PEOPLE RESOURCING

MHR-M-154

UNIT LEADER: DENISE BAGLEY

Faculty of Business, Computing and Information Management

Year & Semester: 2nd Semester 2009

Student Details

Name: Sinthia A Nova

Course: MSc International Human Resource Management

ID:   2724881

Words: 2976.

EMPLOYER BRANDING

Contents

Terms of references

This report highlights the rising awareness for the development of Employer Branding concept and its benefits for the organisations in present competitive labour market. The conflict between effective employer branding and employees’ rights and satisfaction toward organization has been examined in this report with specific focus on the unethical and controlling effect.

Introduction

Employer branding is the perception of employees’ about an organization as a place to work. It’s designed for motivating and securing employee’s alignment with the vision and values of the organizations. From the HR perspective the concept was subsumed the older term INTERNAL BRANDING that was essentially the process of communicating an organization’s brand value to its employee.

Employer branding

The concept of EMPLOYER BRANDING was created in the 1990s by Simon Barrow, who founded People in Business (now part of TMP Worldwide) and was the co-author of The Employer Brand.  In the past, Barrow had been a consumer goods brand manager and headed up an advertising agency in London, but later became the chief executive of a recruitment agency. He was immediately struck by the similarities between the challenges faced in promoting consumer goods and in publicising the strengths of an organisation’s employee proposition. Both, he recognised, required a strong brand, and so the concept of employer branding was conceived.

Barrow defined the employer brand as ‘the package of functional, economic and psychological benefits provided by employment and identified with the employing company’.

Sullivan (2004) defines employer branding as "a targeted, long-term strategy to manage the awareness and perceptions of employees, potential employees, and related stakeholders with regards to a particular firm."

Ambler and Barrow (1996) define employer brand in terms of the benefits it conveys on employees. In other words, the employer brand represents the array of economic, functional and psychological

benefits that an employee might receive because of joining an organization. Just as product brands convey an image to customers, an employer brand conveys an organizational image to potential and current employees. In that regard, the employer brand presents a "value proposition" about what people might receive as a result of working for a particular employer (Backhaus and Tikoo, 2004).

These definitions indicate that employer branding means promoting and building an identity and a clear view of what makes an organization different and desirable as an employer. It has similarities with product and corporate branding but the key difference is its’ more employment specific.

Recruitment and employer branding

Developing an employer brand is a combination of adopting vision, values, and behaviours, and delivering a service that shows commitment to best practice and service excellence. It begins with the recruitment process that offers number of tools that can be used to create perceptions of an employing organization, these tools are:

  1. Job advertisement and description
  2. Interview process
  3. Offer letters
  4. Information pack for new recruiters
  5. Employee handbooks
  6. Induction and training.

The recruitment process is an important way to build a positive relationship between the organization and employee. Throughout the procedure, the organization can create a strong and positive view about them; even it can be extended to unsuccessful candidates as well.

When employees have accepted the sincerity and accuracy of the employer brand, they will carry it forward, actively promoting the brand to colleagues and customers. However, employer branding which is basically untruthful will not work and is likely to be counter-productive.

Benefits of Employer Branding

  • Long-term impact: Successful employer brand can have positive impacts on recruiting for at least five years baring any major PR issues surrounding the company.
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  • Increased volume of spontaneous candidates:  The number of applicants will increase each year. In some cases, applications will increase by 500%.

  • Higher quality candidates: Not only the quantity but the quality of candidates will improve dramatically, individuals who never would have considered in the past will start applying.

  • Higher offer-acceptance rates: As employment image becomes better known and more powerful, firm’s offer acceptance rates will improve dramatically.

  • Increased employee motivation: Employee motivation will be easier to maintain because of employees' increased pride in the firm and the better management ...

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