Why dont people want to work for us

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COMMUNICATIONS MANAGEMENTtel: +44 (0) 1727 850761fax: +44 (0) 1727 [email protected]

WHY DON’TPEOPLE WANTTO WORKFOR US?

A research-based guide

to employer reputation

management

COMMUNICATIONS MANAGEMENT:BUILDING REPUTATIONS

Introduction Have you ever thought 'in an ideal world I'd love to work for that company?' Oneyou see as a good employer and an organisation it would be great to be part of?We asked a number of senior HR professionals this question as an introduction toour research*. They came back with a varied but quite recognisable list ofemployers - Asda, Microsoft, Orange, Nationwide and B&Q to name a few. Whatmakes these organisations recognisable as 'employers of choice' and what, ifanything, have they done to achieve this recognition?

This guide, and the research project that supports it, aim to answer thesequestions and more. Why is it so important to strive to be an employer of choicethese days? How can your organisation become one? How can you get otherpeople to see it as one?

At Communications Management we specialise in reputation management andhave been asked by several organisations to focus on managing their reputationas an employer. They have recognised that in today's 'war for talent' it is no longergood enough just to be a good employer, you have to be perceived to be a goodemployer too which involves managing communications around this issue to arange of key stakeholders.

The following guide outlines the 'whats', 'whys' and 'hows' of employer reputationmanagement, providing a valuable reference tool for organisational development,human resources and communications professionals. We hope you find it useful.

What do we mean by employer reputation management? p2

Why manage your employer reputation? p3

What does a good reputation look like? p5

How can you manage your reputation? p7

Managing your employer reputation with p10Communications Management

References p11

Contents

*The ResearchCommunications Management undertook in-depth interviews with 8 leading

employers in the UK to assess their reaction to the issues we raised in this

guide. We interviewed individuals who were involved in the management of

their reputation as an employer. They ranged from recruitment specialists to

HR and Organisational Capability managers. We also undertook desk

research, finding secondary data to further support issues raised. The

research was started in late 2004 and completed in February 2005.

COMMUNICATIONS MANAGEMENT:BUILDING REPUTATIONS

WHY DON’T PEOPLE WANT TO WORK FOR US?

What do wemean byemployer

reputationmanagement?

All organisations, whether they recognise it or not, have an employer reputation.That is, a perception held by individuals of what type of employer you are, formedfrom their personal experience and the views and opinions of others. Do peoplethink your company is an exciting place to work? Or perhaps they view it as apaternalistic employer? Is it up-to-date with its views and actions on corporatesocial responsibility?

Whatever the reputation, it will exist and will affect individuals' behaviours towardsthat organisation. This perception will contribute to their career choices - whetherto apply for a job at that organisation, or indeed continue to stay if they are alreadyworking for them.

Any reputation, whether about an employer, an organisation in general or about anindividual is based on two things:

So, an employer reputation is based on how you behave and how youcommunicate to the outside world as an employer. Effective employer reputationmanagement is about understanding both and managing the links between the two.

Organisations who effectively manage their employer reputation firstly decide whattype of reputation they want to have (consistent with their organisation's businessgoals, vision, values and strengths), then aim to be that type of employer and tellall their key stakeholders that they are.

You can't rely on people proactively finding out for themselves what type ofemployer you are - normally they won't bother. You will equally risk people comingto their own conclusions which may be incorrect.

Employer reputation management means proactively managing your perception asan operator in the employment market through a combination of what you do andwhat you communicate to the outside world.

Those organisations who effectively manage their reputation are the ones who areseen as employers of choice - B&Q, Microsoft and the like - and they will also bethe ones who gain a competitive edge through this - they will continue to attractthe best graduates and experienced professionals. So what are the real gains tobe made from managing an employer reputation and why is it becoming soimportant to do so in the current business environment?

2

what you do +

what you say

Employer reputationmanagement meansproactively managingyour perception as anoperator in theemployment marketthrough acombination of whatyou do and what youcommunicate to theoutside world.


Our research shows that employer reputation is now of Board-level concern and apriority business issue in many companies. Many of those surveyed said it wasexplicitly cited in their company's core values. The war for talent has perhapsbecome an overused term in the past couple of years, but this doesn't mean thatthe need to attract and retain the best talent has gone away. In fact, if anything, theneed to do this has increased.

