Updated January 7 2009 - The CIPD's December 2008 Spotlight on Employer Branding
Conference highlighted the value of a reputable brand that, in a competitive job market, can act
like a magnet, drawing top talent to an organisation. The 2008 CIPD Recruitment, Retention
and Turnover Survey found that 71% of organisations surveyed were already using the employer brand
as a recruitment tool. However, employer branding is more than a recruitment tool. It can make a significant
difference to the bottom line through its effect on employee
retention and engagement.
According to Rebecca Clake, Adviser, Organisation and Resourcing for CIPD:
"The importance of a strong employer brand in
today's business environment cannot be exaggerated.
Talented candidates aren't just looking for a
healthy pay package, their expectations go far
beyond that.
"An organisation's attractiveness is strongly
linked to its brand in the employment market place
- what it is seen to stand for and how that matches
up with the values of individuals. For the employer
brand to be successful this external brand needs
to be more than rhetoric, but to reflect the real
experience of working for the organisation."
A survey by Mercer Human Resource Consulting in 2006
showed that employees understand their role in the delivery of a high standard of
customer service more clearly when their senior managers 'live'
their organization's brand.
According to the survey, 85 per cent of senior managers claimed that they
demonstrated their company's brand values in their own behaviour. Of these, 87% believe
all or most of their employees are fully aware of their role in providing a positive
experience to clients. However, this figure drops to 58% where the senior person does
not live the company's brand.
Jim Matthewman, Worldwide Partner at Mercer, said:
"Employees play a crucial role in creating customer satisfaction and
need to understand their role in delivering their organization's brand values to clients.
Senior people should lead by example to influence the behaviour of their staff."
The survey results highlighted the importance of ensuring HR processes, including:
- training
- development and
- reward
These processes reinforce the brand philosophy. 93% of businesses that align their HR processes
with brand values believe that most employees understand their role in the provision of a positive experience to clients.
According to Jim Matthewman:
"Companies need to link job performance criteria and measurement to behaviours that
support brand principles to encourage employees to live their company's brand. The key
aim is to develop employees into knowledgeable brand ambassadors, so they can improve
their service to clients and, ultimately, enhance business performance.
The survey shows that internal communication is important. 90% of businesses
making the effort to promote their external brand internally believe that all or most
of their staff are fully aware of their role in delivering a positive customer experience. But this
percentage drops to 65% for companies that do not use internal communication to support
the external brand.
"By promoting brand values internally, companies can help ensure all
employees understand brand objectives. Regular engagement with staff is required to make
sure employee behaviour changes in a way that supports stated business goals," Jim
Matthewman said. "Employers who encourage their staff to exhibit brand values when dealing
with clients can create differentiation and advantage that competitors will be unable to
copy."
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