employer branding: where we are, where we’re … · employer branding: where we are, where...
TRANSCRIPT
Employer Branding: Where We Are,
Where We’re Headed
Human Resources Instituteof New Zealand
Wellington16 September 05
What Is “Employer 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
WHEREWE 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
WHEREWE ARE
ADVERTISINGLOGO
COLLATERAL
SIGNAGE & ENVIRONMENTWEB PORTAL
BRAND VISIONBRAND VISION
BUSINESS PROCESSES
INTERNAL COMMUNICATIONS
TRAINING & DEVELOPMENT
QUALITY ASSURANCE
KNOWLEDGE MANAGEMENT
COMPENSATION & BENEFITS
CUSTOMER RELATIONS
RECRUITMENT & RETENTION
WHEREWE 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
WHEREWE ARE
Nations AreBrands
10. New Zealand
WHEREWE ARE
U.S. Workforce Trends
Source: U.S. Dept. of Defense
WHEREWE ARE
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
WHEREWE ARE
Net Permanent / Long-Term MigrationWHEREWE ARE
10 June 2005
Unemployment Rate Historically LowWHEREWE ARE
12 August 2005
Labour Shortage Means Wage InflationWHEREWE ARE
09 August 2005
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
WHEREWE ARE
“We live in a world todaythat is one giant commercial, and
the customer by and large does notbelieve the message anyway. I would
submit that there is a lack of trustabout public institutions...
More than ever before, people want to have a relationshipwith a company, and a company is
represented by its people.”
Howard SchultzChairman and CEO
Starbucks Coffee Co.March, 2000
WHEREWE ARE
What Relationship Exists BetweenCorporate 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 • Bank of America • Nokia • Nordstrom• Wal*Mart • 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
WHEREWE ARE
The Brand Pyramid
Source: Walshe, Peter and Natalie Purdie, “‘I like your company– gi’ us a job!’: Evaluating the Assetsof Your Company” (London: Millward Brown, March, 2002)
WHEREWE ARE
Impact of Brand onEmployer Preference
Source: Ibid.
WHEREWE ARE
Generalized Impact of Brandon Employer Preference
Source: Ibid.
WHEREWE ARE
Likelihood of Voluntary Turnover
0
10
20
30
40
50
60
70
ExtremelyLikely
SomewhatLikely
SomewhatUnlikely
ExtremelyUnlikely
HR ProsEmployees
Source: Collison, Jessica and Mary Elizabeth Burke, “Job Recovery Survey” (Alexandria, VA: Society for Human Resource Management, Sept. 2003)
WHEREWE ARE
Reasons PeopleWill 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
WHEREWE ARE
The Economist GlobalEmployment 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
• 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
WHEREWE ARE
Continental Europe
13%USA29%
Asia-Pacific16%
UK42%
Profile of respondents
Manufacturing16%
Retail/Dist.4%
Financial17%
Professions8%
Other7%
Mktg, media & other bus.
15%
Mgmt Cons.12%
Government2%
IT/Telecoms16%
Transport3%
MD/Vice Pres.15%
Director/Gen Mgr/Co. Officer
19%
Owner/Partner22%
Mgr/Dept Head33%
Chairman/ Pres/CEO
11%
Base: all respondents (933)The Economist, May 2003 Base: all respondents (933)The Economist, May 2003
HR = part of job function
53%
HR not part of job43%
HR = main part of job function
4%
WHEREWE ARE
“Employer branding is too much of an important issueto be left solely to a HR dept” Agree?
Base: all respondents (933)The Economist, May 2003Base: all respondents (933)The Economist, May 2003
20%
44%
38%
59%
44%
51% 10%
10%
18%
1%
2%
3%HR is main part ofmy job function
HR is part of myjob function
HR not part of myjob function
Agree strongly Agree Disagree Disagree strongly
WHEREWE ARE
Responsibility for Day-to-dayManagement of Employer Brand
Base: all respondents (933)The Economist, May 2003 Base: all respondents (933)The Economist, May 2003
21%
15%
8%
7%
4%
8%
11%
5%
5%
13%
3%
Nobody specific
CEO/MD
Board/Snr Mgmt
Partners/Owners
Middle mgmt
HR & bus. heads
HR dept/head
Marketing dept
PR/Corp Com dept
Other
No answer
WHEREWE ARE
Anticipated Cost of Full-scaleEmployer Brand Development
Base: all respondents (933)The Economist, May 2003US Dollars
Base: all respondents (933)The Economist, May 2003US Dollars
$164,000
$160,000
$151,000
$140,000
USA
Cont. Europe
Asia-Pacific
UK
WHEREWE ARE
51%
56%
50%
54%
76%
70%
70%
74%
38%
32%
29%
43%
36%
72%
61%
71%
71%
67%
58%
58%
55%
39%
34%
29%UK
USA
ContinentalEurope
Asia-Pacific
Reduced recruitment costs
Higher staff retention
Employees recommending org asplace to work
Employees committed toorganisational goals
Enhanced general marketingcommunications
Increased profitability
Base: all respondents (933)The Economist, May 2003 Base: all respondents (933)The Economist, May 2003
Expected benefits ofdevelopment of employer brand WHERE
WE ARE
Where We’re HeadedWhere We’re Headed
Ph
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Ari
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Employment BrandingUsing the Web
Relationship Marketing
Alumni Marketing
Chat / Forums / Blogs
Job Agent | Profiling
Employment Branding Using the Webvs. 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
WHEREWE’REHEADED
craiglist
Craigslist - auckland
oodle
Oodle results
Google results
Search Engine Optimization (SEO)
• Configuring Your Employment Web Siteto Be More Visible to Search Engines
– Content tailored to appear to search engine“spiders” that “crawl” the Web
– Establish greater number of inbound linksfrom other Web sites
– Notify search engines of your existence(e.g., DMOZ)
– Provide fresh content, a site map, and judicioususe of keywords people will use to search
WHEREWE’REHEADED
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
WHEREWE’REHEADED
Simply hired
Simply hired results
indeed
Indeed results
rss
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
WHEREWE’REHEADED
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
WHEREWE’REHEADED
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.
WHEREWE’REHEADED
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 toTop Talent Through Existing Employees
jobster
How Do You Start Buildingand 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 organizationthink of you as an employer?
WHEREWE’REHEADED
Establish a Goal
• What do you want your organizationto be as an employer?– High performance?– High touch?– Resume Star?– Learning organization?
• What are the gaps between whereyou want to be and where you are?
• What specific steps do you need to taketo get from where you are to where youwant to be?
WHEREWE’REHEADED
Plan Your Communications
• Don’t say anything untilyou have something to say
• Plan your internal communicationsone year in advance– Important communications – 9x– Routine communications – 3x
• Recruitment communications– Be authentic– Be relevant– Be different
WHEREWE’REHEADED
The Big Question
• How Much Will It Cost?• The Economist - $164,000 avg. (US)
– For every employer that spends $300,000there’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
WHEREWE’REHEADED
