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TALENT MATTERS




Charlotte Housden
Bernard Hodes Group


Strategic Human Resources Conference
7th February 2007
Geneva
TALENT MATTERS




 Using Employer Brand
    to attract talent

Or… have I stumbled into
a Marketing presentation?
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)?
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
TALENT MATTERS


Top 10 MBA Employers in the world
TALENT MATTERS




The talent squeeze
TALENT MATTERS



Working age populations




  Working age taken as 15-64 years
TALENT MATTERS



Working age populations
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)
TALENT MATTERS


 Global employee engagement levels




Towers Perrin global workforce study (2005)
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)
TALENT MATTERS




Baby Boomers:
1946–1961


                 Generation X:
                 1961–1981



Generation Y:
1981–1997/2000
TALENT MATTERS



Maslow’s hierarchy of needs
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
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
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
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?”
TALENT MATTERS




Employer Brand: a short
summary for the uninitiated…..
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
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
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
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
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
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
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
TALENT MATTERS




Philips Case study
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
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.”
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
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
TALENT MATTERS
TALENT MATTERS


“Touch lives every day” – The Trial
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
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
TALENT MATTERS


Ensuring Global Consistency – The Toolkit
TALENT MATTERS


Ensuring Global Consistency – Deployment
TALENT MATTERS


Guide for Hiring Managers
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
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
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
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!
TALENT MATTERS


So what does this mean for you…
…and your Employer Brand?
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?

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Employer Branding

  • 1. TALENT MATTERS Charlotte Housden Bernard Hodes Group Strategic Human Resources Conference 7th February 2007 Geneva
  • 2. TALENT MATTERS Using Employer Brand to attract talent Or… have I stumbled into a Marketing presentation?
  • 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. 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. TALENT MATTERS Top 10 MBA Employers in the world
  • 7. TALENT MATTERS Working age populations Working age taken as 15-64 years
  • 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. TALENT MATTERS Global employee engagement levels Towers Perrin global workforce study (2005)
  • 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. TALENT MATTERS Baby Boomers: 1946–1961 Generation X: 1961–1981 Generation Y: 1981–1997/2000
  • 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. 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. 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. 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. TALENT MATTERS Employer Brand: a short summary for the uninitiated…..
  • 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. 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. 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. 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. 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. 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. 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
  • 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. 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. 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. 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. TALENT MATTERS “Touch lives every day” – The Trial
  • 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. 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. TALENT MATTERS Ensuring Global Consistency – The Toolkit
  • 36. TALENT MATTERS Ensuring Global Consistency – Deployment
  • 37. TALENT MATTERS Guide for Hiring Managers
  • 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. 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. 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. 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. TALENT MATTERS So what does this mean for you… …and your Employer Brand?
  • 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?