Employer Brand from the Top. discussion Summary

Transcription

1 The Human Age Series Individual Choice Employer Brand Driving Engagement from the Top thursday 10 th july 2014 discussion Summary

2 Introduction The Human Age Series is a calendar of quarterly events created for our most forward-thinking clients and associates. ManpowerGroup s global research points to four world of work mega-trends creating a seismic impact on organisations today: The purpose of our interactive events is to ensure our clients are kept on the pace with the latest developments affecting their talent strategy, focusing on a different world of work trend each quarter. 1. Demographics & Talent Mismatch finding the right person in the right place at the right time is becoming increasingly challenging 2. Individual Choice Skilled employees have more power, unskilled employees are becoming increasingly marginalised 3. Rise of Customer Sophistication organisations are using global buying power to drive more value from suppliers 4. Technological Revolutions new ways of working increasing the importance of collaboration and coordination Thursday 10 th July 2014 World of Work Trend: Individual Choices Rise of Customer Sophistication Theme: Employer Brand Driving Engagement from the Top Senior business leaders from the following industries were present: Broadcasting, Business Services, Customer Delivery Services, Healthcare, Insurance & Financial Services, Technology. Telecommunications & Media. Demographics & Talent Mismatch Individual Choice Individual Choice Technological Revolutions In the Human Age, individuals are exercising increasing confidence in their power over where, when and how they choose to work. In selecting their employer of choice, the strongest talent is influenced by more than an attractive salary or household brand name. It s therefore vital for employers to understand the motivations of their workforce and effectively promote their employee value proposition, in order to attract, engage and retain not only suitably skilled talent but those with the right cultural fit. To ensure a steady talent supply, organisations must also balance the complex challenge of attracting new talent while retaining a highly experienced population who may be nearretirement. Successfully managing a multi-generational workforce requires a deeper understanding of each generation s key drivers and engagement requirements as well as a flexible mindset and approach. As an organisation s employer brand and reputation becomes increasingly important, so does the strategic direction required. Truly effective employee engagement is no longer solely the remit of HR leaders but requires the active backing and collaboration of the entire leadership team. ManpowerGroup I Human Age Series Commercial in Confidence I 1

3 Guest Speaker: Maxwell Raison, Director, Brand Strategy - Interbrand More than 20% of employees under 30 said they would take a job with a lower salary with a brand they believe in Our guest speaker, Maxwell Raison opened the lunch by confirming the increasing power brands are exercising, changing the way we interact with them and impacting on the way organisations engage with talent. Highlighting research results, case studies of successful brands and feedback from employees and leaders worldwide, Maxwell reinforced that brands are powerful assets in attracting, engaging with and retaining talent. The value of the employer brand Maxwell referred to the 2013 Conference Maxwell confirmed that the profile of Board CEO Challenge, a global study graduates is changing and Millennials are conducted with over 1000 senior executives. increasingly interested in what a brand When asked to identify and rank the most actually stands for. The same Tower Watson pressing issues they faced, executives survey revealed that: worldwide confirmed their leading challenge - More than 20% of employees under 30 said was Human Capital and how best to they would take a job with a lower salary develop, engage, manage and retain talent i. with a brand they believe in Reducing turnover has significant impact on an organisation s bottom line and businesses that effectively engage with their employees see dramatic improvements in their attrition rates. Results from a 2013 Tower Watson Survey ii identified: - Satisfied employees are 30% less likely to leave - Total turnover costs including hard dollars and lost productivity are approximately 48-61% of salary - An organisation with 20,000 employees, 15% turnover and an average salary of $50,000 can translate to an annual turnover cost of between $72M-$92M This therefore raises a number of questions for employers including: - How do I communicate what my brand stands for? - How do I connect prospective and current talent to a sense of purpose? In developing a strong employer brand, employees must consider how they: - Drive desire to attract an employee who wants to work for their organisation - Drive recommendation to encourage employees to recommend their brand to others - Engender loyalty to retain employees and connect them to what the organisation is trying to achieve, making them want to be part of delivering the business strategy i) The 2013 Conference Board CEO Challenge survey asked CEOs, presidents, and chairmen across the globe to identify their most critical challenges for the coming year. The top five challenges selected by the 1020 respondents were Human Capital, Customer Relationships, Innovation, Operational Excellence and Corporate Brand and Reputation. ii) While this was a US study, we would expect the principles to apply locally too ManpowerGroup I Human Age Series Commercial in Confidence I 2

