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What Is “Employer Branding”?

Let’s start with what it is NOT – Employer Branding is NOT advertising

• Advertising may or may not be a componentof employer branding

– Employer Branding is NOT a corporate missionstatement, nor a tag line, nor a slogan

• All of these must reflect the employer brand,but they are not the brand itself

– Employer Branding is NOT something you create• It is something you discover or reveal; the employer

brand already exists — you just have to find it

WHEREWE ARE

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Employer Branding Is About Relationships

• The relationship between an employerand employees… – Current – Past

– Potential• The relationship between employees and…

– Each other – Customers – Stakeholders

• Investors / analysts

• Suppliers / vendors• Community leaders

WHEREWE ARE

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ADVERTISING

LOGO

COLLATERAL

SIGNAGE & ENVIRONMENTWEB PORTAL

BRAND VISIONBRAND VISION

BUSINESS PROCESSES

INTERNAL COMMUNICATIONS

TRAINING & DEVELOPMENT

QUALITY ASSURANCE

KNOWLEDGE MANAGEMENT

COMPENSATION & BENEFITS

CUSTOMER RELATIONS

RECRUITMENT & RETENTION

WHEREWE ARE

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Why Is Employer Branding Important?

• Determines ability to deliver on corporate brand• Affects ability to attract, retain talent

– Better known / regarded employers have an easier

time attracting top talent – Better known / regarded employers keep talent – Reduces cost-per-hire, time-to-fill, turnover

WHERE

WE ARE

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Nations Are

Brands

10. New Zealand

WHERE

WE ARE

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New Zealand Workforce Trends

• Working age population growth fell to its lowestpoint since 2001— 1.3%— in June 2005

• Net inflow of permanent / long-term migrants fellto 8,600 p.a. in June 2005, far below the threeyear average of 32,400 p.a. Preliminary figuresfor July show a net outflow, the first since 2001

• New Zealand’s jobless rate of 3.7% is the lowestamong the 27 nations in the Organisation forEconomic Cooperation and Development

WHERE

WE ARE

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Net Permanent / Long-Term MigrationWHERE

WE ARE

10 June 2005

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Unemployment Rate Historically LowWHERE

WE ARE

12 August 2005

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Labour Shortage Means Wage InflationWHERE

WE ARE

09 August 2005

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Changing PsychographicsThe “Emerging Worker”

– began with Gen X (1964 – 77); bled up intoBaby Boomers, down to Millennials• mistrusts employers – no loyalty• “job security” = “marketability”

• willing to wait for a good fitversus taking any job to get income

– brand-oriented due to media overexposure• 2,500 – 25,000 commercial messages DAILY• human brain has re-wired itself

to recognize brands• brands used as guideposts in media jungle

WHERE

WE ARE

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What Relationship Exists Between

Corporate Brand and Employer Brand?

• Millward-Brown 2001 BRANDZ™ Survey – 35,600 people surveyed in 16 countries – Survey examined 18 indices of brand – 1,317 brands

• McDonald’s • Bank of America• Nokia • Nordstrom• Wal*Mart • Mercedes-Benz

• Employers with strong brands are seen asgood places to work

• Employers with weak or unfamiliar brands must userecruitment communications to build the brand

WHERE

WE ARE

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Generalized Impact of Brand

on Employer Preference

Source: Ibid.

WHERE

WE ARE

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Likelihood of Voluntary Turnover

0

10

20

30

40

50

60

70

Extremely

Likely

Somewhat

Likely

Somewhat

Unlikely

Extremely

Unlikely

HR ProsEmployees

Source: Collison, Jessica and Mary Elizabeth Burke, “Job Recovery Survey”(Alexandria, VA: Society for Human Resource Management, Sept. 2003)

WHERE

WE ARE

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Reasons People

Will Leave

• Better comp / bene 63%• Career dev 35%• New experience 32%• Job security fears 21%• Career change 21%• Poor management 20%• Boredom 18%• Values 18%• Move 16%

• Burnout 15%

• Unappreciated 14%• Work / Life Issues 12%• Discrimination 8%• Hvy workload 7%• Start own business 6%• Conflict w/ supv 6%• Return to school 5%• Viability of org 4%• Other 13%

Source: Collison

WHERE

WE ARE

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The Economist Global

Employment Brand Survey• Panel of readers who agreed to complete series of

surveys on behalf of The Economist’s advertising clients

• Only panel members with specific job titles(‘c suite’ or heads of department) sampled

• Questionnaires distributed by e-mail 24 th April 2003to 1,745 panel members

• 937 completed questionnaires returnedby 21 st May - 54% response rate

• Panel of readers who agreed to complete series ofsurveys on behalf of The Economist’s advertising clients

• Only panel members with specific job titles(‘c suite’ or heads of department) sampled

• Questionnaires distributed by e-mail 24 th April 2003to 1,745 panel members

• 937 completed questionnaires returnedby 21 st May - 54% response rate

WHERE

WE ARE

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“Employer branding is too much of an important issue to be left solely to a HR dept” Agree?

