Employer Branding

Dr Evariste Habiyakare Senior Lecturer in International Business HAAGA-HELIA University of Applied Sciences Finland evariste.habiyakare@haaga-helia.fi

Ms. Johanna Heinonen-Salakka Senior Lecturer in Marketing HAAGA-HELIA University of Applied Science Finland johanna.heinonen-salakka@haaga-helia.fi

Introduction
Employee and employer branding are gaining a high level of importance in todays business world. In the near future, companies will be fighting a fierce competitive battle to attract and to maintain good and highly skilled employees. So far, many companies have not yet realised the importance of implementing a good employer branding strategy in order to increase their own competitive advantages. A quick look at the branding literature reveals an emphasis on product and service-based branding. So far, employer branding as a research field has been neglected. This paper intends at contributing in filling the gaps by comparing the expectations of Eastern and Western future employees in terms of employer branding. We compare views from two Asian countries: India and Vietnam and views from two Western countries: France and USA. By doing so, we hope to foster debates and call for more empirical researches to help companies to put emphasis on branding themselves to attract competitive employees. With this research, we are interested in finding answers to the following research questions: 1. What are the expectations of future employees in terms of employer branding? 2. What may be the differences and similarities in employer branding between East and West? 3. In which way can the employer brand/image help to make a company more attractive as an employer? 4. Which strategies may be put in place to attract and maintain high-skilled employees by improving employer branding In the following sections, a short literature overview is presented

Literature review
The concepts of brand and branding By looking at the literature about brand and branding, they steam from two perspectives: product and services branding and Employer branding. In the following, we briefly introduce these central concepts.

According to Wheeler (2006, 4), a brand is a name, term, sign, symbol or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition. He states that a brand is the promise, the big idea, and the expectations that reside in each customers mind about a product, service or company. People fall in love with brands, trust them, develop strong loyalties to them, buy them, and believe in their superiority. A brand stands for something. Franzen and Moriarty (2009, 6) see the brand as a complex system of interrelated management decisions and consumer reactions that create awareness, visibility, and meaning, as well as distinguishing a product from its competitors. Branding is, for the authors, the strategic process that manages the presentation and influences the perception of a brand. Wheeler (2009, 6) defines Branding as the disciplined process used to build awareness and extend customer loyalty. Branding is about seizing every opportunity to express why people should choose one brand over another. Brand and product are not the same. Keller (2008, 5) stated that what distinguishes a brand from its unbranded commodity and gives its equity, is the sum total of consumers perceptions and feelings about the products attributes and how they perform, about the brand name and what it stands for, and about the company associated with the brand. Another definition of branding by De Chernatony & McDonald (1998, 20) describes that a successful brand is an identifiable product , service, person or place, augmented in such a way that the buyer or user perceives relevant, unique added values which match their needs more closely. Furthermore, its success results from being able to sustain these added values in the face of competition. It is possible to reflect about all the previous definitions and state that there are two sides on the brand phenomena, one side is represented by the management decisions and the organizations identity, product, name, logos, symbols, promises, etc., and on the other side we find the perceptions, feelings and associations (image) consumers develop about the brands. Through the brand, a relationship is established between the producers and the consumers. Another reflection extracted from the definitions, is that a brand makes an organization different from others, different from its competitors. According to Franzen and Moriarty (2009, 7- 8) in the brand system, there are components that can be managed by the marketers and components that cannot be managed by them, but can otherwise be influenced. Affirmed by the same authors, the components that marketers can manage are, i.e., the Brand Strategy Formulation, the Brand Core Concept, the Brand Identity and the Market Segmentation. The other half of the brand system is the consumer. The values of consumers affect the perceptions of a brand, as well as the construction of other customer-focused perceptions such as the Brand Position, the Brand Meaning and the Brand Personality. Those components cannot be managed by the firms, but can be influenced (Franzen et al. 2009, 7- 8). In this point Franzen and Moriarty disagree with Keller et al. (2008) and Aaker (2010), who consider Positioning and Personality as components of the brand to be managed and defined from the companys side. Brand Equity is the point in which the company objectives converge with the customer interests, creating value for both parts of the system: organization and consumer (Franzen & Moriarty 2009, 79). According to Duncan and Moriarty, brand equity is determined by the quality of the brand relationships with its customer and other key stakeholders (Franzen & Moriarty 2009, 298). Customer Based Brand Equity is defined like the differential effect that brand knowledge (awareness and image) has on consumer response to the marketing of that brand. A brand has a positive Customer Based Brand Equity when customers react more favorably to a product and the way it is marketed when the brand is identified than when it is not (Keller et al. 2008, 43). According to Keller, 2003, CBBE occurs when the consumer has a high level of awareness and familiarity with the brand and has a strong, favorable and unique brand associations. For Aaker (2010, 7) Brand Equity is defined as a set of assets (and liabilities) linked to a brands name and symbol that adds (or subtracts from) the value provided by a product or service to a firm and/or that firms customers. The major asset categories in Aakers brand equity theory are Brand Name Awareness, Brand Loyalty, Perceived Quality and Brand Associations. Brand awareness is related to the strength of the brand trace in memory, as reflected by consumers ability to recall or recognize the brand under different conditions. Brand image is defined as consumer perceptions of a brand as reflected by the brand

