Data Proves that Culture, Values, and Career are Biggest Drivers of Employment Brand
Josh Bersin
Global Industry Analyst, I study all aspects of HR, business leadership, corporate L&D, recruiting, and HR technology. ?
We just completed a detailed analysis of Glassdoor data among more than 6,000 companies and 2.2 million employees and I wanted to share a few important findings. If you consider "Would you recommend your company as a place to work?" as a NetPromoter question from all these employees, by far the biggest work factor related to employment brand is "culture and values."
An employee's rating of "culture and values" is 4.9 times more predictive of a company recommendation than salary and benefits. The second most important factor is "career opportunities," which is 4.5 more important than salary and benefits. The third factor is "confidence in senior leadership," which is approximately 4 times more predictive than salary and benefits. And "work-life balance," while an important factor, is only half as important as culture.
When you slice this data among Millennials (people under the age of 35), "career opportunities" becomes the #1 driver of employment brand.
What this clearly shows is that while salary and benefits may be one of the most important things you think about in your hiring and investments in people, in reality your investments in leadership, culture, and employee development are far more important.
Over my 20 years as an HR analyst I have seen this play out again and again. Today people are somewhat overwhelmed by their work environment (40% actually believe it is impossible to maintain a successful career and family at the same time) so they crave a job with a culture they enjoy. People seek meaning and values at work, and they look for companies that deliver products and services they are proud of. (Read our research on The Overwhelmed Employee for more on this topic.)
The issue of learning and development has become paramount in the job market. Most young people will have 70+ year careers, so they know well that their ability to grow and progress is perhaps the most important driver of their future earnings and job satisfaction. Companies that focus on an entire culture of career growth and learning outperform their peers in innovation, long term growth, and employee retention. (Read Bersin by Deloitte High-Impact Learning Culture for more on this research.)
The issue of "learning" is becoming more important every day. As the quote above shows, education and skills are perhaps the biggest driver of your own personal earnings potential, so organizations that offer training, lots of developmental assignments, and a coaching culture are now the premium places to work. As more and more robotics and artificial intelligence enter the workforce (watch for my article on the Future of Work next month), I believe the "learning curve is the earning curve" is going to be extended even further.
Your ability to continuously reinvent yourself now defines your success.
As an HR or business leader, you are responsible for finding ways to offer people learning and continuous reinvention in your company. This means letting people take developmental and stretch assignments, giving people lots of project-based work, and rewarding managers for coaching and development, not just execution.
If you're a team leader, executive, or HR professional, think hard about these findings and where you're spending your time and energy. A focus on culture, development, and leadership pays of in more ways than you can imagine.
(Glassdoor is an employment website that lets employees anonymously rate their companies on a variety of factors.)
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About the Author: Josh Bersin is the founder and Principal of Bersin by Deloitte, Deloitte Consulting LLP, a leading research and advisory firm focused on corporate leadership, talent, learning, and the intersection between work and life. Josh is a published author on Forbes, a LinkedIn Influencer, and has appeared on Bloomberg, NPR, and the Wall Street Journal, and speaks at industry conferences and to corporate HR departments around the world. You can contact Josh on twitter at@josh_bersin and follow him athttps://www.dhirubhai.net/in/bersin . Josh's personal blog is at www.joshbersin.com .
Other Recent Articles by Josh Bersin:
- Corporate Learning in Hypergrowth Companies
- Purpose at Work: It Comes from Within
- People Analytics: Ten Things We Have Learned
- Are you an Overwhelmed Employee? What to do about it.
- Why People Management is Replacing Talent Management
- Putting the Strategic into Strategic HR
- The Alliance: A Manifesto for 21st Century Talent Management
- Interview with Reid Hoffman about Talent in the Networked Age
- Why it's time to Redesign HR
- How to Build The Irresistible Organization
- Learning to Be Yourself
- The Secret to Effective Motivation: Purpose
- The Myth of the Bell Curve
- What's Good for Women is Good for Business
- How to Make Work Fun
- Why we Do Need The HR Department
- Are Performance Appraisals Doomed?
- How I Hire: Trust Your Gut
- The MOOC Market Takes Off
- Employee Retention: The Time is Now
- The Datafication of HR
- Quantified Self: Meet the Quantified Employee
Student at University of San Francisco School of Management
4 年With positivity as the core enabler of the next wave that we see emerging from the current crisis, my team has articulated what we all collectively think/agree as the first major focus—Remote Work Model. https://kairostech.com/coronavirus-recovery-bytes-from-kairos/
Vice president HR EMEA -ACCO Brands
8 年Analysis matches daily observations . Values should include contribution to community ( giving back ) . Differentiating factor of employment brand resides in aptitude of CEO-Exco to achieve results through people and developing next generation of diverse leaders as well . Hopefully CEOs and HR exec will think about to avoid employee engagement failures !!
Rethink, Adapt: Leadership Development 2022, Emotional Intelligence.
8 年I often hear from leaders that they are finding it difficult to recruit people with the skills they need. I wonder if they advertised roles differently if the number of great candidates applying would increase. So often the ads read like job descriptions. This might be a good article to share with recruiters.
Senior Manager, Human Resources
8 年This is the type of information that needs to be at the forefront when organizations are developing people strategies. Data increases knowledge and knowledge becomes a powerful tool for success when it is put into action.