Base: all respondents (933)The Economist, May 2003 Base: all respondents (933)The Economist, May 2003

20%

44%

38%

59%

44%

51% 10%

10%

18%

1%

2%

3%HR is main part of

my job function

HR is part of myjob function

HR not part of myjob function

Agree strongly Agree Disagree Disagree strongly

WHERE

WE ARE

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Responsibility for Day-to-dayManagement of Employer Brand

Base: all respondents (933)The Economist, May 2003Base: all respondents (933)The Economist, May 2003

21%

15%

8%

7%

4%

8%

11%

5%

5%

13%

3%

Nobody specific

CEO/MD

Board/Snr Mgmt

Partners/Owners

Middle mgmt

HR & bus. heads

HR dept/head

Marketing dept

PR/Corp Com dept

Other

No answer

WHERE

WE ARE

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Anticipated Cost of Full-scaleEmployer Brand Development

Base: all respondents (933)The Economist, May 2003 US Dollars

Base: all respondents (933)The Economist, May 2003 US Dollars

$164,000

$160,000

$151,000

$140,000

USA

Cont. Europe

Asia-Pacific

UK

WHERE

WE ARE

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Employment BrandingUsing the Web

Relationship Marketing

Alumni Marketing

Chat / Forums / Blogs

Job Agent | Profiling

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Employment Branding Using the Web

vs. Traditional Web Recruiting• Your site is the destination

– All media, promotions, PR, etc., point to your site – Goal: create and nurture a relationship with visitors

• You own the audience – People who want to work for your organization,

vs. people who simply want a job – You can sustain interest even when the prospect

isn’t actively looking• Relationship marketing – newsletters, job alerts, referral

bonus offers, etc.• Alumni marketing – boomerang employees, networking• Forums / chats – build communities to which people feel

kinship

WHEREWE’RE

HEADED

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Craigslist - auckland

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oodle

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Oodle results

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Google results

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Search Engine Optimization (SEO)

• Configuring Your Employment Web Siteto Be More Visible to Search Engines

– Content tailored to appear to search engine“spiders” that “crawl” the Web

– Establish greater number of inbound linksfrom other Web sites

– Notify search engines of your existence(e.g., DMOZ)

– Provide fresh content, a site map, and judicioususe of keywords people will use to search

WHEREWE’RE

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Search Engine Marketing (SEM)

• Marketing Your Web Site Using Search Engines – Paid search results – Pay-per-click (PPC)

• Fee-based

• Auction-based – Research into How People Search

• What words they use• Which search engine(s) they use

WHEREWE’RE

HEADED

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Simply hired

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Simply hired results

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indeed

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Indeed results

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rss

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Really Simple Syndication (RSS)

• Syndicating Web Site Content – Content is fed automatically to subscribers – Underlying technology of blogs – Job seekers can “subscribe” to their job,

receive updates every time a new opening posts

• XML Based – eXtensible Mark-up Language, successor

to HTML – Disputes about standard

• 0.7, 1.0, 2.0 versions in release independently

• NB: The New York Times Bought 30% of

indeed.com for US$3.5M

WHEREWE’RE

HEADED

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Blog Implications for Employer Branding

• Your Employees May Rat You Out! – You must “walk the talk” of your employment

brand lest your employees reveal hypocrisy

• You May Not Be Able to Stop Blogs – Employees can blog without your knowledge or

assistance – U.S. employers have fired employees who wrote

negative blogs; result: negative P.R.

• Encouraging Blogs Is Strategically Smart – Shows organization has “nothing to hide” – More credible than paid advertising, P.R.

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Google blog

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Microsoft blog

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Peer-to-Peer Networks

• Same Technology as Napster, LinkedIn – People join a community and agree to share…

• Content• Music

• Contacts

• Jobster Allows Employers to Network toTop Talent Through Existing Employees

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jobster

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How Do You Start Buildingand Maintaining Your Employer Brand?

• Start with the Status Quo – What is the reputation of the

organization as an employer? – How well known is your organization?

– What’s working? What isn’t? – What helps your employees deliver your brand

to your customers? What gets in their way? – Are your compensation and benefits programs

aligned with your brand?

• What do people outside of your organization

think of you as an employer?

WHEREWE’REHEADED

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Plan Your Communications

• Don’t say anything untilyou have something to say

• Plan your internal communicationsone year in advance

– Important communications – 9x – Routine communications – 3x

• Recruitment communications – Be authentic – Be relevant – Be different

WHEREWE’REHEADED

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The Big Question

• How Much Will It Cost?• The Economist - $164,000 avg. (US)

– For every employer that spends $300,000there’s one that spends $25,000

• How Strong Is Your Corporate Brand? – If your organization is well-known and

well-respected, leverage that brand equity – If your organization is not well-known or

has image problems, you will have to spend more

WHEREWE’REHEADED

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Thank You!Questions

D. Mark Hornung

Sr VP Strategy and BrandingBernard HODES [email protected]