CHAPTER 11

HR Branding

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“Employer branding reflects the work culture in a business. Therefore, it is of much significance. Through right branding, the company can recruit the best talent and strengthen its positioning amongst its employees.”

 

D.K Srivastava as Vice president-HR, HCL comnet

CHAPTER OUTLINE
  • Employer of choice
  • HR branding
  • Psychological contract
  • Recruitment tool
  • Strategic process
LEARNING OUTCOMES
  • Meaning of HR branding
  • Importance
  • Role of HR in branding
  • Implementation of policies to build brand

OPENING CASE

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State Bank of India, a public sector bank of India is ranked by different rating agencies as the ‘Preferred Employer’. SBI has been able to attract the Millennials through its unique value proposition. The bank provides attractive career growth opportunities through merit based promotions and clearly defined career paths. The employees are provided opportunities to explore diverse job roles and geographies in India as well as overseas. SBI also has a well-laid out and structured on-boarding program to ensure new recruits integrate well into the organization. The bank recently launched its Facebook initiative to enhance peer-to-peer interaction amongst more than 1500 probationary officers of the bank. SBI has launched a recruitment brand ‘Grow Everyday’ to raise awareness among the bright young minds and encourage them to apply for building a promising career with the bank.

The personal and professional development of the employee is given due consideration. The L&D is executed through the bank’s state-of-the-art training infrastructure & tie-ups with reputed global institutes like Harvard, ISB, IIMs and Stanford. Such developmental practices are focused on developing the leadership pipeline. The employee can carve his or her career paths by building their expertise in the area of choice. Performance management system inculcates individual accountability and provides input for merit based rewards, recognition, promotions and talent management. All employees can view their monthly performance against assigned targets. There is data driven and meaningful differentiation based on performance and it lays the foundation for a deep meritocratic culture.

The SBI Saathi (buddy) program, where a new hire is matched with a buddy from the same branch, closer in age, for informal guidance and a structured mentorship program facilitate the adjustment of new hires in the organization. The bank has been revered by Hellen Keller Award for being a Role model company for commitment towards promoting equal employment opportunities for people with disabilities, 2015; World HRD Congress Award for Organization with innovative HR Practices, 2014; Golden Peacock Award for HR excellence, 2013. Which HR practices makes SBI to feature in the ‘Best Employer’ list?

 

INTRODUCTION

In the era of knowledge economy, organisations confront challenges in attracting and retaining employees. The shift to a knowledge-based economy has led to an increase in the recognition of human capital as vital to an organisation’s success and to gaining a competitive edge (Ewing et al. 2002). Despite gigantic unemployment rates, it is difficult to spot a talented employee in the labour market, which is ironical and at the same time alarming too. “War for talent” is a result of this disequilibrium and hence to attract and retain talent to the organisation, employers need to create the “brand.” HR branding is gaining importance as a strategic approach to attracting and retaining employees-by not only highlighting benefits of being employed in the organisation, but also posing the organisation as an employer of choice among potential employees.

 

Despite gigantic unemployment rates, it is difficult to spot a talented employee in the labour market, which is ironical and at the same time alarming too. “War for talent” is a result of this disequilibrium and hence to attract and retain talent to the organisation, employers need to create the “brand.”

HR branding and employer branding are used interchangeably in this chapter.

HR BRANDING

“Every organisation has an employer brand. Whether you own it or not, your organisation is influencing its employer brand 365 days a year” (Minchington and Thorne 2007).

Brand equity is the set of brand assets and liabilities linked to a brand that add or subtract from value provided by a product or service to a firm and/or that firm’s customers (Aaker 1996). Employer brand equity applies to the effect of brand knowledge on potential or existing employees of the firm. Employer brand equity is the desired outcome of HR branding activities (Backhaus and Tikoo 2004).

 

HR branding is defined as a strategic branding process, which creates, negotiates, and enacts sustainable relationships between an organisation and its potential and existing employees under the influence of the varying corporate contexts with the purpose of co-creating sustainable values for the individual, the organisation, and society as a whole. (Aggerholm et al. 2011, p. 113).

The concept of HR branding connotes attracting and retaining talented employee by employing both external and internal branding efforts (Gaddam 2008).

Organisation distinguishes branding as corporate, product, and HR. HR branding is different from the other two branding practices. The employer brand specifically relates to the employment experience in establishing the organisations identity as an employer. HR branding is more complex in regards to consumers, as it is directed at both internal and external audiences, where the corporate and product branding primarily focus on external audiences (Backhaus and Tikoo 2004).

HR branding is defined as a strategic branding process, which creates, negotiates, and enacts sustainable relationships between an organisation and its potential and existing employees under the influence of the varying corporate contexts with the purpose of co-creating sustainable values for the individual, the organisation, and society as a whole (Aggerholm et al. 2011, p. 113).

The Evolution of HR Branding

Tim Ambler and Simon Barrow coined the term “HR branding” in 1990s as an amalgamation of HR practices with the branding techniques. HR branding is based on the resource-based view, which considers that human capital is vital for organisational success (Backhaus and Tikoo 2004). The increased awareness and application of the concept, however, are highly contributed to the past, current, and future shortage of these talented employees. With a scarce talent pool, organisation will apply for candidates (use HR branding) and not the other way around. Talented workforce is the competitive advantage in the organisations of today’s knowledge economy, and attracting and retaining them become critical.

 

Talented workforce is the competitive advantage in the organisations of today’s knowledge economy, and attracting and retaining them become critical.

The interest in HR branding is driven by a growing competition for the talent required by companies to realise their corporate ambitions. Therefore, organisations must differentiate themselves to attract and retain employees (Lievens and Highhouse 2003).

Thus, a shortage of talented employees combined with organisation’s need for them has created a “war for talent,” which is the key stimulator of the HR branding concept.

