Employer Branding

and Retention Strategies

• Paige Wolf •
 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

©SHRM 2008
2

For more on Indian HR industry, click here

 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.

©SHRM 2008
3

For more on Indian HR industry, click here

 Business Problem
• What are the business concerns related to this
scenario?

• What are the implications of these costs to

employers in terms of recruiting and retaining
employees?

©SHRM 2008
4

For more on Indian HR industry, click here

 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.

©SHRM 2008
5

For more on Indian HR industry, click here

 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?

©SHRM 2008
6

For more on Indian HR industry, click here

 Recruitment:
What Attracts Employees?

7
 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
For more on Indian HR industry, click here
 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.

©SHRM 2008
9

For more on Indian HR industry, click here

DaimlerChrysler Advertisement in The
Economist

©SHRM 2008
10

For more on Indian HR industry, click here

 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
For more on Indian HR industry, click here
 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
For more on Indian HR industry, click here
 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
For more on Indian HR industry, click here
 Building an Employer Brand

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?

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

©SHRM 2008
14

For more on Indian HR industry, click here

 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.

Source: http://www.hewittasia.com/hewitt/ap/australia/index.htm

©SHRM 2008
15

For more on Indian HR industry, click here

 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
For more on Indian HR industry, click here
Employer Branding: Recruiting Advertisement

Source: http://nasrecruitment.com/TalentTips/Archives/PacifiCare_white.pdf

©SHRM 2008
17
For more on Indian HR industry, click here
 Employee Referral Flyer

http://nasrecruitment.com/TalentTips/Archives/PacifiCare_white.pdf
©SHRM 2008
18
For more on Indian HR industry, click here
 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
For more on Indian HR industry, click here
 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
For more on Indian HR industry, click here
 Retention:
What Makes Employees Stay?

21
 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
22
For more on Indian HR industry, click here
 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.*
©SHRM 2008
23

For more on Indian HR industry, click here

 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
24
For more on Indian HR industry, click here
 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).

©SHRM 2008
25

For more on Indian HR industry, click here

 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.

©SHRM 2008
26

For more on Indian HR industry, click here

 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.

©SHRM 2008
27

For more on Indian HR industry, click here

 Multigenerational Workforce

Employers who maximize cross-generational communication

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

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

©SHRM 2008
28

For more on Indian HR industry, click here

 Generational Differences: Summary

Work Related: Matures Baby Boomers Gen X Gen Y

Values Loyalty, dedication, Personal growth, Independence, Confident,

sacrifice, honor, youthfulness, pragmatism, optimistic, civic
hard work, equality, ambition, results-driven, minded, innovative,
compliance collaboration flexibility diversity focused,
techno-savvy
Expectations Stability Rewards for hard Continuous Continuous
work learning, change, rapid
challenging, work- career growth,
life balance personalized
experiences
Behaviors Respectful of Challenge Unimpressed by Respect for
authority, linear authority, loyal to authority, loyal to competency, not
work style team manager, results- title; loyal to peers,
focused 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, IL.

©SHRM 2008
29
For more on Indian HR industry, click here
 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

©SHRM 2008

For more on Indian HR industry, click here

 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.

©SHRM 2008

For more on Indian HR industry, click here

 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
Organizational Psychologists; April, 2007, New York, NY

©SHRM 2008
32
For more on Indian HR industry, click here
 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

©SHRM 2008

For more on Indian HR industry, click here

 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
Organizational Psychologists; April, 2007, New York, NY

©SHRM 2008

For more on Indian HR industry, click here

 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.

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

©SHRM 2008
35

For more on Indian HR industry, click here

 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?

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

©SHRM 2008
36

For more on Indian HR industry, click here

 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.

©SHRM 2008
37

For more on Indian HR industry, click here

Thank You!

For more on Indian HR industry, click here

Resource made available by SHRM US