Using Employer Brand to attract talent Or have I stumbled into a Marketing presentation?

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So, as were talking about brands..

Do you know which are top 10 Best Global

Brands in the world (Interbrand 2006)?

Or which are the 10 most Respected

companies in the world (PWC 2004)?

Or which are the top 10 MBA Employers in

the world (Universum 2006)?

Best Global Brands 1 Coca Cola 2 Microsoft 3 IBM 4 GE 5 Intel 6 Nokia 7 Toyota 8 Disney 9 McDonalds 10 Mercedes

Worlds most respected Cos 1 GE 2 Microsoft 3 Toyota 4 IBM 5 Coca-Cola 6 Dell 7 Wall-Mart 8 Citigroup 9 Procter & Gamble 10 Hewlett-Packard

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Top 10 MBA Employers in the world

THE TALENT SQUEEZE

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Aging populations
Decreasing birth-rates Increased life expectancy

Reduced talent pool

There will be a significant exodus of talent and experience in the next two decades and a dearth of new employees to step into roles that require specialized skills Accenture (2005)

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Global employee engagement levels

Towers Perrin global workforce study (2005)

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Maslows hierarchy of needs

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Together an attraction and retention issue

CIPD 2006 recruitment, retention and turnover survey:
82% of organisations reported difficulties in recruiting 69% reporting difficulties in retaining

RightCoutts 2006, in Management Issues 2006

41% of Senior HR professionals thought retention of key

staff was their most critical HR issue

Accenture on-line survey 2006
67% of senior directors in N. America, Europe and Asia think

the inability to attract and retain the best talent is one of their top 3 threats to success

Some HR Levers
Performance Management where is our talent in the organisation?
Leadership Values and Culture

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Employer Brand what do people think of us?

Individual and Team Competence Performance Review

Talent Management how do we manage our talent?

Recruitment Processes how we do attract talented people to us?

Core Work Processes Organisation, Team and Job Design

HR Processes

Communication how do we talk to our talented people?

Reward & Recognition what keeps our talent with us?

EMPLOYER BRAND: A SHORT SUMMARY FOR THE UNINITIATED..

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What is it?
The package of functional, economic, and psychological

benefits provided by employment, and identified with the employing company, Ambler & Barrow 1996
A long term strategy that establishes an organisations identity

as an employer
Which differentiates them from competitors in the employment

market

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Where do you start?

The development of an employee value proposition (EVP)
Capturing in one statement, the sum of everything that people

experience and receive while they are part of the company

It must be aligned to the overall brand and reputation

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Who is it for?
Potential employees to persuade more and better applicants to

apply and accept offers

Current employees to reduce turnover, increase employee

motivation, a sense of belonging and align behaviour to the organisations needs

Consistency of messages across both groups is vital as the

organisation has to deliver what it promises

Projecting an unrealistic image may improve recruitment but can

increase attrition

Brand Strength
Brand strength Employer Brand
The unique and differentiating promise a business makes to its employees and potential candidates

Employee experience
Actual delivery of the promise throughout the employee lifecycle

Attraction of the right candidates Employee engagement and retention Differentiation from competitors Customer engagement and retention

Attraction of high quality employees is a competitive necessity

Engagement of high quality employees is a bottom line issue

Employer brand a three step process

1.Brand insight
Competitor analysis Brand positioning vs competition Understanding vision for the business and employees Understanding best of the current employee experience and improvements Alignment of the consumer brand/ employer brand Concept development Concept testing Refinement and development

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2. Brand development 3. Implementation

Recruitment guidelines and roll out for recruitment advertising Design of internal launch process Production of comms materials, internally and externally

Employee Value Proposition Employee vision Personality Key messages Strengths/areas to improve Brand book Communication strategy Communication tools

Employer brand benefits

Significant decreases in cost per hire

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Reduced cost of recruitment - efficiencies maximised throughout the

recruitment process
Reduction in recruitment marketing costs over time

Greater numbers of higher quality applicants

Higher performing employees Increased retention rates Stronger reputation in the marketplace Increased ability to attract specialist talent in a difficult market

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Employer brand benefits at our clients