A Mix of Disciplines

Employer branding, in its full scope, cuts across many traditional HR specialisations and becomes an umbrella programme that provides structure to previously separate policies and practices (Edwards (2010, p. 5).

Marketing and Employer Branding

HR branding has its root in marketing discipline. The traditional employer brand is based upon the notion of creating brand equity through a value proposition. However, the target audience for HR branding is not consumers but potential and current employees (Barrow and Mosley 2005). Thus, the traditional employer brand and employer brand process are build upon and traces back to product and corporate branding processes (Edwards 2010).

As product branding reflects the benefits of the product, employer brands, and employer value propositions also speaks about the functional and symbolic benefits of the brand.

 

As product branding reflects the benefits of the product, employer brands, and employer value propositions also speaks about the functional and symbolic benefits of the brand.

Organisational Culture and Employer Branding

The organisational culture theory propounds that an organisation has a unique identity and culture. The values (symbolic benefits) connoted via the employer brand are rooted within the organisational identity and culture, and thus used to attract and retain employees (Edwards 2010). The organisational culture which reinforces employee commitment and loyalty and develops a sense of ownership among employees, is essential for the employer branding. Exhibit 11.1 is a good example of creating HR branding by developing organisational culture.

Industrial Insight 1: GOOGLE

Google has a distinct employer branding in the market. Their work style, facilities, culture, policies, and procedure are entirely different when compared to the other organisations. The organisation has a different innovative brand identity in the recruitment market. According to many famous market surveys, Google was ranked the second best place to work by many employees and fresh graduates.

The organisation is very passionate about its employees and about how passionate employees are about their work and commitment toward the organisation. They believe in creativity and innovation.

The Psychological Contract and Employer Branding

The employer brand has its basis in the theory of psychological contract and organisational behaviour theories like employee satisfaction and motivation. If the current employee is satisfied with the organisation’s ways of fulfilling the psychological contract, he or she works as the “word of mouth” publicity of the organisational ways, thus attracting the talent pool to the organisation.

IMPORTANCE OF HR BRANDING

Just like other branding and HR activities, it is difficult to quantify the actual outcome and return on investment, but HR branding has become a vital tool in the war for talent to ensure that organisations attract talented employees and retain key employees. Externally, the HR brand functions to attract employees and to create positive associations and enhance corporate image. Further, it also functions as a “selection tool” to ensure that the right kinds of employees are attracted and that potential employee who does not match the organisations is not attracted. Internally, the employer brand generates value by creating a unifying and strong culture as well as increased employee satisfaction and commitment (Edwards 2010; Backhaus and Tikoo 2004; Gaddam 2008).

 

The satisfied employee is the brand ambassador of the organisation HR brand has an indirect influence on the profitability through increased performance and commitment as well as increased customer satisfaction. The other benefits include more potential candidates, more internal recruitments, lower time-to-hire, lower cost-to-hire, lower absenteeism, increased job satisfaction, and a positive spin-off effect on the organisation’s product and corporate brand.

HR branding enhances organisational performance in terms of productivity and profits, which is shown in Figure 11.1:

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Figure 11.1: How HR branding Creates Value for Organisations.

Gaddam (2008) advocates that the HR brand has an indirect influence on the profitability through increased performance and commitment as well as increased customer satisfaction. The other benefits include more potential candidates, more internal recruitments, lower time-to-hire, lower cost-to-hire, lower absenteeism, increased job satisfaction, and a positive spin-off effect on the organisation’s product and corporate brand (Beardwell and Claydon 2010).

HR branding as a Strategic Process

“The biggest challenge in HR branding is ownership. As it is not clear who should sponsor it, the responsibility can fall down the middle between marketing, corporate communications and HR. To succeed, it needs an integrated process link all departments” (Minchintong and Thorne 2007). In addition to integrating organisational disciplines, the strategic employer brand is anchored in and supports the overall corporate strategy.

According to Lodberg (2011) for HR branding to be successful, organisations should work with several “contact points” in an employee’s journey through the organisation. Thus, the strategically anchored employer brand is consistent and relationship building from the initial awareness of the organisation throughout the recruitment process, the orientation process, the performance management and development in the organisation, and also an employee exit from the organisation.

 

The strategically anchored employer brand is consistent and relationship building from the initial awareness of the organisation throughout the recruitment process, the orientation process, the performance management and development in the organisation, and also an employee exit from the organisation.

HR Branding as a Communicative Discipline

HR branding as a communicative discipline is anchored within the organisation’s culture/identity and therefore depicts different employment experiences depending on the particular organisation. However, it is useful for organisations to incorporate motivational factors such as possibilities for career development into the employment experience and thereby into its human resource (HR) strategy and corporate social responsibility strategy.

The current employees, prospective employees and the strategy, and identity of the organisation are the key components of employer brand. There might be a difference in the perception of employer brand by current and the prospective employees, which could be due to the communication of the brand.

When a company has already established its brand, for example, BMW–A car manufacturer, the brand itself communicates a lot to the customers or prospective customers. If BMW launches a new car, we are assured of its technology and efficiency, just because of the brand value attached to it. Similarly, when organisation brands its HR, the culture, policies, and employee well-being, gets communicated on its own.

HR Branding as a Recruitment Tool

The brands DeBeer’s, Puma, IBM, GAP instantaneously instil a product image and reputation.

 

HR branding is a strategic, communication and recruitment tool.

Same is true for HR brand. The moment somebody say, Google, we have a brand image of the employer of Google in our mind and in fact, most of us would start aspiring to be one of its employee. “Employer branding is the imperative unlocking key for recruitment,” says Donald Decamp, COO of Com Health Group, a healthcare staffing firm. He further adds, “Employer branding goes beyond a company’s reputation.” The organisations have adopted the strategy of recruitment through the information about the organisational culture. The recruitment advertisement would have the video of the organisational work practices or the print ad would have a write-up on organisational practices.

