Nigel Wright Employer Branding Research


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Nigel Wright Employer Branding Research

  1. 1. Nigel Wright Employer Branding
  2. 2. Employer Branding what does it mean? <ul><li>“ A targeted, long-term strategy to manage the awareness and perceptions of employees, potential employees, and related stakeholders with regards to a particular firm” </li></ul><ul><li>(Sullivan, 2004) </li></ul><ul><li>“ The employer brand establishes the identity of the firm as an employer. It encompasses the firm’s value system, policies and behaviours toward the objectives of attracting, motivating, and retaining the firm’s current and potential employees” </li></ul><ul><li>(Conference Board, 2001) </li></ul>
  3. 3. Why should we care?
  4. 4. Changes in Recruitment trends <ul><ul><li>Web 2.0 social networking </li></ul></ul><ul><ul><li>Information and opinions on employers are widely available </li></ul></ul><ul><ul><li>New generation of job seekers have different attitudes </li></ul></ul><ul><ul><ul><li>Job will find me </li></ul></ul></ul><ul><ul><li>New generation have different needs </li></ul></ul><ul><ul><ul><li>Cash is no longer king </li></ul></ul></ul><ul><ul><ul><li>Social needs need to be considered too </li></ul></ul></ul><ul><ul><ul><ul><li>Fun, personal development, recognition, match of values </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Generation Y (post’79 birth date) focus on flexibility, professional freedom, high rewards and a work life balance. </li></ul></ul></ul></ul>
  5. 5. It’s a buyers market <ul><li>Companies find it hard to attract the best candidates </li></ul><ul><li>Drivers </li></ul><ul><ul><li>Location </li></ul></ul><ul><ul><li>Reputation </li></ul></ul><ul><ul><ul><li>Product or brand perception </li></ul></ul></ul><ul><ul><ul><li>Corporate social responsibility </li></ul></ul></ul><ul><ul><ul><li>Organisational culture </li></ul></ul></ul><ul><ul><ul><li>Pay and conditions </li></ul></ul></ul>
  6. 6. Survey results
  7. 7. Background to survey <ul><li>Worked with Durham University Business School </li></ul><ul><li>Survey of 1000 managers and professionals </li></ul><ul><li>Results suggests there are positive benefits to employer branding </li></ul><ul><li>Also highlights some concerns over the violation of the psychological contract </li></ul><ul><li>Looks into internal and external perception of prestige </li></ul>
  8. 8. EMPLOYER BRANDING – 3 STAGES. Firm develops their ‘value proposition’ Firm markets its ‘value proposition’ externally (prospective candidates, agencies, etc) Firm markets its ‘value proposition’ internally
  9. 9. Employer Branding <ul><li>5 Values that drive employer engagement </li></ul><ul><li>Interest value – individual attraction </li></ul><ul><li>Social value – fun, happy and supportive working environment </li></ul><ul><li>Economic value – salary and overall compensation package </li></ul><ul><li>Development value – recognition and self worth </li></ul><ul><li>Application value – opportunity to apply what you know </li></ul>
  10. 10. Employer Branding – top line results <ul><li>Social Value factors are the top factor in job choice decisions </li></ul><ul><ul><li>85% rated working relationships as important </li></ul></ul><ul><li>Economic factors are the second most important </li></ul><ul><ul><li>79% said compensation package was important to them </li></ul></ul><ul><li>Application values were the lowest rated </li></ul>
  11. 11. Perceived organisational prestige and fit <ul><li>Reflecting social values of staff is important </li></ul><ul><li>Few people have a powerful sense of affiliation with their employer </li></ul><ul><li>Only 30% of respondents agreed that their values matched those of their employer </li></ul><ul><li>54% of respondents thought that their organisation was considered best in its sector. </li></ul>
  12. 12. Realistic job previews and met expectations <ul><li>Realistic job preview refers to how employers manage potential employees expectations of the role. </li></ul><ul><li>This involves giving an open and honest view of the positive and negative aspects the job entails. </li></ul><ul><li>48% of respondents felt that they didn’t get a balanced view of the positive and negative aspects of the role </li></ul><ul><li>34% felt that their job had not turned out how they had expected. </li></ul><ul><li>Research showed that companies with proactive employer branding strategies did give realistic job previews </li></ul>
  13. 13. Psychological contract <ul><li>Are expectations met? </li></ul><ul><li>Greatest violations are in the area of training, performance based pay and the balance between work and home life. </li></ul><ul><li>If employer branding efforts over promise they run the risk of violating the psychological contract </li></ul><ul><li>More effective job preview means the psychological contract is not going to be breeched </li></ul>