In 2004, a CIPD survey1 found that half of all employers surveyed wereexperiencing difficulties in recruiting staff. These difficulties seem to be primarilyabout finding the right skills and talents in new recruits. Of those surveyed by theCIPD, 55% cited managerial and professional roles as those hardest to fill. A recent survey2 by recruitment outsourcing company Capital Consulting alsoshowed that recruiters rate the quality of jobseekers as more significantly worryingto them than the speed or cost of recruitment.

In the UK we are faced with an ageing population and the lowest unemploymentlevels since the 1970s. National Statistics3 predicts that there will be half a millionless people in the 35-44yrs age group by 2026, so the situation isn't going toimprove in the future.

We are also faced with a more mobile workforce, where talented individuals havefurther information at their fingertips about rival employment opportunities. Talentretention is also an issue. The CIPD Survey1 claimed that 77% of their surveyparticipants were experiencing difficulties in retaining staff (up from 72% in 2002).

At the same time individuals have become more choosy about their lifestyle andhow it relates to work. As our social structures have changed, the career and jobyou choose holds more relevance and value than just a way to pay the mortgage.

And while a deficit of talent pervades, the importance of people as a lever forcompetitive advantage has grown. The advantage to be gained through peopleand the value they bring to the growth of an organisation is huge. The companythat can attract and retain people who will develop their organisation faster thanthe competition will create that edge.

So the case for becoming an employer of choice by proactive management ofyour employer reputation is one of business competitiveness. The people-relatedbenefits can be summarised as follows:

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‘Being a greatemployer simplymakes business

sense.’Senior HR Manager,

High Street Building Society

Why manageyour employer

reputation?


More effective recruitment - creating a positive reputation asan employer allows organisations to attract and select the best talent in themost cost efficient manner.

Increased retention and motivation of existingemployees - a positive reputation will also affect the behaviour ofexisting employees, making them feel proud and more motivated to achieveresults for their organisation. Not only does this make the existing workforcemore effective, it also reduces the cost of recruitment.

The creation of competitive advantage - by attractingand retaining the most talented people, organisations can gain an edge ontheir competitors.

Underpinning this is the fact that employees and jobseekers are also consumersand members of the wider community. This means that there are further businessbenefits to be made from managing an employer reputation. Leadingorganisations have found:

Not only did our survey find that employer reputation was a business priority forrespondents now, over 85% of organisations stated that employee perceptionswould be even more important for them in 15 years time. We believe that in thefuture how an organisation is perceived as an employer will become anincreasingly important aspect of shareholder relations. Already, many companiesare producing evidence and information about its people policies in the form ofHuman Capital reports, following the Government-sponsored Kingsmill report.Investors and suppliers of capital are increasingly seeing the ability to attract andretain talented people as a necessity for a successful organisation.

So, if the case has been made to manage an employer reputation, what sort ofreputation is going to attract and retain the best talent? The following sectionsummarises the findings of our research in this area.

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Improved Customer Perceptions - the link between howan organisation is perceived as an employer and how its products, servicesand general success as an organisation are perceived by the marketplaceare irrefutably linked. A bad employer reputation has damaged sales (themost extreme being those where cheap third world labour is perceived tobe used)

A More Diverse Workforce - proactive management of anemployer reputation has helped many organisations access a more diverseworkforce turning around negative beliefs held by minority groups. It hasbeen proven that the ability to access a wider and more diverse workforceallows organisations to access a broader range of talent and capabilities,as well as being more representative, and thus more 'in tune', with theconsumers they serve.

Increased Loyalty - a positive reputation as an employer allowsorganisations to ride the rough times when a scandal or drop inperformance threatens their success. A strong employer reputation instilstrust in its audiences that the organisation will survive in the long-term.


What does a good

reputation look like?

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VALUES

CULTUREPEOPLEPOLICIES

EMPLOYERREPUTATION

CORPORATEREPUTATION

Through this research and Communication Management's experience of workingwith organisations in this area, we see four aspects to an employer’s reputation.

