Research report. Employer brand. The ticking time bomb of employee opinion
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1 Research report Employer brand The ticking time bomb of employee opinion
2 Employer Brand - The ticking time bomb of employee opinion Ongoing budget cuts, economic uncertainty and market volatility continue to add to the pressure felt by today s businesses and managers are stuck in the thick of it. Added to these challenges is the fact that the workforce is changing. Further, the research revealed, those from the millennial generation (18 34 year olds) are twice as likely to share their true feelings concerning their employer on the internet than their colleagues aged (41% vs. 21%). A recent survey conducted by Lee Hecht Harrison Penna 1 among 2,000 UK adults discovered the UK workforce is becoming increasingly outspoken online about dissatisfaction with employers which is set to create further hurdles for today s managers. The millennial generation are twice as likely to share their true feelings concerning their employer on the internet. 41% Managing an employer brand The concept of employer brand is still only emerging from adolescence. Yet for some market-leading organisations, it is already a critical element integral to meeting business needs and is used strategically and operationally to influence potential, current and ex-employees, as well as other stakeholders. For those brands commanding hundreds, or even thousands, of followers on online business platforms such as LinkedIn, it can take just one outspokenly vexed employee to vocalise their feelings to tarnish the brand. This all means the challenge of managing an employer brand is set to become harder for companies. The challenge is only set to become more important if an organisation seeks to attract and retain the best talent available. The war for talent is biting and, as Accenture s latest survey of CEOs shows, 60% of them are lying awake at night worrying about the need to attract and retain the best people 2. To further compound these worries, the LHH Penna study reveals millennials are most likely to take notice of negative employer reviews compared to older employees 69% vs. 47%. This further demonstrates that talent attraction is increasingly dependent on employee engagement and advocacy. More specifically, the study found a third (33%) of prospective or current employees from the millennial generation would be deterred from accepting a job offer with a company they heard negative things about, while one in five (21%) of year olds would be discouraged to do so. It can take just one outspokenly vexed employee to vocalise their feelings to tarnish the brand. 1 Opinium conducted the research 1st 11th December 2016 among 2,000 UK adults in full-time employment (18 years +). 2 CIPD Employer branding: The latest fad or the future for HR? B0E07576/0/empbrandlatfad.pdf.
3 Navigating an uncertain future With three-quarters (75%) of millennials taking the time to actively seek out the opinions of either existing or previous employees when it comes to applying for a prospective role, it s essential for organisations to take pre-emptive steps and ensure positive statements are made, which endorse the employer brand. Employees opinions have long concerned employers, yet our research highlights feedback is to become ever more critical to managing an employer brand with the rise of social media, and in particular networks that target a specifically professional audience like LinkedIn and Glassdoor. Bearing these developments in mind, negative ratings of an employer can seriously impact its ability to attract the best people to join its ranks and stay there. Organisations must acknowledge this growing issue and then take the vital action to future proof themselves. Job candidates now have the power to research potential employers online and gather honest perspectives directly from its employees, and as our research has shown this is only set to become more common with the millennial generation; meaning employees have never been more empowered to air their dirty laundry when reviewing their current workplace. 75% of millennials take the time to actively seek out the opinions of either existing or previous employees when applying for a prospective role. 75% Sites like Glassdoor, although in its infancy in the UK, give interview candidates and employees an unprecedented opportunity to share the inside scoop on what it s really like to interview or work at a particular organisation; and this is leaving many employers feeling more than a little uncomfortable at the prospect of receiving public negative reviews. So what can employers do to mitigate these risks? The research shows taking the time as a manager to foster good relationships with direct reports and between colleagues should become a top priority in order to avoid high staff turnover. It finds two in five (41%) workers would leave their job due to a poor relationship with their manager and a further 31% over a poor relationship with a colleague. Relationships amongst co-workers must hence be placed at the top of professional priorities in the hope of mitigating the risks of either losing talent or being called out publicly. 41% of workers would leave their job due to a poor relationship with their manager. 41% Fostering good relationships amongst co-workers must be placed at the top of professional priorities.
4 The heightened risks surrounding redundancy Perhaps unsurprisingly, maintaining a good employer brand in the eyes of those employees that leave your organisation as a result of redundancy is a greater challenge. Two fifths (40%) of full-time workers have been made redundant at some point in their career and of these, a third (32%) admit to feeling negatively about the company that made them redundant. This is possibly linked to the fact that the vast majority (62%) of those that had been made redundant had not been offered redundancy support or outplacement services, which makes a case for doing so as a crucial part of the overarching employer brand programme. 40% 32% 62% 40% of full-time workers have been made redundant at some point in their career. 32% of workers admit to feeling negatively about the company that made them redundant. 62% of those that had been made redundant had not been offered redundancy support or outplacement services. The time is now The research has clearly highlighted an increasing tendency for social transparency. Organisations can no longer afford to solely rely on recruitment advertising in the hope of building a positive employer brand. With employee advocacy growing more important, employers reputations will ultimately depend on the consistent values and vitality of their organisational cultures. Whether HR or marketing take the lead in communicating the employer brand, an increasing number of firms are beginning to realise that accountability for the employer brand experience ultimately lies with senior management. Research has clearly highlighted an increasing tendency for social transparency. Employers reputations will ultimately depend on the consistent values and vitality of their organisational cultures.
5 Look after your leavers Our study has identified the impact of vexed and unhappy employees is only set to become harder to manage with over three-quarters (76%) of workers admitting to voicing a negative opinion about a current or previous employer. Three-quarters (75%) of workers admitted they would share, or even have shared, a negative opinion of an ex-employer with someone who still works within that organisation. With over three-quarters (77%) of workers keeping in touch with their ex-manager/colleagues, it really does pay for organisations to look after their leavers. Given this context, it is surprising that merely 11% of organisations have an alumni programme to manage their relationships with leavers. There is an appetite for alumni programmes as our research shows that when they exist nearly three-quarters (73%) of the workforce become members. Interestingly, the research suggests that when an employee leaves an organisation, they are not necessarily gone forever. It seems boomerang employees are a growing trend: 78% of workers would consider returning to an ex-employer if the timing and the deal were right. This means that not only is maintaining good relationships with leavers important in terms of the employer brand, but it is also crucial in establishing talent pipeline planning as high performers with an understanding of the organisation could one day be enticed back. 76% 76% of workers admitted to voicing a negative opinion about a current or previous employer. 11% Merely 11% of organisations have an alumni programme to manage their relationships with leavers. A proactive approach Companies need to understand the full impact a single negative review could have and actively work to prevent negativity from breeding in the very first instance. To find out more about how Lee Hecht Harrison Penna can help with protecting your employer branding please call us on , contact@lhhpenna.com or visit lhhpenna.com
6 About Us Your business goals in mind. Your people s best interests at heart. When your business is changing, you need to support your people through it. Whether you re restructuring, changing your culture or developing your leaders, we ll help. We work with companies to simplify the challenges of workforce transformation. We do that by helping their people navigate change, become better leaders, develop their careers or find a new path in life. The results: a stronger employer brand, less risk and better business performance. scale and local knowledge; pioneering technology and experienced consultants. But that s not the whole story. It s how we work that s different. We never think of companies or people as numbers on a spreadsheet. We treat everyone as unique, with their own aspirations, challenges and potential. That s the belief we live and work by. It s why 70% of our clients have worked with us for more than five years. And why 97% of our clients would recommend us. Everyone s different. So are we. As the world s leading integrated talent development and career transition company, we ve got both global
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