HR BRANDING—RESPONSIBILITIES OF HR DEPARTMENT

In the era of technology, when we are well connected and networked, it is easy to access the information about our prospective employer. Hence, through HR branding, company needs to position its brand in the manner that it is dream organisation for the majority. The HR plays a vital role in creating employer branding. Some of the responsibilities of the HR for building employer branding are as follows:

  • Initial workforce planning
  • Effective recruitment strategies
  • Attractive compensation packages
  • Employee friendly HR policies with no ulterior motives
  • Autonomy
  • Work-life balance
  • L&D policies
  • Career plans
  • Good organisation culture

DK Srivastava, the Vice-President of HR at HCL Comnet says, “It is said that any unsatisfied customer advises 10 people about his experience while a discontented employee tells a hundred. Employer branding reflects the work culture in a business. Therefore, it is of much significance. Through right branding, the company can recruit the best talent and strengthen its positioning amongst its employees.” HP conducted a survey and found that more employers are trying to bring awareness among the outgoing college graduates and also among the employees in the organisation through different means like advertisements, media and workshops. In the survey, they also found that there is direct correlation between employer branding and business success. HCL confirms that their policies and procedures are more innovative to their employees.

Formulating HR Brand (www.kraniumhr.com).

 

To formulate, HR brand requires collaborative effort, brand attributes, employees as brand endorsers, and adaptable brand.

Collaborative Effort: Employer branding should not be considered the sole responsibility of the HR department, In fact, it is a part of the organisational strategy and hence cross functional task force should be constituted. The team should include representatives from departments like talent acquisition and management, corporate strategists, line managers, and corporate communication groups.

Articulating Brand Attributes: It is important to articulate “the factors” the brand would represent. The organisation should thoughtfully decide the brand attributes through focus groups and series of brainstorming sessions. Management should reach out to existing employees to understand their perspective about the organisation. This helps to identify the strengths, upon which companies build their branding initiatives.

Current employees as brand ambassadors: It is a well-known fact that the information from horse’s mouth is well-received and reliable. The current employee when talks passionately about his or her organisation creates employer brand. In today’s era of the social media, when the employee posts about the workplace, it becomes the point of reference for many other potential employees.

Flexible, Learn to Adopt Changes:  A success of the brand depends on its flexibility and adaptability to change. With the dynamic business environment, the branding strategies should change. For example, the employer brand now should focus on attracting millenials. These were the principles based on which corporate branding strategies must be formulated. But a brand is recognized through its employees. Besides looking after the needs of its customers, a company must make considerable efforts to keep the employees happy.

The above principles can be implemented only when the company works toward systematic development of its workforce. The role of the HR development team is crucial in this context. Employees need to be motivated to work hard, and join each other in accomplishing common organisational objectives. Performance of each employee needs to be monitored closely, and anybody who needs guidance must be helped immediately. This isn’t a one-time procedure. But this is how it needs to go on, till employees understand that the company is genuinely interested to retain each employee and look after his needs.

To create a strong employer brand, along with, the mutual understanding between the employees and the top management the HR team needs to ensure that employees are not complaining about anything. A healthy work environment must be maintained in each department. It will certainly push a company to create a solid employer brand, which is strong enough to create a separate niche for the company.

 

To create a strong employer brand, along with, the mutual understanding between the employees and the top management the HR team needs to ensure that employees are not complaining about anything. A healthy work environment must be maintained in each department.

An employee satisfaction is vital to creating a strong brand image. The employee must be satisfied with the appraisal, career development, rewards, and so on. Employment is the source of finance for all employees. So employees must be given systematic appraisals, depending on how far they have gone to perform at an optimum level and that too, on a consistent basis. HR executives must coordinate with team leaders to make sure each employee is given equal treatment when it comes to performance appraisals. It will help the organisation maintain an impartial attitude toward its manpower.

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Figure 11.2: Key Components of Employer Brand

The employee development programmes also play a strong role in developing the brand identity. Most of the workforce, who joins as freshers, needs to be developed and groomed as experts. Such employee developmental aspects contribute toward the strong brand identity, and of course, a higher conversion ratio will signify how fast a company can develop its employer brand!

 

Employees must be given systematic appraisals, depending on how far they have gone to perform at an optimum level and that too, on a consistent basis. HR executives must coordinate with team leaders to make sure each employee is given equal treatment when it comes to performance appraisals. It will help the organisation maintain an impartial attitude toward its manpower.

Industrial Insight 2:

Infosys

An employee in Infosys speaks about the organisational culture, vision, mission, image, and his own relationship with the organisation and how he succeeded within the organisation as well as how well the organisation fulfilled his career aims and his achievements. This style of employer branding is used to recruit the best talent, through testimonies given by their employees in the recruitment advertisements.

Ford Motors

Innovatively, Ford Motors reviewed its organisation’s recruitment process and revamped the old advertisements for the intake of graduates. It conducted a survey on the most attractive and efficient reachable slogans and messages for recruiting fresh graduates. After a broad research on the perceptions of the employees, the company tested a wide variety of ideas, themes, slogans, images, and headlines. Finally, one concept called “Natural Passion” simply struck an arpeggio with the participants. It helped in creating the brand image of the organisation among the fresh recruiters. This advertisement won the Times Best Graduate Recruitment Advertising and Brochure Award, which is very significant because it was judged by 13,000 undergraduate contestants in the High Fliers survey.