Values: it was clear from our survey that employees are interested in the way anorganisation conducts itself when carrying out its activities and what it stands for.Most are looking to work for organisations who are ethical, engage in charitablework and other activities under the corporate social responsibility banner, and workin a values-based way. According to a MORI poll4 92% of British workers say thattheir employer's social and environmental responsibility is important to them.

A recent piece of research by executive education and research institute RoffeyPark5, cites that 70% of employees are also looking for greater meaning in theworkplace. That is, they want to attach a sense of significance to their work.

The research also found that employees' underlying perception of their purposeand nature of work affects their motivation and performance. This aspect ofemployer reputation management links with the emerging field of employeeengagement, where building effective two-way communication between existingemployees is becoming a business priority.


‘Potential employeesnowadays seek morelifestyle options andare more aware ofemployers' beliefs,ideals and values.’

Recruitment Manager, softdrinks company

‘The company'sreputation and

brand, around thequality of the

product, are seen ashighly influential interms of the qualityof employees they

attract and themorale of existing

employees.’UK Employee Benefits

Manager, FMCGproducer

Culture: The HR professionals questioned in our survey cited a range of 'softfactors' that they thought people were looking for in an organisation. Treatingemployees with honesty, fairness, openness and trust were seen as important.Aspects around providing a challenging environment and enabling employees tofulfil their potential were also seen as critical. A culture based on effectiveteamwork and with good leadership was believed to be vital. One employeroperating in the financial services sector said that linking performance to customersatisfaction was very important for employee satisfaction and increasing jobapplications.

Corporate reputation: There is also evidence to suggest that potentialemployees make an assessment of an organisation's overall corporate reputationand factor this in when developing a view of them as an employer. In another pieceof Communications Management research6, 86% of City workers felt they werepersonally judged by their employer's reputation.

In the context of employer reputation management, we believe a corporatereputation is viewed from two perspectives. Firstly, employees will want to know ifthey are applying to or working for a successful company. Is the organisationstable, growing or generally doing well in the marketplace?

Secondly, they will also look for a certain 'standing' in the market place. That is,they are more likely to hold a positive view of the organisation as an employer ifthey hold a positive view of the product or service the organisation provides.People want to work for organisations they have heard of, who have a goodmarket brand. However, increasingly individuals are attracted to organisations whoare doing something different in the marketplace (the swoop to take up jobsduring the dot.com boom is evidence of this) and are not necessarily 'mainstream'.

Organisations also have to consider whether profession or sector reputationsimpact on their employer reputation. For example, the public sector can beperceived to be a slower moving environment and accountancy can be seen as an'unexciting' profession.

People policies: the best talent looks for the best people policies to supporttheir employment. From reward and remuneration through to flexible working,health and well-being policies, employers of choice strive for best practice in theirpeople policies. From our survey, the most cited policies were flexible working,employee benefits, personal development and training and real careeropportunities. The relative importance of each policy depended on the sector eachwere working in and the type of talent they wanted to attract.

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To summarise, organisations need to pay attention to four key areas in orderto build a positive employer reputation - their people policies, their culture,their values and their corporate reputation.


‘Our organisation'sprofile and

reputation are highlyimportant in our

efforts to attract andretain an appropriate

workforce’Group HR Manager, local

authority

In order to proactively develop a reputation that is going to make your organisationan employer of choice, there are several areas and activities you need to focus on.Our experience with the companies we have worked for and our researchsuggests the following blueprint for success.

WHAT YOU DO:Understand what type of employer reputation you wantAs with all strategic interventions, clear goals at the outset are important. As an HRdecision-maker you need to know what type of employer reputation is going toattract the type of talent you need to build your business. You need to understandyour target audience, what that particular group of individuals think makes anemployer of choice and what factors they are most going to be influenced by.

Our survey found that there are certain 'hygiene factors' that all organisations needto achieve if they are going to be seen as an employer of choice, such as fair payand development opportunities. Different organisations and different sectors arethen going to need to create different and distinct employee perceptions.

A strong corporate reputation might be more important in helping a merchant bankattract talent, a reputation for helping working parents for a supermarket. Forsome, recruitment issues are about trying to attract and retain people from aparticular geographical area or from a particular demographic group and theiremployer reputation strategy must focus on these particular issues.

