1. Generational Differences in Employer Branding Chelsea Vandlen HR Intern, Corporate Center Talent and Organizational Development Department Spring 2010
2. Agenda Introduction of employer branding (EB) Definition Prevalence Benefits Generational differences and best practices Baby Boomers Generation X Generation Y Sources consulted Q&A
3. Definition of Employer Branding (EB) “The package of functional, economic, and psychological benefits provided by employment, and identified with the employing company.’” - Ambler and Barrow (1996)
10. Benefits of a Strong EB Higher quality applicant pool Stable and positive workforce attitudes and organizational performance Reduced cost of employee acquisition Improved employee relations Increased retention Ability to offer lower salaries for comparable staff
11. Generational Differences “If you can change your clothes without losing your identity, why can’t your brand do the same?”
12. Baby Boomers (1945-1964): “The Largest Generation” How they view… Money I deserved it—I spent it Leisure Means to self-fulfillment Work is shortcut to leisure Technology Expedient commodity Work Meaningful and purposeful Expect consensus/participation Deserve rewards/recognition
13. Best Practices CVS: Talent is Ageless “Snowbird” programs Older employees increased from 7% of workforce (1990s) to 18% (2007) Home Depot: Passion Never Retires Medical and dental benefits for employees working 10+ hours/week
14. Generation X (1965-1978):“The Skeptical Generation” How they view… Money I demand it—I invest it Leisure Work to have money for leisure Balance work and leisure Technology Fact of life Work Flexibility Shared leadership Casual, friendly relationships
15. Best Practices W.L. Gore & Associates: Join Gore & Change Life Associates, not employees Lattice organization chart SAS: Great software. Great people. 35-hour workweek No monitoring of sick days Subsidized daycares On-site healthcare
16. Generation Y (1979-2000):“The Overprotected Generation” How they view… Money Financially smart Retirement benefits are important factors in job choice Leisure Work-life balance Technology Intense users of high technology Work Addicted to change Need constant recognition Expect rapid promotion
17. Best Practices Deloitte 90% receive signing bonus 100% mentorship program participation Virtual job previews UBS: Together We… Firm-wide campus recruiting strategy Graduate deferral program
18. Sources Consulted Business Source Complete Conference Board Emerald Fortune’s 2010 100 Best Companies to Work For List Google Scholar Gallup Consulting Hewitt Associates Harvard Business Review Society for Human Resource Management
Source: Moroko and Uncles article Employer branding and market segmentationThis is probably the most widely recognized definition of EB. Many authors allude to this definition in their research.
DIFFERENTIATION:Employer branding “suggests differentiation of a firm’s characteristics as an employer from those of its competitors; the employment brand highlights the unique aspects of the firm’s employment offerings or environment” (Edwards article An integrative review of employer branding and OB theory)PERCEPTION:A targeted, long‐term strategy to manage the awareness and perceptions of employees, potential employees and related stakeholders with regards to a particular firm (Sullivan, ERE.net)
Source: Personnel TodayAn exclusive 2005 survey of 1,889 Personnel Today readers with responsibility for recruitment reveals that 95% of respondents believe employer branding is ‘important’ (Fig. A), with 80% saying that it will become even more so (Fig. B). And yet only 25% of those surveyed have responsibility for employer branding (Fig. C).
