In a candidate-led market, how an organisation is perceived can be critical to its ability to attract the very best professionals. Although employers can’t create their own brand, they can do a lot to influence it. Dr Mary E. Collins explains how
When recruiting, your reputation or ‘employer brand’—the stand-out differentiator for your organisation—has never been more important. This renewed focus on employer brand can be attributed, in part, to the expectations of the younger generations, who are influenced by an organisation’s reputation and peer reviews.
These reviews—and the perception of an employer’s brand they help perpetuate—are a key disruptive element in recruitment, particularly with the growth in influence of review and recruiting websites, such as Glassdoor and Indeed.
The Labour Force Survey results from the Central Statistics Office for the second quarter of 2022 put the employment rate in Ireland among 15- to 64-year olds at 73.5 percent – a record high. In this context, an organisation’s ability to attract and retain talented professionals in a market at near full employment—one in which people naturally have greater choice—does more than allow it to compete. It affects its reputation among all stakeholders, from customers and clients to potential employees.
What is an employer brand?
The term ‘employer brand’ was coined in 1996 by Professor Tim Ambler of the London Business School, who defined it as “the package of functional, economic and psychological benefits provided by employment and identified with the employing company.”
The Chartered Institute of Personnel and Development (CIPD) defines an employer brand as “a set of attributes and qualities—often intangible—that makes an organisation distinctive, promises a particular kind of employment experience, and appeals to those people who will thrive and perform best in its culture.”
It is important to note, however, that an employer brand is created by other people’s perceptions of an organisation. An employer cannot directly create its employer brand, it can only influence it.
The power of employee review
In the past, an employer brand (even if not described as such) was based mainly on the reputation of the employer, with very little influence from other sources. Now, with the growth of digital voices through social media and review websites, employees—past and present—are key players in the creation of employer brands.
We have seen this particularly with employee reviews, which has been a major driver of change. People can post honest, anonymous reviews about their employers, describing the on-the-ground experience from an ‘insider’s perspective’. Faced with this, organisations must become more accountable for their behaviour—or risk being rejected by potential talent.
Candidate-led recruitment
In recent years, the approach to recruitment has shifted from ‘company-led’ to ‘candidate-led’, which is evident in the interview process alone. Employers are now reviewing their interview procedures, asking if they suit candidates, and asking recent hires what they would change about the experience.
Company-led recruitment This is a top-down approach, where a position is advertised and candidates apply. The information shared about the advertised position is limited. The balance of power is with the hiring organisation. This approach is summed up by the interview question: “Now tell me, why should I hire you?”
Candidate-led recruitment This flips the model by guiding potential candidates to make more informed decisions about whether to apply for a role. This approach encourages candidates to reflect on their ‘fit’ for the job by providing them with detailed information on the role and organisation prior to applying.
Developing a strong employer brand
There are eight key steps to developing a strong employer brand, which will give you a competitive advantage and set you apart in a crowded employment market.
Step 1. Define your unique selling point
Organisations invest resources in developing and promoting a unique selling point (USP) for their customers, clients and even potential employees. The USP is what makes an organisation distinct, setting it apart from its competitors. An employer’s USP will inform its employer brand, responding to candidates’ desires to join teams that share their priorities and values. This could be:
“trusted advisor”
“provider of excellent technical service”
“friendly, responsive and flexible”
“creative, cutting-edge and innovative”
“award-winning agency”
When defining or refining your employer brand, start by articulating your USP. Larger organisations may wish to engage specialist brand agencies, while SMEs can do this through insightful, exploratory conversations with their stakeholders.
Ask your existing employees why they joined the organisation, for example, and what makes the business different to its competitors. You can also ask clients for testimonials which can be published online, thereby elevating your USP, not only to prospective clients, but also to future employees.
Step 2. Communicate your purpose
An organisation’s strategy is a core part of its employer brand and should be included in employer brand communications. Share strategy and purpose to attract the right people. For example, if the strategy is for growth, excellence and expertise, this needs to be represented in the offer to potential employees who are looking for new opportunities and a defined career trajectory.
Step 3. Identify who you need to hire
Define your recruitment needs. What are the skill sets you need to achieve your goals? Can they be introduced by training existing employees? Evidence of strong succession planning not only instils confidence in shareholders, but it also showcases your employer brand to current and prospective employees.