associations held in consumers memory (Keller et al. 2008, 47). The difference between brand image and brand identity is that the latest is aspirational, meaning how the brand would like to be perceived (Aaker, 2010). Brand identity can be managed by the firms but not the associations held in consumers minds. Brand image is defined by Franzen et al. (2009, 19) as the ideas, feelings, and attitudes that consumers have about brands. It is an image in customers minds that reflect what they think and feel about a brand and how they value it. Brand personality is an important part of brand image and both could be just as important as the product performance or price. The representation of a brand that consumers carry in their minds also exists as a brand concept in the strategy of its managers. Ideally, the customers brand representation and the managers brand concept match. Effective brand strategy could be defined as achieving this match, when the meaning of both brand perspectives is the same (Franzen et al. 2009, 113). Brand Equity is a measure of the strength of a brand that impacts the financial contribution the brand makes to the parent companys balance sheet. Brand equity represents the point at which company objectives converge with customer interests (Ibid. 79). Brand Loyalty creates value for business because the costs of acquiring new customers are reduced. High loyal customers tend to become brand advocates thus bringing new customers to the brand. A loyal customer base gives companies a kind of breathing space when faced with market changes. Brand awareness creates value for business because people tend generally to prefer things they are familiar with over things they are not. For many purchases, consumers draw up a quick mental shortlist of candidate brands and they cant consider brands they are not aware of. How does Perceived Quality bring value for business? People are more likely to pay for things they perceive as being of high quality and they are more likely to pay a higher price. As for consumers, so for distributors, are more likely to carry items with higher perceived quality. Perceived quality creates a launch-pad for brand extensions. Associations can make a brand interesting and relevant to consumers, helping to create reasons to buy. Associations create clear differentiation from competitors. People often buy brands because of the signals they send to other people strong associations can help this process (Miller 2005, 210). A brand has a dual function: it represents the values and characteristics that the company wants to bring out in its products and services (internal perception), and, at the same time, it represents the ideas that consumers and customers have formed about it (external perception). There are two basic strategies used in identity targeting: inside-out and outside-in. Successful brand strategy requires a joining of internal values and external expectations Franzen et al.117).

Employer and employee branding Minchington (2005) defines employer brand as the image of your organisation as a great place to work in the mind of current employees and key stakeholders in the external market (active and passive candidates, clients, customers and other key stakeholders). Employer branding has been also defined as the sum of a companys efforts to communicate to existing and prospective staff what makes it a desirable place to work. It is a targeted, long-term strategy to deal with perceptions of employees, potential employees, and related stakeholders to a particular company. The employer brand imply by an image showing the organisation as a good place to work. There are twelve important components (see figure 1 below) of employer branding which may help business to achieve its objectives successfully. Companies struggle hard to manage these components simultaneously. In other words, employer branding is reputation as a company of a choice or a great place to work that attracts applicants and makes them wish to work for that company. The main idea should be to create a sense (image, reputation) of what its like to work at that company in order to attract the kind of employees who will fit well within the company.

