Employer Branding and Retention Strategies

• Paige Wolf •
Learning Objectives
• Business case: Setting the stage for effective
recruitment and retention.
• What attracts employees?
> Attractiveness dimensions.
> Employment branding at PacifiCare.
> Employment branding activity.

• What makes employees stay?

> Retention factors at Google (video).
> Generational differences.
> Targeted retention at Deloitte.
> Innovative retention at Best Buy.

• Wrap-up
2
Business Problem
Scenario
• The organization:
> Needs a qualified, talented person for a
position.
> Advertises and recruits for the position.
> Hires someone for the position.
• The employee:
> Is trained and socialized.
> Experiences a learning curve.
> Becomes productive.
> Leaves the organization.

3
Business Problem

Discussion Questions
1. What are the business concerns
related to this scenario?
2. What are the implications of these
costs to employers in terms of
recruiting and retaining
employees?

4
Turnover

Not all turnover is bad…

• Dysfunctional turnover:
When talented, experienced,
knowledgeable, productive, well-
networked, high-potential employees
leave the organization.
• Functional turnover:
When disruptive or poor-performing
employees leave the organization.

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Psychological Contract
HR and managers must partner to prevent
dysfunctional turnover.
• This requires understanding the
“psychological contract”: The unwritten
understanding regarding what both the
employee and employer want from the
employment relationship.
1. What is your psychological contract?
2. How does it differ from your parents’ and
grandparents’ psychological contracts?
3. What other factors affect psychological
contracts?

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Recruitment: What Attracts
Employees?

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ASA Model (Schneider, 1987, 1995)

The composition of organizations is determined by

• Attraction:
> People are attracted to organizations whose
attributes are congruent with their own personal
characteristics (e.g., values, personality).
• Selection:
> Organizations select applicants with attributes it
desires (influenced by organizational founders).
• Attrition:
> People will leave organization if they don’t fit.

©SHRM 2008 8
 Employer Attractiveness Dimensions

• Interest Value: The extent to which an individual is

attracted to an employer because of the excitement and
creativity of the work environment.
• Social Value: Attraction based on a collegial work
environment with good team atmosphere.
• Economic Value: Attraction based on salary and
benefits.
• Development Value: Based on recognition of work and
career-enhancing opportunities.
• Application Value: The employee’s ability to apply
what they have learned to teach others and interact with
customers in a way that is positive and humanitarian.

Source: Berthon, P., Ewing, M., and Hah, L. L. (2005). Captivating company: dimensions of
attractiveness in employer branding. International Journal of Advertising, 24(2), 151–172.

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DaimlerChrysler Advertisement in The
Economist

10
Employer Branding: What is It? Why Do
We Need to Do It?
• Employment branding is “internally and
externally promoting a clear view of what
makes a firm different and desirable as an
employer.” (Lievens, 2007)
> A consumer branding goal asks a person to buy a
product or service.
> An employment branding goal asks a person to
change their life.
• Why Do It?
> By 2010, there will be 5-10 million fewer workers
than jobs in the U.S.
> Generation X’s workforce is half the size of the
about-to-retire baby boomers.
Adapted from: Estis, R. (2008). Employment Branding: Attracting and Retaining Generation
NEXT. SHRM 60th Annual conference and Exposition, Chicago, IL.
©SHRM 2008 11
Employer Branding Research

A strong employer brand is related to:

> Pride of individuals expected from
being organizational members (Cable
& Turban, 2003).
> Applicant pool quantity and quality
(Collins & Han, 2004).
> Stable and positive workforce attitudes
and organizational performance
compared to broader market (Fulmer,
Gerhart, & Scott, 2003).

©SHRM 2008 12
 Goals for Employer Branding

• Establish an image of the employment

experience.
• Create synergy with consumer brand:
> Align promise to customer with
promise to employees.
• Clearly state “what’s in it for me” to
potential applicants.
• Entice the right candidates to apply for
the job.
Adapted from: Estis, R. (2008). Employment Branding: Attracting and Retaining Generation
NEXT, 60th Annual Conference and Exposition, Chicago, IL.

©SHRM 2008 13
 Building an Employer Brand

Discussion Questions
1. How is employer branding different from
recruiting?
2. How do you start a branding effort?
3. What should your branding message include?
What is your value proposition?
4. How should the level of branding efforts vary
based on the economy?

14

Source: Joinson, C. (2002). Building and Boosting the Employer Brand, Employment Management Today, 7 (3).
 Five Steps to Building an Employer Brand

1. Understand your organization.

2. Create a compelling brand promise that
mirrors your customer brand promise.
Articulate your value proposition for
employees.
3. Develop standards to measure the
fulfillment of the brand promise.
4. Align all people practices to support and
reinforce the brand promise.
5. Execute and measure.
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Source: http://www.hewittasia.com/hewitt/ap/australia/index.htm
PacifiCare

• Launched a comprehensive employer branding

campaign, including
> Employee value proposition:
• Envision. Innovate. Accomplish.
> Consumer message:
• Caring is good. Doing something is better.
To what extent are these aligned?
> Employee referral program (ERP):
• ERPs are one of the best recruiting tools in terms
of performance and retention.
• Particularly effective when the referrals are coming
from committed and productive employees.

