Employer Branding And Employee Retention....Explored
“ an Employer Brand is about capturing the essence of the Company in a way that it engages employees. It is who you are as an employer. It conveys your ‘value proposition’- the totality of your culture, systems, attitudes and employee relationships. And it encourages your people to embrace and further shared goals- success, productivity and satisfaction- on a personal and professional level.” In the words of Christine Johnson, Director of Employee Communication, form Shaker…. BRAND DEFINED EMPLOYER
DEVELOP AN EMOTIONAL LINK OFFER PROSPECTIVE CANDIDATES TANGIBLE BENEFITS BASED ON EVIDENCE MOTIVATION OF ACQIURED TALENT RETENTION OF TALENT ATTRACTION OF APPROPRIATE TALENT
Take the Pulse of the organization Managing the Managers Creating a welcoming work environment Making Employees Stay
THE FUNCTIONAL AREA <ul><li>The functional area of my proposed study is Human Resources. I intend to study how employer branding impacts employee retention. The concept of Employer Branding clubs human resource management and brand management principles. It is more of a need than a trend. Through my study I want to analyze and highlight the importance of Employer Branding, even during the slack periods. It is actually this time when an organization can emerge as a ‘good’ or a ‘bad’ Employer Brand. </li></ul>
OBJECTIVES OF THE STUDY <ul><li> </li></ul><ul><li>To analyze the reasons for Employer Branding. </li></ul><ul><li>To analyze the strategies of Employer Branding, i.e. developing a brand. </li></ul><ul><li> </li></ul><ul><li>To analyze the various elements/aspects of employee retention. </li></ul><ul><li> </li></ul><ul><li>To study the co-relation between Employer branding and employee retention. </li></ul><ul><li> </li></ul><ul><li>Evaluation of the current brand equity. </li></ul>
RESEARCH METHODOLOGY Sampling Size 30 Data Collection Method Primary data has been collected through questionnaire, from questionnaire. Geographic Coverage Banking units in Gurgaon Statistical Tools to be used Co-relation and SPSS Software Analytical Procedure h o : Employer branding and employee retention are not correlated h 1 : Employer branding is correlated to employee retention.
<ul><li>… ..a captive business unit is an entity functioning offshore as an entity of its own while retaining the work and close operational tie ups with the head. A captive unit is one way of establishing presence in cheap labor markets rather than outsourcing work to third party companies established offshore. </li></ul>
Employer Branding: A Literature Review The ICFAI Journal of Brand Management, Vol. 3, No. 2, pp. 19-34, June 2006 Sanjit Roy <ul><li>Abstract: </li></ul><ul><li>In the new economy, the word that makes its presence felt most in the business world is 'competition'. The primary source of long-term competitive advantage for a business firm or an industry is its people. Human resource has to be handled with great care in this era of cut-throat competition. Companies are always on the lookout for a talented employee pool for achieving and sustaining the competitive advantage in the long run. But, there is a widening gap between the demand and supply of future business leaders and competent employees. It could be due to the lack of experiential learning and lack of awareness among potential employees. Hence, it is an uphill task for employers to attract the right kind of workforce. Retaining the current employees is yet another most talked about issue in the business circle. This is the right time for the advent of a technique called 'employer branding' - considered as the most effective strategy that is fast gaining worldwide attention - which may act as a differentiating factor for the employer who uses it effectively. Effective employer branding is about building the overall image of the organization, both internally and externally. At all levels of building the image of the employer, it requires involvement of the employees and their views on continuous improvement in the organization. The tagline, employer by choice, is a popular device to attract the best talents. Employer branding is a concept where the recruitment process has to be managed in the same way as customers are. It involves employees and customers, human resource and marketing professionals. The success of employer branding depends on the prevailing culture in the organization. The employer brand image has its impact on the brand image of the product/services. </li></ul>
