Have you deserted your Employer Brand?
During the downturn many companies refocused priorities and resources, in the process making their Employer Brands virtually redundant. Abandoning an Employer Brand during a recessionary phase can prove to be a very costly mistake during a market upturn.
Let’s not forget the basics surrounding the need to engage employees regardless of the market environment and business challenges. Cutting back on internal communication and people development is short-sighted and a knee jerk reaction. Amidst market recovery, employees will look to ‘jump ship’ on the basis of what is on offer and how they were previously treated.
Employer Branding is a very powerful talent management tool, it’s not simply a list of catchy attraction statements up on your organisation’s careers page. If done right, it’s an equally useful retention tool.
Is your organisation at risk of losing its key talent – those very same people who drove productivity and successfully navigated your company through some of its toughest times?
No-one questions the need for organisations to make tough decisions in an adverse market. The real question is where should the cuts come from and how are these managed internally? If your actions have reduced employee engagement, which in turn affects productivity, commitment and loyalty, consider the following:
- How will a loss of employee knowledge impact upon your company?
- What will be the impact of reduced employee retention on the quality of your existing client relationships and their loyalty?
- How will your remaining staff think and feel about your company?
- What will be your future challenges around recruitment, remembering that company reputation is an essential element of attraction and retention?
How you manage staff during recessionary phases, i.e. with open communication and integrity, will determine the damage to your Employer Brand.
For example the situation with Pacific Brands could have been handled differently had the management been more open and honest. First it axed over 1800 jobs in February 2009 and now we see Kmart recently dropping orders from Pacific Brands due to an apparent struggle of the supplier to balance their contract outsourcing. In hindsight, Pacific Brands focused on the short-term savings, rather than looking to the long term effects. Credit Suisse analyst Grant Saligari cut his full-year earnings forecasts for Pacific by 10% in light of the tough trading conditions prevailing in the Australian retail sector. This may well have been compounded by the negative publicity attributed to the brand and its reputation as a result of these actions.
Perhaps its time to think about reinvigorating your organisation’s Employer Brand. Here are some basics:
- Communicate with your people. Employee communication is often the first thing to be axed. This is debilitating behaviour because often employees are anxious and fearful of the possibility of losing their job. Two way communication and leader led actions are crucial to providing assurance and direction which refocuses your team back on to the task at hand. Honest, clear and consistent messaging is important.
- Engaging CEOs demand loyalty. Leaders should be highly visible in uncertain times. This will have a positive impact upon employee confidence.
- Using your Employer Brand to recruit up and over ‘normalised’ salaries. In many markets, now is a very good time to invest in new talent. You should regard this time as an opportunity to secure top talent who may now be enticed to move; and
- Develop a very clear Employment Value Proposition (EVP). This is the list of unique, compelling reasons why employees should consider working for your organisation over that of your competitors.
Your organisation’s Employer Brand needs to be adapted during recessionary phases. Employees have very long memories; many may well vote with their feet as power shifts back to them. This would mean a somewhat long, arduous and often costly process to rebuild your group of highly talented personnel.