64th All India Commerce Conference (AICC) Indian Commerce Association (ICA)

Paper submitting for the conference of Manubhai M Shah

memorial research gold medal

Chair person Prof. G.V. Bhavani Prasad

By K. Prathyusha
M.Com Second year, Osmania University College for women, Koti, Hyderabad Email:[email protected]

& Indrakanti Sekhar

M.Com.,MBA.,LLB., (Ph.D) Asst. Professor, Department of Commerce

Osmania University College for women, Koti, Hyderabad Email: [email protected] Cell: 91+98484 51422

13th to 15th Dec 2011

Hosted by Pondicherry University

EMPLOYER BRANDING
A Study on branding strategies to Attract, Engage and Retain Talent

Introduction
Nowa-days Employer Branding has become a prominent strategy that has to be adopted by the companies in the battle for getting talented employees and profitable customers. Employer Branding is good at attracting and retaining employees as well as customers, it helps companies to create competitive advantage by building internally the brand image that you want employees to project externally. Enhanced Attraction, Retention, Engagement are the major benefits companies see by strengthening the employer Brand and be projected as Employer Of choice .Although the benefits will not represent business benefits in and of themselves, but it contribute significantly for over all business performance. For instance Mahindra Satyams repositioned Employer Branding is attracting many candidates making them ignore the de fame of the company due to its former CEO activities, and trying once again to be In Top IT institutes. The paper presents conceptual insight on Employer Branding and how companies with strong Employer Brand Reputation are able to attract candidates away from their competitive employers with less competition and with significantly lesser increase in compensation. It also focuses to explain the importance, applicability and outcome of applying Employer branding Strategy.

Introduction of Employer Branding: No company can win if its products and services resemble every other product and service. To be on winning side, it must have a compelling distinctive idea in the mind of the people. Can our product be different? , but is it possible to make a completely different product from other competitors of the same target market with the same need? Answer is an absolute NO, in such a situation what should be done? Here comes the concept BRAND, which is used to identify the source or maker of a product and allow consumers either individuals or organizations to identify and differentiate the product and its performance from other competitors, where in the differences may be logical, rational, symbolic, tangible or intangible. For Instance LG Electronics brand identity is comprised of four elements Values, promise, benefits and personality, which strive to enhance the customers life and lifestyle with intelligent features, intuitive functionality and exceptional performance. Branding is all about endowing products and services with the power of brand. It is all about creating differences between products. Branding creates mental structures that helps consumer organize their knowledge about products and services in a way that clarifies their decision making and in the process provide value to the firm. Infact Branding creates RESONANCE; it refers to the psychological bond customers share with the product, which plays an important role in customer loyalty, engagement and retention.

Origin of Employer Branding: The term employer brand was first publicly introduced to a management audience in 1990and defined by Simon Barrow, chairman of People in Business, and Tim Ambler, Senior Fellow of London Business School, in the Journal of Brand Management in December 1996This academic paper was the first published attempt to test the application of brand management techniques to human resource management. Objective of the Study:1. To know how strong employer branding companies are able to attract the candidates from their competitors
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To know the Internal Branding practices of the organization. To explain the importance and outcome of practicing employer branding To know how company makes a fit between employee goals and employer goals.

Scope of the Study:As the concept is in the developing stage and didnt have well defined and clear cut strategies to be implemented in the company, and strategies differs from one company to another company in the same industry. The study is intended to focus on the branding practices of an organization in the human resource perspective. It studies the various branding strategies company adopt to attract, engage and retain talent. It looks how companies are able to maintain customer and employee loyalty, engagement and retention. It views the opinion of potential employee values, preferences and their perception on various organizational brands.

Limitations of the Study:

1. As there is No primary data, no empirical evidence to support the conclusion. 2. The data is conceptual in nature only, so the findings are only suggestive not conclusive. Research Methodology: The research is conceptual and descriptive in nature and is based on secondary data with examples from corporate world. Literature Review :There are numerous theories regarding Branding products, Brand Image and Brand reputation and Corporate Brand Image and Marketing communication methods but there few theories on employer branding in concern with comparison of the internal branding practices of the organizations.
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A Journal on Employer branding: - Mitchell, C. (2002), Selling the brand inside, Harvard Business Review, Vol.80, No.1, pp99-105. It is the research article prepared by Colin Mitchell. He talked about the strategies and principles that have to be applied for branding their employees, mainly in linking up the branding strategies applied for products and with the strategies that has to be applied for branding employees. He linked both internal and external marketing features to be implemented such as preaching the beliefs not the intentions of employer to employee by providing images to the vision of employer rather than speaking about them, so that it roots deeply in the minds of employees that they just dont promote the brand, indeed live up the Brand.

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Suman kumar Dawn, Suparna Biswas, Asst.Professor in University of technology, Kolkatta has made a research on Employer Branding: A New Strategic Dimensions Of Indian Corporations where he analysed in depth the origin of employer branding specially the linkage between employer brand and marketing communication methods, he developed a strategic model on Employer Branding, where he bifurcated the branding of a company in to External Branding and Internal Branding. External Branding refers to branding using external sources like organizing events, use of websites, banners, newspapers, email, CSR etc. where as Internal Branding is the employment experience of current and potential employees, their experience will be good when they have their say in decision making , policy formulation, regularly conducting Stay interviews with employees etc. In his Research He conducted Case Study on Infosys, TCS, Tata Steel, CEAT tyres.