4 - Can I start a movement in my business? - What is our sense of purpose that unites people? - Is it really motivating and will allow people to live our brand? ContINUED from PREvious Page Great brands are built from within Maxwell acknowledged the wide recognition that exists of the substantial financial value equated to brands, including both consumer and professional services brands for example: Apple ($98bn), Google ($93bn), Coca Cola ($79bn), GE ($46bn) and Oracle ($24bn). He referred to Interbrand s I.S.O. accredited brand valuation methodology. Brand strength is assessed on ten factors, six of which are external: Authenticity Relevance Differentiation Consistency Presence Understanding Interestingly, four of these factors are internal: Clarity what does the brand stand for and can employees articulate this? Commitment are employees committed to living the brand? Protection is the organisation structure helping to protect and manage the brand? Responsiveness does leadership respond to business challenges/change quickly and effectively? These factors highlight the need for employees to be actively aware of and engaged with the brand, as over and above their own productivity, they also contribute indirectly to the brand s value and the performance of the business. Maxwell confirmed that as organisations increasingly recognise the priority of their talent, the role that an employer brand plays is significant in: Driving internal strategic alignment Securing loyalty within the workforce Aligning employees around a system of strategic behaviours in a meaningful way Focusing language around strategic execution of the business New ways of connecting in today s world of work Some of the new challenges and opportunities that employers must consider were highlighted. These include: Big data/social networking it s never been easier to source and attract the right talent Tomorrow s Talent/Gen Y seeking new ways to be fulfilled, leading to the rise of purpose-led organisations New ways to engage with employees - e.g. Gamification He put forward that the most successful organisations are those that can embrace these opportunities and proposed that real change comes by engaging all within the organisation as part of a movement. A movement is a sense of purpose that unites people, creating a positive outcome. Examples of great movements include Obama 1.0 and Apple. Maxwell closed his presentation by encouraging the audience to think about their own organisations and what their brands stand for, asking themselves: - Can I start a movement in my business? -What is our sense of purpose that unites people? - Is it really motivating and will allow people to live our brand? ManpowerGroup I Human Age Series Commercial in Confidence I 3

5 Discussion: facilitated by Maxwell Raison & James Hick (ManpowerGroup)...external trust in a brand from customers is one thing, but internal trust in a brand is something else... Creating a sense of purpose The audience discussion began with some participants sharing what their organisation s sense of purpose was. It was acknowledged by attendees that as people understood brands more externally, this directly impacted on recruitment. The importance of looking outwards and helping customers understand your sense of purpose was highlighted ideally providing customers with opportunities to see your brand in action and therefore become more connected to your organisation. It was put forward that external trust in a brand from customers is one thing, but internal trust in a brand is something else. For trust to be built consistently from both outside and within an organisation, much work often needs to be carried out on an organisation s true values, and on effectively communicating and instilling these. Our guest speaker pointed out that it was important for brands to distinguish between business principles (common to all those in the industry), versus distinctive values that separate your business and set your brand apart. It was recommended that the audience consider ways to bring their brand to life for employees particularly vital for service led businesses where employees benefit from being shown practical ways to act and behave, thereby, living the brand. Communicating your sense of purpose It was noted that it could be challenging for organisations with diverse service offerings to communicate their sense of purpose to employees. The suggestion was made to ensure the organisation communicates their broader sense of purpose and focuses on simplifying this, moving away from complex definitions. The question was raised if it was more difficult for B2B organisations to articulate Building an effective EVP their sense of purpose. One attendee put forward the focus could be more on quantifiable impact, connecting back to a client s business and being able to translate this down to an employee s role in the process. It was suggested that employees be helped to visualise the end-result of their work and the impact this would have on endclients, thereby ensuring they recognised they were a vital part of that process. Highlighting the need for a truly effective employee value proposition to be engrained in the daily activities of a business, one attendee shared the thought provoking statement: EVP is not an initiative, it must be business as usual. Before an EVP can become part of an organisation s culture however, the first step is to define who an organisation is, what it stands for and what it can offer. Our guest speaker put forward that the behaviour of an ManpowerGroup I Human Age Series Commercial in Confidence I 4