Uniquely You - Employer Branding: The David Group http://www.indianmba.com/Faculty_Column/FC669/fc669.html The David Group <ul><li>Abstract: </li></ul><ul><li>Attracting and retaining the best and brightest employees is a daily struggle for most human resources professionals. Companies that try to recruit candidates with salary, benefits and other job-specific dimensions alone have missed the point. This intangible, yet compelling notion motivates target candidates to choose you as an employer. The bond created by a sense of shared values motivates and retains employees. Developing an employer brand is not a small undertaking. Top management support is critical, as is a structured approach. What are the next steps? Build a Brand Team Developing and maintaining an employer brand is a far-reaching and ongoing process that benefits from a team approach. The team should include staff members responsible for approving strategic direction and creative within human resources. What are your strengths and weaknesses? What makes your company unique? Identify the one-of-a-kind characteristics, such as work environment, company history and values that attract, motivate and retain high quality employees. Know Your Target Candidates Through focus groups, surveys or in-depth interviews; find out what is important to prospective candidates when selecting an employer, how they see themselves as people and how they want to be seen. This will indicate which segment of the audience best fits your company and whom your brand should target. Communicate and Integrate Your Employer Brand. Consistent support of your employer brand in all of your company's actions and words strengthens your brand. Your employer brand should be evident in your employee communications, recruitment marketing materials, Web site and recruiting process. </li></ul>
Employer Branding: A Ripple Effect for organizational effectiveness http://www.expressitpeople.com/20030512/cover.shtml Ms. Vijt Chaturvedi, Faculty (HRM), ICFAI University <ul><li>Abstract: </li></ul><ul><li>Like a consumer brand, it is an emotional relationship, but between an employer and employee, one that radiates out from this core to other stakeholders, to the community at large, and obviously to potential employees. Employer branding is the development and communication of an organization's culture as an employer in the marketplace. It conveys your "value proposition" - the totality of your culture, systems, attitudes, and employee relationship along with encouraging your people to embrace and share goals for success, productivity, and satisfaction both on personal and professional levels. Employer branding is the essence of the employment experience, providing points that commence with initial employer brand awareness, and continuing throughout the tenure of employment, even extending into retirement. Employer branding is a distinguishing and relevant opportunity for a company to differentiate itself from the competition creating its branded factors as its USP for employee satisfaction and happiness resulting in retention, productivity and efficiency. When properly planned and executed, an employer branding initiative can generate lively dialogue between an employer and its employees, build a rationale for a 'mutual working arrangement', and establish compelling reasons to commit to the arrangement. </li></ul>
Brand building to attract and retain the best talent http://www.recruitersnetwork.com/articles/article.cfm?ID=1529 Punita Jasrotia <ul><li>Abstract: </li></ul><ul><li>The IT industry being people-oriented, what differentiates the best from the rest is the “quality of human capital” in every organization. While there is plenty of talent available, the difficulty comes in finding the talent with the “best fit” to the organization. Potential employees would like to associate themselves with companies which have a “brand” of success, leadership, people development initiatives and also instill a deep sense of pride and commitment. Employer branding is all about the company’s value in the market, a timeless process that in today’s scenario has gained even more significance. It is essentially a combination of the reputation of the organization, the career offer and the corporate culture existing in the company. Typically, there are two types of employer branding exercises. One is for prospective employees and the other for the current set of employees. In case of the former, the employer branding initiatives are targeted at building mindshare in potential recruits about the company as a preferred place to work. This can be in the form of communication through advertisements, third-party endorsements through the media or going to campuses. Employer branding is a part of overall branding strategy of a company. Both these factors are very significant. “Every single employee should buy into the vision, commitment and ethics of the company and should be a walking advertisement for the company. An organization must adopt a concerted and focused approach to building and maintaining its reputation as a ‘Best Workplace’ and constantly work towards reinforcing this branding through continuous exercises. </li></ul>
How well informed are you about the organizational values of your company?
How would you rate your organization’s pay & benefits?
Success in your organization is communicated and celebrated.
Working with this organization has been a career enhancing experience for you, so far.
Based on your overall satisfaction rate and your company’s image, how would you rate your likelihood to stay?
