To establish a successful business one of the key elements is to have skilled and competent employees. The labor market is limited and extremely important for businesses because there are a limited number of candidates and there will always be competition to attract the best employees.
Applicants have a wealth of companies as opportunities and prefer some over others. There are various reasons why one becomes more attracted to some businesses over others. It may in particular be organizational features, a unique employer value proposal, the company´s image or culture that the applicant finds attractive.
The concept of employer branding has become an extremely popular tool to attract and retain the right employees. In 2004, Google and Yahoo! had over 3.000 hits on their sites on the wording “Employer Branding”, today there are over 12.500.00 hits. Employer branding can be described as a combination of HR and marketing tools that are designed to help brand the company with the employees as a focus point. The purpose of the concept is that the right candidate is attracted to work in the company but also to maintain satisfaction among the current employees.
There are many definitions of employer branding and the term can best be described as an umbrella term. The discipline refers to many well-known areas and activities such as recruitment, retention, employee training, communication, career opportunities and personal development.
The approach of creating an employer brand can be compared with that of product branding as it is the goal to shape and sell a product to potential “buyers” and retain the current users.
In order for a company to achieve the most success and create the right brand, it is crucial to have the right employees. It is important to be aware of the impact that the human capital has on the company´s corporate brand. This has contributed to the vast attention that employer branding has received through recent times. Employees are now characterized as one of the most important resources and the brand as the most important asset. The brand is very valuable because it is not tangible and because it only exists in the recipient´s consciousness.
The concept is also helping to ensure proper qualified applicants for jobs, thereby removing unsuccessful applications. Employer branding requires long-term planning and strategy as well as a thorough analysis of the company and its audience.
One reason that the future of employer branding looks bright is that the Western world has come closer to “the demographic fautline” which means that there will be fewer in the labor market than leave it. The largest Danish generation in the labor market; the so-called baby boomers will soon retire. They will be replaced by “Generation Y” the smallest Danish birth cohort in the 20th century. This generation is very performance-oriented and expects a strong focus on their needs and effort. The new employees will not just be harder to attract but also to maintain.
Another reason is that employees today are considered to be the greatest competitive advantage. One of the few remaining opportunities to differentiate themselves and create distance to the competitors lies in the company´s ability to make optimal use of the human capital, which is very difficult to copy. In times of crisis it is important to maintain a strong employer brand to motivate staff and stand strong when the economy turns bad.
Read more at http://www.probana.com/dip_newyork.asp about the Mini MBA and how you can develop you and your company’s most important assets.
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