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Employer Branding - An Introduction

As Jim Collins wrote in his best-seller “Good to Great”, “Great vision without great people is irrelevant.” The attraction of talent can be done through employer branding, which refers to “the attraction and retention of skilled personnel". The concept of Employer Branding is a fairly new one in Asia.

An employer brand is therefore defined as the image of the organisation as a ‘great place to work’, in the minds of existing and potential employees. Employer branding can also be perceived to be a talent magnet for companies to attract and retain the highest-calibre of employees.

Unlike MNCs which tend to attract large numbers of candidates, the issue of Singapore SMEs having the ability to attract and retain talent is a challenging and pressing one. This is because SMEs lack the ability and resources to offer competitive salaries and develop human resources policies. These companies are thus limited in their ability to attract and retain talent critical to their growth and expansion.

Generational Differences in Singapore’s Workforce

Due to generational changes in Singapore’s workforce, there is a greater need for customisation in human resources and management practices. Much of these changes can be attributed to the generational differences of Baby Boomers, Generation X and Generation Y. These differences arise from the changes in social and economical factors pertaining to work values, such as ethics, communications, feedback, remuneration, development and management style. An understanding of these differences plays a vital role for Singapore SMEs in engaging these 3 generations.

A roadmap to being an Employer Brand

Creating a successful employer brand is marked by the following 6-phases:

1. Conduct An Employer Perception Audit

There is nothing more important to an employer than to know how the company is being perceived. Here, companies can administer a feedback process: informally gathered if the company is small or a structured survey if the company is medium-sized. The objective of this audit is to identify and narrow the gaps between the employer’s desired brand position and respondents’ perceptions.

In order to ensure transparency of the findings, companies may choose to outsource the surveying and analysis process. Citigroup, the world’s largest financial services network, employs a “Voice of Employee Survey”, where it measures employees’ engagement and satisfaction. Today Citigroup attracts 1,400 applications each year for its management associate program. Its success in talent attraction and retention may be attributed to efforts in reaching out to Generations X and Y; segments who value open communication and feedback. This is the first step in the employer branding process.

2. Set Clear, Differentiated Values

Strong employer brands contain a set of clearly defined and differentiated company values, which are used to drive all employee activities. Differentiated values attract talent and facilitate positive employee behaviour within a company. In the case of Jason Marine, a provider of integrated systems for the marine and offshore oil & gas industries, the family-owned business prides itself on nurturing its employees physically and psychologically. Jason Marine’s commitment in enhancing its employees’ welfare was recognised when it achieved the Family Friendly Employer Award in 2004. This achievement serves to position Jason Marine as an employer of choice.

3. Apply Change Management From The Top

When it comes to implementing an employer branding process, the firm’s human resource and marketing communications department must support and manage the employer branding activities within the firm. Companies which intend to develop strong employer brands should apply integrated and long-term focused vision. This should also be clearly expressed by top management; championed by the CEO. In the case of TNT, a mail and express company, CEO Peter Bakker spends a considerable amount of time engaging his people by taking a hands-on role in motivating his employees. In Bakker’s case, he is in the best position to own, live and communicate the employer brand.

4. Deliver Messages Consistently

Employer brands consistently deliver their brand message. This involves external and internal communications alignment and reinforcement. Employees are sometimes informed rather than consulted and this can create a passive internal audience. Firms should ensure that processes are in place to support the functions of what builds a strong employer brand. In 2005, FedEx introduced the Purple Promise, which promises to “make every FedEx experience outstanding".

The external brand communication is further reinforced with its employees sharing their personal stories on how they had helped a customer in a unique way. Internally, FedEx further aligns its strategy through a systematic rewards system with more than 100 of such rewards and recognition programs; including programs under Purple Promise. A website was made available to FedEx employees for innovative suggestions. Employer brand messages delivered consistently reinforce potential and existing employees’ beliefs in the brand. Such strong beliefs create high commitment towards the company and thus attract and retain talent better.

5. Employee Engagement

Companies with strong employer brands understand that the implementation of employer branding initiatives is associated with being able to engage employees at every touch point. Employee engagement also involves organising open dialogues between management and the people within the firm. This will help management better understand the aspirations of employees and aid effective career policy development.

In Hilti Far East, a construction solutions organisation with a branch in Singapore, employees are constantly engaged to provide feedback on personal growth and development. Hilti’s management is also expected to follow up with employees and provide support. Calibration exercises are conducted twice a year to map out
development plans for the employees.

6. Track The Employer Branding Progress

A key component of the employer branding process is to identify drivers which contribute to building the company’s employer brand image and those which require improvement. The identification of drivers can be conducted through an employer brand track survey and/or focus groups.

In 2006, Vale, a Brazilian mining company formerly known as CVRD, administered an internal survey to understand the degree of their employees’ supportive behaviour towards the company’s core values; findings were positive. As a result of the internal survey, Vale was aware of the internal efforts required to hire more employees. Such tools are universal and designed to monitor the employer branding efforts to ensure consistency of the employer brand.

Conclusion

The Singapore workforce is seeing lesser Baby Boomers and more of Generations X and Y. Hence, it is strongly recommended that SMEs brace themselves to customise HR and management policies to suit the different work values and mindsets. Since talents are provided with more employer options, companies should work towards building and sustaining strong employer brands. As illustrated above, strong employer brands play a significant role in attracting and retaining talent.

Employer branding is about creating an idea in the minds of the company’s potential and existing employees. To that end, companies may begin by first ensuring that their visions are lucidly expressed and that values are differentiated and well-defined. The CEO should start the ball rolling by championing the initiative. It is imperative that human resources, marketing and corporate communications work hand-in-hand to drive the employer brand internally and throughout the company. A focus on external potential employees is also important for the firm’s future.

Sound employer branding initiatives include the seeking of employee feedback. This will help identify and narrow gaps between the firm and the employees. Ultimately, the objective of companies embarking on an employer branding journey is to be recognised as an “employer of choice” and become a talent magnet. This recognition facilitates talent attraction and retention and sustains the firm’s competitive advantage.

About the Author

Charissa Lim joined StrategiCom in 2009 as a Consultant after spending 3 years working for Europtronic – an SGX-listed company specialising in electronics components manufacturing. Charissa spent the first 18 months of her stint in Shanghai and Suzhou. The next 12 months were spent in Bangalore, India.

As the Admin Supervisor, Charissa was responsible for analyzing the company’s Sales, Operations and Financial activities. Charissa’s research interest lies in employer branding. She can be contacted at charissa.lim@strategicom.com

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