EVP The foundation of a strong Employer Brand. HR Swiss Congress 2014, Bern

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1 HR Swiss Congress 2014, Bern

2 Employer Branding in

3 Influence your Employer Brand in the right direction ALL EMPLOYERS HAVE AN EMPLOYER BRAND. Even if employers don t actively control the brand, it exists and it influences whether or not students and young professionals choose the employer. THE CORE OF THE BRAND IS THE EVP. To influence the brand, employers need an Employer Value Proposition (EVP) that is attractive, true, credible, distinct and sustainable. THE BRAND HAS AN INTERNAL AND EXTERNAL PERSPECTIVE. Not only does a strong employer brand help attract future employees, it also creates an internal identity, and that increases loyalty, engagement and retention. AN EFFECTIVE STRATEGY NEEDS A SOLID FOUNDATION. It is important that the EVP is developed using in-depth research about current employees, management and external talent groups, in order to create a compelling, sustainable and effective brand 3

4 EMPLOYER BRANDING & THE EMPLOYER VALUE PROPOSITION The benefits of a strong Employer Brand 100% higher job consideration Research shows that a company s employer brand is twice as likely to drive job consideration as its company brand* 28% lower turnover Companies with a stronger employer brand have a 28% lower turnover rate than companies with a weaker employer brand* A competitive advantage Only 69% of companies work with employer branding from a strategic perspective** Lower cost per hire The cost per hire is more than twice as low for companies with strong employer brands* Companies that are most successful at improving their employer brands outperform other companies by the following factors:*** 2.4x Revenue growth 1.8x Profit margin increase * LinkedIn Whitepaper, Why Your Employer Brand Matters, 2012 ** Talent Attraction Barometer 2012 (How does you organization approach employer branding?) *** Boston Consulting Group, Creating People Advantage 2012, Mastering HR Challenges in a Two-Speed World 4

5 EMPLOYER BRANDING & THE EMPLOYER VALUE PROPOSITION The Corporate versus the Employer Brand A strong corporate or product brand is a great starting point and foundation. However, it will only take you half-way. The Employer Branding strategy and the EVP should be aligned with the corporate branding strategy to leverage positive effects of consistency and mutual support. While corporate branding and product marketing try to attract as many customers as possible, Employer Branding s objective is to attract the right talent only. A strong corporate or product brand will drive awareness and consideration. Awareness A corporate brand needs to be translated into an employer brand to impact the desire and position the company as employer of choice. A clear employer profile will help to drive the self-selection of the right talent. Consideration Desire Application 5

6 Defining the Employer Value Proposition What is the EVP? EVP The EVP is a unique set of offerings, associations and values that will positively influence the most suitable target candidates and the internal target groups. The EVP provides attributes and themes that can be used as a long-term foundation and framework for your branding and creative approaches. The EVP development is strategic What is it NOT? The EVP is not a tag line or a visual expression. It is the underlying content that is then transformed into messages, ads and a communication strategy targeted at different talent groups and countries. The choice of words, images and channels will depend on the target group and might vary across countries. The EVP implementation is operational 6

7 Best in class approach to strategic Employer Branding Are your activities effectively building a strong brand? Are you attractive enough to meet your recruitment needs? What is important and relevant to your target groups? What makes an employer attractive? How can you improve your career website and ads? Is your intended message being communicated effectively? THE EVP DEVELOPMENT What impressions do current employees have? What are perceived as strengths and weaknesses? How should you communicate the employer offering to the target group? What channels are most effective? What should you emphasize in the communication to maximize its effectiveness? What do you need to reposition to create your desired employer image? 7

8 One global or many local EVPs? Strong clear and consistent profile Universum strongly recommends that employers develop one EVP to be used on a global level for all target group and business units. The Global EVP Select and define attributes to communicate as the global EVP as the core of the Employer Brand. However, market needs and internal differences between entities often require adjustments of the proposition. Tailored Messages Tweak the actual communications and messages (the examples, stories and reason to believe in the organization, for example) for the target groups. USA Sweden etc. Business Students Engineering Students 8

9 Painting the picture 9

10 The EVP development process Phase 1 Understand Phase 2 Decide Phase 3 Activate Current Employer Branding Strategy Initiative 1 Initiative 2 Management s vision & goals Corporate Branding Strategy RESEARCH Internal/External EVP E M P L O Y E R V A L U E P R O P O S I T I O N Initiative 3 EVP is turned into a talent relationship activation plan Initiative 4 Competitors positioning MEASURE & REVISE Initiative 5 Initiative 6 10

