EDITION #02 Driving employer branding up the agenda
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1 EDITION #02 Driving employer branding up the agenda Making the intangible asset tangible two years on
2 EMPEROR INSIGHT: EMPLOYER BRAND MANAGEMENT When we commissioned our research on employer brand management with Communicate magazine in 2015, employer brand was an emerging hot topic. Our survey aimed to explore the role and management of employer brand within businesses across a range of sectors. Two years on and it shows no signs of abating as companies increasingly understand the importance of branding from the inside out. Curious to find out in detail how the landscape has changed, we decided to re-run the survey with Communicate s help. The results are as interesting as we had hoped... Employer brand management: what a difference two years can make Simon Harper Head of Digital and Strategic Consultancy Today, the role of employer brand is perhaps more topical than ever with millennials moving into management positions and Generation Z about to enter the workforce. But how is it being managed in 2017? Talent attraction Since our last survey, there s been a complete turnaround in objectives, with the importance of the role that employer brand plays to generate the talent pipeline jumping to the top of the to-do list. Two years ago, this sat firmly at the bottom with the support of change management initiatives ranking first. What s more, quality of hire, internal engagement surveys and low churn rates were cited as the top three metrics of a successful employer brand. So, happy employees really do mean productive, loyal employees who will invest themselves in your business for the long term, acting as brand ambassadors. Contents 01 Emperor insight: Employer brand management 02 Key findings: Employer brand management 08 Emperor insight: Human capital 09 Key findings: Human capital 12 Full research findings 20 About us Zoë Tisdall Client Director HR ownership Another total turnaround is illustrated in this year s results with HR taking primary responsibility for employer brand management. As we have seen with our own clients, this is often in partnership with marketing and corporate communications teams, whereas it used to rest predominantly with the CEO and leadership team. We ve found that a true partnership between HR and marketing makes the world of difference because we can get much more under the skin of different stakeholders needs and can be truly pragmatic when it comes to bringing the employer brand story to life. A digital workplace In just two years we can really see how much more the digital workplace is helping businesses to engage and connect with employees through the use of social media and intranets. Similarly, attraction programmes leverage video content from dedicated careers sites and replace traditional graduate and on-boarding schemes. Here to stay 60% of our respondents said they are committed to employer brand management for the long term but there is still plenty of work to do. Of this, believe budgets will increase up 23% from For us, this commitment is also reflected in the creation of specific employer brand management roles within our own clients businesses and budget planning for employee engagement campaigns once the employer brand has been defined. The time is now! What s clear to us is that more than ever, organisations accept that building brands from the inside out with the vital ingredients of culture and engagement really does help to drive your business forward. 01
3 KEY FINDINGS: EMPLOYER BRAND MANAGEMENT Strategy & commitment Where does the responsibility for the development and management of your employer brand primarily sit? If this has changed, where did it formerly sit? Objectives Which of the following objectives is the employer brand most responsible for? CURRENT RESPONSIBILITY HR CEO/leadership Other/collaborative 1 Attracting quality talent 7 2 Retaining quality talent 6 3 Communicating your company values 5 FORMER RESPONSIBILITY CEO/leadership HR Other/collaborative 4 Managing your external reputation 4 5 Helping you stand out from competitors 3 6 Contributing to commercial success 2 7 Supporting change management initiatives 1 As the importance of the employer brand is increasingly recognised and progress scrutinised, responsibility has been designated to a specific function to deliver on this in the majority of organisations, HR. Employer brand is now playing a key strategic role in managing the people pipeline, and not just used as a tactical change management tool a complete reversal in objectives from
4 KEY FINDINGS: EMPLOYER BRAND MANAGEMENT Efficacy & communications What are the biggest challenges to the efficacy of your employer brand? Metrics & measurement Which of the following metrics do you use to measure the efficacy of your employer brand? Resources 3.98 Budget 3.60 Internal skillset 2.90 Lack of senior buy-in 2.73 Agency support 1.78 Quality of hire 48% Churn 43% Internal surveys 45% External perception of company 41% Volume of inbound CV submissions 29% Cost per hire Awards 29% 19% Productivity contribution to the bottom line 10% Averages are based on rankings from 1 5, with 5 being the biggest challenge. Media/advertising on recruitment Other The case for the employer brand is understood and senior management is championing the cause. Now the practical obstacles of resources and budget need addressing. Hiring the right people, keeping them and listening to them are the top three metrics. This combination gives rise to the fourth most popular metric external perception of company demonstrating the link between the internal employer brand and external consumer brand
5 KEY FINDINGS: EMPLOYER BRAND MANAGEMENT Future investment Do you expect your organisation to invest further in employer brand management over the next year? Impact What do you think is the biggest value a strong employer brand can have on a business? 3% Impact on bottom line 23% 3% The budget will decrease 2% 22% The budget will increase 51% Talent pipeline 27% We will struggle to justify expenditure Ethics, morals, values IMPACT ETHICS TALENT There is an appetite for investment in the employer brand, demonstrating the impact that is being seen and the value that is being demonstrated. Increased productivity and innovation. A sense of empowerment and family. Build a talented community