Wal-Mart

Wal-Mart is the world’s largest retail chain market that plans to enter India within a few years. It is planning employer branding in India through advertising firms, in order to create a strong relationship with the employees for its operations in India like logistics and cash-carry business. There is a huge labour crunch in many sectors including the retail sector, since most of the workforce shows interest in the IT sector. In India, Wal-Mart has a tie-up with Bharti Enterprises for its requirements of workforce, of about 2,500 professionals at various levels of the organisation for its human-capital-intensive Indian operations. Wal-Mart plans to spend huge amounts for creating employer brand in India.

Industrial Insight 3: EAT: A RECIPE FOR EMPLOYER BRANDING SUCCESS

The whole thing started with a simple uniform. EAT, the on-the-go food retailer, wanted to move forward with a rebrand. And people director Ed Godwin knew that much, if not all, of the company’s future success would be down to the quality of staff and the service. “I said to our team: ‘This is what we want to achieve, so what’s getting in the way?” he recalls. Their reply: “We hate the uniform.”

In response, Godwin organised an internal competition to design a new uniform, an outfit that was soon after seen on staff in all of the chain’s 114 UK stores. “Our shop staff told us they just didn’t feel good in the old uniform,” says Godwin.

“It was surprising, because normally when you ask people what they’d like to change you expect to hear “more money.” But the overriding thing for our people was having a uniform they could feel proud of wearing.”

Asking the frontline staff what they think and actually listening to what they say is a simple, but very effective, ethos. And it’s something that underpins everything that EAT does, from deciding to do more to promote its hot food (shop staff told bosses that they saw hot food as a powerful differentiator and that the company should show off about its recipes) to the recent rebrand. In fact, this refreshed branding, now proudly displayed at the retailer’s new flagship store on the Strand (the biggest exercise the company has ever undertaken at brand level), was driven almost entirely by customer-facing staff.

The Strand branch manager was immersed in the creation of a new brand 12 weeks before the store opened. “We didn’t want her to be on the receiving end of a brand we’d worked out in a room somewhere,” says Godwin. The manager has been actively involved in the store design and layout. “Who better to tell us the best way to lay out equipment than someone who uses it every day?” points out Godwin. “And on opening the store, she has a real understanding of why we’ve chosen things in a certain way, because she was involved in creating it.”

In order to boost engagement and get complete buy-in from the 1,600 staff (a number that will grow in 2013), EAT has had to make an organisational shift in the past few years. The start-up mentality (it was launched by entrepreneurial husband and wife duo Niall and Faith MacArthur in 1996) has evolved, and the company has had to embrace all the processes that come with becoming a larger business. As part of this, head of people Godwin was promoted to the newly created board-level role of people director.

“There’s a time in an organisation’s life when it needs someone at board level looking after people,” says Godwin. “There were a lot of the basics to get right, such as induction training. The decision to create a board-level role for HR was a sign of the business beginning to view people not just as a necessary cost centre but a commercial function”.

Since that moment, Godwin has barely stopped to draw breath in his mission to help people practices catch up with a fast-growing business. One of his first tasks was to organise the revamping of all shop staff job descriptions. “The service never used to be what Niall [MacArthur] wanted it to be,” he recalls.

“The job descriptions didn’t reflect the desire for a certain behaviour in our people. We’ve renamed team members ‘customer hosts’; we want to see excellent customer service as much as teamwork. We converted all the roles from passive team-focused ones to active customer-service-focused ones. And because we were expecting more from our people, we introduced pay rates and incentives to match.” Alongside improved pay, customer hosts receive bonuses: everyone has the opportunity to add £1 per hour to their wages if they meet certain targets.

As well as changing job titles and creating new uniforms, head-office staff worked with customer hosts to create a new set of company behaviours. As such, the company values have been entirely guided by shop staff.

“I didn’t write them,” says Godwin. “We held interviews with 200 of our customer hosts and managers and pulled together everything they said to create a list of values and behaviours we would all love to see.” A trial of these new roles and behaviours created growth “literally overnight”. And just as importantly, Godwin’s boss loved it. “Niall said it was the first time he’d seen something that replicated his vision,” he recalls.

All this investment on the shop floor has produced an enviable talent pipeline. Most store managers used to be recruited externally, now 80 percent come from inside the company. And recruitment interest has gone through the roof, with up to 400 online applications a day. Much of that is down to EAT’s innovative use of recruitment material and social media. Whereas before, the team used to place ads in traditional media, now they use Twitter and Facebook instead (the organisation’s Facebook careers page is so popular among staff Godwin describes it more as an “internal newsletter”). EAT’s recruitment site is video only. Employees are filmed describing the company and what it’s like to work there in three words-putting frontline staff on the recruitment frontline.

“There’s now a real interest in working with us,” says Godwin. “I believe that’s because candidates see who they are going to be working with. People who join us don’t work for EAT; they don’t work for me; they work for the people who manage the shop.”

This approach has proved so popular that 280 people recently turned up to “pop-in Thursday,” a recruitment open day at the company’s London people center. Godwin was expecting 100. “At 7am, there was a queue,” he recalls. “I was meant to be having a meeting with the finance director, but I had to say: ‘Sod the meeting, we need to get out there and meet all these great people.’ We spent all day interviewing.” Visiting EAT’s London people center and being shown around by Godwin, the sense that shop staff comes first is pervasive. From the state-of-the-art coffee-training room where baristas can practise their latte art, to the wall covered in pictures of employees, everything about the centre is designed to tell staff and potential new recruits that EAT really does care about them and their career.

It’s a powerful employer brand, which goes a long way toward explaining the glowing messages directed at specific staff members and stores from customers on Twitter.

“There’s a real passion for EAT as a business,” Godwin explains. “It always amazes me just how hard people work; how much they want to develop and be part of our future. It’s just so humbling.”

