Employer Branding Today APAC. Employer Branding ROIs.
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1 Employer Branding Today APAC Employer Branding ROIs January 2014
2 EDITOR S NOTE Dear Reader, I hope 2014 has been great for you so far. The fact that you are reading this means we share something in common, which is the belief that employer branding plays a crucial role to winning the talent competition in this region or in your specific market. Do you have to know exactly what employer branding is and how to go about it to read on? Absolutely not in fact there are more reasons for you to do so. Employer Branding Today APAC is a dedicated monthly newsletter to explore key challenges and opportunities specific to the talent market in APAC, based on feedback we collected from the HR community and observations throughout Taking a few steps further from simply sharing the latest data or knowledge which most newsletters do, our goal to develop this newsletter is to make sure that the content leads to realization, inspiration, followed by action. Regardless of the size of your organization or where you are with employer branding, there is something relevant and useful to read about every month. In our very first issue, we ve chosen to focus on the theme Employer Branding ROIs which we believe is a sore spot for many. KPIs of Employer Branding Benefits of Employer Branding for SMEs Effects of Employer Branding and Justifying its Value to Management Checklist to Build a Business Case for Employer Branding On behalf of the Universum APAC team, I hope you enjoy going through the content as much as we ve enjoyed putting them together for you. After you are done, please provide us with your honest feedback on how we can make Employer Branding Today APAC better for you and your community. If you feel this is worth a read by others in your team or in the industry who may not be on the mailing list, please feel free to forward it to them or write to me so I can include them for our next issue onwards. Happy reading in the meantime! Joyce Lee Marketing Manager - APAC 2
3 INSIGHTS KPIS OF EMPLOYER BRANDING a short guide to employer branding effectiveness Employer branding is an ongoing journey for every hiring organization and its impact can be systematically measured some of them in the short term and others over the long term. At Universum, we recommend developing a KPI scorecard based on measurements that are meaningful to the organization and keeping track on a regular basis. What to Measure (KPI) How to Measure When to Measure Effectiveness of communication channels, including Level of engagement i.e. no. of shares, retweets, likes, comments Reach and/or traffic (actual quantity vs % of target audience reached) Communication message recall Data analytics such as social media tracker Target group surveys / communication audits After every campaign or annually (for ongoing initiatives) Application rates Number of solicited vs unsolicited candidate applications Number of employee referrals Ongoing, and annually Success of campaigns, including Level of engagement i.e. no. of shares, retweets, likes, comments Reach and/or traffic (actual quantity vs % of target audience reached) Communication message recall Data analytics such as social media tracker Target group surveys / communication audits Pre- and postcampaign/initi ative 3
4 What to Measure (KPI) How to Measure When to Measure Benchmarking of employer attractiveness External rankings/awards such as such as Universum Top 100 IDEAL Employers *Take note of credibility of the rankings/awards are they determined independently, based on nominations or own submissions? Annually External employer brand perception / Perception gaps Surveys/audits with target groups Onset, then annually (to keep track of changes due to ongoing employer branding activities) Internal employer brand strength/ resonance Acceptance ratio* Intern conversion ratio* Retention rate* Cost per new hire* Internal employee satisfaction/engagement surveys + brand audit (preferably conducted by external party) Exit interviews Number of boomerangs Level of acceptance vs job offers made Level of acceptance from interns (current and past) for permanent roles *Take into account number of suitable positions available Average length of stay per employee *Track based on function/department, seniority, etc. Duration and amount of money taken to recruit each role (excluding salary offered) Onset, then annually (to keep track of changes due to ongoing employer branding activities) Annually Annually Annually Ongoing (reviewed annually) *Employer branding contributes towards the performance indication, but is not the sole determinant. 4
5 INSIGHTS BENEFITS OF EMPLOYER BRANDING FOR SMALL & MEDIUM ENTERPRISES Are you aware that over 90 per cent of all businesses in the Asia-Pacific Economic Cooperation region are Small and Medium Enterprises (SMEs) which employ between 60 and 80 per cent of the workforce? Do you also know that every one in four or five undergraduates in Australia and Vietnam want to start their own business or work for a start-up? Collectively, they are indeed a force to be reckon with - the amount of dedicated attention and resources governments in the region are rendering to the SME community sheds light on the huge potential SMEs have to further contribute towards a country s GDP, exports, employment rate etc. Despite a majority of talent in the region - particularly in China, Hong Kong, Japan and Singapore - still preferring to work for larger employers including the government, changes can be expected over the next few years with support from local governments and if the SME community collectively and individually recognizes the values of improving their attractiveness as employers. Today, the stars are indeed better aligned for SMEs than ever before. Technology, particularly the pervasiveness of the Internet and social media channels, allows businesses to gain visibility and connect with potential and existing customers across borders. 5
6 Cloud solutions help businesses save on cost be it physical infrastructure or space and enhance accessibility. Even at a macro level, as economic uncertainty continues to loom after the global financial crisis, SMEs are deemed to be more nimble to adapt and cope with the challenges than their larger counterparts. Based on Universum s annual research to understand talent career preferences and experience working with a majority of the world s Fortune 500 companies to help enhance their employer brand attractiveness, we believe it is indeed opportune for David to take on Goliath : What might be perceived as weaknesses of the SMEs when compared with the MNCs: Why we consider them competitive advantages and opportunities for the SMEs instead: Relatively less established and lesser-known brand to talent. A foreign MNC is not necessarily more attractive to future talent those from the banking and finance sector have become less appealing since the global financial crisis. Limited resources (capital, manpower, tools etc.) Lack of corporate legacy = Ability to establish an attractive employer brand and culture to existing and future talent. In particular, A friendly work environment and a creative and dynamic work environment are two of the most attractive employer attributes to Gen Y talent. Less structured or process driven Able to focus on outcomes desired and maximize utility of resources* available and return-on-investment. More easily affected by changes to the business environment i.e. with the economy, government policy changes. Embrace flexibility be it the ability to innovate and adapt to changes, having respect for its people^ etc. 6