Calculation of Correlation between Employer Branding and Employee Retention <ul><li>EMPLOYER BRANDING - Average Employer Branding (X) </li></ul><ul><li>EMPLOYEE RETENTION -Based on your overall satisfaction rate and your company’s image, how would you rate your likelihood to stay? (Y) </li></ul><ul><li>Correlation measures how are variables related. </li></ul><ul><li>Pearson’s coefficient is a measure of linear association. </li></ul>
Correlation between Employer branding and employee retention <ul><li>Employer Branding= VAR00001 = X </li></ul><ul><li>Employee Retention= VAR00002 = Y </li></ul><ul><li>Value of Correlation= 0.574 </li></ul><ul><li>Employer Branding and Employee Retention are positively correlated. </li></ul>**Correlation is significant at the 0.01 level(2-tailed) VAR00001 VAR00002 VAR00001 Pearson Correlation Sig. (2-tailed) N 1 . 30 .574** .001 30 VAR00002 Pearson Correlation Sig. (2-tailed) N .574** .001 30 1 . 30
Strategies of Employer Branding <ul><li>Active employee involvement. </li></ul><ul><li>Identify the needs of employees and design program as per the requirements. </li></ul><ul><li>Company intranet. </li></ul><ul><li>Policy and procedures templates. </li></ul><ul><li>Recruitment advertising. </li></ul><ul><li>Work environment. </li></ul>
<ul><li>Compensation and benefits. </li></ul><ul><li>Career development. </li></ul><ul><li>Reward and recognition. </li></ul><ul><li>Communication systems. </li></ul>
Career Connections: a cutting edge initiative <ul><li>Seeks to maintain connections with valued alumni who choose to take a career break. </li></ul><ul><li>Initially the program is focusing on Bank of America alumni, but will later broaden the scope to include top talent from other organizations. </li></ul><ul><li>The target population is high potential senior and mid-level executives who want to off-ramp for one-to-three years. </li></ul><ul><li>While off-ramped, participants will be invited to company events to build and strengthen skills. </li></ul><ul><li>A peer coach and customized on-boarding plan will help them, when they are ready to return. </li></ul><ul><li>The program is an integral part of the long-term strategy to retain key talent. </li></ul>
Evaluation of Current Brand Equity Brand Awareness Brand Usage Brand Judgment Brand Performance Brand Imagery 4.43 3.96 4.3 3.66 4.31 Value of Brand Equity = 4.132
<ul><li>BRAND AWARENESS: the basic tool that depicts the acceptability of the brand and builds the perception of the firm within the target market. </li></ul><ul><li>BRAND USAGE: the action parameter for the brand. It measures the level of consumer satisfaction. </li></ul><ul><li>How well do you understand the organizational values of your company? ( 4.43) </li></ul><ul><li>Based on your overall satisfaction rate and your company’s image, how would you rate your likelihood to stay? ( 3.96) </li></ul>
BRAND JUDGEMENT: focuses on customers’ personal opinions and evaluations as regards to the brand. (performance + imagery indicators) BRAND PERFORMANCE: relates to the ways in which the product or service attempts to meet customers’ functional needs. <ul><li>Working with this organization has been a career enhancing experience for you, so far. ( 4.3) </li></ul><ul><li>How would you rate your organization’s pay & benefits? ( 3.66) </li></ul>
BRAND IMAGERY: deals with the extrinsic properties of the product or services and the ways in which the brand attempts to meet customers’ psychological and social needs. <ul><li>Success in your organization is communicated and celebrated. (4.31) </li></ul>
Organizations Brand themselves for the following reasons: <ul><li>To create a recognizable look in their marketing. </li></ul><ul><li>To distinguish themselves amongst their competitors in the marketplace. </li></ul><ul><li>To identify their uniqueness. </li></ul><ul><li>To communicate an idea that represents the organization’s philosophy towards their customers. </li></ul><ul><li>For Employee engagement and retention. </li></ul><ul><li>To reflect the retention initiatives/culture an organization has. </li></ul>
Aspects of Employee Retention <ul><li>Valuing and using creativity. </li></ul><ul><li>Innovative employer with novel work practices and forward thinking. </li></ul><ul><li>Clarity of roles and responsibilities. </li></ul><ul><li>Work environment. </li></ul><ul><li>Celebrating and communicating success. </li></ul><ul><li>Organizing training programs, which help in increasing career promotion opportunities within the organization. </li></ul><ul><li>Making the work tenure of an employee, a career enhancing experience. </li></ul>
<ul><li>The correlation between Employer Branding and Employee Retention has been calculated as 0.57. SPSS Software has been used to calculate correlation. The results show that employer branding and employee retention are positively correlated. All the questions are related to employer branding, so I have taken the average of the responses to each question, for one variable, i.e. Employer Branding. The last question, Q-20, has been taken as the variable of Employee Retention. This means, when any of the factors would increase, then rate of retention will also increase. Also, each variable has been measured against the variable of Employee Retention. </li></ul>
RECOMMENDATIONS <ul><li>Employees be given more inter-departmental exposure. </li></ul><ul><li>Organizational pay and benefits policies can be altered. </li></ul>