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Best Companies to Work for in the UK. Another British organ-
ization prominent in these exercises is the Great Place to Work
®
Institute, which has compiled data from the USA, Europe and
the UK to develop a Trust Index
©
survey and benchmarking
against the ‘100 Best Places to Work in Europe’.
For some organizations, following an employer of choice
strategy means little more than more sophisticated and sensitive
recruitment practices, such as improving recruitment design,
online recruitment, sensitive induction, retention analysis, cafe-
teria compensation and benefits, and ‘growing your own’ talent
(Ahlrichs, 2000; Konrad and Deckop, 2001; Tarzian, 2002). For
others, it means a new, more contextually sensitive, version of
the old-style, relational psychological contract in which long-
term commitment from employers, demonstrated through the
organization’s goals, values and trust initiatives, is matched by
high commitment and low turnover or separation rates from
employees. As we have already discussed, such a psychological
contract is characterized by highly competitive remuneration
and benefits, often including elements of contingent pay, inter-
esting, challenging and varied projects, a commitment to training
and development tailored to individual needs, flexible working
arrangements and a motivating work environment.
The UK-based ‘Best Companies’ organization is one of the
most sophisticated examples of employer of choice approaches
(Leary-Joyce, 2004). This organization runs an annual competi-
tion, sponsored by the CIPD, the UK-government Department
of Trade and Industry and The Sunday Times newspaper. Its mis-
sion is to help improve the quality of employment or workplace
relations through its discussion forum, benchmarking trend
analysis and competition, and research of good and bad HR
practices. Their annual survey is based on validated survey data
of 180 000 employees, factor-analysed to produce the following
eight criteria on which employees believe to be the most impor-
tant in influencing their experience of work:
■ Quality of leadership – how employees feel about the
head of the organization, senior managers and the
extent to which they identify with the company’s val-
ues and principles
■ Direct supervision – feelings about and communica-
tion with their direct manager
274 Corporate Reputations, Branding and People Management
■ Opportunities for personal growth – feelings about
training, career development and prospects
■ Well-being – feelings about work stress and pressure,
and work–life balance
■ Team and colleagues – feelings towards their immedi-
ate colleagues and how well they work together
■ Giving something back – feelings about their organi-
zation’s positive impact on society
■ Engagement with company – the level of engagement
employees have for their job and organization
■ The deal on pay and benefits – how happy employees
are with their pay and benefits.
These are all factors that would typically figure highly on any-
one’s list of good practices and reflect much of what we have
argued for in this book. It is interesting to note, given the focus
of much of Chapter 9, that both the Best Companies and Great
Place to Work
®
Institute have included among their criteria the
CSR agenda, with the former having ‘giving something back’ as
part of their list, while the latter has special awards for CSR.
Both are also keen on the nature of communications being a
two-way, responsive, dynamic dialogue. The Great Place to Work
®
Institute even has a special award for companies that establish a
‘Whistleblowing Friendly Culture’, which encourages employees
to speak up to power.
This consultancy-driven recipe for an employer of choice strat-
egy is reminiscent of the best practice work of Pfeffer (1998), dis-
cussed in Chapter 5, and his more recent calls for dialogue and
community in organizations. Contrary to the ideas associated
with the evolutionary, market-based perspectives on strategic HR
(e.g. Cappelli, 1999), which advocated changes to a new, employ-
ability contract, Pfeffer made it a central element of his argu-
ment that employment security provided the necessary table
stakes for implementing other high performance work practices.
He reviewed a number of studies showing the negative conse-
quences of downsizing, including important connections between
downsizing and negative impacts on organizational perform-
ance, with strong, negative correlations between high employee
turnover and positive assessments of customer service, the latter
of which is a vital factor in establishing and maintaining strong
brand identities. If downsizing had to be undertaken, Pfeffer
Chapter 8 Corporate communications and the employment relationship 275
agued that it could be accomplished sensitively and sensibly,
retaining the morale of those surviving and minimizing the
impact on the company’s image in concurrent and future recruit-
ment campaigns.