Figure 1. Employer Brand- Key component (Source: Corporate Eyes, 2008)

These components are classified into two big categories: Organizational context and policy and local picture, which consists local context and practices. The first big picture consists of policies regarding key issues such as: External and internal communication which should be regarded as employer brand communication, as every piece of communication says about the organization (Barrow & Mosley, 2006). Effective leadership and the role of senior management have been proven to be the most powerful driver of employer engagement (ibid). According to statistic, 20% of employees found employers with a positive socially responsible image more attractive. They also noticed a strong positive correlation between companies that are seen to take their responsibilities towards society seriously and those seen as a good employer to work for. Community involvement improves employee morale, motivation and the propensity of people to recommend their company to others (Barrow & Mosley, 2006). It is worth noticing that company takes its proposition to employees seriously enough to measure it, publicise it and act on the result (ibid). There should be an opportunity for the employee to be able to rely on its organization and to be responsible toward customers (ibid). The second local picture is related to different practices in: - recruitment and induction, orientation to the company work practices - team management through a trusting environment - performance appraisal and evaluating the value of employees everyday behaviors - learning and development which makes an employer more attractive to new recruits - reward and recognition which increases employees motivation for being a better employee - working environment which reflects the core values of employees and personality of the organization in general they work for To sum up, each organization must determinate the level of priority on each of the above components to be able to attract recruit and retain employees. Closely related concept is employee branding which depends on organizations staff member and own tactics to create behavior that expresses, presents and performs attributes that the company wants as part of its reputation or brand. Employee branding takes the organizational brand and impresses it upon the

employer. In this perspective, employee branding means what an employee projects image about himself and the organisation culture. This takes place when employee acts as brand representative for its company by showing a strong sense of belongings to his /her organisation.

Employer Behaviour The topic of employer behaviour has been recently much discussed. On one hand, organisation behaviour is a process that keeps the company moving forward, developing behaviour policy but on the other hand it has some drawbacks for some companies. Employer behaviour is also referred to internal and external one. There are different approaches to this concept arising from different school and thoughts. According to Holberche (2006, 136), Organisation behaviour is a systematic process for applying behavioural science principles and practices and is directed at organisational improvement. The author defines the concept as a set of actions to bring about the planned and controlled change of organisation in preferred directions. The author bring into focus four main elements such as organisational culture, team (people), leadership and strategies using as an open systematic perspective in interaction between company and audience. These categories are mainly associated with communication with employees and customers. (ibid, 2006, 136) To look more deeply at employer behaviour as part of employer branding one may start with cultural factors that affect behaviour strategy. First of all, the type of culture that exists in this or that company. Cultural issues are crucial as they affect the way the company works, and, consequently, the way the employees behave. In this perspective, corporate culture is a term used to describe the collective beliefs, value systems, and processes that provide a company with its own unique flavour and attitude. Businesses of all sizes possess some type of corporate culture, in that every company has a set of values and goals that help to define what the business is all about. (http://www.wisegeek.com). In most organizations these elements develop unconsciously and organically to create a system that, while not always ideal, is work. Organisational culture is a foundation of behaviour principles, modes of conducting business, internal and social communication. Some organisations demonstrates best practices for innovative HRM, re-thinking and up-dating internal codes of behaviour of a given business. Employees are feeling more freedom in decision-making, creative thinking and being part of progressive team. Some types of corporate culture are strictly hierarchical and are aimed at control, subordination, and structuring. Both types reflect the manner of interpersonal communication, the values of the company, and the particular way that the company is built to achieve its goals. There are advantages and disadvantages associated with all different types of corporate cultures. A corporate culture that is too firmly based in control and codes of behaviour, for instance, may stagnate because it suppresses free thought, individuality, and creativity. On the other hand, a company that allows its employees to express the thoughts is more on-going together with business changes. Thus, the type of culture defines what type of working atmosphere in the workplace. Contacting corporate culture can unify employees, increase overall job satisfaction, and greatly improve a business's efficiency and productivity. Personal factors are influential for people when they decide to start their career or move their position. For instance, common reasons for choosing this or that particular employer are good reputation, positive image, and strong performance. In addition to this, person might decide to work in a company based on such fundaments as improving pay rates, job security, keeping reducing stress, and making employees feeling vital to an organisation. Competent behaviour strategy is also seen as an important way to gain employee-customer respect. It is interesting to note that employees are mostly willing to work under policy, shared corporate culture, and way of doing things and approach to freely express their thoughts. In such company where everyone is task-oriented, involved in problem solving and decision-making, enabling to make employees committed in a better results. Managers should effectively respond to employees