Meaning:Employer brand is the distinctive position of the company in the mind and heart of the employee as lived through his day to day work and life An employer brand is a set of attributes and qualities often intangible that makes an organization distinctive, promises a particular kind of employment experience, and appeals to those people who will thrive and perform to their best in its culture.

Definition:Minchington (2005) defines your employer brand as the image of your organization as a great place to work in the mind of current employees and key

stakeholders in the external market (active and passive candidates, clients, customers and other key stakeholders). Employer Branding is defined as and emotional bond among employer, present and prospective employees and various organs of the labour market that creates and builds an organizations reputation as the most preferred employer Subba Rao. Origin:Employer Branding is not about recruitment, advertising of a business. It is about having clarity on what people need and what an organization can offer. It has emerged from applying marketing principles and branding activities to the field of peoples management. It represents organization efforts to communicate to internal and external audiences what makes it both desirable and different as an employer. If companys product does not fulfill the promise, customer leaves the company. In the same way an employee will also leave the organization if the organization fails to live up its employer brand promises. The main reasons for the origin of employer branding concept is
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Brand Power: - Now-a-days Branding has been the central strategy of the organization Branding gives a growing, influential and profitable reputation to the company in the Industry, which is evident with unprecedented growth in the importance given for Corporate Social Responsibility (CSR) in companies to create a strong corporate Brand Image, shows the shift of focus on Humanity. HRs search for credibility: HR is constantly looking to have credibility accepting

2.

and strategic influence on their employees. For this purpose

the conceptual tools of brand power seems to be an obvious choice, this is like a continuity with earlier repetition of HR .For Example organizational change

like restricting of organization structure, change in organizational goals, introduction of new product or service etc leads to organizational development.
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Prevailing labour market conditions :-In regard with the tough conditions prevailing in labour market conditions and trading environment, shortage of skills in employees made the employers to fight with one another to recruit and retain the talent, constrained by higher salaries. A strong employer brand is to be promoted for winning this War of Talent by establishing organizations. Employee engagement: - Company should make attempts to recruit, socialize and retain a committed workforce. Through which the employee identifies himself with the organizational goals, gets workplace satisfaction and helps the employee to Live the Brand which is more particular in the service or retail sector, as employee interface with the customer, because satisfied employees makes organizations grow where as engaged employees takes organizations to the next orbit.

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For every successful brand, there is a great product or service backed by careful planning, a great deal of long-term commitment, and a creatively designed and executed marketing strategy. In the same way to be compelling Employer Branding have to emphasise what makes them different and better in fulfilling the needs of their target group, It must be started from the very beginning of the recruitment practice, it is very hard to differentiate totally from other competitors but company can publicize one or two features in which your company can excel, so that it stands out from a crowded employers in the market place. Claiming to be innovative, imaginative is generic in nature, but being specific on what is your innovative is very important. For Example: - GE Imaginative at work is the logo of GE

Innovation at GE, it isn't enough to think big. Imagination must be practiced within boundaries of ethics, compliance and integrity. Far from limiting creativity GE Company ethics

Indian companies that practice employer branding are:Infosys, TCS, IBM India, Wipro, Satyam computer services, Dr. Reddys Labs, Johnson and Johnson, HSBC, Sun micro systems, HCL infosystems, HCL technologies, Computer science corporations, Mind tree consulting, Sasken communication, cadence design systems, RMSI, Hexaware technologies, Philips software center, Mahindra- British Telecom, Accel ICIM frontline, Keane India, Indus logic, NIIT technologies. Leading employers understand the key motivators for staff that drive performance and engagement. They conduct employee research at least once per year and act on the responses. They collect information at all stages of the employment lifecycle (attraction, recruitment Engagement and retention) and make changes accordingly. The best employers develop an employer brand community which includes stakeholders from inside and outside the company. When an employer value proposition is clearly understood across all stakeholder groups and if it is relevant and compelling, it ensures a consistent delivery of the key messages around, what the company is like to work for.

For Instance- 1.Infosys has a very open-minded work culture -- it is a place where there is minimal hierarchy and people are unafraid to voice new ideas.

