How to build an effective employer brand

China Staff, Oct 2008 by Cafolla, Liana

In the ongoing battle for talent, building a recognised employer brand gives companies a huge advantage. Organisations that rely on the marketing techniques that have been proven to build successful brands are best placed to attract and retain talent. Liana Cafolla reports.

"In their quest to be an employer of choice, many organisations are recognising the potential of employer branding as a concept," says Rebecca Clake of the UK's Chartered Institute of Personnel and Development (CIPD), which has published an extensive and practical guide to employer branding.

"The golden rule is to launch the brand internally, making sure it's fully communicated, understood and embedded then and only then can you launch the programme externally to see the real benefits," says Paul Walker, Head of Employer Brands, Barkers and author of the guide. "Despite the success of employer branding, many companies still fail to accurately measure current performance in recruitment and retention in order to prove brand effectiveness and demonstrate returnon-investment. By measuring the success of employer brand, the HR community can really add value to their businesses."

The guide 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 to their best in its culture."

Make your brand a recruiting and retention tool

Walker emphasises that branding of any kind, including employer branding, is a marketing tool and should be treated as such. Successful brands make people feel good about buying them, and after purchase, make people feel good that they did buy them. Satisfied buyers tell their friends and show off their purchases, and become advocates of the brand. Employer brands work in much the same way.

First, they offer differentiation - they show what is different about one company compared to another. For example, two companies may offer similar work environments and benefits. But one company may have actively branded itself, by using consistent messages in its advertising, recruitment material and website to reflect the company's values and identity. These messages are based on consistent and often personal realities of what it's like to actually work for the organisation.

China

Few places have had more of a challenge in attracting qualified staff than the international luxury brands whose new stores are sweeping across China at an unprecedented rate. Demand for these luxury designer products is being driven by the high growth rates on the mainland, which has resulted in a large and fast-growing middle class who have money to spend and a strong desire to spend it on luxury brands which they feel will increase their status and social standing.

While the shops are busy, and many report that they find it difficult to keep up with demand - a major problem for human resources management has been finding, training and retaining the kind of staff needed to man the shops.

If a customer is contemplating buying designer goods that cost tens or sometimes hundreds of thousands of dollars apiece, it stands to reason that they will expect knowledgeable and attentive service, with high quality product knowledge, and advice as well as pure service. Moreover, as many of the customers of these newly available brands are seeking status as much as the product itself, a high level of customer service is essential.

Training staff from scratch to provide such elevated service has been very challenging. One part of the problem is finding staff who are familiar in dealing with luxury goods - and the demanding customers who buy them.

Shaun Rein, founder and managing director of the China Market Research Group (www.researchcmr.com) conducted an online survey in 2006. The results showed that there has been a change in the kind of opportunities most likely to attract and retain talent. Where a survey five years earlier had shown that salary was the number one attraction for young Chinese, this survey showed that 90% of 18 to 28 year olds wanted access to continuing education.

"To retain workers, firms must develop training courses that give employees the business skills they need and help them feel like they are progressing in an organization that cares for about them," says Rein. "Some of the most successful multinational companies in China, like L'Oréal and Starwood have implemented rotational training programs that give Chinese employees the chance to spend time working in other countries. Overseas training is one of the most prized benefits that Chinese employees mention in our surveys. Offering top workers the option to spend six months in France or the U.S. is a smart way to build company loyalty and develop the business savvy that is currently lacking in many Chinese executives."

These luxury brands have a huge advantage in attracting staff in the mainland's burgeoning retail sector. The cachet of the brand itself is almost guaranteed to attract a response to situations vacant postings, but a successful employer brand goes beyond that to bring results in recruitment and retention levels.