2. WHY DON’T
PEOPLE WANT
TO WORK
FOR US?
A research-based guide
to employer reputation
management
COMMUNICATIONS
MANAGEMENT
:BUILDING REPUTATIONS
3.
4. Introduction Have you ever thought 'in an ideal world I'd love to work for that company?' One
you see as a good employer and an organisation it would be great to be part of?
We asked a number of senior HR professionals this question as an introduction to
our research*. They came back with a varied but quite recognisable list of
employers - Asda, Microsoft, Orange, Nationwide and B&Q to name a few. What
makes these organisations recognisable as 'employers of choice' and what, if
anything, have they done to achieve this recognition?
This guide, and the research project that supports it, aim to answer these
questions and more. Why is it so important to strive to be an employer of choice
these days? How can your organisation become one? How can you get other
people to see it as one?
At Communications Management we specialise in reputation management and
have been asked by several organisations to focus on managing their reputation
as an employer. They have recognised that in today's 'war for talent' it is no longer
good enough just to be a good employer, you have to be perceived to be a good
employer too which involves managing communications around this issue to a
range of key stakeholders.
The following guide outlines the 'whats', 'whys' and 'hows' of employer reputation
management, providing a valuable reference tool for organisational development,
human resources and communications professionals. We hope you find it useful.
What do we mean by employer reputation management? p2
Why manage your employer reputation? p3
What does a good reputation look like? p5
How can you manage your reputation? p7
Managing your employer reputation with p10
Communications Management
References p11
Contents
*The Research
Communications Management undertook in-depth interviews with 8 leading
employers in the UK to assess their reaction to the issues we raised in this
guide. We interviewed individuals who were involved in the management of
their reputation as an employer. They ranged from recruitment specialists to
HR and Organisational Capability managers. We also undertook desk
research, finding secondary data to further support issues raised. The
research was started in late 2004 and completed in February 2005.
COMMUNICATIONS
MANAGEMENT
:BUILDING REPUTATIONS
WHY DON’T PEOPLE WANT TO WORK FOR US?
5. What do we
mean by
employer
reputation
management?
All organisations, whether they recognise it or not, have an employer reputation.
That is, a perception held by individuals of what type of employer you are, formed
from their personal experience and the views and opinions of others. Do people
think your company is an exciting place to work? Or perhaps they view it as a
paternalistic employer? Is it up-to-date with its views and actions on corporate
social responsibility?
Whatever the reputation, it will exist and will affect individuals' behaviours towards
that organisation. This perception will contribute to their career choices - whether
to apply for a job at that organisation, or indeed continue to stay if they are already
working for them.
Any reputation, whether about an employer, an organisation in general or about an
individual is based on two things:
So, an employer reputation is based on how you behave and how you
communicate to the outside world as an employer. Effective employer reputation
management is about understanding both and managing the links between
the two.
Organisations who effectively manage their employer reputation firstly decide what
type of reputation they want to have (consistent with their organisation's business
goals, vision, values and strengths), then aim to be that type of employer and tell
all their key stakeholders that they are.
You can't rely on people proactively finding out for themselves what type of
employer you are - normally they won't bother. You will equally risk people coming
to their own conclusions which may be incorrect.
Employer reputation management means proactively managing your perception as
an operator in the employment market through a combination of what you do and
what you communicate to the outside world.
Those organisations who effectively manage their reputation are the ones who are
seen as employers of choice - B&Q, Microsoft and the like - and they will also be
the ones who gain a competitive edge through this - they will continue to attract
the best graduates and experienced professionals. So what are the real gains to
be made from managing an employer reputation and why is it becoming so
important to do so in the current business environment?
2
what you do
+
what you say
Employer reputation
management means
proactively managing
your perception as an
operator in the
employment market
through a
combination of what
you do and what you
communicate to the
outside world.
WHY DON’T PEOPLE WANT TO WORK FOR US?
6. Our research shows that employer reputation is now of Board-level concern and a
priority business issue in many companies. Many of those surveyed said it was
explicitly cited in their company's core values. The war for talent has perhaps
become an overused term in the past couple of years, but this doesn't mean that
the need to attract and retain the best talent has gone away. In fact, if anything, the
need to do this has increased.
