘s imagination is a fuller story than any recruiting slogan can
capture: it‘s an experience. Candidates pay attention to an organization‘s reputation and compare
it to other reputations. Employees are asked what it‘s like to work there. In the quest for quality,
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employer branding is the foundation of attracting the right people. This is where the thought is
given to the new candidate comes together with the urgent need to bring great talent into the
organization. The new candidate, as noted, is empowered to compare the organization to others,
and start with the employer brand.
A typical hiring situation in which the employer branding makes
a difference: -
A mortgage broker, already employed at a bank, gets a call from a recruiter. ―Come work for this
leading financial services firm and make a lot of money,‖ says the recruiter. Instantly the
mortgage broker begins to weigh the reputation of the firm against current employer. Are they
prestigious or unknown? Are they thought of as a sweatshop or a fun place to work? Will one be
proud to approach customers with that name on his business card? Does he know people at the
firm, and are they happy to work there? Also might even think of their advertising, charity
affiliations, and location — all relevant factors in trying to judge the experience of working
there. If the answers aren‘t right, one might not even be receptive to the recruiter‘s pitch.
A thought of how hard it is for organizations in crisis to attract talent (except for turnaround
specialists) conveys about the power of employer branding. A reputation as ―a lousy place towork‖ is part of the death spiral that afflicts failing companies. It‘s a grim but true reminder that
reputation matters. People have affinities for brands. Those who use Apple computers, iPods,
and other devices respond to the brand‘s hip image. People feel different driving a BMW than a
Hyundai in part because they associate themselves with the brand and that colors their
experience.
An employer brand is a standard against which one can judge whether all the tasks around
attracting, acquiring, and advancing talent are working together. If an organization‘s efforts are
unified by the right employer brand, the company will look for the right people, create the right
employment advertising, do the right networking and other outreach programs, and explain the
advantages of working for the company versus competition. One will capture the candidates who
share values and will succeed, and take a pass on candidates (even talented ones) who won‘t
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work out. Furthermore, an authentic employment brand is a challenge to the organization‘s
management to walk the talk; to manage daily work according to a set of values and standards
that identify the company. This means employees know who they‘re joining, what they‘re
expected to do, and how they will be judged.
The employment brand is in fact the heart and soul of the company. It‘s really an articula tion of
why you exist, why you work, and why you work here and not someplace else. It‘s that
important.
Why Employer Branding important :
In Research Insight Employer branding: fad or the future ? Dr Shirley Jenner and StephenTaylor of Manchester Metropolitan University Business School suggest there are four main
reasons why the concept of employer branding has become prominent in recent years. They
identify these as:
Brand power HR‘s search for cr edibility Employee engagement Prevailing labour market conditions.
Jenner and Taylor explain their importance in the following extracts from the Research Insight.
Jenner and Taylor explain their importance in the following extracts from the Research Insight.
Brand power
The past 20 years have seen the rise of the brand as a central concept in organizational and social
life. Branding underpins a growing, influential and profitable reputation management, PR,
consultancy and recruitment advertising industry. The past decade has seen unprecedented
growth in the importance of corporate social responsibility (CSR) for investors, employees and
other stakeholders.
HR search for credibility
HR professionals continue in the search for credibility and strategic influence. Embracing the
language and conceptual tools of brand power seems an obvious choice. This direction reflects
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continuity with earlier iterations of HR, for example with organizational development and
culture change.
Employee engagement
Recent years have seen an increased interest in promoting employee engagement. This includes
attempts to recruit, socialize and retain a committed workforce. From a branding perspective, the
recruitment proposition forms the basis for workplace satisfaction and identification with
organizational goals and values.
Labour market conditions
The final driver identified by Jenner and Taylor was prevailing labour market conditions. At the
time of writing (2007) they pointed out that for an extended period of time unemploymentremained low and skills shortages continued. Tight labour market conditions were combined
with a tough trading environment. Employers were thus obliged to compete more fiercely with
one another to recruit and retain effective staff, while also being severely constrained in the
extent to which they could pay higher salaries in order to do so. A strong employer brand was
being promoted as the key to winning this ‗war for talent‘ by establishing organizations‘ unique
selling point in employment terms.