In 2005 the list of UK-based companies that ranked in the
top ten were Nationwide Building Society (financial services),
ASDA (part of Wal-Mart’s retailing group), KPMG (business
consulting and financial services), Carphone Warehouse (mobile
communications retailer), Cadbury Schweppes (food and drink
manufacturer), Compass Group (contract caterer), Pfizer (phar-
maceuticals), Severn Trent Water (utilities) and W. S. Atkins
(engineering consultants). There are similar lists of the top
100 medium and small organizations, including many public
sector, voluntary sector and services companies. In 2005 the list
was headed by W. L Gore, the Gore-Tex manufacturer, St Ann’s
Hospice, Beaverbook the Jewellers, Pannone, a legal firm,
Data Connection in computer software and Sandwell Commu-
nity Caring Trust, personal care and support – a varied array of
organizations.
Like all best practice approaches, however, they ‘fail’ the test
of differentiation, discussed at length in Chapters 5 and 6. Huselid
et al. (2005) produce two telling scenarios that make this point
graphically. The first is the existing narrative of most employer
of choice policies, which run along the following lines: we wish to
communicate to potential and existing employees this is a great place to
work, providing extensive benefits to all, including security, career devel-
opment and good pay, for which we are well known. As a consequence, we
attract lots of people to apply and few ever want to leave.
Huselid et al.’s argument is that such a strategy results in little
differentiation between good and poor performers, attracts
people who are less interested in performance and more inter-
ested in benefits, attracts too many people for HR to make good
judgements about their worth and ‘locks in’ poor performers by
over-compensating them. The results are that the organization
provides some people and groups with what they don’t deserve,
while under-rewarding ‘A’ performers, who may leave. In the
long run, they contend, employer of choice policies are a poten-
tial recipe for bloated, unresponsive, mediocre organizations.
In its place, a strong case is made for a more differenti-
ated, talent management-based narrative, based on employee
276 Corporate Reputations, Branding and People Management
self-selection: an employee of choice rather than an employer of
choice message. The communications storyline recommended
is as follows: we are not an employer of choice because we don’t want
high numbers of unsuitably qualified applicants that increase our selec-
tion costs; nor do we want people staying if they don’t perform and we
make this clear in the operation of our performance management poli-
cies. Instead, we wish to communicate that this is a high performance
culture, requiring high levels of ability, motivation and effort, for
which people will be rewarded. Not everyone will be able to match our
requirements, so only apply if you are able to meet these exceptional
requirements.
This is a very different message, but the question remains: is it
one, if taken to excess, that could result in an Enron situation?
In other words, to return to the point of the Paragon case in
Chapter 5: can organizations overrate talented people? Perhaps
the answer lies somewhere in between employer of choice and
employee of choice strategies. Which, in some respects, is why
employer (or internal) branding has become so popular in
recent years.
Employer branding
These ideas are the ones that most obviously have brought
marketing into HR; when HR specialists are asked to think
about their links with marketing, inevitably, but myopically in
our view, they will use the term, ‘employer branding’ or a vari-
ation on that theme. We say myopically because, as we have
argued throughout this book, there is much more to the cross-
over between the two functions than employer branding; never-
theless, the ideas associated with this new approach to HR are
highly relevant and practical.
As we have suggested, over the past few years the concept of
employer branding has certainly entered into the lexicon and
practice of HR specialists, particularly as a result of consultants
such as Versant in the US and People in Business in the UK
offering ‘toolkits’ to engage employees by creating compelling
employee value propositions. Perhaps the most extensive study to
date of employment branding is the US Conference Board’s
Chapter 8 Corporate communications and the employment relationship 277
work (Dell and Ainspan, 2001), which surveyed and undertook
follow-up interviews with executives in 137 major US companies.
This research found that employees were becoming a much
more important target for corporate image-makers, although
they did not necessarily use the term ‘employer branding’. Forty
per cent of respondents reported using the methods of corporate
branding in their attempts to attract, retain and motivate employ-
ees. A further, unpublished study by the Economist in 2003 showed
high awareness of employer branding among HR specialists,
especially in brand-conscious American and Asian companies.
Europe, however, was not far behind. We have presented at a
number of practitioner conferences in the UK since 2003, at
which a host of other organizations in the private, public and
voluntary sectors have given their versions of employer branding.
To name only a few: Virgin, Vodafone, British Gas, Nationwide
Building Society, Diageo, Reuters, the Royal Mail, Standard Life
Investments, Ealing and Westminster Councils, the London Stock
Exchange, the Crown Prosecution Service and Cancer Research.