minds. Jobs should be designed in line with organisations strategies and to make certain that employees have some authority to contribute into companys performance (ibid.)

Sustainable Branding According to Crowther (2008), sustainability is concerned with the effect which action taken in the present has upon the options available in the future. Sustainability presses its effect on three main elements: reducing environmental damage to levels that can be absorbed by natures; developing a healthy and fair global and local society; creating robust business models and stable, prosperous economies. As a result, sustainability brand is defined as products and services that are branded to signify a special added value in terms of environmental and social benefits to the customer and thus enable the differentiation from competitors People nowadays are getting higher awareness about sustainability issue. This means that the approach from companies to consumers gets more and more challenging. However, as a positive belief in employment engagement in creating future trend, Mona Amodeo - President and Founder of Id Group Consulting and Creative stressed: Challenging people to think differently, to view the world from a new window, yields new and innovative answers, high levels of employee engagement and pride and strong connections. Five years ago, no one was really listening. Today, they are asking good questions and searching for meaningful answers.

Corporate Branding Unlike individual branding, corporate branding refers to a company applying its name to a product or service. When branding is associated specifically to a company and its business activities, it can be classified as a corporate branding. Corporate brand is relevant to a trademark itself and also to an image that create customer associations. However, concerning Employer Branding concept, corporate branding is considered from another point of view, which refers more to human resource aspect. Employee is a crew who represent an organization towards the public; consequently it is important that a company strives for its employees to not only understand the corporate brand, but also to live it. Each and every employee is an essential part of a whole company. Therefore, training them in internal branding issue makes them become the brand ambassador. A strong brand is a corporate brand which is built from inside out (Keller, 2003, 44) Service brand management is the process of creating brand personality traits, changing them to achieve maximum efficiency, as well as drawing up plans for the brand crisis management in case of need, in order to increase the strategic value of brand. In other words, brand management involves the storage of brand personal traits, keeping track of its characteristics, sales strategies, increasing the value of the brand, and competitors analysis. Keeping this information on brands strive the companies to become more innovative in brand management. The effectiveness of brand management can be judged by the dynamics of consumer awareness about the brand (ibid, 88). Thus, a strong brand is the result of effective service brand strategic plan and regular actions of brand management team. Such management is based on studies of consumer preferences, competitors' activities to respond to market changes. Brand management is a continuous process that ensures the viability of the brand and ultimately increases the value of the goods in the eyes of consumers (Ibid)

Summarizing theoretical framework of employer branding Employer branding is a way of positioning the company and this can be done either internally in the company or externally to an outside audience. Employer branding is mostly carried out to both audiences

at the same time. The employer branding steps can be visually explained by the employer branding framework created by Backhaus & Tikoo, 2004.

