Abstract
Employer branding has grown to become a dominant feature in the modern day management studies. It regards communicating a positive image to the world on how the organization is effective in providing employment opportunities to job seekers. It has various elements as discussed below with the basic being how social media has become a useful tool for the practice. Besides establishing a competitive advantage in the market by using improved product/service marketing strategies, many organizations appreciate the essence of selling the brand name to potential employees. In fact, Improved employee branding offers the untapped potential to organizations for the realization of effectiveness in attracting, managing as well as retaining the best talent in the market.
(Keywords: Employer branding, social media, organization identity, organizational culture, employee loyalty, productivity)
Introduction
In the modern times, labor markets have become increasingly competitive, and companies have embraced the concern of the retention of employees and talent (Biswas & Suar, 2013, 93). In that aspect, the employers face the daunting task of understanding the industry they operate in and the strategic factors that influence the decision making of employees, especially regarding career. Over the years, many organizations have been using marketing strategies to raise organizational loyalty from the employees just as is the case with customers (Backhaus & Tikoo, 2004, p. 504). There are, however, various factors that have been observed to improve an organization’s attractiveness to potential employees by creating an attractive brand image of the organization as being the prime employer. This paper presents a qualitative analysis of the concept of employer branding for attracting and retaining employee talent in the modern competitive business environment (Näppä, Farshid & Foster, 2014, p. 132). The paper, however, takes special attention on effective mechanisms by which successful organizations embrace the concept of branding and the tools used in the practice such as the social media.
Discussion
Definition. The process by which an organization’s reputation as a good employer is created and delivered to the external world explains the process of employer branding. Through the process, the organization’s attributes of an employer in attracting, recruiting, engaging, and retaining employees are communicated to potential employees (Edwards, 2010, pp. 5-7). Therefore, the usefulness of the tool is not limited to the nature and size of a business organization but rather important to all. Organizations embrace employer branding practices with the motive of improving on competition, strengthening employee value proposition as well as improving the value and retention of the employees (Sengupta, Bamel & Singh, 2015, p. 307). Therefore, the employer’s branding explains the perceived element of an organization for attracting employees and proving to the already hired employees that the organization was the best employer they could have had (Kashikar-Rao, 2014, p. 190). Through the employment branding, an organization can interact with the job seekers and already hired employees. Functionality of HR and Marketing Departments
Although organizations work through departments, this paper evaluates the functional responsibilities by two main organizational departments and these are the HR department and the marketing department (Kashikar-Rao, 2014, p. 190). The reason explains the analysis of these two departments that the HR department is concerned with the employee’s welfare in recruitment, training, and retention (Kashikar-Rao, 2014, p. 193). On the other hand, the marketing department is involved because it handles creating the organization’s image to the external world.
Conceptualizing Employer Branding
The functional responsibility of organizational brands is to communicate the importance of using certain products or services to the current and potential customers. On the other hand, the employer brand is meant to communicate the importance of employment to the potential employees (Helle, Sophie & Thomsen, 2011, p. 105). Consistent themes are used in organizational branding to ensure that particular and compelling images are created in the minds of the customers. Hence, the customers are encouraged to buy the service or the goods (Anne, Nilsen & Olafsen, 2013, p. 473). In a similar manner, through strategic measures, the employers can create a compelling brand as the most suited employer. In this aspect, the employers will attract many employees, improve loyalty and, therefore, realize higher retention rates. The branding process can be regulated by both the industry and the organization concerned (Anne, Nilsen & Olafsen, 2013, p. 473).
For the employer branding, the process is meant to invoke the need for the potential employees who would like to seek employment and to have a compelling image that the organization in context offers the best interest for them. Through employer branding practices, the potential employees are convinced that the specific organization or brand has their best interest at hand and that missing an employment opportunity with the particular organization has the worst repercussions (Foster, Punjaisri & Cheng, 2010, p. 441). The level of employer “brand value” explains the attractiveness of the organization as an employer. Therefore, the organization with the highest employer brand value attracts more potential employees than the organization whose employer brand value is ranked lower. The employer brand is often communicated to the potential employees through personal experience, word of mouth, and even through marketing strategies (Anne, Nilsen & Olafsen, 2013, p. 473). In what could be perceived as similar to product marketing strategies, the employer brand marketing envisions raising awareness of the organization as the most attractive employer in the industry. Therefore, the marketing practices and theories previously used in consumer goods or services have been expanded to cover the employer brand in the modern marketing world (Anne, Nilsen & Olafsen, 2013, p. 473).
