Why “Employer Branding” is crucial to attract and retain talent ?

In today’s era of good corporate governance, the role of human resources is increasingly focused on delivering effective governance and social responsibility. To achieve this, Simon Barrow (1996), a Consultant, introduced the concept of ‘Employer Branding’.

Employer branding aims to ensure that employees have a positive perception of their workplace. When employees feel good about where they work, they become ambassadors for the organization, spreading a positive image to customers and clients.

Employment branding is a strategic marketing effort to make an organization attractive as an employer. This targeted approach seeks to shape the perceptions of potential and current employees, as well as the public. Successful employment branding can reduce hiring costs and simplify the hiring process.

The term ‘Employer Branding’ can be understood as: Employer Branding = ‘Employer’ + ‘Branding’ ‘Employer’ refers to a person or institution that hires people. ‘Branding’ is a strategy that helps an organization stand out from competitors and build customer loyalty. This creates a unique position in the market that is difficult for competitors to replicate. While a satisfied customer may leave, a loyal customer is more likely to stay.

Similar to any other brand, an Employer Brand has value and a specific position. Employer branding is crucial for creating a positive image in the minds of potential employees and promoting the company as a desirable place to work.

The objective of Employer Branding is straightforward. It is a strategy used by organizations to create an Employer Value Proposition (EVP) that explains to current and prospective employees why the organization is unique, appealing, and an excellent place to work.

Employer Branding becomes increasingly important in times when the talent pool is shrinking and attracting and retaining talent is challenging. It is crucial to position the organization in the minds of the target audience to gain an advantage in attracting employees with superior skills and knowledge, which is a primary source of competitive advantage.

Definitions:

• “Employer Branding can be defined as the package of functional, economic, and psychological benefits provided by employment, and identified with the employing Company.” (Simon Barrow: 1996)
• “Employer Branding may be defined as an organic set of convictions an audience holds about a product, candidate, idea, or organization.” (HP: 2002)
• “Employer Branding establishes the identity of the firm as an employer. It encompasses the firm’s values, systems, policies, and behaviors toward the objectives of attracting, motivating, and retaining the firm’s current and potential employees.” (The Conference Board: 2001)

Key factors influencing Employer Brand Name:

• Salary paid by the employer.
• Employee benefits provided.
• Job security.
• Pleasant working environment.
• Work-life balance (fixed working hours, not irregular).
• Career advancement opportunities (promotion linked with increased remuneration).

The Rise of Employer Branding

Growing Popularity

A positive trend is emerging in employer branding, with 64% of surveyed organizations claiming to have a clear and well-designed strategy already in place, while 20% plan to develop one within the next six months. This marks a significant improvement compared to 2012 when only 25% of employers had a clearly defined strategy. This shift is a notable achievement for India Inc., indicating a wider recognition of the importance of employer branding.

Interestingly, the need for an employer branding strategy is not limited to large organizations; smaller companies are also recognizing its value and embracing the practice.

Effectiveness of Employer Branding

Employer branding is proving to be effective, with 74% of surveyed employers reporting positive outcomes from their practices. They observed improvements in quality hires, better job acceptance rates, and increased retention and engagement levels. Quality hires are particularly highlighted, with 37% of organizations citing it as the biggest advantage of a successful employer branding strategy, followed by better job acceptance (24%) and improved retention rates (23%).

Engagement and Retention

About 16% of employers believe that effective employer branding contributes to improved engagement rates. A significant portion of large (42%), mid-sized (58%), and small-sized organizations consider their employer branding strategies effective in engaging and retaining employees. Notably, an increasing number of small and mid-sized organizations are finding success with their employer branding strategies, with 55% of them terming their strategies as successful.

New Metrics

Organizations are not solely relying on quantitative metrics to measure the return on investment of their employer branding strategies. Instead, they are also focusing on softer metrics to assess long-term benefits. Around 59% of organizations are looking at engagement rates, while 47% are considering the quality of hire when evaluating the ROI of their employer branding strategies.

Overcoming Challenges

Budget is no longer a major constraint for planning and implementing employer branding strategies, according to over 70% of organizations. This is a significant shift from 2012 when nearly 40% of organizations cited budget constraints as a key roadblock. However, a persistent challenge is the lack of vision and clarity, which is identified as the primary hurdle in realizing the full potential of employer branding. About 68% of organizations feel that ambiguity related to the vision and objectives of the process hinders successful implementation and completion of an employer branding plan.

Employee Perspective

Despite employers’ confidence in their employer branding strategies and their perceived success, there appears to be a gap between what employers think and what employees feel about their employer’s brand. A survey of employees revealed that 67% do not find their organization’s branding strategy convincing. Only 23% of employees rated their organization’s branding strategy as convincing, while 10% considered it poor. Additionally, only 42% of employees said they would recommend their company to a friend. While branding strategies seem to resonate with experienced professionals, entry and mid-level candidates are not as satisfied with them.

How The BIG Advantage is helpful in creating employer brand value?

“The BIG Advantage” can help in building employer brand through various strategic HR solutions:

1. Employer Value Proposition (EVP) Development: They can assist in creating a compelling EVP that showcases the organization’s unique culture, values, and benefits to attract top talent.
2. Employee Engagement Initiatives: By designing and implementing programs that enhance employee satisfaction and loyalty, “The BIG Advantage” can help create a positive perception of the organization among current and potential employees.
3. Training and Development Programs: Offering training and development opportunities can improve employee skills and morale, contributing to a strong employer brand as a company that invests in its employees’ growth.
4. Recruitment Strategies: “The BIG Advantage” can help develop recruitment strategies that target the right candidates who align with the organization’s values and culture, ensuring a good fit and enhancing the employer brand.
5. Performance Management Systems: Implementing effective performance management systems can help recognize and reward employee contributions, reinforcing the organization’s reputation as a fair and rewarding employer.
6. Employer Brand Communication: They can assist in communicating the employer brand internally and externally, ensuring that employees and potential candidates understand and resonate with the organization’s values and culture.
7. Retention Strategies: By developing retention strategies that focus on employee satisfaction and well-being, “The BIG Advantage” can help reduce turnover and strengthen the employer brand as a desirable place to work.

Overall, “The BIG Advantage” can play a crucial role in building and enhancing employer brand by focusing on employee satisfaction, culture, and strategic HR initiatives.

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