Since the time of writing, there has been a change in labour market conditions with the economicdownturn and rising unemployment. However, in uncertain economic times, employer brand
appears still appears to be a relevant concept as organisations seek to motivate and engage
existing employees and need to tempt candidates for key positions away from roles they perceive
as ‗safe‘ in their current organisations. Businesses making employees redundant will need to
consider how they minimize damage to their reputation as an employer and consider the impact
on ‗survivors‘ still with the company.
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EMPLOYER BRAND MANAGEMENT
Employer brand experience framework
The inherent weakness of IM, internal branding and, more recently, employer branding has been
the over-emphasis placed on communicating brand promises at the expense of longer term
management of the employee experience. This is now being addressed through an adoption of
the same thinking that has driven recent developments in management of the customer brand
experience, namely if we want to deliver a consistent on-brand service experience, it is not just a
question of managing our communication channels, we need to manage every significant
operational and interpersonal 'touch-point' with the customer.
While the employee experience is far more complex than any service experience, there is a
recognition that organizations would benefit from adopting a similar approach. People
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management involves a wide range of ritualized processes and HR 'products' that can be
described as employee touch-points. The term 'customer corridor' used to describe a relatively
predictable sequence of 'touch-points' can equally be applied to the recruitment process,
orientation, employee communication, shared services (including HR and facilities
management), reward, measurement (eg employee engagement surveys), performance
management and employee development. Likewise, core values and competencies can be seen as
a framework for governing the everyday experience of employees through the communication
and behaviour of their immediate line managers and corporate leaders.
As for the customer experience, being consistent is good, but being both consistent and
distinctive is even better. If we want to deliver a distinctive customer brand experience, and that
experience depends heavily on interpersonal interactions, then we need to ensure our employerbrand attracts the right kind of people
and our employer brand management reinforces the right
kind of culture (from the customer-facing frontline to the deepest recesses of every support
function).
To ensure our culture is aligned with the desired customer brand experience, it clearly helps to
have a distinctive 'brand of leadership', but it is equally important to ensure that our people
processes are also distinctively in tune with our brand ethos. These 'signature' employer brand
experiences will help to engender a distinctive brand attitude, generate distinctive brand
behaviours and ultimately reinforce the kind of distinctive customer service style that will add
value to the customer experience and differentiate an organization from its competitors.
Beyond Employer Brand:
Companies spend billions every year on their consumer brands to attract new customers and
open new markets. These vast sums are meant to entice the consumer to buy and continue buying
throughout the product and company life cycle.
Leading organizations may suffer if the employees itself don't understand or can't articulate
company value to the marketplace. Formal employer brand programs will help attract, retain and
motivate top talent in a market in which the talent pool is shrinking and recruiting costs are
growing.
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Reuters Case Stud:
The Reuters Fast Forward programme demonstrates how internal values can be used to
provide an effective focus for business and cultural transformation.
Reuters is best known as the world's largest international multimedia news agency, but
more than 90% of its revenue comes from its financial services business. Nearly half a
million people in the financial markets worldwide use information and analytical and
trading tools supplied by Reuters.
Reuters had experienced significant growth through the 1980's and 1990's on the back of stock
market deregulation around the world. While stock markets boomed, there was an apparently
insatiable appetite for Reuters' trading systems and information products. But in 2001 Reuters
was hit by the global economic downturn. Subscriptions to its information services fell 4% in
2002 and the Group posted a record loss of £493m for the year.
Over the last two years Reuters has undergone a dramatic process of internal change, which has
taken it back into profit, sharpened its competitiveness and created a more robust platform for
future growth.
Fast Forward
The 2002 results prompted Reuters to accelerate its business transformation by launching a
three-year change programme called ‗Fast Forward'.
Tom Glocer described the aims of ‗Fast Forward': ―I believe that we need to become a much
more competitive company, a more efficient company, a more service-oriented company, and a
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more aggressive company. However, it is much more than just changing our products or
changing the architecture: it means changing the Reuters culture as well.‖
In addition to simplifying its organizational structure and product offering, Reuters also
addressed the attitudes and behaviors of employees which it recognized would be key to
achieving lasting change.