For Godwin, it’s clear that employer brand and the consumer-facing brand are symbiotic–one cannot exist without the other and both must be thriving for retail success. And with plans for further expansion in the works, EAT’s brand is staying very much in the hands of employees. Godwin wouldn’t have it any other way.

“An employer brand isn’t what we in head office say it is,” he says. “An employer brand is the reality. To say the shop staff doesn’t own it is impossible. If you come to work here, that is what you experience: it is your brand. Don’t fool yourself that a brand is what you’ve written in the manual. Whether you like it or not, your brand is live and it’s out there.”

Industrial Insight 4: SECRETS OF EMPLOYER BRANDING LEADERS: UNILEVER

Leela Srinivasan, August 21, 2012

Is your company considered a great place to work? Pay attention, because it can make all the difference in your quest to recruit the right people for your organisation. Our latest research proves that a strong employer brand attracts and retains top talent, reducing both recruiting costs and attrition rates.

But how exactly does a company build such a brand? This is the first in a series of interviews we conducted with customers who are attracting interest on LinkedIn for all the right reasons. Unilever is near the top of the list, so we sat down with Paul Maxin, Global Resourcing Director, who has been with the company since 2006 and has 25 years of experience working both with agencies and in-house.

How would you describe Unilever’s company brand and how does it relate to your employer brand?

Unilever is comprised of 400 powerhouse brands yielding €46.5 billion in annual sales. We are in 7 out of 10 households worldwide, and we spend about €1 billion per year on research and development. Product innovation and sustainable living are at the core of our business, and thus at the core of our brand. This is inextricably linked with our employer brand; we consider ourselves the outstanding employer of choice for people committed to “working on the future” in a sustainable way.

How has the focus on employer brand changed over time?

Recently, we set a goal to transform our business from €40 billion to €80 billion while reducing our environmental footprint. This called for a different talent and organisational strategy, and thus a better aligned employer brand. Now our mission is to deliver it into the marketplace.

How would you describe the impact of a strong employer brand on Unilever’s business, and how do you measure that?

We are the no. 1 employer of choice among consumer goods companies in 14 countries, as measured by external research firms in those markets.  Our goal is to be no. 1 in 20 countries. We target where we want to be in those markets, for instance with students, or in areas such as leadership, and we use third-party indices as metrics.

Who are the main employer brand stakeholders at Unilever?

It starts at the top: our CEO and his leadership team visit university campuses each year, not only for recruitment events, but also to put Unilever on the curricula. They engage with institutions where we recruit great talent, and their investment sends a message that our employer brand is a critical asset.

Our culture also encourages employees to be talent scouts. For some employees, we incorporate talent scouting into their development plans. We also offer online courses for managers to learn how to be more effective brand ambassadors. New hires are made aware of and encouraged to use these training opportunities.

Larger organisations can be hesitant to involve employees deeply in social media. What’s Unilever’s philosophy?

We see the enormous benefit of tools such as LinkedIn because they enable employees to interact with their networks while representing Unilever. The overriding principle applicable to all media is not to say anything that will bring the individual or company into disrepute. But there is freedom within the framework, so an employee can still have a personal Twitter handle, for example.

In the age of social media and with sites like Glassdoor out there, ensuring brand authenticity is all the more critical. Candidates and employees no longer tell one friend about their recruitment experience with Company X; they broadcast it to everyone they know instantaneously.

LinkedIn is a great vehicle to enable everyone, not just recruiters, to engage with future employees. We are just starting to use it more strategically, but one reason we have so many company followers on LinkedIn now is that we’ve been engaging with the marketplace via our current employees.

How exactly are you driving more followers on LinkedIn?

We’ve rolled out buttons in email signatures, so there is a call to action to follow Unilever in every message. We went from about 40,000 followers to about 235,000 in 10 months. And we know these followers are relevant because we’ve seen an exponential rise in career page visits, and a significant increase in new hires from LinkedIn.

We have  five different career sites on LinkedIn, each rendering themselves appropriately to different profiles. So there’s a general page, and then pages tailored to specific audiences such as marketing professionals. We post both general updates and targeted updates to specific profile types and/or geographic regions.

Lastly, more than 30,000 Unilever employees have LinkedIn profiles. There is so much potential and we’ve only just started to mine that data to better target talent, and engage with relevant communities and groups.

Unilever’s “Made By You” message speaks to the opportunity for employees to drive the growth of powerhouse consumer brands while developing lasting, challenging careers.

How have you implemented a consistent employer brand for such a large, global organisation?

We pulled together a cross-functional team with representatives from HRs, the corporate brand team, and emerging and developed markets, and we did a significant amount of research. We conducted surveys and focus groups with current employees, candidates, and new hires, from interns to managers to senior executives. New hires are a unique sub-set because they are fresh enough to remember the promises from the recruitment process, but have a taste of the real job experience too.

We validated the output and further refined the results. Regional input was key in order to create the right messaging and to select the right stories. We will continue to roll out more stories and share best practices across markets.

How often do you undergo this full research cycle?

We hadn’t done this type of exercise in about 5 years, but there’s no set rule. The impetus for this round was setting the goal to double in size while reducing our carbon footprint: it impacted both the corporate and consumer brands, so naturally it affected the employer brand too.

What’s the biggest obstacle you’ve faced related to employer branding?

In some markets, our target candidates don’t know the connection between our consumer brands and the company that is Unilever. Dove is very well known in North America, for example, but its association with Unilever isn’t as strong. As we work on further aligning our employer brand with our evolving corporate brand, we will reduce these disparities.

