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Recruitment & Retention

Published October 2007

Employment Branding Begins Within

Bill Freeman

Each year, industries spend millions of dollars on branding and advertising in hopes of building up their image and drawing customers to their products. In a market in which candidates and employees are the customers and the experience is the product, however, employment branding is just as crucially important. Many companies fail at establishing a strong employment brand because they do not go after it with the same vigor that they do when they are marketing their product or service to potential customers.

Employment branding is the perception that current and prospective employees have of an organization as a place to work — it promotes the benefits of working for the company. An employment brand ultimately lies at the core of an organization, expressing the culture and values to employees, job applicants and the public.

The employment brand translates as a promise and creates expectations about an experience. Consequently, companies must be able to deliver on these expectations.

A recent study by the Conference Board showed 25 percent of U.S. employees are just showing up to collect a paycheck. Forty percent feel "disconnected" from their employers, and 66 percent do not identify with or feel motivated to drive their employers' business goals and objectives.

It is obvious many companies have not successfully implemented a corporate culture and value system. Accordingly, employees are not buying into an employment brand.

Strong employment brands are powerful tools that can lead to companies achieving a significant competitive edge in the marketplace, and organizations with strong internal brands will attract and retain good employees instead of watching them go to a competitor. Building a strong employee brand begins from within, and the following are a few key points that can act as a blueprint:

1. Build a positive corporate culture. Companies need to decide on two to three corporate qualities to promote within. The focus needs to be championing these attributes as the organization's core values throughout the entire company, making sure every employee has a strong understanding of the defined values.
2. Invest in your employees. Companies must realize employees are an important asset at all levels, that they are corporate ambassadors and a solid investment in training and retention pays off. Every employee should be seen as a stakeholder in the company's branding efforts. For instance, when guests step through the door of a hotel, their interactions with the staff will influence the rest of their visit. Well-trained staff members will know how to handle all kinds of situations, no matter whether they are difficult. An investment in training can really make or break a guest's perception of the hotel.
3. Every customer could be a future employee. Customers form ideas of what it would be like to work for a company from their experiences with that business, as well as usage of its products. Studies have shown college graduates frequently have an evoked set of companies that come to mind when deciding on a place of employment after graduation. They choose companies based on current products and in-store experiences. Apple moved from No. 41 to No. 13 when it came to recruiting top undergraduates in a 2005 survey by The Economist, undoubtedly because of the hip and modern products offered, as well as positive customer service experiences at Apple outlets.
4. Appeal to Generations X and Y. A tight labor market and the shift in demographics with a large number of baby boomers retiring from the workforce this decade has created a large generation gap in the workforce. The up and coming 20-somethings serving as replacements are a little bit harder to please than members of past generations. Offering unique benefits or stimulating incentive programs are a good way to attract qualified applicants and motivate the current young employees.

Several articles and books have been written about employment branding — this is not a new concept, and companies certainly have achieved this in the past.

Just look at Herb Kelleher, who branded Southwest Airlines through his people. Kelleher was able to share with the corporate objectives and his vision of the culture. He established standards and he measured them.

His efforts worked — the associates at Southwest Airlines have achieved everything they have achieved through their own efforts, that is, they have bought into Southwest's employment branding. Kelleher has created a positive work environment, allowing his associates to achieve everything they have set out to do, in regard to service, culture and financials.

Building the right employment brand can help tackle many of the obstacles facing corporations today, and when implemented effectively and efficiently, they can increase the quality of employees hired and retained, as well as inspire them to be more productive.