Living FAST
Early on in the process, CEO Tom Glocer, led a two-day workshop of 20 key managers to
identify the values that would underpin ‗Living FAST', the desired characteristics of the new
organization.
FAST stands for:
Fast (working with passion, urgency, discipline and focus);
Accountable (being clear on performance, responsibilities, rewards and consequences);
Service-driven (understanding customer needs and then exceeding expectations through
personal commitment);
Team (sharing, challenging and trusting).
But what would these values mean in practice? A ―Living FAST Framework‖ brought together
the key drivers of change into a single coherent plan covering internal communication, reward,
recognition, learning and development, talent and performance management.
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Communication
Revitalized internal communications, with increased participation by employees, has been vital
to the success of the Fast Forward programme. Living Fast was launched on June 11th, 2003, via
a global, 24 hour event involving staff in all of the 92 countries in which Reuters operates. Priorto and during this event, employees were invited to log issues they felt needed to be addressed,
and Tom Glocer committed managers to respond to all of the 3400 feedback messages within the
following three weeks.
The website established for the event of June 2003 has been maintained as the home for all
communications about Living FAST. In addition, ―Daily Briefing‖, the company's daily
electronic newsletter for employee‘s features examples of best practice, and ―Talkback‖ allows
employees to raise issues with managers on-line.
Performance development, reward and recognition
Tom Glocer is firmly on record as wanting a performance culture. FAST values have been
integrated into performance review. Reviews are still held formally once a year, but there is now
much more emphasis on informal performance feedback quarterly, or even monthly.
Fast Forward targets have been incorporated into bonus awards, and into a formal recognition
scheme, which publicly rewards exemplary performance according to FAST values.
Reuters has also incorporated FAST principles into its managers' training programmes.
Environment
Most of Reuters' London-based staff, scattered across the city in a number of sites, will come
together in a new headquarters building in Canary Wharf during 2005. The working environment
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is being created with the new values firmly in mind. For example, in contrast to Reuters'
traditional preference for corridors and offices, open-plan will be the norm to encourage greater
collaboration and teamwork.
Measuring success
In a survey carried out in November 2003, over 80% of employees said they understood and
supported Reuters' core values, and significantly greater numbers than six months before
expressed confidence that Reuters would change for the better in the year to come. This
confidence in the Fast Forward programme has been borne out by recent results. The reported
figures for 2003 have seen the Group back into profit, and the outlook for 2004 is currently
looking very positive.
Culture change of the scale being enacted at Reuters is not for the faint-hearted. Events have
dictated that it act decisively. Its coherent, integrated approach gives it the best chance possible
to meet its targets for recovery in the short term, and create an enterprise highly responsive to
market challenges and opportunities into the future.
CONCLUSION
There is not only the need of creating a satisfaction in minds of employees, but also an urgent
need of creating this positivism in the minds of external customers and stakeholders. The created
image has to be monitored and sustained in such a way so that it will help in increasing profits as
well as would create belongingness, pride, self actualization and true commitment in true words
and spirit.
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Employer branding presents HR people with an opportunity to learn from some of the techniques
of marketing and apply them to people management. New roles have started to emerge in some
organizations which draw on skill sets from both disciplines. It is important that HR works
collaboratively, for example with colleagues in marketing and in internal communications, to
share expertise and reap maximum benefits from developing an employer brand . Employer brand
is the image of an organization as a great place to work in the minds of its current employees and
key stakeholders. It is the development of such an organizational culture which fosters a sense of
belongingness with the company and encourages the employees to share organization‘s goals for
success. In short, it is the value of the company in external marketplace. The goal of employer
branding is to create loyal customers; the customers here being the employees. An employer
brand represents the core values of an organization. Companies that are considered good
employers have a strong identity and an image in the minds of its employees and customers.
Building a brand of oneself in the market is not a one day process. It requires a track record in
business leadership, delivering quality services to clients, creating a corporate culture of trust and
providing ample growth opportunities for the employees. It involves answering the basic
question ―how do we live up to the expectations of our stakeholders?‖