The concept of ‘Employer branding’ was introduced 20 years ago. It has been postulated for the first time in 1996 by Ambler and Barrow. However, back in the 1990s, the attention of the researchers was not focused much on the theoretical study of this discipline and their aim was basically to increase the benefits by applying the employer branding techniques to an organization, based on the statements of the two authors of this concept.
It is interesting to note that, in the current literature, employer branding is again a field of intense academic interest. This trend among scientists and companies therefore suggests that the approach will be given a central importance in the future. Closer examination reveals, that studies and analyses of emerging economies dominate the academic debate. India, for example, is a major reference point for such studies, which in turn shows that employer branding is seen as an important instrument of economic recovery. And this, in turn, gives it a very special significance not only for the emerging countries, but also for the age after the great recession.
Leaving aside the geographic aspect and concentrating on the topics discussed in the studies, one also recognizes concentrations there. The topics covered include the reduction of the information gap between enterprises and the labor market, psychological and emotional aspects, the importance of the corporate brand, the recruitment of talents, the differences with regard to demographic categories or the applicability of the employee value proposition. In addition there are aspects such as leadership, management performance, retention, Internet, social media or mobile-friendly.
The complexity of this list is the reason why they have been divided into macro areas. It has been demonstrated, that the primary interest is focused clearly in three areas of the Employer branding: corporate image, talent management and the world wide web or in simple terms internet. These areas have undergone major development in the last few years, so that we now have a solid foundation on which we can build and implement an employer branding strategy …
… and yet the uncertainty remains high. I hear more and more marketing professionals talk about the Employer Value Proposition, but it does not seem all that clear, how the concept can be applied in practice. The EVP is, however, nothing more than a clear and clearly defined strategy of the Employer branding. Having such a strategy obviously has huge practical consequences, as a study by Tower Watson, one of the most important consulting companies worldwide, shows. According to the study, companies that use their EVPs efficiently have a five times higher probability, that their employees go to work highly motivated than other companies. In addition, the probability of a noticeably better financial performance than the competitors,who use their EVP less efficiently, is twice as high.
It turns out, that the image of a company is an important tool in the recruitment of employees. The mechanisms of action are similar to those in classic marketing, the target group, in turn, is a subset of the target group, to which we present the corporate identity. Sounds complicated, but is easy to explain: Employees – whether potential or existing- are part of the large target group of potential customers in their role as consumers. They thus have an overall picture of the company, and seethe company as a potential workplace in this context.
In a practical context this means that employees will undoubtedly prefer to work for a company that has a good social reputation. This would mean,that the rest of the consumers value the company they work for, either because of the social responsibility they have assumed, or because of the high quality of the company’s products or services.
At Genetica, we have already recognized the importance of the EVPand implement it in our marketing plans. At the same time, we are also developing a new, independent module with our partner Business Pool, which is applicable to this important aspect. To put it rather dramatically, one could say: The war for talent has begun! Well established companies therefore know, that it is necessary to keep the employee fluctuation low, and to find the “right” employees.
This is exactly what Employer Branding is all about.