Figure 2. Theoretical framework of employer branding (Backhaus & Tikoo, 2004) The process starts by defining the companys identity as an employer and it is directed at both internal and external audiences. The external features start with employer brand associations which should drive at good employer image and increased employer attraction. The internal set starts with the effect of the employer brand on the companys identity aiming to lead to brand loyalty. So far, many companies have been complaining that it is hard to hire right employees and yet the fundamental question is how to attract and maintain these right employees and how the employer shall improve its brand. To do so companies need to know the expectation of these right employees and companies need to brand themselves to attract these talents. The global economy has given businesses broader access than ever before to markets all over the world. Brands are becoming recognised in more several countries or globally, and in greater variety. Along with corporate values, companies are actively developing sustainability branding issues referred to environmental and social benefits to the customer and thus enable the differentiation from competitors. Company strives for its employees to not only understand the corporate brand, but also to live it. That why each and every employee is an essential part of a whole company. Therefore, companies invested in training them in internal branding issue makes them become the brand carrier. A strong brand is a corporate brand which is built from inside out. Thus, Employer branding & Employee branding are working together. Hence, we can say that an employee brand is the value of a company that exists in the corporate. Therefore, one can say that in the present scenario, one of the goals of a company is related to employee branding.

Research approach and methods A quantitative survey was designed and included 10 main questions. Respondents were asked to give their opinion about different sub-components. Survey was dispatched randomly to different people in four different countries: France, India, Vietnam and USA. Using different channels and different media (such partners schools, social media and acquaintances), we were able to send hundreds of surveys to anonymous respondents. The data collection took place during October 2011. The key results are presented in the following part.

Key results and discussion The total number or respondents was in the end 350 persons and they divided quite equally to western respondents (178) and eastern respondents (172). The middle age among the respondents from West was 25 years, while the equivalent in the East was 26,2 years. Most of the western respondents were studying (64 %), while 32 % of them were already employed. Respondents from the East were divided more equally to these 2 groups: 47 % were studying and 48 % employed. However, the differences here are not so big that the groups could not be compared against each other. As a starting point we stated a question about the preferred channel when people are looking for a job. We gave the respondents a list of channels which they then evaluated with grades 1 (not at all preferred) to 5 (very much preferred). Both in the East and in the West the best channel for potential employment opportunities were Social media and Internet (East gave grade 4,12 and West 4,00), Friends and relatives (East 3,52 and West 4,14) and Company webpages (East 3,71 and West 4,56). In the West the two latter ones were considered even more important than social media, which was not the case in the East and as can be seen from the grades, differences in the given grades were quite big in these 2 channels.

Figure 3. Criteria in choosing the employer Respondent were also asked about the criteria by which they choose employer. In this question different criteria based on the literature were given and respondents were asked to evaluate their importance on

the scale from 1 (not at all important) to 5 (very important). Based on the results we find differences between East and West. Top 3 in West was 1) Trust, respect and honest communication (4,59), 2) Career opportunities (4,4) and 3) Salary based workload and performance (4,26) (Figure 3). In the East the similar list was 1) Career opportunities (4,26), 2) Job contract and security (4,13) and 3) Flexible working hours and working environment (4,09). In the West job contracts (4,12) are on the 6 th place and working hours (3,94) on the 11th place. In the East trust, respect and communication (4,03) comes to the 5th place and salary based workload (4,04) on the 4th place. When looking at the end of the list companys shares and bonuses, availability for different advantages and salary based commission are the last for western respondents while the same list for eastern respondents were entertainment and get together, availability for different advantages and location of the company. Even though the order does not differ much between East and West, there are remarkable differences in given grades. Eastern respondents have evaluated Companys shares and bonuses one grade higher than western respondents. Western respondents have given a better grade with 0,8 to location of the company. Also entertainment and get together events, trust, respect and honest communication as well as caring management leadership get better grade with 0,5.