In 2004, a CIPD survey1
found that half of all employers surveyed were
experiencing difficulties in recruiting staff. These difficulties seem to be primarily
about finding the right skills and talents in new recruits. Of those surveyed by the
CIPD, 55% cited managerial and professional roles as those hardest to fill.
A recent survey2
by recruitment outsourcing company Capital Consulting also
showed that recruiters rate the quality of jobseekers as more significantly worrying
to them than the speed or cost of recruitment.
In the UK we are faced with an ageing population and the lowest unemployment
levels since the 1970s. National Statistics3
predicts that there will be half a million
less people in the 35-44yrs age group by 2026, so the situation isn't going to
improve in the future.
We are also faced with a more mobile workforce, where talented individuals have
further information at their fingertips about rival employment opportunities. Talent
retention is also an issue. The CIPD Survey1
claimed that 77% of their survey
participants were experiencing difficulties in retaining staff (up from 72% in 2002).
At the same time individuals have become more choosy about their lifestyle and
how it relates to work. As our social structures have changed, the career and job
you choose holds more relevance and value than just a way to pay the mortgage.
And while a deficit of talent pervades, the importance of people as a lever for
competitive advantage has grown. The advantage to be gained through people
and the value they bring to the growth of an organisation is huge. The company
that can attract and retain people who will develop their organisation faster than
the competition will create that edge.
So the case for becoming an employer of choice by proactive management of
your employer reputation is one of business competitiveness. The people-related
benefits can be summarised as follows:
3
‘Being a great
employer simply
makes business
sense.’
Senior HR Manager,
High Street
Building Society
Why manage
your employer
reputation?
WHY DON’T PEOPLE WANT TO WORK FOR US?
More effective recruitment - creating a positive reputation as
an employer allows organisations to attract and select the best talent in the
most cost efficient manner.
Increased retention and motivation of existing
employees - a positive reputation will also affect the behaviour of
existing employees, making them feel proud and more motivated to achieve
results for their organisation. Not only does this make the existing workforce
more effective, it also reduces the cost of recruitment.
The creation of competitive advantage - by attracting
and retaining the most talented people, organisations can gain an edge on
their competitors.
7. Underpinning this is the fact that employees and jobseekers are also consumers
and members of the wider community. This means that there are further business
benefits to be made from managing an employer reputation. Leading
organisations have found:
Not only did our survey find that employer reputation was a business priority for
respondents now, over 85% of organisations stated that employee perceptions
would be even more important for them in 15 years time. We believe that in the
future how an organisation is perceived as an employer will become an
increasingly important aspect of shareholder relations. Already, many companies
are producing evidence and information about its people policies in the form of
Human Capital reports, following the Government-sponsored Kingsmill report.
Investors and suppliers of capital are increasingly seeing the ability to attract and
retain talented people as a necessity for a successful organisation.
So, if the case has been made to manage an employer reputation, what sort of
reputation is going to attract and retain the best talent? The following section
summarises the findings of our research in this area.
4
Improved Customer Perceptions - the link between how
an organisation is perceived as an employer and how its products, services
and general success as an organisation are perceived by the marketplace
are irrefutably linked. A bad employer reputation has damaged sales (the
most extreme being those where cheap third world labour is perceived to
be used)
A More Diverse Workforce - proactive management of an
employer reputation has helped many organisations access a more diverse
workforce turning around negative beliefs held by minority groups. It has
been proven that the ability to access a wider and more diverse workforce
allows organisations to access a broader range of talent and capabilities,
as well as being more representative, and thus more 'in tune', with the
consumers they serve.
Increased Loyalty - a positive reputation as an employer allows
organisations to ride the rough times when a scandal or drop in
performance threatens their success. A strong employer reputation instils
trust in its audiences that the organisation will survive in the long-term.
WHY DON’T PEOPLE WANT TO WORK FOR US?
8. What does
a good
reputation
look like?
5
VALUES
CULTURE
PEOPLE
POLICIES
EMPLOYER
REPUTATION
CORPORATE
REPUTATION
Through this research and Communication Management's experience of working
with organisations in this area, we see four aspects to an employer’s reputation.
Values: it was clear from our survey that employees are interested in the way an
organisation conducts itself when carrying out its activities and what it stands for.
Most are looking to work for organisations who are ethical, engage in charitable
work and other activities under the corporate social responsibility banner, and work
in a values-based way. According to a MORI poll4
92% of British workers say that
their employer's social and environmental responsibility is important to them.