Get buy-in from the topChanging any reputation takes time and our survey established the importance tothis of managing employer reputation at the highest level. In most cases, the leadcame from HR, but some reported operating cross-company steering committeesand most sought broad involvement from within the organisation.

Create the right environmentOf the eight organisations we surveyed, all talked about the activities they areundertaking to become an employer of choice. With reference to our previousmodel, some of these were activities around new HR policies and procedureswhereas others were related to bringing about cultural change within anorganisation i.e. creating the right values, culture and corporate reputation. Mostwere acutely aware of the need to develop values and working environmentsrequired by the best talent. The majority were undertaking corporate socialresponsibility programmes, involving a mix of ethical working practice, charity andcommunity work. Others felt they needed to focus more on the workingenvironment, coaching their leaders to inspire new talent.

As you might expect, this was also an area where our survey reported the greatestdifficulty. The principal barriers that prevented organisations becoming anemployer of choice included the frustration of trying to change an existing culture,the short-termist nature of business strategy, and cost.

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How can youmanage your

reputation?


‘Becoming a greatemployer requires achange in attitudesover a significantperiod of time.’

Organisation CapabilityManager, mobile phone

company

WHAT YOU SAYDevelop the evidenceWhile companies often had a strong programme to develop evidence of corporatesuccess, there was often limited evidence of the other aspects of an employerreputation, especially stories that demonstrated the culture and values of theemployer. Companies involved in the research took action to correct this bycreating internal case studies of success, by formally publishing corporate valuesand by identifying and quantifying all the benefits of working for the organisation.Competitor research allowed employers to highlight the advantages of working fortheir organisation.

Communicate InternallyExisting employees form a critical stakeholder group. It is important that they feelthey are working for an employer of choice. At least one of our respondents saidthey had proactively focused their advertising and PR to enhance their employerbrand internally. Others talked about the importance of keeping an open flow ofcommunication between employees, often using employee surveys as a way oftesting attitudes towards the organisation.

Telling 'stories' about best practice can help manage an employer reputationinternally and allows employees to act as ambassadors for the organisation'semployer reputation.

Link External Communication All companies in our research said that their media profile was highly important totheir work. Others referred to the importance of proactively managing allcommunication channels, with the recruitment process cited as a particularopportunity to build an employer reputation as well as hiring people. The criticalchannels for external communications are:

The Recruitment Process - The messages and perceptions given to potential recruits can have a powerful impact on the rest of the employment audience. Employers need to be clear about the messages they want to send out and ensure that recruitment advertising, materials and particularly recruitment processes match these.

Targeted Media - potential and existing employees use national, local and specialist press as a reference for their knowledge of the organisation. Opinions given in the media can hold great influence. As a result, employer reputation campaigns can be aimed at specific publications to suit the audiences that need to be reached. Media campaigns include the placement of case-studies, the development of spokespeople to comment on employment issues, and news about newand improved employee benefits. Another effective way of building an employer reputation cited in our research was to win an employer award such as The Sunday Times' 100 Best Companies to Work for award.

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•

•


‘Employeeengagement is

starting to comeonto our agenda.

Being a goodemployer meanshaving an open,

honest and trustingrelationship with

employees.’Head of Employee

Research, telecomsorganisation

Influential Bodies and Individuals - For some roles it is important to engage with specific communities and dispel existing images. This may be because of previous bad experiences or simply because a change in company directions means there is a need to recruit from a new pool of talent. Examples include the way Ford engaged the Asian community in the UK in the 1990s, and how the Royal Navy has recently joined with the gay and lesbian organisation Stonewall to help it with more diverse recruitment.

Existing Marketing Channels - promotional campaigns using advertising, direct mail or public relations can influence potential and existing employees. Several organisations now actively use these channels to promote their values as an employer. B&Q's television ads profile their staff, demonstrating their commitment to diversity. Even if promotional campaigns don't focus on employer reputation, the general messages should align with the general theme of the employer reputation being built.

'Human Capital Management' Reports - A recent recommendation from a Government-appointed taskforce was that companies should publish annual reports on their people development activities to complement Operational and Financial Reviews. This provides a powerful opportunity for a company to send out positive messages in all four key areas of Employer Reputation. It is important that this is not seen as a 'dry' financial document.