6 EMPEROR INSIGHT: HUMAN CAPITAL KEY FINDINGS: HUMAN CAPITAL Human capital: How is employer brand represented in corporate reporting? Human capital Does your company report on its human capital within its annual report? Here s what we found when asking companies about their views on human capital: Rachel Crossley Senior Reporting Consultant Employers recognise the importance of developing and monitoring human capital. While the annual report is often considered a review of a company s financial performance, the great majority of organisations include information on the value of their employees. In our research, over 80% of companies producing an annual report reported on human capital and the number who formally accounted for human capital has risen significantly over the past two years as companies look to quantify the value of human capital. Furthermore, three times as many respondents felt that investors understand the value of human capital than those who didn t. 43% 44% 36% 23% 33% Employers seek happy, well-trained and diverse people. It appears that employers agree with the old saying that happy workers are good workers. Companies are increasingly focused on attracting and retaining high quality employees and measuring their performance on human capital indicators is an important part of this process. Almost two-thirds viewed employee satisfaction as the most important measure of human capital management. In addition, over half believed that training and development of their people was important. Maintaining a diverse workforce, staff turnover and employee well-being rounded off the most valuable indicators of human capital. Yes, within the narrative. Yes, we formally account for human capital within the accounts section of our annual report. No, we don t include aspects of human capital within our annual report. Leighton Barnish Head of Sustainability Consulting Companies plan to focus more on human capital in the future. Of those surveyed, twice as many felt reporting on human capital would increase in the future than those who did not. When asked what could be done to help improve investor understanding, almost half of those asked suggested publishing a leadership statement that defined the company s human capital strategy. Almost a third cited greater disclosure of human capital in the annual report. Read on to learn more about our survey and its results. The level of information on human capital is growing year on year, as organisations recognise the importance of developing and monitoring human capital
7 KEY FINDINGS: HUMAN CAPITAL Human capital If yes, on which measures do you place the most value? (Select your top three measures) Human capital Will your annual report feature more emphasis on human capital this year? Do investors understand the value of human capital? No No 9% Employee satisfaction 64% Employee training and development 54% 29% 32% 59% Yes I don t know Yes I don t know Diversity Salary benchmarking 14% Employee turnover 46% Employee well-being 36% 0% 7% Absenteeism Other (please specify) 11% Employee promotion rate If no, what would help improve their understanding? Leadership statement on human capital 47% More about human capital in the annual report 32% Communications from IR team Discussion at AGM 11% Other Encouragingly, measures such as employee satisfaction and training and development are prioritised over churn and absenteeism, demonstrating a longer-term, strategic perspective. The role that leadership plays in communicating the importance of human capital to a business is clear both to investors and other corporate stakeholders
8 FULL RESEARCH FINDINGS This survey was carried out by Communicate magazine in March 2017 with analysis carried out on 100 UK respondents. The results Q1 Very committed and have strategy in place Committed but we still have work to do Indifferent but considering it Not committed/it s not a priority How would you rate your organisation s overall commitment to the strategic development and continual management of an employer brand? 8.5% 6% 8.5% 6% 23% 27% 60% 61% Q2 Where does the responsibility for the development and management of your employer brand primarily sit?* HR 35% CEO/leadership Other/collaborative (please specify) Corporate comms Marketing 18% 15% 13% 11% Internal comms 6% Investor relations 2% Q3 If this has changed, where did it formerly sit?* CEO/leadership 34% HR Other/collaborative (please specify) Corporate comms Marketing 8% 10% 18% Internal comms 4% Investor relations 0% 12 * 2015 data has not been included, as the question was either asked slightly differently in 2015 or asked for the first time in
9 Q4 Which of the following objectives is the employer brand most responsible for? (Rate from most important to least, where 5 is most important) Q7 What are the biggest challenges to the efficacy of your employer brand? (Please rank from 1 to 5, with 5 being the biggest challenge)* Attracting quality talent Retaining quality talent Communicating your company values Managing your external reputation Resources Budget Internal skillset Lack of senior buy-in Agency support Helping you stand out from competitors Contributing to commercial success Supporting change management initiatives Q8 Is employer brand management viewed as a strategic consideration by your CEO and/or leadership team? Q5 How effectively does your employer brand deliver against the above objectives? Very effectively Effectively Not effectively 8% 7% 4% 15% 24% 31% 47% 64% Yes, they are committed It s becoming a priority No, it s still viewed as a tactical way to recruit talent Q9 3% 5% 17% 12% 33% 47% 42% 41% How do you communicate your employer brand to prospective employees? (Please select EXACTLY three of your preferred channels)* Careers website 73% Q6 What level of awareness exists internally with regard to your brand values? Very high 19% 14% Social media Recruitment advertising/ employer marketing Induction programmes Employee referral schemes 28% 22% 58% 65% High 34% 39% Recruitment branding 20% Average 31% 35% Physical environment 15% Low Very low 3% 2% 13% 10% Intranet Current employee research Other (please specify) 2% 8% 8% * 2015 data has not been included, as the question was either asked slightly differently in 2015 or asked for the first time in
