Employer branding: What is it and why it matters

Section one of the Personnel Today Management Resources one stop guide to employer branding, covering the basics of employer branding, in theory and in practice. Other sections .

What's in a name?

Employer branding is one of the most significant developments in recent times, and for some companies, its importance has been recognised since the early 1990s. Simon Barrow, now chairman of People in Business, is acknowledged as the creator of the term 'employer brand'^® as early as October 1990. Barrow's definition is as follows: 'The package of functional. economic and psychological benefits provided by employment and identified with the employing company.'¹

At its simplest form, employer branding is about ensuring that your people brand matches your marketing brand. This means the messages that the business gives out are reflected by the actions of all people, at all levels of the business at all times. To achieve that, however, you have to consider all aspects of your business to ensure consistency in your messages, behaviour and values.

In a commercial context employer branding is the glue that holds all the different components of the organisation together to ensure: Employee loyalty, commitment and performance=customer loyalty, advocacy and satisfaction= business growth, profitability and market share=stakeholder, competitor respect, employer of choice.

One of the issues with employer branding is that mention anything with brand in the title and people often make assumptions about where it belongs in an organisation.

Importantly, employer branding should not be seen as an issue just for HR or marketing. It is not soft and fluffy, and should not be something 'nice to do' when we get round to it. Equally, it should not be driven by a clinical process. It is not a PR exercise - you cannot make a statement that you are undertaking employer branding, because without practical application, you will fall at the first hurdle.

Employer branding is not just about having a charismatic leader, it is much more all encompassing. It goes to the very heart of an organisation. It needs an integrated process to make it happen, but a process based on capturing the imagination and that has its foundation in the heart and soul of every employee.

It's also about emotional connectivity. While for some the process may be called employer branding, other organisations have not formally named it as such but still adhere to the underlying principles. Section 8 has some examples of the different approaches that have been adopted. The word 'different' is important too. Although employer branding models have been developed, what is essential is identifying an approach that works for you and your organisation. What also distinguishes the case study organisations is that they are living the principles - they willingly and promptly responded to the invitation to be involved with this guide.

Organisations are increasingly recognising that directly, or indirectly, most brand promises are delivered by people, not products. Pick up any business magazine that talks about branding and it is likely that they will be discussing the broader aspect of organisational, corporate or employer branding. There is also increasing emphasis on becoming an employer of choice.

One of the definitions of a brand in the Concise Oxford Dictionary is 'to impress unforgettably on one's mind'.

If we explore this definition of brand a little further, it is clear that building an employer brand is an extension of this definition. Every organisation has a brand, and organisations are creating impressions in the minds of others every day, the impact of your brand is 24/7, 52 weeks of the year.

Although your building may be closed, its image is open for all to see - your employees, clients, customers or suppliers may be talking about you to other customers, clients, friends, or family.

Global communications mean that while one part of the world is sleeping, another part is awake.

For organisations trying to undertake their own employer branding process, it can appear to be quite daunting. So where do you start and who should be involved? It may feel as if you are trying to change all four wheels while the car is still moving. Being an employer, however large or small, has enormous responsibilities, particularly in terms of reputation, and because of the scale and scope of what is involved, it often gets relegated to the 'too difficult' drawer.

What is an employer brand?

Creating an employer brand means focusing on the key components of your business and encouraging consistency across all functions. Like any piece of machinery, one part cannot operate without the other. Cross-functional working breaks down the traditional divisions between marketing, sales, distribution, IT, manufacturing and HR.

The process links new service/product development and the development of employees. It links the distribution chain with the customer. It builds relationships, not just agreements, with external suppliers. It takes the most senior managers and involves them in the front line of the business. It puts the customer at the centre and heart of the organisation, and builds everything else around them.

The organisation doesn't just service its customers, they become its lifeblood. People do not just make promises, but they deliver - not once, but over and over again, consistently developing better service. The organisation differentiates itself in the market through its people, its products, its processes and its premises.

It is also about being passionate, gutsy, using initiative, taking risks, allowing failure, encouraging individuals to take responsibility and standing by their decisions. It's about employees not just identifying, but believing and sharing the goals of the organisation. It's about creating a working environment where they are supported and motivated to take direct responsibility for making success happen.

What does employer branding mean in practice?

Employer branding means recognising how developing a strong employer brand can help in the war for talent, and the part development can and should play in recruitment and retention.

It also encompasses rapid capability building - how to build individual and organisational capabilities to meet the needs of the rapidly changing business environment.

It means looking at the way you deliver your service to your customers, not just externally but also internally. What messages are you communicating internally and externally, where is the consistency? How are these messages being translated into behaviours? If you sliced your organisation from top to bottom and from one side to the other, would you see the same messages, the same values, the same level of responsibility and the same behaviours being demonstrated by each employee?

Employer branding means developing real performance measures. Consider the following questions:

In practice it means:

To prevent a distorted view of the organisation, the process should be seamless from the front to back and from the top to the bottom of the organisation.

When people genuinely care for each other, when job applicants identify you as a preferred employer and you can see the pride and the self-esteem, you know you have developed a strong employer brand. But even more importantly, you know you have found the heart of your organisation.

A strong brand image is as relevant to an organisation as it is to a product or service. The people offer behind the product has to be consistent with the brand, and the commitment has to be reflected from the top of the organisation to the newest recruit.

True competitive edge will be achieved by those organisations who are able to attract and retain employees, and who build customer loyalty through the clear transmission of the overall brand. They will be the success stories of the 21st century.

Reference:

1. Barrow, Simon and Ambler, Tim; London Business School, 1996