Through the marketing tool, the employer’s brand awareness is created to the potential employees and has the effect of changing their respective perceptions towards the employing organization. Therefore, the principle works in a more similar manner as product promotion where the potential customers are attracted to prefer one product or service to the others in the market (Moroko & Uncles, 2009, p. 182). Moreover, the concept works in the similar manner of making potential customers aware of the characteristics of the product even before they purchase. Therefore, the employer branding enables the potential employees to understand the qualities of the employer before they are recruited. By definition, therefore, employer branding explains the package of functional, psychological, and economic benefit that can be identified with the prospective employing company (Neeti & Sharma, 2014, pp. 48).
It is worth noting that employer branding is not undertaken independently of the other organizational practices, but rather involves other business (Neeti & Sharma, 2014, p. 48). In fact, employer branding is interpreted as a management role by which the organization focuses priorities, increases the productivity, and improves the recruitment and retention as well as the commitment of the employees to the objectives of the organization. Through the branding tools, the image that is portrayed to the external world is that of a good place to work (Neeti & Sharma, 2014, p. 48). Therefore, many of the modern organizations have developed such programs that facilitate the realization of the intended purpose of communicating to the world about the opportunities available and why potential employees should prefer working with the particular organization. However, the effects of employer branding are multi-faceted as illustrated in the diagram.
Fig 1: Source (Backhaus & Tikoo 2004, p. 502)
The table illustrates that employer branding has direct effects on organization identity, organizational culture as well as on the employer brand associations. The organizational identity and culture as seen through the brand affects the employee loyalty towards the employer (Oladipo, Iyamabo & Otubanjo, 2013, p. 55). Improved employee loyalty has the directly associated effect of increasing the employee productivity and subsequent increased organizational productivity. The brand associations created enables an employer improve on the image and general attraction, especially to prospective employees.
The recent past has seen organizations expand the resource allocation towards the campaigns in employer branding (Wahba & Elmanadily, 2015, p. 145). As such, it is assumed that the organization must be gaining the value of their practices in employer branding campaigns. Among other benefits that organizations realize through the campaigns are improved competitive advantage, improved employee productivity as well as high levels of employee retention. However, in spite of the increased reference to the practice, only a little literature has been committed towards the study of the practice of employer branding and the associated effects (Wahba & Elmanadily, 2015, p. 145). However, there are various tools by which the subject can be studied. For instance, the benefits of employer branding to an organization can be evaluated through HR metrics focused on external measures like the number of applications received and from the internal indicators like the term of service or staff turnover rates (Wahba & Elmanadily, 2015, p. 145). Therefore, all organizations must be concerned about their brand in the form of “employer brand” as it has direct effects towards the worldview of the organization as evaluated by the potential and actual employees. Only a few, if any, potential employees would be interested in working with an organization that has a bad reputation or that which has little-known information in the public domain (Wahba & Elmanadily, 2015, p. 145).
The Outcome of Employer Branding Strategies
In the modern times, organizations strive to make a distinction in all elements of management, an initiative that improve performance in the market. The strategy of employer branding enables the firms to stand out in the competition and to attract the best talent in the market. Therefore, the firms must ensure that the employer brand created is aligned with the respective customers and business objectives through methodologies that are validated as well as the smart application of improved tools like social media and improved innovations.