  14. 14. Organisational Commitment <ul><li>Employer branding have a positive effect on organisational commitment </li></ul><ul><li>Overall few staff personally identify with their employer </li></ul><ul><li>More feel trapped 39% say they couldn’t leave because of few alternative </li></ul><ul><li>Effective employer branding will act as a retention device </li></ul>
  15. 15. Employer Branding Commitment continuance Life Satisfaction Realistic Job Preview HOW DOES EMPLOYER BRANDING WORK? Perceived Organisational ‘Fit’ Organisation-based Self-Esteem
  16. 16. Organisational identification <ul><li>A development on organisational commitment , this is when employees define themselves and their organisations in the same terms. </li></ul><ul><li>72% of respondents stat that they say ‘we’ rather than they when talking about their organisation </li></ul><ul><li>47% take criticism of their organisation personally </li></ul>
  17. 17. Organisational Support <ul><li>In general respondents do not feel positive about the amount of support they get from their organisation. </li></ul><ul><li>47% feel that their organisation would take advantage of them if it could. </li></ul><ul><li>Only 28% think that their organisation cares about their well being </li></ul><ul><li>Employer branding has no perceived impact on these factors , a more influential factor is if the organisation is well respected within its community then employers believe that it will give them more support. </li></ul>
  18. 18. Organisational based self esteem (OBSE) <ul><li>Employees working for firms that have worked hard on their employer brand tend to feel better about themselves and tend to agree with the statement ‘it’s a great place to work’ </li></ul><ul><li>OBSE has a marked effect on motivation </li></ul>
  19. 19. Employee growth need strength (EGNS) <ul><li>A high percentage of the survey group 96% prefer stimulating and challenging work. </li></ul><ul><li>This is not surprising as the survey group was made up from professional and managerial level employees </li></ul><ul><li>Employer branding was positively associated with EGNS </li></ul>
  20. 20. Leadership <ul><li>People join an organisation but leave a leader </li></ul><ul><li>Leaders are reported as being the strongest factor in seeking new opportunities, with 60% of respondents stating this </li></ul><ul><li>Effective leaders complement people on outstanding levels of work on a regular basis. </li></ul><ul><li>Respondents reported that their leaders were weakest at being a good role model </li></ul>
  21. 21. Quit Intent <ul><li>Firms with strong employer brands may be inadvertently creating unrealistic expectations that they cannot deliver on, and then are in turn creating their own employee turnover problems. </li></ul>
  22. 22. Conclusion <ul><li>Employer branding does help with attraction and retention of staff, it’s greatest effect is seen in terms of self esteem – which leads to increased productivity. </li></ul><ul><li>Building a reputation locally and the reputation of a companies products also effect employee attitude towards the firm </li></ul><ul><li>The results suggest that to be truly successful a company needs both </li></ul><ul><li>There is a watch out though – if a company over promises with it’s employer branding it runs the risk of missing staff expectations that will lead to retention problems. </li></ul>
  23. 23. What can companies do to help themselves <ul><li>Counter shareholder and analyst pressure to take a short term view based on performance </li></ul><ul><li>Invest in people development </li></ul><ul><li>Be open and honest throughout the recruitment process </li></ul><ul><li>Share information widely </li></ul><ul><ul><li>Company website </li></ul></ul><ul><ul><li>Recruiters website – micro site </li></ul></ul><ul><ul><li>Candidate information packs </li></ul></ul><ul><ul><li>Familiarisation visits </li></ul></ul>
  24. 24. What you can do - continued <ul><li>Review your stance on corporate social responsibility </li></ul><ul><li>Look what competitors in your sector do to sell themselves </li></ul><ul><li>Ensure recruitment experience matches working reality </li></ul><ul><li>Consider how to address social needs of staff </li></ul><ul><li>On board new hires with care </li></ul><ul><li>Do not over promise – it can be just as damaging </li></ul><ul><li>Ensure leaders understand the importance of the concept of an employer brand </li></ul><ul><li>Invest in your image </li></ul>
  25. 25. candidate engagement – tailored information packs
  26. 26. candidate engagement – micro sites
  27. 31. Any questions? [email_address]