7 Download this infograph at: When it comes to branding, a major misperception is the need for deep pockets. While the saying there s no such thing as a free lunch holds true, it doesn t come in the form of huge budgets though some level of dedication is still required to become an employer of choice. Here are some tips to get started or improve existing practices when engaging or recruiting talent: Identify and understand your target audience before engaging them Whether you plan to make experienced hires or recruit fresh graduates and interns, the first step is to determine who they are and where you may find them (not necessarily where to poach them from, but also the channels you communicate with them). 7
8 Ask your employees why they still enjoy working at the company and will remain there Who knows better why it s great to work for the company than the employees themselves? The management may have their views on this, but their feedback reflect more accurately the reality and help determine the Employer Value Proposition i.e. the key (ideally unique) selling points about the company as an employer. By ensuring that employees truly like the company, they will naturally become brand ambassadors do not underestimate the wonders of word-ofmouth and referrals! Select the right channels a combination of online and offline - that will get the company in front of desired talent Social media has definitely made it easier and more cost-effective for businesses and employers to connect and engage with their target audience. Rather than having a superficial brand presence in every possible channel, SMEs should adopt the less is more approach by choosing the most appropriate platforms according to reach, mode of communication, availability of resources to manage communication etc. It is also important to select a variety of channels instead of focusing purely on online ones; for instance career fairs and employer presentations on campus are two of the most common channels used by university students in Singapore to learn about potential employers. Communicate frequently and consistently with your potential talent preferably with a personal touch Competition for good talent is intense so it is crucial to foster a positive brand impression and continue to maintain it with ongoing engagement efforts, both online and offline. On the other hand, SMEs should take advantage of its less rigorous and mechanical recruitment processes in comparison with the MNCs - to interact with talent through individuals in the companies. Just imagine how good it would make a candidate feel to receive a thank you note from the Managing Director upon receipt of an application, or to read about daily experiences from every employee on the company s Facebook page The journey to become an employer of choice sees no ending but the most challenging part is only the initial phase setting the goal and taking those first steps. *Additional reading available at 8
9 CASE STUDY EFFECTS OF EMPLOYER BRANDING AND JUSTIFYING ITS VALUE TO MANAGEMENT In propelled 19 positions forward in its annual ranking on Universum Top 100 IDEAL Employers to the 8th among Business students in the country. In today s competitive talent landscape, this achievement wouldn t be possible without the organization particularly management - acknowledging the impact of attracting and retaining the right talent on business outcomes. Stephen Tjoa from KPMG reveals how the journey to become the Number One employer began for the firm, starting with securing buy-in from leadership to setting KPIs to keep track of its progress. He also shares words of advice with fellow HR practitioners on how to build a compelling business case for employer branding to management. Duration of video: 12 minutes 9
10 CHECKLIST BUILDING A BUSINESS CASE FOR EMPLOYER BRANDING WITH MANAGEMENT Have you identified the challenges (short- and long-term) and their impact on business outcomes? For example, if it is about retaining young professionals after their first 2-3 years with the organization, quantify the investment made on each of them (including time spent recruiting and onboarding them). Have you reviewed current practices and its successes (and inadequacies) in addressing the challenges? This is important to identify necessary actions in the immediate, short, medium and long term - in the employer branding journey to strategically tackle the challenges. Are there definitive goals that the organization is seeking to achieve through an employer branding strategy? Besides addressing challenges, it is important to have aspirational outcomes from developing a strong employer brand it could be to become the Most Attractive employer in the industry or serving a bigger ambition to become the Number One brand among all stakeholders (consumers, talent, investors etc.) Do you know how to show that Employer Branding is strategic and would help address the challenges? Note: Point out that your organization has an Employer Brand, whether or not you are in control of it, and explain why it is important to actively manage it in today s competitive talent landscape. Are you aware of what your business and recruitment competitors are doing with their Employer Brand? Outline their strategies (perhaps with case studies) and how they may have a competitive edge over your organization without an Employer Branding strategy. Are you confident of achieving specific results over a period after embarking on Employer Branding? Develop a set of KPIs to measure activities undertaken (on an ongoing basis), longer term effects on talent outcomes such as conversion and retention rates, and impact on business such as cost savings. Do you know how and what it takes to get started with Employer Branding? Depending on your organization, you may want to outline an action plan that also covers cost expected to be incurred. Remind management about benefits for the business. 10
11 To find the latest content and register to receive our daily and monthly newsletters, please visit Join us in our ongoing discussions about talent and employer branding on LinkedIn and Twitter Universum Communications Pte. Ltd., All rights reserved.
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