10 Q10 Induction programmes How do you communicate your employer brand to existing employees? (Please select EXACTLY three of your preferred channels)* Intranet Physical environment 45% 53% Q12 Yes Yes, they understand but there is no measurement No Do you believe that your business understands and measures the correlation between the employer and consumer brand?* 24% 31% 38% Social media 35% 7% Careers website Video Employee referral schemes Current employee research Recruitment advertising/ employer marketing Other (please specify) Q11 Recruitment branding 13% 17% 17% 15% 15% 20% 20% Which of the following metrics do you use to measure the efficacy of your employer brand? (Select all that apply) Quality of hire Internal surveys Churn External perception of company (new for 2017) Volume of inbound CV submissions Awards Cost per hire Productivity contribution to the bottom line Media/advertising on recruitment Other (please specify) 0% 33% 29% 29% 30% 19% 10% 10% 34% 41% 45% 43% 48% 56% Q13 Q14 Do you expect your organisation to invest further in employer brand management over the next year? The budget will increase We will struggle to justify expenditure The budget will decrease Yes, within the narrative Yes, we formally account for human capital within the accounts section of our annual report No, we don t include aspects of human capital within our annual report 2% 5% 24% 23% 28% 27% 33% 36% 43% 43% 44% Does your company report on its human capital within its annual report? * 2015 data has not been included, as the question was either asked slightly differently in 2015 or asked for the first time in * 2015 data has not been included, as the question was either asked slightly differently in 2015 or asked for the first time in
11 Q15 If yes, on which measures do you place the most value? (Select your top three measures)* Employee satisfaction Employee training and development Diversity 54% 64% Q18 Leadership statement on human capital More about human capital in the annual report Communications from IR team If no, what would help improve their understanding?* 32% 47% Employee turnover 46% Other (please specify) Employee well-being 36% Discussion at AGM 11% Salary benchmarking 14% Employee promotion rate Other (please specify) Absenteeism 0% 7% 11% Q19 What do you think is the biggest value a strong employer brand can have on a business?* Talent pipeline 51% Q16 Will your annual report feature more emphasis on human capital this year?* Ethics, morals, values Impact on bottom line 23% Yes 29% No Q17 Do investors understand the value of human capital?* Yes 32% No 9% 59% * 2015 data has not been included, as the question was either asked slightly differently in 2015 or asked for the first time in * 2015 data has not been included, as the question was either asked slightly differently in 2015 or asked for the first time in
12 About us We love what we do. Emperor is founded on a culture that has at its core the idea of creating great work and delivering a great experience for everyone involved in that work: that s our clients, our people and our partners. It s that simple. But simple can be harder than complex so there s a huge amount of passion, energy and commitment involved in making it happen. Our focus is on channelling our thinking, our creativity and our innovation into making sure the work we do helps the businesses we work with achieve their ambitions. We never underestimate how tough that can be and we earn the trust and confidence of our clients by our relentless approach to understanding what really matters to them. We ve learnt a lot, we never stop learning and we really do love what we do. Reporting We re experts in producing corporate reports that people want to pick up, read and act on. When a direct, skilfully executed approach is needed, we re trusted to deliver. But it s the way we listen to and work with our clients that makes our approach different. Digital No one else in our field works with such a variety of clients across such a breadth of digital services. But whatever the brief, we re always focused on what matters most to you. That s reaching and inspiring the audience you want to reach, while offering you a superior service experience throughout. Engagement Continued engagement is the key to a brand s success, externally and internally. Communication is a constant, so it s vital to keep conversations dynamic, alive and relevant. We design campaigns to perform in today s connected, multi-channel world. We plan, measure and optimise effectiveness, harnessing creativity for a practical purpose to get measurable results. Brand The strongest brands have a positive influence on everything about a business, from a customer s first impressions to the way an employee performs. We build them collaboratively to create something which captures your company s unique culture
13 Want more insight? Get in touch if you d like any of the following brochures: Business critical branding Learn how Emperor helps companies tell their story through brand, digital and engagement communications. What is sustainability and why bother? Let Emperor guide you through the world of sustainability reporting. What is integrated reporting? Read Emperor s simple guide to integrated reporting. Let s talk If you have any questions or would like to learn more about how we can help you differentiate your brand and communications, we d love to talk with you. emperor.works letstalk@emperor.works LONDON Zetland House 5 25 Scrutton Street London EC2A 4HJ +44 (0) EDINBURGH 4th Floor Charlotte House 2 South Charlotte Street Edinburgh EH2 4AW +44 (0) BIRMINGHAM Crosby Court 28 George Street Birmingham B3 1QG +44 (0) BICESTER St Edburg s Hall Priory Road Bicester Oxfordshire OX26 6BL +44 (0) MANCHESTER Studio Newton Street Northern Quarter Manchester M1 1FT +44 (0) DUBAI Office 1611, 48 Burj Gate Sheikh Zayed Road P.O. Box Dubai, UAE +971 (0)
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