Poor employer rap can cost
The employment "brand", or reputation, of every organisation is a constellation of sentiments, beliefs and perceptions that draw individuals towards or away from the organisation. These perceptions sit in the minds of employees, ex-employees, customers, suppliers and the broader community, including in the minds of those who might one day contemplate working for the organisation.
An employer's brand is built and spread by what these people say to each other and derives from their experiences of the practices, values and behaviours of the organisations leaders - not by what organisations might say or espouse in websites and brochures. An employer's reputation can influence turnover and turnover costs (there is a strong connection between engagement levels and reputation) and also remuneration levels and costs: organisations with a poor reputation need to pay more to attract and keep people than those with a good reputation.
These are some of the themes taken up in a little book called Employer Branding by Hugh Davies, who is managing director of Macfarlan Lane. In fact Davies, and a colleague (Susan Moir) edited the book and wrote just one chapter - the remaining chapters were written by a group of HR leaders and others talking mostly about what happens in their organisations by way of building good "brands" for their firms. We read then about initiatives being taken in organisations like Kraft, BP, Worksafe, Telstra, Ernst and Young and professional services firms generally. There are also chapters (and a foreword) by experts in
this field.
In a period of economic stress, if organisations are to attract and keep good people, it is critical to focus on what builds and what also damages an employer's reputation. Not surprisingly, factors such as the quality of the work, opportunities and recognition, support and resources and work-life balance are important - as is how managers manage: the respect, autonomy given, and development opportunities for individuals.
When organisations are obliged to let people go, the way these events are managed - how victims are treated and supported and how communications about the situation are handled - become critical in the preservation of, or damage to, employer's reputation. It seems that many leaders of organisations remain blind to the presence around most organisations of an "ex-employee alumni", who talk with each other and with their former peers, often for many years, about their experiences with the organisation, and the way they were handled when being displaced.
As we see social media becoming more and more pervasive, so forums such as LinkedIn, Facebook, and email-based groups become important in identifying and working on the elements behind an employer's brand.
Indeed firms like Telstra are now very active in this space, using social media as a primary vehicle to recruit staff and communicate with both staff and the wider community - with internal measures of success such as their success in filling roles internally, the time taken to fill vacancies, utilisation of their website, and surveys capturing net promoter scores of prospective employees of their experience in engaging with the firm.
The book can be ordered through Amazon, in hard copy or as an e-book, and is also available through the publisher: bookpal.com.au.
Macfarlan Lane is a boutique career transition services firm.
Visit macfarlanlane.com.au
Frequently Asked Questions about this Article…
An employer brand is the reputation or image of an organization as an employer. It's important because it influences the ability to attract and retain talent, affects turnover costs, and can impact remuneration levels. A strong employer brand can reduce hiring costs and improve employee engagement.
Organizations with a poor reputation often need to offer higher salaries to attract and retain employees compared to those with a good reputation. A strong employer brand can help reduce these costs by making the organization more attractive to potential employees.
Key factors include the quality of work, opportunities for growth and recognition, support and resources provided, work-life balance, and how managers treat employees. Respect, autonomy, and development opportunities are also crucial in building a positive employer brand.
Social media platforms like LinkedIn and Facebook play a significant role in shaping an employer's brand. They provide a space for current and former employees to share their experiences, which can influence public perception and the organization's ability to attract talent.
Ex-employees, often referred to as 'alumni,' can significantly impact an organization's reputation. They share their experiences with others, which can influence how the organization is perceived by potential employees and the broader community.
The way layoffs are managed can greatly affect an employer's reputation. Treating employees with respect and providing support during layoffs can help preserve the organization's reputation, while poor handling can lead to negative perceptions and damage the employer brand.
Companies like Telstra actively use social media to recruit staff and communicate with both employees and the wider community. They measure success through internal metrics such as filling roles internally, time taken to fill vacancies, and net promoter scores from prospective employees.
For more insights on employer branding, you can refer to the book 'Employer Branding' by Hugh Davies, available on Amazon and through the publisher bookpal.com.au. It includes contributions from HR leaders and experts discussing strategies for building strong employer brands.
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