Step 4. Understand your ideal candidates
Find out as much as you can about your ideal candidates. What really motivates and excites them? What can you do to drive them to your organisation? The following can be used to source information on target and prospective candidates:
LinkedIn Data can be captured on your target candidates’ education and qualifications, the professional bodies they are members of, and the LinkedIn groups they choose to join.
Research Conduct research into new and existing workplace generations—what is the difference between Baby Boomers, Millennials and Generation Z? This will yield information on their motivators, drivers and values, which can inform your hiring strategy.
Your team Talk to your existing high-performing employees to understand their interests, professional alignments, and networks.
Your networks Use your own professional and social networks for further insights from outside your own organisation.
Psychometric tools These can be used to track the personality traits and aptitudes of the best performers and can inform your thinking on ideal, as well as prospective, candidates.
Step 5. Define your employer value proposition
An organisation’s employer value proposition (EVP) is the distinct set of benefits (financial and otherwise) an employee receives in return for the skills, knowledge and experience they bring. The CIPD defines the EVP as “describ[ing] what an organisation stands for, requires and offers as an employer.” It provides greater consistency—to an organisation’s recruitment advertising, for example.
Using the data gathering techniques described above at Step 4, you can develop a bespoke EVP for your ideal candidates. To create a successful EVP, consider the following:
design around attributes that attract, engage and retain the talent you are seeking;
be consistent with the strategic objectives of the organisation;
identify what is unique to your organisation and distinct from your competitors’ offerings.
The best EVPs involve synergies between the organisation’s corporate brand and its employer brand. Hubspot’s EVP, for example, states: “We believe the people we work with are our biggest perk. That’s why our people operations team works hard to create an amazing experience for candidates and employees, every step of the way.”
As demonstrated by Hubspot’s EVP, it is important that current employees feel as much of a connection to the EVP as potential hires. Your current employees should feel aligned to your brand. Maintaining a strong employer brand demonstrates commitment to invest in talent, it builds trust, loyalty and credibility, and differentiates you from competitors.
By making your EVP public and transparent, prospective employees are far more likely to trust what a company’s current employees say about it than what they read in recruitment advertising. To attract talent, employers must rely on employee engagement and advocacy from the ‘inside out.’ Employers cannot publicly offer what they do not privately provide.
Step 6. Understand your employer brand
As well as analysing feedback from current employees, a systematic way of evaluating your employer brand is to use a tool like the Employer Branding Measurement Dashboard, created by Elizabeth Lupfer of the Social Workplace (thesocialworkplace.com). It identifies key metrics for evaluating employer brand, such as:
HR metrics, e.g. retention/attrition rates, number of applicants per position, cost per hire;
awareness metrics, e.g. percentage of target audience who are aware of the organisation;
differentiation metrics, e.g. employer brand value/effectiveness.
Step 7. Enhance your employer brand
There are some key areas of focus when enhancing your employer brand. It is particularly important when losing staff, or finding it hard to recruit new people, that each area is reviewed, and appropriate actions are taken. For example:
Culture Consider a more ‘people-focused’ culture, e.g. offering flexible work arrangements.
Presence in the marketplace Increase your visibility to ideal candidates: attend conferences, contribute to LinkedIn conversations, engage in expert positioning and thought leadership, enhance the organisation’s media presence.
Candidates’ experience Improve response times to candidates, e.g. introduce a time limit to get back to candidates following an interview and stick to it.
Step 8. Communicate your employer brand
Communicating your EVP should be central to communicating your employer brand. This can be done through many channels, such as job advertisements, the organisation’s website, or its social media platforms, for example.
The EVP should be obvious from the organisation’s website, which should clearly reflect the company’s culture. For example, if ‘technical excellence’ is one of the key aspects of the employer brand, show this with examples of technical projects and thought leadership.
Ideally, the website should have a ‘Why work for us’ page, which is most effective when current employees share their positive experiences, highlighting the EVP. Clearly communicate the benefits you offer employees, for example:
flexible working arrangements;
training and development supports;
annual and other leave schemes;
pension schemes and employer contributions;
health insurance group schemes and contributions.
Conclusion
For employers seeking to attract talented professionals, a clear employer brand, which is supported by the views of current employees, is a critical starting point. A strong employer brand gives you a competitive advantage, setting you apart in a competitive, candidate-led employment market.
Dr Mary E. Collins is a Chartered Psychologist and Senior Executive Development Specialist at the RCSI Institute of Leadership, and author of Recruiting Talented People.