Total Synergy corporate communications manager Jamie Millar talks about what we learned in creating and implementing an employer brand strategy, why it has critical strategic importance, and how SME AEC businesses can create their own.
9. “Employer brand is the package of
functional, economic, and
psychological benefits provided by
employment, and identified with the
employing company.”
Tim Ambler and Simon Barrow. 1996.
13. “I have yet to find a company that has earned
high levels of customer loyalty without first
earning high levels of employee loyalty.”
Fred Reichheld. AdAge, 2006
28. “EVP is the set of attributes that the
labour market and employees perceive
as the value they gain through
employment in the organisation.”
29. EMPLOYEE VALUE PROPOSITION
Company/workplace Personal/professional
Threshold
attributes
Unique
benefits
Cool work space
Standing desks
Casual dress code
Fresh fruit
End of trip facilities
Welcome kit?
Flexible working hours?
Long service leave
Annual review
Synergy brand
Synergy culture
Synergy values
Welcome kit – specific to us
Rituals – designed for us
Professional development
Social contribution policy
Flexible working hours?
Quality of colleagues
No passengers
Who’s chosen to hire new employees in the last 12 months – show of hands?
Seek? LinkedIn? Network?
Who’s planning to hire in the next 2-5 years?
Same boat. Recruiting number of new teammates 12 to 24 months
Roles = development, client/technical support, marketing and admin/finance.
Australia, but also UK and US. Easy enough –LinkedIn, Seek (or equivalent) and line up interviews.
PROBLEM – applicants are people who are actively looking – perhaps the wrong motivation?
Two cancellations within the hour before
One who plain forgot
One who thought we were a recruitment agency
One who made it within 150m of the building then gave up
One who certainly made an impression, just the wrong sort.
Despite that, we have an excellent team – we took the time to find the right people. And it’s growing.
Hard to stand out as an employer of choice – more so when you consider who you’re competing with for employees.
These are the types of companies we ultimately compete with:
Campaign Monitor – 151 (70)
Slack – 328 (recruiting for up to 70 people)
Zendesk – 1276 (92)
Xero – 1315 (227) – who say they made accounting software “beautiful”
Atlassian – 1668 (698) - recent IPO, now worth $2b
Then there’s the likes of Microsoft – we could compete with them…
Microsoft – 132,450 (1454)
How does little Synergy compete with those guys to snag the best talent?
Look at just the Australian numbers in orange
Campaign Monitor – 151 (70)
Slack – 328 (recruiting for up to 70 people)
Zendesk – 1276 (92)
Xero – 1315 (227) – who say they made accounting software “beautiful”
Atlassian – 1668 (698) - recent IPO, now worth $2b
Microsoft – 132,450 (1454)
That’s our perspective. What about out yours?
Who are you competing with in this industry ?
It’s arguably even worse as 96% of Aus AEC businesses have fewer than 20 employees.
This graphic represents actual numbers by dots – most of our clients’ businesses are in the block of tiny ones on the left.
How do you stand out from that crowd?
1-6 = 6257
7-20 = 4047
21-150 = 341
>150 = 55
Total 10,700
What we do know is that the people you want to hire already have jobs and don’t necessarily think, or even know, they want to change.
They’re as happy as you could expect.
But this doesn’t mean they’re engaged, inspired or entirely motivated.
These types of people are called passive hires, and they’re the best ones to get.
People who add value and might just look for greener grass if they’re going to be engaged in what they do, or to work for the best company.
The idea is that your company develops such a cool reputation as a place to work that when a role becomes available, the best people might, just might, take a look.
That’s called an employer brand – one outcome is more gems, fewer soulless CVs.
Employer brand was kind of on our radar, but hadn’t been forced up the priority ladder.
Enter Checkside – they made it a priority as part of the overall recruitment and HR strategy.
So it fell to me to research and create our employer brand strategy
Began in the middle of last year
Thought it might be interesting to share what we discovered.
First off, let’s define what an employer brand is…
Employer brand was first published as a concept by Simon Barrow and Tim Ambler in 1996.