©SHRM 2008 16
Employer Branding: Recruiting Advertisement

©SHRM 2008 Source: http://nasrecruitment.com/TalentTips/Archives/PacifiCare_white.pdf 17

Employee Referral Flyer

http://nasrecruitment.com/TalentTips/Archives/PacifiCare_white.pdf
©SHRM 2008 18
PacifiCare

PacifiCare’s employer branding efforts have been

recognized by the following awards:
> Best Employer Brand: 2006 Electronic
Recruiting Exchange
> Best in Class Employee Referral Web Site:
VirtualEdge West Coast User Group
> Top 50 Employer for Minorities and Women:
Fortune Magazine

http://nasrecruitment.com/TalentTips/Archives/PacifiCare_white.pdf
©SHRM 2008 19
 PacifiCare’s Results

• Branding results:
> 85% of interviewed candidates agreed with the
statement, “PacifiCare is a good place to work.” This
was a 25% increase.
> 81% rated PacificCare either “one of the best” or
“above average” as compared to other companies.
• Employee referral results:
> ERP participation increased by 31%.
> Referral hires increased by 15%.
> Conversion rate of referrals to hires: 85%.
> Hiring manager satisfaction: 84.82%.

http://nasrecruitment.com/TalentTips/Archives/PacifiCare_white.pdf
©SHRM 2008 20
Employment Branding Activity

• Take out the recruiting

advertisement/job announcement
you found.
• Share your advertisement or job
announcement with a partner and
answer the questions on the next
slide.
• Be prepared to discuss your
answers with the entire class.
©SHRM 2008 21
Discussion Questions
1. What are the key messages expressed in the
advertisement or job announcement?
2. Are aspects of the consumer brand mentioned
or conveyed? If so, how?
3. How does the advertisement communicate
what it is like to work at that organization?
4. Would this job announcement appeal to the
types of employees the organization is
seeking? Why or why not?
5. What recommendations would you have to
improve the appeal to qualified candidates?

©SHRM 2008 22
Retention: What Makes Employees
Stay?

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Google

• #1 on Fortune’s 100 Best Places to

Work in 2007 and 2008.
• Known for little bureaucracy.
• Hire smarts; less emphasis on
experience.
• Good ideas are implemented,
regardless of who they came from.
• What is it like to work at Google?

©SHRM 2008 24
 What makes employees STAY?

• Advancement opportunities.*
• Constituent attachment (co-workers, boss, employees).
• Extrinsic rewards (pay, bonus). Green – cited
• Flexible work arrangements. significantly
more by high
• Investment in the organization. performers
• Job satisfaction. than low
performers.
• Lack of alternatives.
• Location. * - cited
significantly
• Non-work influences. more by
• Organizational commitment. higher-level
employees
• Organizational justice. than hourly.
• Organizational prestige.*
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Embeddedness Theory of Retention
Premise: The more embedded an employee is in the
organization, the less likely they will actually leave.
Embeddedness factors include:
> Fit:
• With organization--working conditions, culture.
• With community--affordable housing, commute,
pace, etc.
> Links (connections):
• To people and projects in organization.
• With the community.
> Sacrifice: What would I have to give up?
• From organization (benefits, flexibility, tuition,
perks).
• Community (schools, neighborhoods, friends).

©SHRM 2008 26
 Discussion Questions
• What are the practical implications of
this study?
• Which retention factors relate directly
to employment branding efforts?
• What do the study’s findings suggest
about the utility of employer branding?
• How could generational differences
affect reasons for retention?

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Source: Hausknecht, J. P., Rodda, J. M., Howard, M. J. (2008
Generations in the Workplace
We have four generations represented in
today’s workforce:
> Matures (born between 1901-1943).
> Baby Boomers (born between 1943-
1960).
> Gen X (born between 1960-1980).
> Gen Y (born between 1980-2000).

View “The Millennials are Coming” (60

Minutes video).
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Multigenerational Workforce
• Each generation:
> Shares a similar set of experiences and
perceptions due to the events of their
lifetime.
> Brings a different perspective to the
workplace.
> Has different interactional styles and
preferences.
> May misinterpret words and actions of
employees from other generations.
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Multigenerational Workforce

Employees across generations need to

work together more today:
> Flatter organizations.
> Growth of performance and merit-
based pay and promotion systems.
> Globalization and knowledge-based
economy requires collaboration.

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 Multigenerational Workforce

Employers who maximize cross-

generational communication
improve knowledge transfer,
yielding:
> A better-developed workforce.
> A more competitive position.

