Attracting and retaining people has never been more difficult. In their never-ending fight for supremacy, companies have to focus on attracting and retaining talent to help them tide over uncertain conditions.
The basic benefit of a better employer brand is a competitive edge in the market in terms of attracting the best and subsequently gaining the best.
According to an Accenture survey, 60 per cent of CEOs are very concerned about attracting and retaining people. Therefore the central idea behind the employer and client brands should be the same. All great places to work realise that it is the intellectual capital (rather than buildings and tools) that has the power to truly differentiate and grow a business. They simply do what is needed to attract, grow and keep their people and thus boast of a strong employer brand.
Employer brand includes economic and psychological benefits that an organisation provides to its people through employment with their company. EVP which is also a key component ensures that the central value message of the brand is conveyed well to the workforce and potential employees.
Employer brand messaging is valuable, but many organisations need to develop and articulate employer brand strategies. This was also brought forward by Bernard Hodes Group’s research, ‘The Growing Value of Employer Brands’. The results suggest that many employers are using strategies pre-dating the Great Recession. The research survey polled 175 employers across the United States in a spectrum of industries from education to manufacturing, and about 240 employees were surveyed who were not necessarily employed by any of the participating employers. When comparing the two sets of data, there are some stark disconnects. Some of the most noteworthy include these:
• Only 25 per cent of employers indicated that compensation is one of the most important attributes of an employer brand, compared with 64 per cent of employees.
• Job security was ranked highly by 41 per cent of employees, but only 21 per cent of employers.
• Just 15 per cent of employers felt that recognition is important in attracting new hires, while 33 per cent of employees ranked it highly.
• Nearly half of employers (44 per cent) felt career growth and advancement opportunities are important to attracting talent, while just over a quarter of talent (27 per cent) agreed.
Looking at the data, one gets the impression that may be due to economic turbulence many employers got sidetracked and lost the focus on understanding employee needs. Compensation, benefits, and recognition are still important to job seekers, but employers have downplayed these attributes of an employer brand due to other emerging needs. Job security, of course, is something no employer can promise, but if an organisation has a record of stability, the data suggests it could be a powerful selling point in today’s more sober labour market. A convincing employer brand can only be created if the interests of both the organisation and the employee are aligned. The fact that we generally concentrate only on employee benefits, at times, tends to overlook that the employer too has his own share of frustrations and disappointments while creating a brand name for his organisation, It is easier to brand a product, but difficult to create a brand which deals around a complex human mind. Employees feel a direct connection between the organisation’s prosperity and their own prosperity.
According to another survey, many CEOs in India recognise the importance of employer branding, yet more than half of them do not have any such system in place. They still lag behind in having or creating a more conducive EVP.
Interestingly while organisations recognise the importance of having an employer brand, over 60 per cent do not have a ‘formal brand promotion campaign’. Moreover, 55 per cent of companies do not have a formal plan to launch an employer branding campaign in 2013, the report stated.
In today’s world, Indian companies are facing problems related to skills shortage, perceptional image of an organisation or occupation, as well as attitude of the young workforce that is constantly torn between organisational loyalty and career progression.
In 2013, a more promising employer brand with a better designed EVP can be created. Organisations should use metrics to build the case for a strong employer brand as a foundation for operational excellence