6 ContINUED from PREvious Page...while consistent messaging is important, listening to what people are saying about your brand is even more important. It was proposed that the strongest brands are those that balance a consistent global message with local market sensitivities. organisation is a key factor to consider. He commented: You have to be right for people, proposed that there is always something in but equally, people have to be right for you any organisation that makes people proud too. Capturing and demonstrating what an and this is the element that needs to be organisation stands for is an essential part tapped into. of attracting potential talent who will be the right fit within an organisation s culture. In attracting suitable talent one attendee Connecting with employees a long-term initiative In today s world of work where employers Creating an active and vibrant alumni group have realistic expectations about the length of was put forward as one way to allow past time employees are likely to spend within an employees to stay connected to the business. organisation, long-term engagement is still Ideally organisations want to leave the door critical. It was noted that being connected open for talent to consider returning at a to the brand is vital not only for active later point in their career, or at the least, to employees but also after they have moved on. be a brand advocate to others within their communities. Employer brand - challenges for global brands Attendees shared some of the recruitment challenges they faced working within complex, global brands. For some, operating on a large-scale internationally meant they experienced differing levels of recognition in each country - in turn, impacting on referral rates. The need to understand and break down existing perceptions and focus on educating potential talent on what a brand could offer them was advised. The question was raised as to the importance of a consistent global message when it comes to recruitment. It was suggested that while consistent messaging is important, listening to what people are saying about your brand is even more important. It was proposed that the strongest brands are those that balance a consistent global message with local market sensitivities. Successful global brands effectively communicate who their organisation is at its core, while understanding brand perceptions in each region so that relevant, targeted messages can be created. It was suggested that heat maps can be an invaluable tool for HR leaders to help understand differences in brand perception across regions. ManpowerGroup I Human Age Series Commercial in Confidence I 5

7 ContINUED from PREvious Page...the most effective change programmes not only require the full support of leadership but also take into consideration the way employees themselves are able to deal with change. Managing employer brand - working through strategic partners/suppliers Attendees also considered the potential It was put forward that external talent that challenge of working through strategic works on behalf of a brand is ultimately an partners and suppliers, requiring external extension of what an organisation does, talent to come into businesses for a short therefore it is worth investing in them and period of time. It was noted that in these treating them as employees. The need to types of situations, employees may be more communicate what your organisation can aligned to the customer rather than the do for them personally and the benefits of brand and are often deeply embedded with working with your brand was stressed e.g. their customer s challenges. The question the ability to offer them more varied and was raised as to how this dynamic could be interesting work. To help external talent live changed without compromising the customer the brand themselves, the suggestion was experience. made to build brand values into KPIs. Successful employer brands driven from the top It was noted that the alignment of both the leader s behaviour and the brand itself is a hallmark of successful brands. To ensure senior leadership actively endorse building and maintaining a strong employer brand, it is vital that they understand the true value of their brand and of a highly engaged workforce. Conducting in-depth internal research on this subject is often a powerful catalyst for change and can stimulate collaboration with the entire leadership team. Attendees agreed that the most effective change programmes not only require the full support of leadership but also take into consideration the way employees themselves are able to deal with change. The 70/20/10 rule was put forward by our guest speaker. For employees not to feel overwhelmed by change, ideally 70% of the work/environment should stay the same, 20% could be reframed, and 10% could be completely new. ManpowerGroup I Human Age Series Commercial in Confidence I 6

8 Conclusion Real change comes by engaging all within the organisation as part of a movement - uniting people with a common sense of purpose. Although successful leaders back and support this engagement, they allow their workforce to be actively involved and shape the process, thereby truly becoming part of the brand itself. Attracting top talent With skilled employees exercising individual choice more than ever before, attracting and retaining the strongest talent remains a complex issue for many employers. Regardless of what issues lies at the heart of attracting the best talent, employers who are conscious of the seemingly unlimited choice top talent has to select from, recognise the need to actively build and manage a strong A competitive differentiator In the battle to attract the strongest talent, the ability to measure perception of an organisation on a local and global basis, truly understand what their target candidates are seeking and building an employer brand accordingly would undoubtedly enhance the competitive advantage of more organisations. employer brand and EVP. The reality of today s workforce is that of a multi-generational talent pool. Across each generation, understanding the differences in the key drivers to maintaining satisfaction at work is vital for not only attracting talent but in maintaining a motivated, productive and engaged workforce. At the same time, employers must strike the delicate balance between identifying and shaping their EVP around what will attract the strongest talent, while ensuring the organisation s core values are also clearly communicated to ensure the right cultural fit. Long-term benefits of a strong EVP A strong EVP extends beyond attraction. It s about creating a positive experience that will not only encourage retention of top talent but will continue to bring benefits to the organisation long after they have moved on. With the increase of employees demonstrating the power of individual choice it s essential for employers to be realistic about expected retention length. The need exists for organisations to forge a strong long-term relationship with employees, building enough brand loyalty to keep the future possibility open for talent to return to the company at a later date with further skills and knowledge they ve developed elsewhere. Perhaps more importantly, that enough goodwill has been built to ensure that they remain advocates of the brand regardless of where their careers take them, and are comfortable referring their personal network based on their own positive experiences. Creating a movement Real change comes by engaging all within the organisation as part of a movement - uniting people with a common sense of purpose. Although successful leaders back and support this engagement, they allow their workforce to be actively involved and shape the process, thereby truly becoming part of the brand itself. ManpowerGroup I Human Age Series Commercial in Confidence I 7