11 HARD SOFT EVP The foundation of a strong Employer Brand The Universum Drivers of Employer Attractiveness EMPLOYER REPUTATION & IMAGE PEOPLE & CULTURE EXTRINSIC The attributes of the employer as an organisation Attractive/exciting products and services Corporate Social Responsibility Environmental sustainability Ethical standards Fast-growing/entrepreneurial Financial strength Innovation Inspiring management Market success Prestige The social environment and attributes of the workplace A creative and dynamic work environment A friendly work environment Acceptance towards minorities Enabling me to integrate personal interests in my schedule Interaction with international clients and colleagues Leaders who will support my development Recognising performance (meritocracy) Recruiting only the best talent Respect for its people Support for gender equality INTRINSIC REMUNERATION & ADVANCEMENT OPPORTUNITIES The monetary compensation and other benefits, now and in the future Clear path for advancement Competitive base salary Competitive benefits Good reference for future career High future earnings Leadership opportunities Overtime pay/compensation Performance-related bonus Rapid promotion Sponsorship of future education JOB CHARACTERISTICS The contents and demands of the job, including the learning opportunities provided by the job Challenging work Client interaction Control over my number of working hours Flexible working conditions High level of responsibility Opportunities for international travel/relocation Professional training and development Secure employment Team-oriented work Variety of assignments 11

12 How to analyze the status of your EVP PREFERENCES Why people choose an IDEAL employer Not part of the EVP, attractive and not associated. More focus? Localize the EVP? Part of the EVP, attractive and not associated. More focus? Why is this not associated? Is the communication not conveying the intended message? Part of the EVP, but not attractive and not associated. Adjust EVP? ASSOCIATIONS What the target group associates with you Not part of the EVP, attractive and associated. More focus? Localize the EVP? Not part of the EVP, not attractive, but associated. Not too much focus, but keep in mind that talents expect this from the company. Part of the EVP, not attractive, but associated. Not too much focus. EVP What you want to be associated with / your EVP Part of the EVP, attractive and associated. Differentiating from competitors? 12

13 It is all about differentiation DESCRIPTION GOAL Core attributes (the things that come to mind when thinking of the employer) One of the strongest associations for the employer DISTINCTIVE COMPETITIVE Attributes where the employer is as strong or stronger than peer group On par with peers THRESHOLD Attributes where the employer meets the talents requirements On par with average employers 13

14 Examples of research needed MARKET INTELLIGENCE Analyze data from market-specific Universum Student & Professional Survey Conduct additional tailored surveys if needed to cover a specific target group In-depth focus groups with students/ professionals to gather additional qualitative feedback INTERNAL IDENTITY Review existing documents and internal data from engagement and other surveys Internal online survey among current employees Focus groups with current employees or in-depth one-on-one interviews STRATEGY DEVELOPMENT Interviews with management representatives and key stakeholders 14

15 How to analyze the data ANALYSIS OF THE DATA Universum analyzes all data from the external and internal sources in order to provide you with detailed feedback regarding key criteria necessary to developing a successful EVP. Below you will find the process that we follow when conducting the analysis that leads to the suggested EVP: True Internally Strategy & Vision Attractive to target group Current Image Competito r Positionin g DRAFT EV P What are seen as strengths by current employees? Are there crucial perceptions that can be made true? What is in line with corporate values and corporate communication? What are management s vision and goals? What is attractive to current and future employees? What are the target group s preferences? Is this in line with how we are currently perceived? Is repositioning required? In what areas do we have a competitive edge? Where do we lag behind our competition? 15

16 What you need to do communication (1 of 2) #1 #2 #3 Go beyond traditional channels to appeal to top talent and above all dare to be different. Be True to your company values Be Engaging but most of all Be Authentic Utilize both a High Tech and High Touch approach Best practices: 1. Interesting dinners discuss relevant topics with inspiring members of the organization. 2. Case Competitions give top talents the opportunity to be intellectually challenged. 3. Tours of Corporate Offices show your innovations and corporate culture through tours for talent to visit your offices. 16

17 What you need to do communication (2 of 2) #4 #5 Tell them about the cool stuff you are doing they want to know! Employ your star players in the recruiting process My ideal internship would be with GE s Health Imagination Branch or the Coca Cola Ethos Project. I want the opportunity to be part of an initiative that is doing extraordinary things. There are some truly brilliant people at these companies I want to interact with them. 17

18 Try to be unique and authentic 18

19 EVP - Four key learnings 1. Management involvement If you do not have buy in from management and your CEO you will not succeed with bringing the EVP too life internally, it needs to start from the top. Their involvement in the entire journey is crucial. 19

20 EVP - Four key learnings 2. Not only based on internal findings The most common mistake organization does is basing an EVP on their internal identity. The true piece of the EVP is of course extremely important and a starting point the EVP development, but not ensuring that it is attractive, distinct and credible for you to be talking about will set you up to fail. 20

21 EVP - Four key learnings 3. Localize/adapt You have to understand and also think about that your EVP needs to be articulated in different ways to different target groups. Not understanding of for example how innovation is to be articulated to a senior executive and to a factory worker is also something that will make you be less successful in launching it. 21

22 EVP - Four key learnings 4. Track the success/development Universum assists employers to do this, a lot of organizations that we speak to do unfortunately not do that. You need KPIs and goals for the Employer Branding and EVP work. 22

23 Last words The right strategic mind-set 1. View Talent as a strategic driver for business 2. Make Talent a top priority 3. Have a clear purpose 4. Excel at segmenting and profiling key target groups 5. Have a well defined EVP 6. Be clearly differentiated 23

24 Thank you! until next time

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