Although we will get into specific best practices later in the presentation, here are a few examples of companies who are explicitly and/or formally engaging in employer branding campaigns/strategies. I’m sure that you recognize many of them.Source: Moroko and Uncles article Employer branding and market segmentation; Moroko and Uncles article Characteristics of successful employer brands
Sources: SHRM powerpoint, Captivating company article,
Make sure the message communicated to potential employees is consistent, says Christopher Collins, assistant professor of human resource management at Cornell University’s School of Industrial and Labor Relations. “Marketing research finds that if there’s not a consistent message, people tend to be mistrustful.” Consistency is the key to successful branding (SHRM article)However, Generational branding• Matching your messaging and offering to theunique needs and values of differentgenerations• Demands customization in voice, method ofdelivery, program offering and moreSources: CareerBuilder powerpoint (Marc Paulenich, VP, Brand Strategy, Hart Associates)
Source: Multi-generational workforce presentation by Hewitt Associates at WorldofWork conference and SHRM powerpoint32% of US populationI am not going to take the time to go through each characteristic in detail, but I’d like to draw your attention to a few specific characteristics:First, even Baby Boomers, who are traditionally seen as having a strong work ethic, see work as a shortcut to leisure. A desire for flexible working conditions is typically viewed as characteristic of younger generations, but in a survey of nearly 3,800 workers, 87% of the Boomers said that being able to work flexibly was important because they are eager to explore other passions while keeping a hand in work. Many Boomers also have aging parents to take care of (HBR).Second, within the domain of work, Baby Boomers possess a psychology of entitlement. They feel very deserving of rewards and recognition for their individual hard work, but they also value teamwork and collaboration.Setting aside all of these characteristics of Baby Boomers, why should employers care about attracting and retaining the Baby Boomer generation if they are going to be retiring soonest anyway? Actually, in the same survey of 3,800 individuals, 42% say they will work beyond 65, whether out of necessity (insufficient savings or need to put kids through college) or enjoyment (like job or identities are intertwined with work). And even when Boomers DO retire, ERs are worried that Boomers will leave faster than new workers will replace them.And for those ERs who fear that health care premiums for workers ages 50 and over might be marginally more expensive. workers in that age group have a lower rate of dependent coverage, are less likely to take sick time and show more motivation as they grow older. (HR magazine article)
So there is a clear case for wanting to continue to attract/retain the Baby Boomers. Here are two examples of companies doing it successfully:CVS: launched their branding campaign around the slogan “Talent is Ageless.”They created the Snowbird Program in 2004 to let experienced store employees (mostly 50+) move seamlessly among CVS locations according to their seasonal preferences. Many of the mature workers enjoy wintering in southern states and summering in northern ones. As of summer 2009, over 1,000 employees, ranging from retail clerks to pharmacists and managers, have participated in this program (HBR)Enables CVS/pharmacy to bolster its workforce during the months that its stores in snowbird destinations experience a drastic increase in customers (HR magazine article).In 2005, CVS Caremark and AARP joined forces to promote the importance of mature workers in today's workforce and the workforce of tomorrow (CVS website)Sources:http://findarticles.com/p/articles/mi_m3495/is_12_52/ai_n21167484/http://info.cvscaremark.com/careers/seniorshttp://www.asaging.org/asav2/awards/business_2007.cfm?submenu1=businessHome Depot:Establish a National Hiring Partnership with AARP in February 2004Offers medical insurance, dental insurance, vision insurance, short-term disability insurance, and life insurance to its part-time associates.’Both of these companies are engaging in initiatives that entice Boomers to work longer while giving them the flexibility and rewards that they desire.Sources:https://careers.homedepot.com/cg/content.do?p=aarphttps://careers.homedepot.com/cg/content.do?p=benefits
Source: Multi-generational workforce presentation by Hewitt Associates at WorldofWork conference and SHRM powerpoint18% of US populationI’d like to highlight that Gen X employees also value opportunities to balance work and leisure, especially because many of them still have younger children. One interesting statistic is that Gen X fathers spend 3.4 hours per day with their children compared to an average of 2.2 hours that Baby Boomer fathers spend with their equivalent age children (Deloitte Decoding Generational Differences). Intent on managing their own time, 51% of 1,200 Gen X employees surveyed said they would jump ship for the chance to telecommute, and 61% of women would leave their current jobs if they were offered more flexible hours elsewhere (CNN article).This same survey also found that the top 3 things Gen Xers wanted in a job were POSITIVE RELATIONSHIPS WITH COLLEAGUES, INTERESTING WORK (77% of Gen Xers say they'd quit in a minute if offered "increased intellectual stimulation" at a different company), and CONTINUOUS OPPORTUNITIES FOR LEARNING. As the chart also highlights, Gen Xers value shared leadership and involvement, and they expect casual, friendly work relationships. Keep those in mind as I talk about the best practices of two other companies.
