What is Employer Branding and what are the different aspects of it. The article explains all the important points to get a first overview of the topic, to understand which alignments there are and which elements are important in employer branding.
“What do you actually do for a living?”
“I’m an employer branding manager.”
“Employer what?!” “Never heard of it. What is that?”
I encounter these questions almost continuously. Over the years, I have noticed that employer branding is still an unknown concept for many people. Although employer branding is considered to be a strategic measure and is thus gaining more and more weight in corporate activities, the concept is not yet widespread worldwide. Since employees in particular and their recruitment are becoming a strategic competitive advantage, this article provides a simple and practical introduction to this important topic:
Employer Branding – A Survival Measure in the War for Talents
A few years ago, the term employer branding seemed to be undiscovered. In the discourse of the literature at that time, mainly the terms “personnel marketing” & “recruiting” appeared. Employer branding actually established itself in the European area only at the beginning of the 2000s, especially due to the ongoing shortage of skilled workers (war for talents), triggered among other things by demographic change. Companies were additionally confronted with higher complexity and dynamics of processes and increasingly need qualified personnel for the more knowledge-intensive activities (PWC 2013). To counter the shortage of personnel, many companies were prepared to invest holistically. The foundation for the expansion of employer branding in the EU had been laid.
What is “Employer Branding?
Today, we understand employer branding as long-term (employer) marketing with the focus on increasing employer attractiveness among employees and (potential) applicants. The primary goal here is to inspire (potential) specialists and executives with enthusiasm for a company as an “employer of choice” and thus to stand out as an “employer of choice”. The aim is to create an employer brand that is positively associated by the target group. Similar to customer marketing, a kind of emotional connection to the “brand” is to be established. I like to use the large VW corporation as a brief example here: Does VW actually build better cars than its market competitors? We don’t know for sure – but our minds have created a positive link to the brand. Our target group in employer branding is the employee who works in the advertising company or is supposed to work there in the future. In technical jargon, this group of people is called the “candidate persona”. In the broadest sense, employer branding is about marketing the company as an employer to this candidate persona.
Dimensions of employer branding
To better understand employer branding and the target groups, it is helpful to look at two dimensions. A look at the chart shows that a distinction is made between internal and external employer branding measures. Both measures help to (positively) influence the employer brand.
Internal Employer Branding
Internal activities impact the company’s vision, culture and values. For example, the factor of equality can be actively driven within the company through education & seminars, such as lectures on diversity. You can find some more examples of factors that can be driven, e.g. through improvements in the attached figure.
External Employer Branding
External employer branding is generally used to publicize internal measures externally. Unlike internal employer branding, the target group here is potential and not existing employees.
From theory to practice
With an example, the theoretical part can be understood quite easily:
Example “Internal Employer Branding”
The mood at a large business institute has been sour for some time. As a first measure, an internal analysis in the form of an employee survey can provide new insights into the current mood among employees. The results of the survey show, among other things, that the employees do not feel sufficiently supported. In simple terms, the solution could be to develop a standardized training program worth 3,000 euros per person. After successful implementation of the program, the relevance of employee development can be permanently established as part of the corporate culture.
Example “External Employer Branding”
This success can finally be marketed externally to reach not only current employees, but also potential applicants. The information about the possibilities of further education can be marketed on social media, the career page & on image advertisements, job advertisements, etc. after researching whether this type of further education is interesting for the respective external target group. Continuing education offers are usually more interesting for the younger generation, for example, than for the target group of professionals.
For all those who think that this should be it with employer branding, we have to contradict them. Employer Branding consists of a permanent analysis of the actual situation of the company and the target group, as well as the subsequent development of coordinated measures. Employer branding is always in motion and in the process of reinventing itself.
More appearance than reality – First internally, then externally.
Have you ever been persuaded by an employer and sobered to discover that it was all just good marketing? In fact, employer branding is employer marketing. In the best case, the external measures match the internal activities. Especially for employer branding, authenticity is a magic word. Nevertheless, the external message can deviate from the actual company culture.
A hotly debated topic in this context is “pinkwashing.” For example, at the beginning of Pride Month (an annual event of the LGBTQI+ community), many companies start coloring their logo in rainbow color on social media. People like to talk about the tolerance and diversity of the company’s culture as a supplement. If no internal action is taken to strengthen the LGQBTI+ community or if employees are not picked up in a timely manner, it can lead to an unfavorable situation for the advertising company, with employees calling for marketing to be set right. An example of how employer branding should not be implemented. Therefore, the golden rule always applies: First implement internal measures and inform the employees:inside, then market externally.
I hope that I was able to simplify the concept of employer branding for you. In my next articles, I will give you the answer to what advantages companies achieve through employer branding and why you in particular are also a part of employer branding.