Key Takeaways

  1. Ensure brand authenticity: Don’t promise externally what you can’t deliver internally.
    • Conduct research to define and validate your employee value proposition: what you say about your company must be true for your employees and reflected in their experiences.
    • Test and refine research findings, and tailor to different talent levels and geographic markets. Analyse input from veteran employees, potential candidates, and new hires.
    • Re-evaluate your employer brand when business goals change and monitor its alignment with the corporate and consumer brands.
  2. Empower all employees to be brand ambassadors.
    • “Roll out the buttons” on employee email signatures to grow your relevant follower base and talent pool.
    • Analyse your employee profile data on LinkedIn: target ads, updates, and career pages to engage with potential employees.
    • Offer training to teach employees how to leverage LinkedIn and other social media to build their personal brands and to deliver the employer brand messaging.

Summary

  • Tailor development plans and incentives to motivate employees who are high-potential talent scouts.
  • Despite gigantic unemployment rates, it is difficult to spot a talented employee in the labour market, which is ironical and at the same time alarming too. “War for talent” is a result of this disequilibrium and hence to attract and retain talent to the organisation, employers need to create the “brand.”
  • HR branding is defined as a strategic branding process which creates, negotiates, and enacts sustainable relationships between an organisation and its potential and existing employees under the influence of the varying corporate contexts with the purpose of co-creating sustainable values for the individual, the organisation, and society as a whole.
  • Talented workforce is the competitive advantage in the organisations of today’s knowledge economy, and attracting and retaining them becomes critical.
  • As product branding reflects the benefits of the product, employer brands, and employer value propositions also speaks about the functional and symbolic benefits of the brand.
  • The satisfied employee is the brand ambassador of the organisation.
  • HR brand has an indirect influence on the profitability through increased performance and commitment as well as increased customer satisfaction. The other benefits includes more potential candidates, more internal recruitments, lower time-to-hire, lower cost-to-hire, lower absenteeism, increased job satisfaction, and a positive spin-off effect on the organisation’s product and corporate brand.
  • The strategically anchored employer brand is consistent and relationship building from the initial awareness of the organisation throughout the recruitment process, the orientation process, the performance management and development in the organisation, and also an employee exit from the organisation.
  • HR branding is a strategic, communication, and recruitment tool.
  • To formulate, HR brand requires collaborative effort, brand attributes, employees as brand endorsers, and adaptable brand.
  • To create a strong employer brand, along with, the mutual understanding between the employees and the top management the HR team needs to ensure that employees are not complaining about anything. A healthy work environment must be maintained in each department. It will certainly push a company to create a solid employer brand, which is strong enough to create a separate niche for the company.
  • Employees must be given systematic appraisals, depending on how far they have gone to perform at an optimum level and that too, on a consistent basis. HR executives must coordinate with team leaders to make sure each employee is given equal treatment when it comes to performance appraisals. It will help the organisation maintain an impartial attitude toward its manpower.

References

Aaker, David A. (1996). Building strong Brands. Simon & Schuster, UK Ltd.

Aggerholm, Helle K. , Andersen, Sophie e. & Thomsen, Christa. (2011). Conceptualising employer branding in sustainable organisations. Corporate communications: An International Journal. Vol. 16, No. 2, 2011. Pp. 105–123. Emerald Group Publishing Limited.

Backhaus, Kristin and Tikoo Surinder (2004). Conceptualising and researching employer branding. Career Development International. Vol. 9, No. 5 2004 pp. 501–517. Emerald Group Publishing Limited.

Barrow, Simon & Mosley, Richard. (2005). The Employer Brand: bringing the best of brand management to people at work. John Wiley & Sons Ltd.

Beardwell, Julie & Claydon, Tim (2010). Human Resource Management. A Contemporary Approach. Sixth edition. Pearson education Limited.

Edwards, Martin R. An integrative review of employer branding and OB theory. (2010). Personnel Review. Vol. 39, No. 1, 2010. Pp. 5–23. Emerald Group Publishing Limited.

Eshoj. (2012). The Impact of Employer Branding on The Formation of The Psychological Contract. MACC Master Thesis.

Ewing, Michael T., Pitt, Leyland F., de Bussy, Nigel M., Berthon, Pierre (2002). Employer branding in the knowledge economy. International Journal of Advertising 21, pp. 3–22. World Advertising research Centre, Oxford, UK.

Gaddam, Soumya (2008). Modeling Employer Branding Communication: The Softer Aspect of HR Marketing Management. The Icfai University Press.

Holker, Nick. (2009). The role of employer branding in recruitment –www.employerbrand.com

Jacobs, Katie. (2013). EAT: a recipe for employer branding success. HR Magazine

Lievens, Filip & Highhouse, Scott. (2003). The relation of instrumental and symbolic attributes to a company’s attractiveness as an employer. Personnel Psychology, 2003, 56. Personnel Psychology, Inc.

Lodberg, Ralf. (2011). Ch. 7: Employer branding. På opdagelse i en ny branding-disciplin. In Hånd-bog i strategisk public relations. Red. Henrik Merkelsen. Samfundslitteratur, 2011. 2. Edition. Pp. 157–178.

Minchingotn, Brett & Thorne, Kaye. (2007). Measuring the effectiveness of your employer brand. Human Resources Magazine, Oct/Nov2007, Vol. 12 Issue 4, p14–16. Human Resources Institute of New Zealand.

Mosley, Richard W. (2007). Customer experience, organisational culture and the employer brand. Brand Managment. Vol. 15., No. 2, pp. 123–134, November 2007. Palgrave Macmillan Ltd.