W.L. Gore:Company Ranks No. 13 on FORTUNE'S 2010 "100 Best Companies to Work For" ListAssociates (they never call them "employees") are in charge in a culture remarkably free from structure. When management guru Gary Hamel visited here in 2005, one associate told him, "If you tell anybody what to do here, they’ll never work for you again.““Lattice" (versus ladder-like) organization chart, which has no top or bottom. Instead, it's an interlinking web of relationships, with no job titles. (And no bosses: Authority gets passed around via a system of rotating team leaders.)Sources:http://money.cnn.com/magazines/fortune/bestcompanies/2010/snapshots/13.htmlhttp://money.cnn.com/2006/01/17/news/companies/bestcos_genx/index.htmSAS:SAS (pronounced sass) has been on Fortune's list of Best Companies to Work For every one of the 13 years we've been keeping score. But this is the first time SAS is in the No. 1 slot. Given the earlier statistic that so many men and women would be willing to change employers for the ability to telecommute/work more flexible hours, SAS must be doing something right because the average tenure at SAS is 10 years; 300 employees have worked 25 or more. Annual turnover was 2% in 2009, compared with the average in the software industry of about 22%. Average number of sick days taken annually = 2There are two subsidized day-care centers for 600 children, and then summer camp. Last year 90% of SAS employees and their families -- Goodnight included -- made 40,000 visits. SAS says the center, with a budget of $4.5 million, still saves the company $5 million annually because employees don't kill time in waiting rooms and are more apt to seek care when they should, and SAS's medical care is cheaper than outside the gates anyway."Very early on, it just made sense," Goodnight recalls. Or as he once told someone, "Contented cows give more milk." Sources:http://money.cnn.com/2010/01/21/technology/sas_best_companies.fortune/http://www.sas.com/jobs/USjobs/benefits.html
Source: Multi-generational workforce presentation by Hewitt Associates at WorldofWork conference and SHRM powerpoint28% of US populationAlthough Gen Yers are financially smarter than their older counterparts and rate other forms of pay at least as important as money, research still shows that financial incentives are a good attraction tool, even if they aren’t as good of a retention tool. This may be due in part to Gen Yers continued dependence on their parents for financial support, which gives rise to a new acronym, KIPPERS (Kids in Parents' Pockets Eroding Retirement Savings) (HBR). In fact, more than half of Generation Y’s new graduates move back in with their parents after college, partly to take the time “to pick the job they really want.” (Time 2007)On a related note, these generous parents may be the ones to blame for Gen Yers constant need for recognition. This is the generation of kids who won awards just for participating in activities.You can also see that Gen Yers are big on work-life balance. 47% of Ys say it's important that the company they work for offer sabbatical leaves -- that such perks boost commitment and performance (HBR). 87% say that WLB matters to them.Lastly, although it’s not mentioned specifically on this slide, Gen Yers are motivated by affiliation with others in their work and a majority of Gen Yers will look to Boomers (rather than Gen Xers) for professional advice. In fact, the two generations are often eager to engage in mentoring relationships.
Deloitte#1 on BusinessWeek’s 2009 Best Places to Launch a Career listSources:http://www.businessweek.com/careers/first_jobs/2009/1.htm?chan=magazine+channel_special+reportFinancial incentive is a strong recruitment tool for Gen Y, not one for retention (Careerbuilderppt)UBS#8 on BusinessWeek’s 50 Best Places to Intern listIn 2008, with offers extended to a new group of hires, but not enough work to keep them busy, the firm offered those who had accepted offers a chance to defer their work for one year and instead do public interest work while receiving a stipend of 1/2 their starting salary plus health insurance benefits. In its first year, 43 candidates took part in the program. Examples of what they did in their gap year include: working with a nonprofit in India, writing a novel, learn Spanish in Argentina, work on an offshore oil rig, and rebuild houses destroyed by Katrina. http://www.ubs.com/1/e/about/ouremployees/investing_in_employees/recruiting_staff.htmlhttp://shine.yahoo.com/channel/life/do-employers-care-about-happy-employees-497312/http://careers.deloitte.com/uploadedfiles/US/pdf/Careers_2009DeloitteRankedBestPlacetoIntern.pdf
