Branding the Organization: Survival Strategy For Coping With Turbulent Labor Markets
Every organization needs the right workforce to succeed. To attract and retain the required talent, an employer brand must be created that appeals to those possessing that talent. The employer brand serves a similar purpose as the brand created for the products/services offered by the organization. Potential customers for products/services evaluate what the organization offers, based on quality, price and other factors… and what appeals varies across customers. Similarly, individuals considering a working relationship with an organization evaluate what the organization offers, and what is valued varies across individuals.?
The type of employer brand that appeals to individuals varies, depending on the context. This raises the question: can one brand appeal to everyone?? When organizations offer products/services to the marketplace they can attempt to offer the same thing to everyone. You go to a restaurant and the menu is the same for everyone, at least for adults. The appeal of a single offering to different types of customers will depend on whether it meets their needs and how it compares to what is offered by other organizations. Many other organizations develop marketing strategies based on market segmentation. Potential customers are divided into segments, based on their needs and wants, and the organization decides how to customize its offerings to appeal to different types of customer.?
When an organization wishes to acquire different types of talent it must decide if it will create a single employer brand and value propostion or segment the talent pool and attempt to offer different things to different segments.? The brand is a signal that conveys the message “this is what it will be like for you to work here, what will be asked of you and what you can expect to receive in return for your contributions.”
What organizations offer as a part of their value proposition will depend on the nature of the organization (i.e., size, growth, profitability, culture, reputation, products/ services offered, etc.). The value proposition will impact whether a potential candidate will even bother to consider evaluating the organization. There are numerous “best places to work for …” rankings that represent an overall assessment of organizations. The award winners can gain credibility and appeal since this can improve the attractiveness of their brands. But people seek different things so the organization's attractiveness will vary depending on who is considering the organization. The “best place to work for everyone” award does not exist, for these reasons. Yet organizations can be “hot,” based on the publicity they get.? The “best” varies across type of organization… which means the business an organization is in is not the sole reason for popularity.
The employer brand should define the context within which people will perform work. The culture provides guidance about the values embraced and how things are done. But the terms and conditions that govern components of the value proposition may vary across individuals.?
Websites like Glassdoor publish employee comments about organizations and what it is like to work there… and how “fair” pay is. Environmental or employee abuse is also a favored topic for investigative reporters. Nike suffered an image problem when it was discovered that its foreign contractors operated with unsafe/adverse conditions and employed children. The “swoosh” is a very valuable brand, and this type of blemish can impact the behavior of customers and potential employees, as well as threatening the stock price. Nike mandated the type of working conditions that are acceptable in the developed world. Contractors have ignored this mandate and the damage is still done to the Nike brand.?Workforce treatement is also important: being the leader in downsizing generally does not increase appllications for employment.
The occupation of a potential candidate may influence his or her choice. An IT professional will probably favor a software firm over a hospital as the preferred type of organization to work for. IT is probably still a valued occupation in a hospital, but will take a back seat to the doctors, nurses and technicians in a hospital. Occupations that are central to the organization’s mission and critical to its performance will be the first in line when it comes to handing out rewards, a reality recognized by those considering them as employers.?
One way to attract candidates who are career focused is to make it clear that the organization offers careers, and not just a job for the present. Posting an opening for a Senior Engineer on the organization’s website transmits a fact but does not market it as an opportunity for a career. Claiming that the organization pays Engineers more than other organizations is just that… a claim, that may not be supported by factual information. A notification that there is a well-thought out career path emphasizes that the organization views Engineering as a career, rather than just a job and that the contributions of Engineers are valued. An advantage of providing? comprehensive information is that it makes it clear the organization values employees at all levels of expertise. If someone does not have the required qualifications to fill an advertised Senior Engineer slot presently it still might encourage him or her to still apply, assuming they might be viewed as someone with potential to perform at the higher level. Although career opportunity is not generally viewed as a form of remuneration it certainly can be valued and can impact decisions.?
What someone will value when selecting an employer varies widely across individuals and even over time for the same individual. Offering what someone values highly is going to be a greater inducement to join an organization than providing something the person cares less about. As a result, individual diversity may require individual customization of the proposition. The total rewards package (commonly called remuneration in other countries) offered by an organization is a significant component of all that employees will receive in return for their work. People in their 60s are likely to place more relative weight on building a retirement income than they would on career progression, while someone in their 20s might value career mobility more. Those with young children or expecting to expand their family might place more value on high quality health care insurance than a young single person would, at least for the time being (things change). People who are ambitious, confident in their ability and willing to put their all into their work might be willing to accept a lower salary (certain income) if there is a greater incentive opportunity tied to performance that might result in higher total direct compensation. And some potential candidates may highly value schedule flexibility, locational flexibility and paid time off, making them willing to trade off some current income.
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Rewards programs may result in different benefits for different employee profiles. An employee who has 10 years of service may have three weeks of vacation, while someone with two years of service may only have two weeks of vacation. Executives may be eligible for stock options, while others are not. Direct sales personnel may receive bonuses and commissions that others do not. Employees who are under a collective bargaining agreement may have their pay administered in a different manner than non-union employees. It is incumbent on the organization to ensure that these variations are consistent with the type of employer it wants to be and how it brands itself.?
Flexible benefits, a strategy that came on the scene three or four decades ago, illustrates how packages can be customized to fit individual characteristics and preferences. The organization establishes what it is able/willing to spend on benefits and then provides a shopping list with prices for individuals to use in selecting the mix that fit their needs. A firm might allow employees to sell back vacation days at 1/260th of their salary and use those funds to elect other options, such as electing a more comprehensive health care plan. It might only allow days in excess of ten in a year to be sold… a minimum of two weeks of vacation is usually considered to be necessary for employees to recharge their batteries.? Employees may also be allowed to pre-pay into a health care fund that provides them with a more advantageous tax treatment. Making the effort to provide choice can demonstrates the organization’s concern about meeting employee needs and its willingness to believe employees are mature enough to make their own decisions. Allowing employee choice also treats people like adults who are capable of making their own decisions.
Perhaps the most challenging way to provide flexibility is to allow choice in the roles filled and the work performed. Within an Engineering unit there will be some people who prefer challenging work that demands high levels of innovation, even if succeeding is riskier. Others are more effective at support/maintenance roles that better suit their capabilities. Allowing people to capitalize on their strengths and work around their weaknesses can improve their performance and satisfaction. Organizations often use objective-based merit and incentive programs that align rewards with outcomes.? The tougher challenge can bring the highest reward if successful. When employees know the stakes, they can decide which game they prefer to play. If an employee is allowed to choose their objectives, they are more likely to be committed to them.? A way to equalize rewards is to use the Olympic diving scoring system. Dives are scored based on two factors: 1. Difficulty of the dive, and 2. Quality of execution.? This enables managers to provide more customization in how objectives are set, while still rewarding fairly.
Conclusion
As the environment changes an organization must respond by aligning its business strategy with the realities it faces. Modifying its business strategy should result in an evaluation of its workforce management strategies, which will define its employer brand.
About the Author:?Robert Greene, PhD, is CEO at Reward $ystems, Inc., a Consulting Principal at Pontifex and a faculty member for DePaul University in their MSHR and MBA programs. Greene?speaks and teaches globally? on human resource management. His consulting practice is focused on helping organizations succeed through people. Greene has written 4 books and hundreds of articles about human resource management throughout his career.