A recent piece of research by executive education and research institute Roffey
Park5
, cites that 70% of employees are also looking for greater meaning in the
workplace. That is, they want to attach a sense of significance to their work.
The research also found that employees' underlying perception of their purpose
and nature of work affects their motivation and performance. This aspect of
employer reputation management links with the emerging field of employee
engagement, where building effective two-way communication between existing
employees is becoming a business priority.
WHY DON’T PEOPLE WANT TO WORK FOR US?
‘Potential employees
nowadays seek more
lifestyle options and
are more aware of
employers' beliefs,
ideals and values.’
Recruitment Manager, soft
drinks company
‘The company's
reputation and
brand, around the
quality of the
product, are seen as
highly influential in
terms of the quality
of employees they
attract and the
morale of existing
employees.’
UK Employee Benefits
Manager, FMCG
producer
9. Culture: The HR professionals questioned in our survey cited a range of 'soft
factors' that they thought people were looking for in an organisation. Treating
employees with honesty, fairness, openness and trust were seen as important.
Aspects around providing a challenging environment and enabling employees to
fulfil their potential were also seen as critical. A culture based on effective
teamwork and with good leadership was believed to be vital. One employer
operating in the financial services sector said that linking performance to customer
satisfaction was very important for employee satisfaction and increasing job
applications.
Corporate reputation: There is also evidence to suggest that potential
employees make an assessment of an organisation's overall corporate reputation
and factor this in when developing a view of them as an employer. In another piece
of Communications Management research6
, 86% of City workers felt they were
personally judged by their employer's reputation.
In the context of employer reputation management, we believe a corporate
reputation is viewed from two perspectives. Firstly, employees will want to know if
they are applying to or working for a successful company. Is the organisation
stable, growing or generally doing well in the marketplace?
Secondly, they will also look for a certain 'standing' in the market place. That is,
they are more likely to hold a positive view of the organisation as an employer if
they hold a positive view of the product or service the organisation provides.
People want to work for organisations they have heard of, who have a good
market brand. However, increasingly individuals are attracted to organisations who
are doing something different in the marketplace (the swoop to take up jobs
during the dot.com boom is evidence of this) and are not necessarily 'mainstream'.
Organisations also have to consider whether profession or sector reputations
impact on their employer reputation. For example, the public sector can be
perceived to be a slower moving environment and accountancy can be seen as an
'unexciting' profession.
People policies: the best talent looks for the best people policies to support
their employment. From reward and remuneration through to flexible working,
health and well-being policies, employers of choice strive for best practice in their
people policies. From our survey, the most cited policies were flexible working,
employee benefits, personal development and training and real career
opportunities. The relative importance of each policy depended on the sector each
were working in and the type of talent they wanted to attract.
6
To summarise, organisations need to pay attention to four key areas in order
to build a positive employer reputation - their people policies, their culture,
their values and their corporate reputation.
WHY DON’T PEOPLE WANT TO WORK FOR US?
‘Our organisation's
profile and
reputation are highly
important in our
efforts to attract and
retain an appropriate
workforce’
Group HR Manager, local
authority
10. In order to proactively develop a reputation that is going to make your organisation
an employer of choice, there are several areas and activities you need to focus on.
Our experience with the companies we have worked for and our research
suggests the following blueprint for success.
WHAT YOU DO:
Understand what type of employer reputation you want
As with all strategic interventions, clear goals at the outset are important. As an HR
decision-maker you need to know what type of employer reputation is going to
attract the type of talent you need to build your business. You need to understand
your target audience, what that particular group of individuals think makes an
employer of choice and what factors they are most going to be influenced by.
Our survey found that there are certain 'hygiene factors' that all organisations need
to achieve if they are going to be seen as an employer of choice, such as fair pay
and development opportunities. Different organisations and different sectors are
then going to need to create different and distinct employee perceptions.
A strong corporate reputation might be more important in helping a merchant bank
attract talent, a reputation for helping working parents for a supermarket. For
some, recruitment issues are about trying to attract and retain people from a
particular geographical area or from a particular demographic group and their
employer reputation strategy must focus on these particular issues.
Get buy-in from the top
Changing any reputation takes time and our survey established the importance to
this of managing employer reputation at the highest level. In most cases, the lead
came from HR, but some reported operating cross-company steering committees
and most sought broad involvement from within the organisation.