In addition, case study evidence has reported a fast-growing
interest among continental European companies, such as
Nokia, Philips, Siemens, Saab, Fiat and Deutschebank, in the
idea of employer or internal branding (Bergstrom et al., 2002;
Sparrow et al., 2004). So, taken together, it seems that European
companies are following the lead of American companies in this
direction.
Employer branding has been defined as the ‘company’s image
as seen through the eyes of its associates and potential hires’,
and is intimately linked to the ‘employment experience’ of ‘what
it is like to work at a company, including tangibles such as salary
and intangibles such as company culture and values’ (Ruch,
2002, p. 3). Like the minimalist version of employer of choice,
much of the content of employer branding programmes is often
little more than the communication of the internal, HR equiva-
lent of the ‘marketing mix’ – attraction, recruitment, motivation
and retention (see Table 8.2). For example, Mitchell (2002) has
set out three marketing principles and five communications
messages for ‘selling the brand inside’.
Table 8.2 compares examples of practical advice from the
consulting literature, most of these expressing similar senti-
ments to the advice in Box 8.3 on p. 281.
278 Corporate Reputations, Branding and People Management
Table 8.2
Comparing employer branding advice
MacKenzie and Glynn (2001): Govendik (2001): Engaging Ruch (2002) (Versant Bergstrom
et al. (2002):
Ten recommendations for employees to define Consulting): Guide to Why internal branding
communicating an employee the brand building loyalty in your matters: the Five Cs
brand
organization
Get consistent – build a layer of a Find the company from within,
Assess your company Clarity: know what the
few key messages that can be by surfacing the brand image culture, using the cultural message is that you want to
reinforced by facts through the eyes of employees elements survey send depends on:
Recognize what is not part of the Create a brand vision and brand Construct an appropriate
■
Knowing your internal
message to be communicated attributes or values that will ring employer brand identity audience intimately
true with brand ambassadors that can be marketed
■
Deciding on the language
externally and internally and symbols that are the
‘face’ and ‘voice’ of the
brand
Understand the key moment of Roll out the brand by compelling Develop an employer brand Commitment: Building
truth in the recruitment process, employees to understand the promise, which describes consensus around the brand
especially the point at which people brand, their responsibilities in the value proposition to through
shared understanding
would accept an offer. Make this as making the brand live and by employees and on-going education,
early as possible getting them excited and which is woven into the life
engaged in the brand roll-out of the brand
Know what’s compelling about the Gain employee buy-in through Develop an employer brand
Communications: Use communi-
organization, especially for high consistent education and training voice, a tool for ensuring cations that employees approve
performers
consistent communications of. Leaders have to be involved;
with associates high frequency; multiple
channels; and attention to detail
for consistency of message
(continued)
MacKenzie and Glynn (2001): Govendik (2001): Engaging Ruch (2002) (Versant Bergstrom
et al. (2002):
Ten recommendations for employees to define Consulting): Guide to Why internal branding
communicating an employee the brand building loyalty in your matters: the Five Cs
brand organization
Understand the ‘brand promise’, Reinforce key brand attributes Implement the brand
Culture: Understand the
particularly which elements are by giving employees first crack of
promise, using the brand culture so that you can
non-negotiable the whip in giveaways, gifts, etc., voice and integrated anticipate resistance, and use
associated with the roll-out of communications tools techniques that will help
the brand
people buy into the
new story
Work with employees to ensure Define the brand as part of the Measure the employer Compensation: Offer a strong
that there is consistency in the organizational culture by creating brand effectiveness, using payback to those who
story a constant stream of stories and a specially constructed
deliver the brand
events designed to support the index in key areas such
key brand attributes as recruitment, retention
and motivation
Design collateral information to
make the truth compelling
Ensure that intermediaries have the
same story and work on your behalf
Do not allow any intervention to
pass without reinforcing the
message of the employment brand
Ensure that your internal change
efforts are in line with your
emerging employment brand
Source: Adapted from Martin and Beaumont, 2001
Table 8.2
(Continued)
Chapter 8 Corporate communications and the employment relationship 281
None of this work is particularly new and likely to take HR
specialists in a direction they were not already travelling.
