The definition of Employer reputation
A good reputation is a precious thing and worth protecting. It’s perhaps no surprise then that a great deal of research has
been done into employer reputation and how it can be shaped, maintained and protected.
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Sullivan (2004) defined employer reputation as ‘a targeted long-term strategy to manage the awareness and perceptions of employees,
potential employees and related stakeholders with regards to a particular organisation’. Helm (2007), focussed on corporate reputation
and produced an in-depth diagram that shows just how valuable employee reputation is.
The gist is that there are a great many influences on corporate reputation, but just a quick look at the diagram and we can see how important
the role of the employee is. From the workplace environment to the perceived social responsibility of an organisation, the financial
performance to the emotional appeal of a business, employees have a say in it all. So if you want to manage your corporate reputation,
start by focusing on your employees.
The Corporate Reputation Chain
If we take a look at the corporate reputation chain, courtesy of Davies et al, (2003), then again we see the importance of employee perceptions.
There’s little point in investing in managing your employer reputation externally, until you fully understand the employer perception from
the inside. The ideal is to have stakeholder and employee perceptions complimenting one another and internal and external perceptions doing the same.
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So what are the key principles of employer reputation?
It all links up
The internal identity of your organisation and the external image is linked. The causal links between the two infer that one drives
the other, so if you’re attempting to change your external image, you must first evaluate your internal identity.
There are a lot of people to consider
When it comes to employer reputation, there are multiple stakeholders to consider. Employees are one group - the internal stakeholders
- and they are the ones who shape the reputation of an organisation. It’s vital to consider all groups when it comes to the communication
of reputation messages, and even more important to tailor those messages to the individual stakeholder groups.
Employer reputation is valuable and has value
A quick look at the Sunday Times ‘Top 100 Companies to Work For’ or the Fortune ‘Best Places to work’ rankings
gives you a long list of organisations who have got their employer reputation spot on. And in most cases, those companies will have no
problem attracting new talent. An aspirational employer status drives speculative applications from high quality candidates. As a result
you’ll see your recruitment costs decrease and you can reduce the need for advertising and employment agencies.
Employer reputation can be managed
And it’s important that it is managed. You can do this by ensuring all communication, internal and external, is consistent,
credible and authentic. From your careers website, job descriptions and advertising to your culture, vision, values and purpose, they
all need to be aligned and conveying the same underlying message about your organisation. You also need to think about your candidate
and employee journey/lifecycle, and again ensure your reputation is managed and maintained consistently.
Reputation and financial performance are linked
A positive and well-maintained employer reputation will increase the probability of attracting and retaining the best employees.
You’ll have reduced attraction costs and lower attrition rates, plus you’ll find improved motivation and increased productively
within your current workforce. And it’s all because a good employer reputation will help promote and perpetuate positive interactions
with existing and potential employees.
A reputation needs protecting
A reputation is built up over time, but can be tarnished or destroyed in an instant. But, invest and spend that time building and
maintaining a good employer reputation and you’ll not only lessen the chance of it being tainted, you’ll also reduce the time
it takes to recover.
References:
Sullivan, J. (2004), “Eight elements of a successful employment brand”, ER Daily, 23 February 2004
Helm, S. (2007) One reputation or many? Comparing stakeholders’ perceptions of corporate reputation. Corporate Communications: An International
Journal 2007, Vol 12, Issue 3, PP 238 – 254
Davies, G et al (2003) Corporate Reputation and Competitiveness, Routledge, London.