Create the right environment
Of the eight organisations we surveyed, all talked about the activities they are
undertaking to become an employer of choice. With reference to our previous
model, some of these were activities around new HR policies and procedures
whereas others were related to bringing about cultural change within an
organisation i.e. creating the right values, culture and corporate reputation. Most
were acutely aware of the need to develop values and working environments
required by the best talent. The majority were undertaking corporate social
responsibility programmes, involving a mix of ethical working practice, charity and
community work. Others felt they needed to focus more on the working
environment, coaching their leaders to inspire new talent.
As you might expect, this was also an area where our survey reported the greatest
difficulty. The principal barriers that prevented organisations becoming an
employer of choice included the frustration of trying to change an existing culture,
the short-termist nature of business strategy, and cost.
7
How can you
manage your
reputation?
WHY DON’T PEOPLE WANT TO WORK FOR US?
‘Becoming a great
employer requires a
change in attitudes
over a significant
period of time.’
Organisation Capability
Manager, mobile phone
company
11. WHAT YOU SAY
Develop the evidence
While companies often had a strong programme to develop evidence of corporate
success, there was often limited evidence of the other aspects of an employer
reputation, especially stories that demonstrated the culture and values of the
employer. Companies involved in the research took action to correct this by
creating internal case studies of success, by formally publishing corporate values
and by identifying and quantifying all the benefits of working for the organisation.
Competitor research allowed employers to highlight the advantages of working for
their organisation.
Communicate Internally
Existing employees form a critical stakeholder group. It is important that they feel
they are working for an employer of choice. At least one of our respondents said
they had proactively focused their advertising and PR to enhance their employer
brand internally. Others talked about the importance of keeping an open flow of
communication between employees, often using employee surveys as a way of
testing attitudes towards the organisation.
Telling 'stories' about best practice can help manage an employer reputation
internally and allows employees to act as ambassadors for the organisation's
employer reputation.
Link External Communication
All companies in our research said that their media profile was highly important to
their work. Others referred to the importance of proactively managing all
communication channels, with the recruitment process cited as a particular
opportunity to build an employer reputation as well as hiring people. The critical
channels for external communications are:
The Recruitment Process - The messages and perceptions given
to potential recruits can have a powerful impact on the rest of the
employment audience. Employers need to be clear about the
messages they want to send out and ensure that recruitment
advertising, materials and particularly recruitment processes match
these.
Targeted Media - potential and existing employees use national,
local and specialist press as a reference for their knowledge of the
organisation. Opinions given in the media can hold great influence.
As a result, employer reputation campaigns can be aimed at specific
publications to suit the audiences that need to be reached. Media
campaigns include the placement of case-studies, the development of
spokespeople to comment on employment issues, and news about new
and improved employee benefits. Another effective way of building an
employer reputation cited in our research was to win an employer
award such as The Sunday Times' 100 Best Companies to Work for
award.
8
•
•
WHY DON’T PEOPLE WANT TO WORK FOR US?
‘Employee
engagement is
starting to come
onto our agenda.
Being a good
employer means
having an open,
honest and trusting
relationship with
employees.’
Head of Employee
Research, telecoms
organisation
12. Influential Bodies and Individuals - For some roles it is
important to engage with specific communities and dispel existing
images. This may be because of previous bad experiences or simply
because a change in company directions means there is a need to
recruit from a new pool of talent. Examples include the way Ford
engaged the Asian community in the UK in the 1990s, and how the
Royal Navy has recently joined with the gay and lesbian organisation
Stonewall to help it with more diverse recruitment.
Existing Marketing Channels - promotional campaigns using
advertising, direct mail or public relations can influence potential and
existing employees. Several organisations now actively use these
channels to promote their values as an employer. B&Q's television ads
profile their staff, demonstrating their commitment to diversity. Even if
promotional campaigns don't focus on employer reputation, the general
messages should align with the general theme of the employer
reputation being built.
'Human Capital Management' Reports - A recent
recommendation from a Government-appointed taskforce was that
companies should publish annual reports on their people development
activities to complement Operational and Financial Reviews. This
provides a powerful opportunity for a company to send out positive
messages in all four key areas of Employer Reputation. It is important
that this is not seen as a 'dry' financial document.