Measure the ImpactA good employer reputation campaign should have effective measurementsystems in place to check that activities are delivering the business resultsrequired.

Most of the companies we surveyed use employee surveys, normally biannually, toassess internal changes in attitudes. They also monitor performance measures inhuman resources such as the cost of recruitment, time-to-hire, yield on offersmade and the rate of retention of existing staff. Several use focus groups toassess the impact of particular communication campaigns, and monitor pressarticles written about the company.

One organisation measures how potential recruits view the company even if theyweren't offered jobs, allowing them to assess changes in reputation.

The survey suggests that this is an area that poses barriers to organisations, withmost admitting they should do more to assess the impact of changes. Twoorganisations said that lack of budget restricted their ability to do more research tomore effectively measure changes in perceptions.

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•

•

•

It is vital that external and internal communications are linked, sending outthe same messages to ensure the greatest impact.


Managing youremployer

reputation withCommunications

Management

Communications Management specialises in strategic consultancy and internaland external communication. Our work can take the form of any of the serviceslisted below, or a bespoke project aimed at meeting specific employer relationneeds.

External reputation analysisThis scan evaluates how the employer is perceived by potential recruits.Communications Management will conduct interviews with recent hires, applicantswho chose not to take up job offers, and the wider body of potential applicants, aswell as reviewing recruitment advertising materials.

Internal reputation analysisThis scan identifies the key strengths of the employing organisation and involvesinterviews with internal recruitment, marketing and HR managers and currentemployees to identify the reputation strengths and weaknesses of the organisation.

Stakeholder mappingWorking with the internal recruitment team we help employers to identify theindividuals and groups that need to be influenced to improve the organisation'sreputation as an employer. Possible stakeholders include local, national andspecialist media, graduates, unions and professional associations, and currentemployees (who are often the strongest recruitment asset).

Reputation improvement action planFollowing the diagnostic phases above, we would feed back recommendations onthe two most important aspects of your organisation's reputation as an employer:

a) What you say - Is the organisation making the best use of existing strengths? Are the right messages being communicated? Are they being communicated well, and to the right people? Are they credible?

b) What you do - Do individuals have a strong connection with the employing organisation that means they want to stay? Is the recruitmentprocess being managed well?

Our action plans can combine the implementation of internal and externalcommunications programmes, and reviews of recruitment processes using ourown consultants and our network of associates.

Communications programmes can include:

Content and story developmentSeeking out the stories that best confirm the key recruitment messages that yourorganisation needs to communicate, and developing written material that can beused in any of the activities below, as well as in advertising, recruitment brochuresand on your website.

Media relations The media - national, regional or specialist - is the most influential source ofinformation for many jobseekers. We will place stories in key media that reflect thekey strengths of the organisation and drive new recruitment.

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External awardsAchieving success at employer awards such as the annual FT's 'Best Workplace' orthe Sunday Times 'Best Employer' award, has a tremendous positive impact onrecruitment success. Communications Management works with organisations onwritten entries and internal communications processes where employee surveysare used.

Online and offline community developmentMany organisations have contact details for stakeholders who can help withrecruitment issues - previous applicants, interns, former employees and so on -but don't keep in regular touch. Communications Management can developsuitable communication tools to keep them in touch with your developments andnew opportunities. These can include networking events, electronic newsletters ordedicated websites.

Internal publicationsReplaying the 'people-based' content derived above internally is invariably moresuccessful than sending a stream of technical updates or publishing interviewswith remote global leaders. Done well, such publications can be highlymotivational and also allow you to unearth further success stories.

Below are some case-studies of organisations who have taken steps to managetheir employer reputation.

For more information, visit

www.communicationsmanagement.co.ukor phone 01727 850761

References

1. Chartered Institute of Personnel and Development, Quarterly HR Trends and Indicators, Summer 2004

2. Capital Consulting, March 2004

3. See www.statistics.gov.uk

4. MORI survey, 2003

5. In Search of Meaning in the Workplace, Linda Holbeche and Nigel Springett, Roffey Park, May 2004

6. Communications management survey of 300+ City workers, March 2001

7. See http://business.timesonline.co.uk/section/0,,12190,00.html

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Why dont people want to work for us