Rosethorn, Helen (2009). Origins – Two Roots to the Family Tree.The Employer Brand-Keeping Faith with the Deal. Bernard Hodes Group Gowan Publishing pg 3–16.

www.cipd.co.uk.in Employer brand: The Latest fad or future of HR? Viewed on 5th Jan 2013.

www.kraniumhr.com

http://talent.linkedin.com

www.therightgroup.com. Employer Branding & Recruitment Marketing. Viewed on 5th Jan 2013

www.scribd.com. Employer Branding-A strategic tool.

www.employerbrand.com

Adapted from Gaddam (2008, p. 47).

www.kraniumhr.com

The role of employer branding in recruitment–Nick Holker, Work, www.employerbrand.com

HR Magazine. Katie Jacobs , 03 Jan. 2013.

http://talent.linkedin.com, Blog, Employer Branding Unilever

Review Questions

  1. Explain the meaning and importance of HR branding.
  2. What are the key components of the employer brand.
  3. How has Unilever built its HR brand?
  4. What is the role of HR in branding?
  5. What is the role of organisational culture in HR branding?
  6. Choose one company of your choice and comment about the alignment of the organisational Strategy with the employer brand of the selected company.

Time to Apply Theory to Practice: Assignment

Prepare a Report with the following details

  1. Top 10 companies which feature in the list of best employer of the current year.
  2. Browse their web sites and annual reports and comment upon their employer branding strategy.

Critical and Analytical Thinking—Tata Consultancy Services

iTata Consultancy Services Limited  (TCS) is an Indian  multinational, offering information technology (IT) service, business solutions, and outsourcing Services. The company is headquartered in Mumbai, Maharashtra. TCS is a subsidiary of the Tata Group and is listed on the Bombay Stock Exchange and the National Stock Exchange of India. It is one of India’s most valuable companies and is the largest India-based IT services company by 2013 revenues. It has been adjudged the “Best Employer” for the year 2013.

TCS was founded in the year 1968. Its early contracts included providing punched card services to sister company TISCO (now Tata Steel), working on an Inter-Branch Reconciliation System for the Central Bank of India, and providing bureau services to Unit Trust of India.

In 1981, TCS established India’s first dedicated software research and development center, the Tata Research Development and Design Center (TRDDC) in Pune. In 1985, TCS established India’s first client-dedicated offshore development center, set up for client Tandem. By 2004, TCS’s e-business activities were generating over US$500 million in annual revenues.

TCS had a total of 274,583 employees as of 31 October 2012, of whom 220,835 were based in India and 17,748 in the rest of the world. It is one of the largest private sector employers in India, and the second-largest employer among listed Indian companies (after Coal India Limited). In the 2011/2012 fiscal year, TCS recruited a total of 70,400 new staff, of whom 61,055 were based in India and 9,345 were based in the rest of the world. In the same period a total of 30,431 staff left employment with TCS, leaving a net increase of 39,969, of whom 36,232 were based in India and 3,737 in the rest of the world. TCS has announced plans to recruit 60,000 graduates in the 2012/2013 fiscal year.

iiPurpose of Tata Group

“At the Tata group we are committed to improving the quality of life of the communities we serve. We do this by striving for leadership and global competitiveness in the business sectors in which we operate.

Our practice of returning to society what we earn evokes trust among consumers, employees, shareholders and the community. We are committed to protecting this heritage of leadership with trust through the manner in which we conduct our business.”

iiiCore values of Tata Group

Tata has always been values-driven. These values continue to direct the growth and business of Tata companies. The five core Tata values underpinning the way we do business are as follows:

Integrity: We must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny.

  • Understanding: We must be caring, show respect, compassion, and humanity for our colleagues and customers around the world, and always work for the benefit of the communities we serve.
  • Excellence: We must constantly strive to achieve the highest possible standards in our day-to-day work and in the quality of the goods and services we provide.
  • Unity: We must work cohesively with our colleagues across the group and with our customers and partners around the world, building strong relationships based on tolerance, understanding, and mutual cooperation.
  • Responsibility: We must continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring that what comes from the people goes back to the people many times over.

ivPurpose of TCS

To continually strive to achieve excellence-both on and off the job.

Vision Statement of TCS

“TCS will be recognized and respected as professional, innovative, profitable information, and knowledge-based logistics/services enterprise. TCS embeds internet-based technologies into its internal operating structures and as business solutions for customers; with customer, employee and shareholder interest at the core of its operations; demonstrating a clear concern for ethical conduct and good corporate citizenship; with the objective of growing into a regional and global player, with emphasis on the Middle East, Europe and North America.”

Mission Statement of TCS

“To direct all our organisational efforts at building upon the existing organisational strengths and brand recognition to achieve enhanced levels of profitable growth in the core business, and diversify into new areas that compliment and supplement the core business, with the diversification aimed at achieving excellence and industry leader status in the new areas. The TCS People will however be encouraged to be open to unconventional ideas and services and recognize new trends at very early stages.”

vWork Culture at TCS

Just as an organisation needs the right talent to drive its business objectives, people need the right environment to grow and achieve their career goals. The moment you step into TCS, you would be greeted with that unmistakable feeling of being at the right place. Along with that, working with TCS affords you with a sense of certainty of a successful career that would be driven by boundless growth opportunities and exposure to cutting-edge technologies and learning possibilities. The work environment at TCS is built around the belief of growth beyond boundaries. Some of the critical elements that define the work culture are global exposure, cross-domain experience, and work-life balance.

viKey features at TCS

Culture potpourri:

The employee from diverse regions and the backgrounds work together at TCS.

Open door policy:

The inclusive and open culture of TCS make the on-boarding comfortable for all employees.

On-the-job learning:

Intense training and development programmes facilitate on-the-job learning.

Mentor programmes:

The mentor programmes foster supportive relationships that help develop skills, behaviour, and insights to enable the employees to attain their goals.

“Global family” identity

TCS provide the support, encouragement, and nurturing to its employees at every step–just like a family.