Figure 4. Preferences in working environment We also posed a question about preferences about the working place and working environment. Top 3 in the West was good relationships among workers (4,54), Friendly and caring management (4,29) and Equal

treatment for workers (4,22) (Figure 4). This was also the Top 3 in the East order was mingled so that equal treatment of workers and friendly and caring management changed places. Both respondent groups valued aesthetical working space to the last 3 points. However, western respondents valued both small and large companies as little, while I prefer to work in a large company came to the 7th place in the East. Small companies and existence of air conditioning and temperature were valued to the bottom 3 in the East. Working in a large company was also the preference which had the second biggest difference in grades between respondents. While respondents from the East gave a grade of 3,8, gave West 0,8 points less. Respectively, western respondents gave 0,8 points better grade to refreshment places and over 0,5 point better grade to less hierarchical structures and aesthetical working space than their eastern colleagues.

Figure 5. Expectations of employers sustainable branding Respondents were also asked to evaluate their expectations about an employers sustainable branding. In the West to have a good reputation was the most important point, while it came to the 3 rd place in the East (Figure 5). In the East respondents evaluated employers skill to promote and care for environment highest, while it was on the 3rd place in the West. To the second place came avoidance of bribery and scandals in the West (4th place in the East) and helping poor members of the society in the East (5th place in the West). When looking at the differences in given grades we can observe that eastern respondents are eager to give over half a number better grades to helping the poor members of society and participating infrastructural project development. .

Respondents were also asked to evaluate different reasons for quitting a job. Western respondents considered poor working conditions to be the most important reasons for quitting a job, unorganized working process came to the second place and problems with management to the third (Figure 6) . In the East poor salary conquered the first place, poor benefits the second and poor working conditions the third. There were significant differences in the given grades between these groups in items poor benefits, problems with the management and nature of the job, where the difference between given grades was also 0,5 units. Respondents from the eastern part of the world seem to consider poor benefits as bigger reason to leave, whereas their western colleagues feel that problems with management is 0,5 grades more important to them.

Figure 6. Reasons for quitting a job The last question we asked from the respondents was about the motivational factors: what inspires people to work (Figure 7). The results were quite the same both in the East and in the West. The most important motivational factor was respondents need to develop themselves. The second important factor was money and earning it. The third place the varied in two different groups: eastern respondents appreciated if they could make their passion to their profession, while the western respondents wanted to accomplish goals. However, both groups considered I want to have something to do as the least important factor. Also differences in the given grades were quite small.

Figure 7. Motivational factors in work

In general, we can consider this research to be quite reliable. The group of respondents was quite big and divided equally between East and West. Also the profiles of respondents were quite similar. When the results are seen from the employer branding perspective, one could recommend employers not only concentrate on salaries but also pay more attention to the soft qualities of work: trust, communication, relationships, equal treatment, flexibility and an employees development. An employer should also realize that activities done for the society affect their image and improve their brand as an employer. A good way to communicate about a vacancy is social media and internet, but companies should not forget the word of mouth communication and networks, in which the message is created by personal experiences and can therefore cause both good and bad. In many points respondents were surprisingly unanimous about things. Still, one could state very radically that in the East people are more involved with money and security issues which then take form of salary, contracts and also about helping poor people and creating something for the society. This might be caused by the number of people living in those countries and the competition of jobs as well as among companies there. This can be also see as employees eagerness to work in larger companies where the daily bread is usually more secured than in smaller companies

In the West people are more secured and therefore caring management, trust, respect and communication as well as good relationships are respected. Bribery and scandals are considered untypical in western companies and therefore its value as negative factor rises. Also problems with management and unorganized work can cause an employees resignation. In order to hire more competent people and maintain them as employees, It is advisable that a company studies its employee markets very carefully. Especially, if a company is going to establish an office abroad and hire local people to work there. Same strategies wont work everywhere. With this research we realized that even though employee markets look quite the same from the surface, you can find significant differences in them. An employer must adapt his/her activities to employees wishes, not vice versa. A future study of this is to be made, where we concentrate on employers opinions and expectations and after that we will compare results from these two researches. Even other studies are to made in order to gain a deeper cultural understanding of some countries and with this information give more detailed strategy consultation for the companies.

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