Diageo - Began with an attrition rate of 18%, costing 4

million. In 14 months they reduced attrition rates to 7%, recouping the costs of the initial research 30 times over.
GSK - applied the proposition and guiding principles to their

recruitment process, increasing the number of offers accepted from 83% to 96%
Philips - are now receiving 10 times as many quality

applications from graduates and MBAs

PHILIPS CASE STUDY

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Philips: The background

2002 global recruitment redesign programme found quality of

service could be improved and needed to focus on proactive talent recruitment

Identified inconsistent positioning of messages to prospective

employees not addressing them as One Philips

They werent reaching targets theyd set to attract/ retain the

best talent
They also wanted to find out how potential employees

regarded the company as an employer

Philips: their vision

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To be certain that we are able to attract, recruit and retain the sort of talent that will give our business competitive edge. To be sure that our employer experience will enable and motivate our talent to work in a way that is one Philips. Providing maximum

satisfaction for both the organisation and the individual.

The research
29 internal focus groups

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18 external focus groups

3500 internal survey respondents 1000 external survey respondents

Both Sales/Mktg and R&D people, different ages, length of service

Netherlands, Germany, France, UK, Poland, USA,

India, China

Some of the outputs

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Employees didnt not know the full range of products/services

Everything Philips makes impacts every aspect of consumers lives, something to be proud of and make more of Philips could be too formal there needed to be more personality in the way the brand was communicated

They wanted Philips to be

One company all working together, united in one purpose Proud and confident about what it does, passionate

People and products could have equal and united prominence Offer great reasons for coming to work everyday
An icon of innovation Global and diverse

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Touch lives every day The Trial

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Touch Lives every day

Is not only a description of how Philips should approach

prospective and existing employees, but also a call for managers to ensure the company delivers on its promises
Jo Pieters, Global Vice President Recruitment, Philips, The

Netherlands

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Philips Touchpoint Wheel

Exit interviews Career development Campus recruitment Internship

Retention

Awareness

Performance review

PostApplication Experience

PreApplication Experience

Career site

Commitment

Management behavior

Consideration
Employer Brand
Company brand

Informing / Involving people

Invitation letter

Engagement
Introduction

Application Experience
Interview Rejection letter Contract handling

Preference

Assessment

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Ensuring Global Consistency The Toolkit

Ensuring Global Consistency Deployment

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Guide for Hiring Managers

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Building brands from the inside out

Winning the war for talent means primarily focusing on the retention of your current talent and [then], building a strong position in your key labour markets a brand that is only visible in external communications is less valuable than a brand that is truly lived inside.

Each and every employee should act as an ambassador of your brand and that requires a strong recognized internal and external employee value proposition Jo Pieters, Global Vice President Recruitment, Philips, The Netherlands

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Philips Labor Market Ranking China

Employer brand launch Dec 2003

Engineering & Science Discipline Familiar with Philips Considered employer Ideal employer Business Discipline Familiar with Philips Considered employer Ideal employer

2003 17 15 14 2003 26 23 20

2004 11 9 8 2004 17 11 9

2005 9 6 4 2005 11 8 5

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Philips Labor Market Ranking Europe

Employer brand launch Dec 2003

Engineering & Science Discipline Familiar with Philips Considered employer Ideal employer Business Discipline Familiar with Philips Considered employer Ideal employer

2003 24 6 21 2003 25 16 65

2004 14 5 17 2004 21 11 62

2005 9 3 17 2005 12 8 54

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Lessons learned
Dont underestimate the size of such an initiative
Even if you have clearly defined the scope, focus and approach, you have to make tough choices

along the way about what to keep in or leave out Getting the whole organization behind the Employer Brand is critical to making it a success You must get commitment and involvement of people beyond HR, particularly in marketing, and get it early on!

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So what does this mean for you

and your Employer Brand?

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Some final questions for you

Do you know what your organisation represents? Have you tested out your values, your culture? Have you looked at your brand values? What does this say about your organisation? Who is the real competition in the employment market (not just

the ones you know or think it should be?)

Is your brand attractive to new recruits? Does it help you present a strong employer brand in the

marketplace?
Who manages your Employer Brand HR or Marketing?
What are you going to do with this information when you get home?