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Source: Kovary, G. (2008). How to Get, Keep, and Grow all Four Generations. 60 th Annual SHRM Conference, Chicago,
IL.
 Generational Differences: Summary

Work Related: Matures Baby Boomers Gen X Gen Y

Values Loyalty, Personal Independence, Confident,

dedication, growth, pragmatism, optimistic, civic
sacrifice, honor, youthfulness, results-driven, minded,
hard work, equality, flexibility innovative,
compliance ambition, diversity
collaboration focused,
techno-savvy
Expectations Stability Rewards for Continuous Continuous
hard work learning, change, rapid
challenging, career growth,
work-life personalized
balance experiences
Behaviors Respectful of Challenge Unimpressed by Respect for
authority, linear authority, loyal authority, loyal competency,
work style to team to manager, not title; loyal to
results-focused peers, focus on
change
Goal Build a legacy Have an effect Maintain Find work and
independence create a life that
has meaning

Source: Kovary, G. (2008). How to Get, Keep, and Grow all Four Generations. 60 th Annual SHRM Conference, Chicago,
©SHRM 2008 IL.32
 Generational Viewpoints on Job Changing

• Matures: Job changing carries a

stigma.
• Baby Boomers: Job changing puts
you behind.
• Gen X-ers: Job changing is
necessary.
• Millenials: Job changing is part of
their daily routine.

Adapted from: F. Leign Branham, The Seven Reasons Employees Leave, presented at 2006 SHRM
national Conference, Washington, DC
 Generational Similarities

How are we similar?

• People all want to trust their supervisors.
• No one really likes change.
• We all like feedback.
• Everyone likes security and the ability to
balance work and life.

Deal, J. (2006). Retiring the generation gap: How employees young and old can find common ground.
Targeted Employee Retention

Deloitte
• Low retention of women threatened their business.
• Created the Women’s Initiative program designed
to make Deloitte a better place to work, especially
for women.
• Developed mass career customization:
> Employees needs differ at different life stages.
> Increased choices in shaping career paths to fit life
choices.
> Focused on adaptability of employee and employer.
> Made explicit certain trade-offs between choices.
> Increased retention by creating a sense of loyalty and
connection.
Source: Women Leaders; Symposium, 22nd Annual Conference of the Society of Industrial and
©SHRM 2008 Organizational Psychologists; April, 2007, New35York, NY
 Targeted Employee Retention

Actions taken to retain and promote women

Note: All programs and opportunities developed under WIN were
available to both men and women.
• Allow choice with regard to:
> Pace of career progression.
> Workload.
> Location and schedule of work.
• Up to five-year leave of absence while staying
connected:
> Maintain professional certifications (e.g., CPA).
> Assigned a mentor and career coach.
> Attend Deloitte functions.
> Work as independent contractor.

Source: Women Leaders Symposium, 22nd Annual Conference of the Society of Industrial and Organizational Psychologists;
April, 2007, New York, NY
 Targeted Employee Retention

• Deloitte’s results:
> 21% of employees at the partner,
principal, and director level are women;
Deloitte leads Big 4.
> 46% of all employees are women.
> Consistently recognized on Working
Mother’s “100 Best Companies for
Working Mothers” honor roll.
> Has created or sponsored more than
400 professional development,
networking and mentoring activities.

Source: Women Leaders Symposium, 22nd Annual Conference of the Society of Industrial and Organization
Psychologists; April, 2007, New York, N
 Retention Innovations: Best Buy:
Smashing the Clock
• Best Buy’s situation:
> Burnout among headquarters employees.
> Management emphasis on face time/
> Expectation of 24/7 availability due to
technological advances.
• Solution:
> Results Only Work Environment (ROWE).
> Focus on what gets done, not physical presence.
> No mandatory office time.
> Work when and where you want – just get the job
done.

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Source: Conlin, M. Smashing the Clock, BusinessWeek, November, 2006,

 Best Buy: Smashing the Clock

Results:
> Average voluntary turnover has fallen
drastically.
> Productivity is up an average 35%.
> Employee engagement has increased.

Discussion Question
From an HR perspective, what types of
systems need to be in place to sustain
ROWE on an ongoing basis?
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Source: Conlin, M. Smashing the Clock, BusinessWeek, November, 2006,
Discussion Question

Based on what we’ve discussed and your

organization’s mission and purpose,
what could it do to improve the quality of
recruits and retain the best talent?

©SHRM 2008 40
Conclusion
• Building an employer brand leads to higher-
quality and more efficient recruiting.
• Generational differences are a source of
diversity – use them to your advantage,
minimize conflicts through training/education.
• Create an organizational culture that serves to
execute your strategy and retain and attract the
best workforce.
> Determine drivers of retention of your
workforce.
> Consider ways to create more “glue” for
your high-performing population of
employees.
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