Developing and managing a successful employer brand

1. Developing and managing a successful employer brand Kim Harrison Century Consulting 08 9444 6853

2. Current employment environment • Tight labour market in WA • Record low 2.7% unemployment • Pressure on employers to attract, motivate and keep top talent • Workforce ageing (40% will go in 5-10 yrs) • Gen X-Y aspirations – younger employees more demanding, more mobile, less loyal Century Consulting 08 9444 6853

3. The bottom line of employer branding Engaged, productive and focused employees create delighted, loyal customers = greater business and shareholder value Century Consulting 08 9444 6853

4. Employer branding definitions “An integration of internal and external communications, disseminated to current and potential employees” “The essence of our offering as an employer that is communicated internally and externally” Century Consulting 08 9444 6853

5. Significant components of employer branding There is a proven relationship between excellence in key components of employer branding and the level of market premium organisations enjoy. Main components: • Employee engagement • Employee communication • Training and development • External reputation Century Consulting 08 9444 6853

6. Employer branding • The brand consists of intangibles – perceptions, feelings and associations in the minds of employees (your customers). • Informal employer branding already exists. Similar to your reputation – it exists whether you attempt to shape it or not. • Actions speak louder than words – their experience of your organisation’s actions influences potential and actual employees much more than communication. But communication creates the linkages. • The employer brand covers the entire employee life cycle. Century Consulting 08 9444 6853

7. Typical employer branding objectives (every organisation will have its own unique objectives) • enhance your appeal to future talent • create alignment to org mission among current employees • convey the role and importance of employees to the mission • encourage sharing and self-exploration re satisfaction/engagement with the job • draw attention to the parity of your workplace pay and conditions Century Consulting 08 9444 6853

8. Benefits of a good employer brand 2005 Bernard Hodes survey 500 HR respondents implemented an employer brand • 81% said it was “easier to attract candidates” • 79% felt they were “more of an employer of choice” • 63% believed they had “improved retention” Century Consulting 08 9444 6853

9. Employer branding – in pursuit of ‘employer of choice’ 2006 Hudson survey • Questions to 410 HR managers or directors • “At our organisation, the employment experience promised to prospective employees before they join is always delivered once they come on board.” • 65% agreed or strongly agreed Century Consulting 08 9444 6853

10. But look at the disconnect Century Consulting 08 9444 6853

11. Employer branding – in pursuit of ‘employer of choice’ 2006 Hudson survey • Question to 1,024 employees • “My current employer has delivered on everything it promised to me when I first joined.” • 55% disagreed or strongly disagreed Century Consulting 08 9444 6853

12. Employer branding – in pursuit of ‘employer of choice’ 2006 Hudson survey • Question to 1,024 employees • “My current employer provides me with a clear and compelling reason as to why our organisation is a great place to work.” • 53% disagreed or strongly disagreed Century Consulting 08 9444 6853

13. Employer branding – in pursuit of ‘employer of choice’ 2006 Hudson survey • Question to 1,024 employees • “It is not really possible to know what it’s like to work at an organisation until you actually start there.” • 72% agreed or strongly agreed Century Consulting 08 9444 6853

14. Delivering on the promise • Employer branding is complex and difficult. • Getting the act together - should involve an integrated approach from HR, PR and Marketing • Above all, the brand should be experienced – translated into employee behaviour – a difficult process • Need for talent segmentation Century Consulting 08 9444 6853

15. Typical employer branding taglines • Clear thinking (Allens Arthur Robinson – Australian law firm) • connectedthinking (PricewaterhouseCoopers in Australia) • Worth talking about (Leighton Contractors) • Think, innovate and work with technology leaders (Intel) • Improving health and quality of life (GlaxoSmithKline) • eXpress yourself (Xerox) • How far will you go? (Microsoft) • Run with the best (John Deere – agricultural machinery) – the theme ties in with their marketing brand, ‘Nothing runs like a Deere’. • The power to excel (ConEd – power generation) • What will you build today? (Fluor – engineering construction) Century Consulting 08 9444 6853

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31. What potential employees are seeking • Sound organisational structure and direction • Positive culture • Enlightened leaders, competent management • Care of people • Meaningful work • Growth and opportunity • Pay and benefits • Making a difference - Herman Group Century Consulting 08 9444 6853

32. How to establish or strengthen your employer brand In broad terms: • Identify the attributes that you want to characterise your employer brand. • Map all experiences (actions and messages) that a potential employee has with your organisation – the ‘moments of truth.’ • Compare the difference between the actual experiences and the ideal attributes you want in the employer brand. • Do the same with new staff. Find out their experiences in the workplace compared with the ideal employer brand attributes. • Seek to close the gap between the ideal and the actual. • Can you deliver on your promises? Century Consulting 08 9444 6853

33. Challenges • Developing a significant presence in the job market • Support needed from top management • Maintaining consistent messages • Ensuring alignment between brand and business actions • Managing the corporate culture • Budget • Making the work appeal to employees as well as prospects Century Consulting 08 9444 6853

34. Branding channels 2006 Hodes global survey • Website 94% • Print 72% • Newspapers 58% • Events 50% Century Consulting 08 9444 6853

35. ROI on employer branding 2006 Bernard Hodes global survey • Difficult concept to measure • Only 24% of companies measure ROI in any way • Only 13% relate their branding to overall organisational performance Century Consulting 08 9444 6853

36. Leading indicators • Financial performance • HR process metrics • Employee feedback • Quality of applicant • Retention Century Consulting 08 9444 6853

37. Leading indicators Financial performance • Profit per employee (FTE) • Every component of and outcome from the employer brand is captured in profit per employee Century Consulting 08 9444 6853

38. Leading indicators HR process metrics • Candidate satisfaction • Hiring manager satisfaction • Offer acceptance rate • Time to fill position Century Consulting 08 9444 6853

39. Leading indicators Employee feedback • Would recommend employer (Propensity to refer others is a strong indicator of a strong employer brand) • New-employee feedback is a crucial measure of employer brand strength Century Consulting 08 9444 6853

40. Leading indicators Quality of applicant • First résumé screening by recruiter • First interview (live or phone) • Line manager interview • Final interview (if used) Century Consulting 08 9444 6853

41. Leading indicators Retention • Retention at 3 months – indicates how well the brand messages are helping the match • Retention at first formal review – reflects alignment between EVP and key values/brand messages • Retention of high performers Century Consulting 08 9444 6853

42. Lowe’s • US home improvement retailer • 210,000 employees • 60,000 recruits annually • 75% of all corporate-level candidates come in through the Lowe’s website • Bernard Hodes’ QTrac recruiting and employment branding analytics used to measure ROI • Survey recruits after 30, 90, 180 and 365 days with online questionnaire • Candidates want more company info upfront – on website Century Consulting 08 9444 6853