Community services:

Maitree was started with an objective of bringing TCS associates and their families closer and include them as a part of the TCS extended family. 

viiTCS value proposition

The TCS employer brand positioning builds on our strengths and communicates TCS as an organisation that offers its employees a complete Global IT Career by highlighting the three main value propositions:

Global exposure:

  1. The employee of TCS gets the global exposure. He or she gets the opportunity to work on global projects exploring cutting edge technologies. The opportunity to understand, interact, and work with people from cultures all over the world creates kaleidoscopic avenues for learning that propel you to be at par or go one up on the best in the world. Vipin Arora, Senior Consultant seconds the global Exposure in the following way, “I have been a part of this family for 17 years now, and in the course of my career at TCS, I have had the opportunity to function in multiple areas such as project development, business development, consulting, and change management. The support I have received from my peers and senior colleagues has always been very encouraging. I have always been encouraged to take initiatives and participate in various industry forums. My experience with TCS has granted me a deep insight into the IT industry as well as the ability to strategize things at a macro level.

    The exposure to working with customers in several countries has been a particularly enriching experience for me. And as if that wasn’t challenging enough, I am now working with an entirely new type of customer–our internal TCS associates!! The kind of flexibility offered at TCS is quite remarkable and has facilitated my growth at every step of my eventful journey.”

  1. Freedom to work across domains:

    The work environment at TCS focuses on individual aptitude, talent, and interests. As a proven practice, we promote cross-domain experience that provides the employee with opportunities to function across different industry verticals, service practices, and functional domains as well as varied technology platforms. While all these factors help him hone skills across platforms, they also offer customers a talent pool with expertise that exceeds their industry benchmarks; at the same time, they continuously present the employees with the opportunity to explore the domain where they believe they would fit the best. 

    The consultant who has been with TCS for last 12 years shared the experience to be very rewarding as TCS has provided opportunities to explore different cultures, people and countries, which has contributed to his growth and development. TCS provided him different roles and profiles.

Work life balance:

The work culture at TCS include “life” as an integral part. They have many work-life programmes which respond to the needs and aspirations of their employees while retaining fun as a key element. At TCS, they strive to address the need for an increased flexibility in order to navigate the different spheres of life.

Maitree, a Work Life Balance programme of TCS  actively promotes a series of scheduled fun and cultural events and activities, and also keenly promotes community development projects. While continuing on their initiative to strengthen the bond among TCS employees and ingrain fun as a significant part of the culture, they participate in various initiatives to develop the community. At TCS, the employees experience life from a holistic perspective and would consistently be awarded the opportunity to participate in various social development initiatives that touch many lives. 

This has been corroborated by many employees of TCS. Ali Mukadam, associate consultant, reflects,

“I had joined TCS as a trainee. Over the years, I had the opportunity to gain invaluable experience by working for projects across diverse industries and technological domains. It was this cross-domain experience that gradually propelled me to the position of a global head. Working with global clients has granted me exposure to various business areas and geographies. I have also enjoyed the challenge of working across horizontals like BFS, consumer durables, and in domains like business process, sales, service and marketing. All this thanks to the all-round experience that TCS had made possible for me. 

One unique feature of working in TCS is the balance it offers between work and life. There have always been interesting social activities and interactive games to relieve work pressure. The treks, especially, were a lot of fun and acted as a great stress-buster. Today, 10 years after I first stepped into TCS, I can look back at a rewarding career and look forward to newer, more refreshing challenges.”

viiiAppendix

Why leave a Tata Company?

“Why leave a Tata company?” Those words from his father were enough for Latesh Sewani, a chartered accountant in the corporate strategy team at Tata Consultancy Services (TCS), to reject a job offer from ICICI Bank in 2004. Never mind that it promised to nearly double his salary. “I haven’t regretted my decision,” declares Sewani. Being a part of the Tata Group meant everything.

Nitin Mohan found himself in a tight spot a year ago when his father fell ill. “All I had to do was drop a mail to my manager for a month leave and he took care of all the insurance paperwork,” says the team leader in the BPO arm of TCS. It is this personal connect that has helped TCS emerge as India’s best company to work for in the Business Today–Indicus Analytics annual survey. Achieving that connect is no mean feat, considering that the company has 226,000 employees, from 103 nationalities, spread around the globe (Indians make up 93 percent of the workforce).

Keeping employees productive and happy is a key objective for the company. And it seems to be succeeding handsomely. TCS has the lowest attrition rate in the sector, at 12.8 percent, compared to 15.4 percent for its nearest competitor, Infosys, which it pipped to the post in the BT-Indicus survey. That perhaps explains how nearly 70 percent of the Tata company’s total cost is incurred on personnel.

Today, TCS is well on its way to beating its projection of hiring 60,000 people this financial year. It made 43,600 campus offers between August and December 2011, the highest for the company in a single year. “They will start joining by the end of June. We have never deferred an offer,” says Ajoyendra Mukherjee, the company’s Vice President and Head, Global HR.

S. Vaidhyasubramaniam, Dean, Planning and development, of SASTRA University in Thanjavur, Tamil Nadu, corroborates that: “We have been associated with TCS for over a decade and we have never had any issues.” The company has been recruiting from SASTRA since 2002. This year, it made offers to 1,755 final-year students from the university.

TCS’s health care benefits are the best in the industry, says Mukherjee. “One of our initiatives is called “Mpower.” As part of this, we have people managers at our centres and they deal with issues that employees might have.” Another initiative, “Maitree,” reaches beyond employees, to their families, bringing them together for a number of cultural events.

Perhaps that’s why Latesh Sewani wants to retire at TCS” (Business Today, May 2013).

Case Questions

  1. What makes TCS no. 1 employer? Examine the employer branding policies and practices at TCS.
  2. Analyse the relation between employer branding and the vision, mission, and purpose of TCS.

Internet Sources for Reference

Suggested Readings

http://www.thecareermuse.co.in ™

https://www.recruiter.com

Case Studies

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