Measure the Impact
A good employer reputation campaign should have effective measurement
systems in place to check that activities are delivering the business results
required.
Most of the companies we surveyed use employee surveys, normally biannually, to
assess internal changes in attitudes. They also monitor performance measures in
human resources such as the cost of recruitment, time-to-hire, yield on offers
made and the rate of retention of existing staff. Several use focus groups to
assess the impact of particular communication campaigns, and monitor press
articles written about the company.
One organisation measures how potential recruits view the company even if they
weren't offered jobs, allowing them to assess changes in reputation.
The survey suggests that this is an area that poses barriers to organisations, with
most admitting they should do more to assess the impact of changes. Two
organisations said that lack of budget restricted their ability to do more research to
more effectively measure changes in perceptions.
9
•
•
•
It is vital that external and internal communications are linked, sending out
the same messages to ensure the greatest impact.
WHY DON’T PEOPLE WANT TO WORK FOR US?
13. Managing your
employer
reputation with
Communications
Management
Communications Management specialises in strategic consultancy and internal
and external communication. Our work can take the form of any of the services
listed below, or a bespoke project aimed at meeting specific employer relation
needs.
External reputation analysis
This scan evaluates how the employer is perceived by potential recruits.
Communications Management will conduct interviews with recent hires, applicants
who chose not to take up job offers, and the wider body of potential applicants, as
well as reviewing recruitment advertising materials.
Internal reputation analysis
This scan identifies the key strengths of the employing organisation and involves
interviews with internal recruitment, marketing and HR managers and current
employees to identify the reputation strengths and weaknesses of the organisation.
Stakeholder mapping
Working with the internal recruitment team we help employers to identify the
individuals and groups that need to be influenced to improve the organisation's
reputation as an employer. Possible stakeholders include local, national and
specialist media, graduates, unions and professional associations, and current
employees (who are often the strongest recruitment asset).
Reputation improvement action plan
Following the diagnostic phases above, we would feed back recommendations on
the two most important aspects of your organisation's reputation as an employer:
a) What you say - Is the organisation making the best use of existing
strengths? Are the right messages being communicated? Are they
being communicated well, and to the right people? Are they credible?
b) What you do - Do individuals have a strong connection with the
employing organisation that means they want to stay? Is the recruitment
process being managed well?
Our action plans can combine the implementation of internal and external
communications programmes, and reviews of recruitment processes using our
own consultants and our network of associates.
Communications programmes can include:
Content and story development
Seeking out the stories that best confirm the key recruitment messages that your
organisation needs to communicate, and developing written material that can be
used in any of the activities below, as well as in advertising, recruitment brochures
and on your website.
Media relations
The media - national, regional or specialist - is the most influential source of
information for many jobseekers. We will place stories in key media that reflect the
key strengths of the organisation and drive new recruitment.
10
WHY DON’T PEOPLE WANT TO WORK FOR US?
14. External awards
Achieving success at employer awards such as the annual FT's 'Best Workplace' or
the Sunday Times 'Best Employer' award, has a tremendous positive impact on
recruitment success. Communications Management works with organisations on
written entries and internal communications processes where employee surveys
are used.
Online and offline community development
Many organisations have contact details for stakeholders who can help with
recruitment issues - previous applicants, interns, former employees and so on -
but don't keep in regular touch. Communications Management can develop
suitable communication tools to keep them in touch with your developments and
new opportunities. These can include networking events, electronic newsletters or
dedicated websites.
Internal publications
Replaying the 'people-based' content derived above internally is invariably more
successful than sending a stream of technical updates or publishing interviews
with remote global leaders. Done well, such publications can be highly
motivational and also allow you to unearth further success stories.
Below are some case-studies of organisations who have taken steps to manage
their employer reputation.
For more information, visit
www.communicationsmanagement.co.uk
or phone 01727 850761
References
1. Chartered Institute of Personnel and Development, Quarterly HR Trends and Indicators, Summer 2004
2. Capital Consulting, March 2004
3. See www.statistics.gov.uk
4. MORI survey, 2003
5. In Search of Meaning in the Workplace, Linda Holbeche and Nigel Springett, Roffey Park, May 2004
6. Communications management survey of 300+ City workers, March 2001
7. See http://business.timesonline.co.uk/section/0,,12190,00.html
11
WHY DON’T PEOPLE WANT TO WORK FOR US?
