Adapting Global Employer Brands

in China

6th March 2013

Mark Baldwin

& Phill Lane

oneagentglobal.com

oneagentglobal.com

Who is Oxus China?

Full service agency based in Beijing & ShanghaiFounded in 2007 – but with over 18 years in China market Local and Western foundersMember of the OneAgent Global Network

1. We identify and engage employer brands that engage talent

• Research, EVP development & strategy

2. We leverage those brands in strategic communications

• Creative expression and execution – design, copy, digital, events, social media

3. We facilitate better candidate journeys and recruiter efficiency

• Candidate relationship management platforms, metrics-based media strategies, creative applications and screening tools

Oxus China - clients

MNCs in China

Why are MNCs starting to put such an emphasis on Employer Branding in China?

How MNCs treat China

• Hugely important market – especially since GFC

• But one size does not fit all:

• China as manufacturer – made in China• China as a market – sold in China• China as innovator – made for China

• Increasingly sophisticated involvement requires increasingly sophisticated approach to talent

Key drivers of EVP & EB in China

“We’re doing a global EVP project, you need to help out in China” - HQ

“We’ve re-done our marketing materials, you have to use these over there.” – HQ

I don’t understand why we’re struggling to hire and hold onto top talent. After all, we’re COMPANY X, everybody wants to work for us!” - HQ

MNCs aren’t as attractive as you think…

• Career progression is limited & slow in MNCs• Major decisions are made “@ home”• The interesting work doesn’t happen in China• China is nothing more than a market for you• The GFC really rocked confidence in the West• You might make us work hard…

• PS – we don’t know who you are…and nor do our parents

Microsoft China – 2007-2011

The Challenge: To re-connect Microsoft with the younger generation, in China

In 2007 Microsoft was struggling for recognition and understanding in key demographics, needing a tailored, strategic approach to graduate recruitment and campus relations at all levels to address declining attractiveness amongst the younger (campus and early career) talent sectors.

EVP-based communications strategy focused on:

• Career Growth and Opportunity

• Cutting-Edge Technology (making an impact)

• Open, Team-oriented Working environment (people / culture)

‘See for yourself’

• A new generation “engaged”

• Real people, Real stories.

• Key EVP messaging delivered with each local “story”

•Applied consistently on campus collateral, careers website, bbs boards, and recruitment events.

2007: First “new look” campaign:

2008-2011

2008 Campaign

View<myworld>

2009 Campaign refresh

Share<mypassion>

2010-2011

Microsoft Academy of College Hires…

Elite program to attract and recruit MBA Graduates from China’s top full-time MBA schools

2009 – struggled to gain applications or conversions

2010 – more than 60% of all applications were qualified (500+ applications)

Over-offered by 50% (18 for 12 MBA roles) - acceptance rate 100%

2011-12 – “GE works”

Post GFC campaign, US originated, instigated by a need to revitalise & motivate employees…

…in America

US need:Reinvigorate flagging economyMotivate demoralised staffFocus on blue-collar rolesCreate jobs in AmericaTell the American story

China need:Maintain impressive growthEngage staff with optionsFocus on high-tech rolesCreate jobs in ChinaTell the China story

US-centric design

China stories – no local polish

GE China Weibo #GE中国 #

Internal communications

External communications

China-specific EVP

• Research• Brand development• Attributes• EVP statement• Local evidence• Stories

China-specific communications

Video, ads, ERP, L&D materials

GE – Employer Brand Toolkit

Local feedback so far

“I must say that this core EVP Statement

…Sharing a Belief, Making it Real…

18,000 people in China really feel it sums up what

it feels like to work at this organisation.”

Geoff Lee – Director of Communications, GE China

Employer Brand Summit – Shanghai, Dec 2012

• Where the immediate need is• Core part of longer-term strategy• Often little local understanding or existing precedent

• Established in Taiwan - starting to move the high-tech side to China• Not well-known in China• US HQ (and lead on the project)• English as the business language

Starting with China?

Challenges for MNCs in hiring Chinese staff

• Creative thinking & innovation• Decision making, taking responsibility, being proactive• Grey areas and ambiguity• Saving face & harmony• People who aren’t political• English language ability

• Desired attributes can conflict fundamentally

Differences in messages

Western messages often focus on ideas like:

Empowering Individual Creative ResponsibilityAccountable Collaboration Inspiring Proactivity

Chinese messages converge on harmony & ‘dreams’

梦想起航的地方 where dream sets off

追梦之旅，请君同行 the journey to pursue dreams awaits your boarding

我们信仰梦想 we believe in dream

忠于信仰，实现梦想 hold on to faith, make real (our) dreams

Two current (unanswered) questions in EB

To what extent should global businesses change the message and adapt their culture to engage local talent?

To what extent should global businesses enforce a culture that has worked elsewhere, using those messages to filter out the wrong people?

Mix of messages, ideas & languages

Brand books:

Local languageLocalised content

Materials:

Available for English-speaking managers/employees too

But market-specific feel – including SM

Daimler – Mercedes Benz

• Hugely complicated talent challenges• Business structures vastly different in China - JVs• All divisions present – but not understood • Long-standing business at home, relatively new in China• Consumer brand too well-known• Developing quickly – but huge lack of experience in the market• Fixed term ex-pat contracts challenge continuity & trust• Relatively new – high reliance on Headhunters• Challenge in consistency across fragmented media channels• Few benchmarks in place

Measures of improvement – strong EVP

20% increase in the pool of potential employeesCorporate Executive Board

McDonald’s UK “would consider applying or encourage application” rose by 41%

EVP viewed as unattractive requires a 21% premium to attract candidatesEVP viewed as attractive requires only an 11% premium

Employees up to 20% more productiveHewitt Associates.

Human Capital Foresight Research.

Reduction in replacement costs (150% or more of salary)Strategic HR Management/EMA Staffing Metrics Study

10% - 20% less in compensation premiumsCorporate Leadership Council

Direct measures of improvement

Ratio of offers accepted - compared to competitors

(Microsoft, GSK – increase from 83% - 96%)

Reduction in head-hunter spend• Global pharma client reduction from 53% to 27% in 24 months following 2007 EVP

launch reduced hiring costs by c. $850,000

% senior roles filled locally

Referral rates• McDonald’s recommendation rate went from 51% to 86% in 12 months

Successful at first sift – Consultancy increased success by 25%

Final thoughts

• Speed of growth in emerging markets requires more than BAU• Multinational-Western-Global attitudes/perceptions are often

misaligned• Early days to judge the impact of cultural clashes

• A clear EVP gives clients consistency & structure• A tailored EVP gives them competitive advantage

• The bigger the market the bigger the potential for success…

…or for mistakes.

oneagentglobal.com

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