Theoretical Foundations
Resource-based view/theory
As noted earlier, the subject of employer brand has received much attention in practice as against in the academic field. Therefore, the discipline lacks well-developed theoretical background. However, the major assumption in human resource practices is that human capital is creating value in a firm. Hence, employing skill in handling and recruiting the employees, the organization could realize improved performance (Backhaus & Tikoo, 2004, p. 504). The RBV (Resource Based View) confirms the argument above and illustrates the level and nature of resources committed to improving the sustainability competitive advantage of a firm in an industry. For instance, whenever a firm has rare, valuable or un-substitutable resources, then the firm enjoys the advantage of occupying the highest niche in the market (Backhaus & Tikoo, 2004, p. 505). The human capital endowment is an important resource for competitive advantage for trading organizations, as is the case with a manufacturing plant, equipment or other capital elements. The connection is that the effectiveness of state-of-the-art technology in an organization can only be realized if the advantage can be exploited through a competent employee. However, even when the organization has the best employees, the need to hire new ones requires that the potential employees or job seekers be informed of the ability of the firm to offer the best experience. The need to reach the external world in marketing the organization or brand explains the strategies employed by the organization through the employer branding (Backhaus & Tikoo, 2004, p. 504). The assumption of the theory is that if the information about the brand or organization is well communicated with the external world, then the organization can attract the best talent in the form of new employees. Besides, once the right and competitive team of employees are hired, then the organization will demonstrate effective strategies for employee improvement, which enable the employees to be desirable even by other competing firms.
In fact, there are the internal and external elements of employer branding for organizations. From the internal marketing strategies, the organization establishes a competitive advantage that the competitors cannot imitate, which facilitates the perceived competitive advantage for the organization. However, the source of competitive advantage must be sustained if the organization was to remain in the leading position (Backhaus & Tikoo, 2004, p. 504). Besides helping an organization enhance the quality of the employees, the internal employer brand marketing strategies improve the employee retention rates. In essence, the internal practices of the marketing employer brand have many associated benefits and must be enhanced if the overall employer branding strategy was to be effective.
Psychological Contract Theory
This is another theory that has been used to explain employer. Traditionally, the employer-employee relationships were founded on the job rewards and security (Backhaus & Tikoo, 2004, p. 504). For instance, the employee showed higher loyalty to the employer whenever the employer assured the employee of job security and the employer motivated the employees by the reward system. However, in the recent practices of downsizing, flexibility and outsourcing, employees and employers have developed another form of relationship that could be explained by psychological contracting (Backhaus & Tikoo, 2004, p. 505). The nature of the relationship is explained when the employer embraces training and promotion to the employee I order to better their skills. On the other hand, the employee is expected to reciprocate by showing higher levels of loyalty and flexibility. Therefore, through the employer branding marketing practices, the organization highlights the advantages that the employees are accorded such as the training programs, personal growth, and career opportunities. Through such information, the organizations can attract the best prospective employees and improve the organization image to the outside world.
Social identity theory
Employer’s brand attraction and identity are influenced by the self-concept explained by the membership aspect developed in association with certain groups. Therefore, according to the theory, human beings develop some form of identity, according to the group they are affiliated (Backhaus & Tikoo, 2004, p. 505). As such, brand management enables employees and potential employees to be attracted or otherwise to a particular firm. The better or more positive the image created is, the more likely will the employees be attracted. The employer brand is particularly useful when it is effective in conveying symbolic benefits to both current and prospective employees (Backhaus & Tikoo, 2004, p. 505). The association with a winning brand increases the loyalty of employees and, therefore, contributes to the better performance of the firm. The symbolic elements that an effective employer brand conveys include the organization’s attractiveness and innovativeness. Hence, the employees or the target recruits feel the sense of belonging to such a performing organization and, therefore, get attracted to become part of the team. It is worth noting that competition in an industry requires that there is improved marketing strategies that will enable the competing organizations to remain relevant and competitive (Heilmann, Saarenketo & Liikkanen, 2013, p 283). Often, the strategies embraced are similar but the use of employer branding has the effect of standing distinct from the other tools of competition.
The above theories, therefore, show that an employer brand is an effective tool for explaining the competitive advantage that any firm enjoys in the respective market segment. In the consumer market, branding enables the customers, and respective customers access the product or service information that then aids in decision-making processes (Masud, 2013, p. 1). Similarly, the employer brand enables the firm to communicate with both the internal and external world within which the firm operates. Through the branding mechanism, an organization aims at creating loyalty as well as a brand association as shown in the figure above.
