One of the most appealing business trends in recent years falls within the scope of HR and could be summarized as an increasing interest on the part of the majority of companies regarding the attraction and retention of talent in their ranks, also known as Employer Branding.
The bet on talent has a direct impact on the performance of companies on a scale difficult to imagine. Nine out of ten high-retention companies —those capable of keeping more than 60% of their employees for the duration of their contract— met their strategic goals last year, according to a report by the consultancy firm Towers Watson. In contrast, only six out of ten companies with retention rates lower than 40% can say so.
On top of that, the professional landscape is changing substantially. Millennials will have, on average, 11 different jobs throughout their life, according to a study by the consultancy firm McKinsey. New generations are increasingly critical when it comes to choosing the place they want to work in and ponder all sorts of variables before making that kind of decision. They care about other issues above salary, such as work-life balance, the bond with their colleagues and performing tasks with a purpose they can identify with.
Nowadays, talent retention appears to be a significant challenge for those companies aspiring to have the best professionals in their staff. In order for that to happen, it’s essential to portray a good brand image, and that can be accomplished thanks to Employer Branding.
What are we talking about?
We could define Employer Branding as the sum of a company’s reputation as an employer brand and the value proposition it offers to their employees. The promotion of this trend can only translate into better results regarding talent attraction and loyalty inside organizations. More and more companies are aware of this: three out of five consider it as a priority, according to a study called “The Future of Employer Branding” by the company Universum.
The momentum gathered by this trend is overwhelming, especially when taking into account that the concept is relatively modern. Starting in the early 1990s, it wasn’t until a decade after that the notion started gaining traction. A 2001 survey by “The Conference Board” unveiled that, at that time, 40% of the interviewees resorted to Employer Branding techniques in their company. Since then, the concept has become popular and few are the organizations that question its potential.
How to tackle this subject?
In short, we could conclude that the best way for an employer brand to consolidate would be to start implementing marketing strategies that reflect the company’s values and culture and provide an explanation as regards the key factors that make it the ideal environment for workers. And corporate communications play an essential role in order to achieve that purpose.
There’s a wide variety of channels to implement an Employer Branding strategy, ranging from corporate intranet, email or business meetings, to external websites or social media. If we manage to put one or more of these channels into service successfully, work teams may become the best ambassadors for corporate image.
The best results
The benefits of betting on developing the employer brand transcend the scope of HR and can have a positive impact on the figures of the company. Employer Branding strategies promote motivation and compromise of employees with the corporation and build trust among the people in the staff. In a company where workers are happy, personnel turnover rates are lower, external perception with respect to customers and suppliers is improved and the number of candidates willing to be part of the organization increases.
It’s important to remember that, after all, Employer Branding strategies have a positive influence beyond the brand: they seek employee well-being by creating a good working atmosphere and boosting personal development and, thanks to the enhanced motivation generated by these policies, an increase in productivity and commitment that will strengthen the working relationship is accomplished, eventually becoming a win-win situation for all parties involved.
Sources: Universum, The Conference Board, McKinsey, Towers Watson