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Employer Branding

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Employer Branding

  1. 1. TALENT MATTERS Charlotte Housden Bernard Hodes Group Strategic Human Resources Conference 7th February 2007 Geneva
  2. 2. TALENT MATTERS Using Employer Brand to attract talent Or… have I stumbled into a Marketing presentation?
  3. 3. TALENT MATTERS So, as we’re 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)?
  4. 4. TALENT MATTERS Best Global Brands World’s most respected Co’s 1 – Coca Cola 1 – GE 2 – Microsoft 2 – Microsoft 3 – IBM 3 – Toyota 4 – GE 4 – IBM 5 – Intel 5 – Coca-Cola 6 – Nokia 6 – Dell 7 – Toyota 7 – Wall-Mart 8 – Disney 8 – Citigroup 9 – McDonalds 9 – Procter & Gamble 10 – Mercedes 10 – Hewlett-Packard
  5. 5. TALENT MATTERS Top 10 MBA Employers in the world
  6. 6. TALENT MATTERS The talent squeeze
  7. 7. TALENT MATTERS Working age populations Working age taken as 15-64 years
  8. 8. TALENT MATTERS Working age populations
  9. 9. TALENT MATTERS Aging populations Decreasing birth-rates Reduced talent pool Increased life expectancy 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)
  10. 10. TALENT MATTERS Global employee engagement levels Towers Perrin global workforce study (2005)
  11. 11. TALENT MATTERS Declining employee tenure in the USA 25  1/3 in jobs less than 2 years  2/3 in jobs less than 5 years 20  1/2 employed on Interim/Contract basis Years of Service 15  3.5 years average Depression 10 Survivors Pension 5 Seekers Victims “Free Agent 2000 Nation” 0 1950s 1960s 1970s 1980s 1990s 2000s US Department of Labor, Employee Tenure Surveys, (1995-2000)
  12. 12. TALENT MATTERS Baby Boomers: 1946–1961 Generation X: 1961–1981 Generation Y: 1981–1997/2000
  13. 13. TALENT MATTERS Maslow’s hierarchy of needs
  14. 14. TALENT MATTERS Bigger Meaning: The Australian Leadership Foundation When looking for a job Gen Y‟ers want (in this order):  Training  Management Style  Work flexibility  Staff activities  Non financial rewards  Salary
  15. 15. TALENT MATTERS Aging populations Decreasing birth-rates Reduced talent pool Increased life expectancy Declining tenure Self-actualisation A less interested talent pool Drop in engagement
  16. 16. TALENT MATTERS 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
  17. 17. TALENT MATTERS Some HR Levers Employer Brand “what do people think Performance of us?” Management “where is our talent in Individual and Team the organisation?” Competence Performance Leadership Review Talent Management Values and “how do we manage Culture our talent?” Core Work HR Processes Recruitment Processes Processes Organisation, Team and Job “how we do attract Design Reward & Recognition talented people to “what keeps our talent us?” with us?” Communication “how do we talk to our talented people?”
  18. 18. TALENT MATTERS Employer Brand: a short summary for the uninitiated…..
  19. 19. TALENT MATTERS 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 organisation‟s identity as an employer  Which differentiates them from competitors in the employment market
  20. 20. TALENT MATTERS 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
  21. 21. TALENT MATTERS 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 organisation‟s 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
  22. 22. TALENT MATTERS Brand Strength Brand strength Attraction of the right Employer Brand Employee candidates experience Employee engagement and The unique and differentiating promise a business makes to + Actual delivery of the promise throughout the retention Differentiation from its employees and employee lifecycle competitors potential candidates Customer engagement and retention  Attraction of high quality employees is a competitive necessity  Engagement of high quality employees is a bottom line issue
  23. 23. TALENT MATTERS Employer brand – a three step process 1.Brand insight 2. Brand development 3. Implementation • Competitor analysis • Brand positioning vs • Alignment of the consumer brand/ • Recruitment guidelines and competition employer brand roll out for recruitment • Understanding vision for • Concept development advertising the business and • Concept testing • Design of internal launch employees • Refinement and development process • Understanding best of • Production of comms the current employee materials, internally and experience and externally improvements Employee Value Proposition Employee vision Brand book Communication strategy Personality Communication tools Key messages Strengths/areas to improve
  24. 24. TALENT MATTERS Employer brand benefits  Significant decreases in cost per hire  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
  25. 25. TALENT MATTERS 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
  26. 26. TALENT MATTERS Philips Case study
  27. 27. TALENT MATTERS 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 weren‟t reaching targets they‟d set to attract/ retain the best talent  They also wanted to find out how potential employees regarded the company as an employer
  28. 28. TALENT MATTERS Philips: their vision  “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.”
  29. 29. TALENT MATTERS The research  29 internal focus groups  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
  30. 30. TALENT MATTERS Some of the outputs  Employees didn‟t 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
  32. 32. TALENT MATTERS “Touch lives every day” – The Trial
  33. 33. TALENT MATTERS “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
  34. 34. TALENT MATTERS Philips Touchpoint Wheel Exit Campus interviews recruitment Retention Awareness Career Internship development Post- Pre- Performance Application Application Career site review Experience Experience Commitment Consideration Management Company behavior brand Employer Brand Informing / Invitation Involving letter people Engagement Application Experience Preference Introduction Interview Rejection letter Assessment Contract handling
  35. 35. TALENT MATTERS Ensuring Global Consistency – The Toolkit
  36. 36. TALENT MATTERS Ensuring Global Consistency – Deployment
  37. 37. TALENT MATTERS Guide for Hiring Managers
  38. 38. TALENT MATTERS 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
  39. 39. TALENT MATTERS Philips Labor Market Ranking – China Employer brand launch Dec 2003 Engineering & Science Discipline 2003 2004 2005 Familiar with Philips 17 11 9 Considered employer 15 9 6 Ideal employer 14 8 4 Business Discipline 2003 2004 2005 Familiar with Philips 26 17 11 Considered employer 23 11 8 Ideal employer 20 9 5
  40. 40. TALENT MATTERS Philips Labor Market Ranking – Europe Employer brand launch Dec 2003 Engineering & Science Discipline 2003 2004 2005 Familiar with Philips 24 14 9 Considered employer 6 5 3 Ideal employer 21 17 17 Business Discipline 2003 2004 2005 Familiar with Philips 25 21 12 Considered employer 16 11 8 Ideal employer 65 62 54
  41. 41. TALENT MATTERS Lessons learned  Don‟t 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!
  42. 42. TALENT MATTERS So what does this mean for you… …and your Employer Brand?
  43. 43. TALENT MATTERS 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?