However, our understanding of the application of marketing
techniques to HR is getting more sophisticated. Two recent
contributions demonstrate this progress, one from academia,
another from the consulting world.
US marketing academics Miles and Mangold (2004, 2005)
have developed a model of what they have called employee
branding, which, in some respects, resembles our introductory
framework in Chapter 1 (see Figure 8.2). They have applied
this model to the case of Southwest Airlines (see Box 8.4),
which is well known for its use of sophisticated HR techniques.
Box 8.3 Selling the brand inside (based on Mitchell,
2002)
The marketing principles are:
■ Choosing the moment: capitalizing on critical receptive contexts
for change, usually when a fundamental revisiting of the values,
direction and structure of the company is taking place.
■ Linking internal and external marketing: ensuring alignment in
the messages internally and externally, enabling employees to
deliver on the external message and ensuring that the external
message is a credible one with employees.
■ Bringing the brand alive for employees: creating an emotional con-
nection between employees and the brand by drawing on key values
and attitudes of different segments of the labour force and extensive
participation in the design and roll-out of the employer branding
messages.
The five communications messages for selling brands are:
1 Don’t preach, but listen to employees and use their language.
2 Emphasize beliefs rather than intentions, because beliefs capture
the brand essence and are more inspiring to employees.
3 Make the medium part of the message, using surprising and innova-
tive media rather than the traditional presentations.
4 Design material fit for purpose; this broadly refers to ease of use.
5 Have fun, because humour goes a long way in carrying a campaign.
Organization’s
mission and
values
Desired
brand image
Source and
modes of
communications
Internal
Formal
HRM systems
Public
relations/internal
communications
systems
Informal
Cultures and
co-workers
influence
Leaders and
managers
External
Formal
Advertising and
PR
Informal
Customer
feedback
Employees’
psyche
Knowledge of
desired brand
image
Psychological
contracts
Employee
brand image
Outcomes
Position of
organization and
its offerings in
customers’ minds
Turnover
Employee
satisfaction
Customer
satisfaction
Customer loyalty
Favourable
reputations
Figure 8.2
The employee branding process (adapted from Miles and Mangold, 2005).
Chapter 8 Corporate communications and the employment relationship 283
Box 8.4 Employer branding in Southwest Airlines
Southwest Airlines in the USA is one of the most quoted cases of best
practice in HRM and it should come as no surprise that it has won many
practitioner awards, one of the most recent being for employee brand-
ing (note the change in terminology they used). Miles and Mangold
(2005) have produced a full account of this process, which we have sum-
marized to give a flavour of good practice in this leading-edge case.
The cornerstone and distinguishing feature of Southwest Airlines is
its corporate mission and values framework, based on ‘dedication to the
highest level of Customer Service delivered with warmth, friendliness,
individual pride’ and ‘Company Spirit’. Interestingly, Miles and Mangold,
who are marketing academics, suggest the foundation of this mission is
that employees come first because it is they who deliver exceptional levels of
customer service.
The constant transmission of the mission and values is a key success
factor in external and internal communications, and in the organiza-
tion’s success. First, it helps create the desired brand image, which
is the message that it wants its customers to receive, and one which
The definition they apply to employee branding is ‘the process
by which employees internalize the desired brand image and
are motivated to project the image to customers and other
organizational constituents’ (2005, p. 535). Their model is
essentially prescriptive in stating that the organization’s mis-
sion and values are the starting point for understanding and
implementing a brand image. This image has to be conveyed
through a range of internal and external, formal and informal
communications media to shape employees’ understanding
and psychological contracts. Most of the usual qualifications
apply concerning the nature of communications, including
the coherence and credibility of the message and medium, and
the need for leaders and managers to act as they say in rein-
forcing the message. The qualifications fit well with our strate-
gic narrative approach. The resulting employer brand image
will lead, they argue, to a range of favourable outcomes, includ-
ing positive organizational reputations, customer loyalty and
satisfaction, positive brand and organizational positioning,
employee satisfaction and turnover (see Figure 8. 2).
. Box 8.3 on p. 281.
278 Corporate Reputations, Branding and People Management
Table 8.2
Comparing employer branding advice
MacKenzie and Glynn (2001): Govendik. more differenti-
ated, talent management- based narrative, based on employee
276 Corporate Reputations, Branding and People Management
self-selection: an
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