The brand association has indirect effects towards an organization in that it affects the attractiveness of a firm to potential employees as explained by the associations of the concerned firm (Masud, 2013, p. 1). From the associations, whenever the name of a brand or organization is mentioned, then a picture is formed in the consumer’s mind and potential employees, which explains the respective reaction towards it. Accordingly, the employees or job seekers develop some form of perceptions towards an organization through the image created through the marketing practices (Masud, 2013, p. 1). Improved loyalty explains better performance of the employees, hence the improved performance of the organization. From the discussion, it is evident that although perceived as a relatively new approach towards organizational management, employer-branding concept has enabled organizations improve the practices of attracting, recruiting, and retaining employees for improved performance (Masud, 2013, p. 1). However, the discussion has not noted on the modern facilitators of the effective creation of employer brands as seen through the use of technology. The following segment, therefore, evaluates the role of technology in facilitating employer branding with a special focus on social media.
The use of Technology: Social Media
The modern day marketing strategies have had the direct influence on the advancement in technology (Masud, 2013, p. 1). For instance, in the consumer marketing field, technology has revolutionized on how organizations target and deliver the product or service information to the potential customers. Similarly, in employer branding, campaigns have had positive effects derived from the use of improved technologies (Masud, 2013, p. 1). Some of the ways by which employer branding is utilizing the social media is through increased presence by which the firm has a direct interaction with the external world and using the internet for advertising posts, recruiting through online interviews, aptitude tests as well as career development programs like training through the social media (Masud, 2013, p. 1).
In fact, the future of the best performing organization is challenging to define, especially in the advancement observed in the use of social media (Anne, Nilsen & Olafsen, 2013, p. 473). The use of social media, including the Facebook, LinkedIn, Twitter, and Instagram among others in recruiting the employees has increased in the recent past. While the social sites have been used effectively in recruiting potential employees, the organizations are also finding it useful in establishing, promoting and maintaining the brand identity (Anne, Nilsen & Olafsen, 2013, p. 473). The employer brand is the perceptions or attitudes that the external world holds towards a firm. Therefore, the social media directly influence it. Through online marketing practices, a company or brand is advertised through the interactive forums that enable people to develop certain perceptions towards the organization. Those perceptions have directly influenced the process of recruitment and the retention of the employees (Anne, Nilsen & Olafsen, 2013, p. 473). Therefore, organizations are aware that whenever they want to hire, the information disseminated through the interactive media presents the best image, especially concerning the company as a potential employer. Through the social media, the organizations can create information that is useful in selling the brand to potential employees (Anne, Nilsen & Olafsen, 2013, p. 473). Besides the associated low costs with the brand marketing in the social media, the interactive platform enables the world to reach many people over a short time as compared to some of the traditional marketing strategies. While the benefits are directly associated with product/service marketing, the effect is shown to be similar even for employer brand marketing (Anne, Nilsen & Olafsen, 2013, p. 473).
Through the online recruitment forums, the respective organizations exploit the advantage of sharing other information such as the respective missions, objectives, and the company goals. The readers then interpret the information presented, a situation that creates images in their minds regarding the organization and enable them to make decisions (Anne, Nilsen & Olafsen, 2013, p. 473). The perceptions formed may influence or discourage the decision or interest of the target groups to seek working opportunities with the organization. Therefore, the use of social media in creating the employer brand has been in use by many organizations and has been effective in the realization of the organizational objectives. In essence, the social media enables the organizations to establish an identity for the brand, communicate the name of the organization to the external world and create the image that the organization has the interest of the employees at heart (Anne, Nilsen & Olafsen, 2013, p. 473).
Conclusion
This paper presents an investigative analysis of the subject of employer branding in the modern world. The paper reveals that the employer brand identity concept has been a relatively new concept in the field of management but has risen to attract higher attention. By definition, the concept explains how organizations reach out to the world and explains why the job seekers should consider securing an employment opportunity with them as against other employers. The effect is to have a positive attitude towards the organization by the potential employees and the current employees for improved performance and competitive advantage. Other elements considered are the strategy as revealed through theories and the essence of social media as have been embraced in the concept.
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