Infoscions enjoy trust at the workplace and have a friendly environment within which to perform their duties. 2. Satyam -: Every Satyamite is a leader 3. LG: - Best Employee Bonus 4. Maruti: - Collective Vacation Scheme companies use this tag line for their employer branding. Key Elements Of Employer Branding:

The Companys Mission, Culture and values and Corporate Brand Image are the key factors employees consider in the organization, as many employees use their employer brand for their career development

LG Lifes Good Mission /Vision Statement LG Electronics continues to pursue its 21stcentury vision of becoming a worldwide leader in digitalensuring customer satisfaction through innovative products and superior service while aiming to rank among the worlds top three electronics, information, and telecommunications firms by 2010. On our way, we hold tight to a philosophy of "Great Company, Great People," underscoring our belief that only great people can create a great company. Source:-From LG-India Website LG is striving for greatness with its three core capabilities: Product Leadership, Market Leadership, and People Leadership utilizing each of its strength as key ingredient for realizing innovation" and "fast growth". LG Electronics is pursuing the vision of becoming a true global digital leader by attracting customers worldwide through its innovative products and design. To achieve this, they are working on the idea of Great their growth strategies for "fast

Company, Great People, recognizing that only great people can create a great company. Employer Branding In NOKIA: Nokia is a good example of a company that sells its employment promise very well to the target audience it is trying to engage and recruit. Nokia use competitions to engage their target audience. The Mobile Rules competition invited business plans from applicants that will shake up the mobile world. The initiative was an excellent way to discover new talent that Nokia wish to recruit. Nokia promotes its employment experience as: A flat, networked organization, with speed and flexibility in decision-making. Equal opportunities and openness towards people and new ideas are also key elements they nourish. Nokia is straightforward when dealing with customers and suppliers and always looks for innovative ways of creating and introducing products and solutions to the market. We provide individuals with a platform for personal growth in a challenging environment with a clear vision, goals and shared management principles. Nokia brings together talented individuals who share these principles, and therefore share success. It is a compelling brand statement that will raise the expectations of the candidate but also communicates that a company has a clear vision about how and what it offers in the employment experience. Nokia also use employee testimonials and employee blogs to provide an insight into what it is like to work for the company

 Recruitment advertising and communication materials are identified as the key resourcing activities that shape up the employer brand.

Attraction Strategy:-Developing a committed and talented workforce needs to be started from the very beginning of the recruitment process. Job applicants want to know the benefits employee receive by committing to organization such as challenging job and out standing career and development opportunities, by providing information on Job design, Job descriptions, job specifications, job evaluation, employee remuneration, fringe benefits and social security( employment security, health protection etc.). Having an Employee assistance programs and outplacement counseling is a competitive advantage for the company. Attraction Strategy:-From an internal perspective, corporate strategy of a company may look good, but it must have an effective acquisition strategy, branding, advertising and reputation that will attract the right type of talent.Employees should often try to make a fit between their own traits and the traits describe the organization.For this organization should describe or project their brand image similar to personality trait descriptions,because the perceptions drawn by the people influence the degree to which the person feels attracted to the organization. the companies should systematically assess their reputation in the labour market because job seekers form beliefs about the nature of the organistaion before experience with companies To be effective in attracting top talent, employer brand should be compelling having a direct interview

and credible and should connect with applicants in their own voice. Such as Image Advertising, use of job sites, E-Mail, News Letters to potential customers etc helps the employers to get employees that align with their Corporate Brand Image.

Retention Strategy:-As most of the employees in recent times are nicknamed as Generation Y. because they spend a lot of time on internet to know about the organization they intend to work or speaking of customer when they want to buy a product or service, they do lot of internet searching and get opinions of other people to know about the organization, then comes websites in to the picture where Social networking sites (LinkedIn, MySpace, Face book, Twitter) will make the brand exposure faster and more cost effective. No matter which social media/network sites you participate in, interacting and involving with users can be great way to position your employer brand as an attractive one, which helps you to retain the employees, along with these conducting of exit interviews and giving a formal opportunity for the employee to complain about ones work situation. Peer to Peer content publishing, blogs, online journals, search engine manager, industry forums, and online rating services and no need of help from then to the companies who can manage their own employment brand. When a personal statement is made by someone about the employer has become more reliable than any generic corporate mission statement, thus playing an important role in attracting, engaging and retaining talent. Along with these companies should focus on their Brand Image (what the

company want to be? given by company) and Brand Reputation ( what the company is, perception of employees and customers) keeping harmonious relations among co-workers and their relation with superiors and sub ordinates, by empowering and allowing employees participation helps to have a best fit between employer and employee, Clear cut goals and responsibilities, autonomy at a work, Flexi- working environment, transparency at work,

opportunities for innovation etc should be taken care by organization in order to reap the benefits of employer branding. Limitations of the Study:1. As there is No primary data, no empirical evidence to support the conclusion. 2. The data is conceptual in nature only, so the findings are only suggestive not conclusive.

Conclusion:Employer branding is one such strategy that is used to attract, engage and retain one of the pillars of the organization human capital. It is no doubt had a prominent place in HRM practices, but it not the whole and sole responsibility of the HR, but it is the responsibility of the company totally. It is helpful in increasing intellectual capital in the enterprise which helps organizations to extend its operations. Only Continuous Innovation, Corporate Communication and talent management will help to achieve strong employer brand, there by making the company a Dream Company to Work for the employees. References:1.

P .Subba Rao Essentials Of Human Resource Management And Industrial Relations, Himalaya Publising Home.

2. Philips Kotler and Keller Marketing Management

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Raymond A Noe,John R Hollenbeck, Barry Gerhart, Patrick M Wright -Hrm gaining a competitive advantage

4. Thomas W.Harrell- Industrial Psychology

Websites: 1. www.humanresources.about.com 2.www.hrmguide.com 3.www.cipd.co.uk.