Doing your job and growing in the role
You get paid the going rate and earning rewards
Camaraderie, company vision, client focus
The research has gone a bit further now – 2007 paper by a guy called Richard Mosely says:
tendency for service companies to focus more attention on the functional / operational factors in service delivery.
The thing about employer brand management is it’s about shaping the culture of the organisation, it’s about ensuring that all people management aspects are aligned with the brand ethos of the organisation.
Aligning employees’ brand experience with the customer brand experience, and add a common platform for marketing and HR, employer brand management is a very powerful strategy for growth.
An employer brand is an identity designed and lived by a company to showcase it as an employer of choice.
First and foremost, it’s about loyalty of employees.
“Employee retention is key to customer retention… It is with employees that the customer builds a bind of trust… when those people leave, the bond is broken.” Reichheld, F. 1993.
Loyalty based cycle of growth:
You can spot a loyal employee because they’re taking responsibility for building good relationships with customers.
Employers of choice can save 10 to 20% on salary costs by being an employer of choice.
• The best employers don’t have to offer remuneration above market value to attract employees.
This makes them more financially competitive.
Plus, it means you’re not hiring people whose only motivation is salary – that person is neither engaged nor loyal.
Loyalty is directly attributed to customer retention and business growth.
Well documented marketing-led theory that consistently stands true.
Being able to attract the highest calibre of employee enhances capabilities for competitive advantage.
retaining employees = depth of experience and knowledge, deeper relationships with customers, which means loyal customers.
Employer brand can cross national borders and continue to attract valuable employees in new territories, something we’ll be doing in the near future.
According to a 2014 study of CEOs, many now place primary responsibility for the employer brand with the CEO or marketing team.
60 percent of the CEOs surveyed said this responsibility lies with them
a strong indication that employer branding has gained greater strategic importance.
But most of our businesses don’t have in-house HR departments anyway.
Probably many don’t have marketing departments, come to think of it.
But we’ve all got CEOs!
For us it was important to build some credible internal research to underpin the strategy.
We mapped out a strategic plan based on a few internal models looking at:
The make up of our culture
Alignment across the organisation
Perceived personality personality and more.
We had to look at these models to build a strategy with insight, not just guesswork.
As your employees are one the most important stakeholder groups, they need as much focus as your customers, partners and investors.
So we adapted a CRM model (not CRM the software) and adjusted it for employee focus.
Typical CRM model is based around acquisition, retention and enhancement, we changed it to:
ATTRACT – happens in much the same way a company would attempt to acquire customers – through targeted paid, owned and earned channels. As employees are key stakeholders whose loyalty and engagement can affect positive growth, it’s important to invest in acquiring the best ones.
RETAIN – Retention of successful employees, and nurturing loyalty, are equally important. It bears saying again – employee retention is key to customer retention.
ENGAGE – Engagement of employees means individual personal/professional growth in skills, capabilities and career. Alignment with the vision of the company. And alignment with your colleagues and leadership.
Screenshots – old software vs new software. Xero has shown that this can be overcome.
Does our employer brand scale to new geographical locations?
That’s why we implemented an ESN and worked so hard on culture.
The essence of Synergy wasn’t evident in the strategy – it was locked up in a few stories, anecdotes and people’s heads.
Easy to forget what has gone before, but by examining it, you get a sense of common elements in all the people who really made the place tick – or didn’t – over time.
Plus you can examine the rituals and events to see if they add value.
So we took a bunch of the longer serving team members off to the pub for “The essence of Synergy – Pub Sessions Vol. 1 and 2”
What do employees gain from working for us?
What is unique, how do we overcome the “so what” factor?
Threshold vs unique.
Essence of Synergy to unearth the stories, history, people (good and bad).
Enterprise social network to spread the grapevine/watercooler further across the company
Promote culture and values.
Add to content marketing plan as a pillar of content
Engage employees individually – quarterly review, weekly chats, better communications. Recognition from leadership and management – ESN critical here.
People who want to naturally share their experiences.