Global economy is on the rise more than ever. On the other hand, the concern among companies about finding and retaining the best talent to achieve their growth-goals is also picking up. Multiple survey reveal that in the year 2015, 36% of global companies reported talent shortage. Since 2007, it is the highest percentage. 73% of the companies are concerned about the availability of key skills. This is one of the biggest concerns for companies about having best talents. Companies are majorly emphasizing on strengthening their organizations’ employer branding.
‘Employer Branding’ symbolizes an organization’s reputation as an employer. The term “employer brand” came into existence in the mid-1990s. Building a strong employer brand first became a major focus of activity between 2004 and 2008. Over the last few years, the approach to building a strong employer brand has changed.
Considering the growing competition for talent, leading companies began to apply the same focus and consistency to their employer branding. This led to the development of an Employee Value Proposition. It includes the key benefits offered by the company as an employer. Employer branding was mainly outward facing and advertising driven, and fell under Resourcing and HR.
Everything has changed. The impact of social media has made companies more transparent. Nowadays, people trust a company based on what its employees have to say than on its advertising done for recruitment. It reveals that talent attraction relies majorly on employee engagement and advocacy.
Facts from Survey
hbr.org recently surveyed more than 2000 senior executives about their employer branding activities. Moreover, the survey included CEOs and heads of employer branding, marketing, HR and recruiting in 18 countries.
One of major findings was that many companies now placing the responsibility for the employer brand with the marketing and CEO, rather than HR and recruiters. In fact, 60% of the CEOs said this responsibility lies with the CEO and 40% of marketing leaders agreed on it. It implies a strong indication that employer branding is expected to gain greater strategic importance.
40% wants employer branding for secure long-term hiring needs, and 31% considers it important for building a global reputation. As per the reports, the lack of confidence in HR’s ability to oversee these objectives might also be a factor for the shift of responsibilities.
The report highlighted growing CEO concerns over the skills gap. Only 1/3 reported confidence in HR’s attentiveness to capitalize on these transformational trends in talent management. Especially in small to medium-sized companies where HR is still regarded as administrative, many more CEOs appear to be taking a more active role when it comes to their employer brand.
Companies must ensure that every function within the organization understands the value of a strong employer brand to the success of the business and the role they need to play in sustaining a consistent brand experience and reputation!