Why do organisations need to continue to invest in their employer brand in tough economic times?

In the past years, many Top Employers invested seriously in employer branding. The question now is whether there is room to minimize these expenses in a time where recruitment has gotten a lower priority in many organisations.

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To answer this question we should first look at the definition of employer branding: “Strong employer brands have employer value propositions (EVPs), which evoke both emotive benefits
“I feel good about working here, my friends want to work here, this company has a great reputation,” and tangible benefits “This organisation cares about my career development, I am paid well and I have a clearly defined career path,” for current and prospective employees.”

The question arising from this definition is then: Do these needs manifest itself less nowadays? Isn’t it just as vital as before to retain and engage current employees through employer branding?

Do more with less
Especially since many organisations currently ask more from their (remaining) staff, it is paramount to engage them in the strategy of the organisation, communicate clearly on the reasons for cost measures that affect them or their colleagues and to continue to retain them as valuable members of the organisation.

The effect of restructuring - whether expected or actually enforced - on employees is profound. Some of these effects are:
• Fear of losing one’s job
• Relief and - strongly associated with this emotion - guilt for being exempt from a restructure while other are laid off
• Anger over the restructure
• Feeling of lack of control over the process and progress of the organisation.

These negative emotions can lead to serious effects on the success of the organisation. They often translate into:
• A negative effect on productivity
• A limited commitment from the staff
• Overall decreased job satisfaction
• A heightened inclination to leave the organisation, and
• Sometimes ‘Survivor envy’: a feeling of employees that were except of a redundancy can feel that they ‘wish they’d been laid off as well, because now they have to do all the work.

These effects are often stronger with those that have not yet experienced a real recession – the coveted young professionals. But the effect is often less in organisa-tions with good communication on the process. So communication is the key to mitigating these negative effects on productivity, motivation and job satisfaction.

No restructuring, so no problem…?
Many organisations do not have the immediate need for restructuring, but does that make them immune for negative effects on motivation?  Research in the previous recession3 indicates that these organisations are also under severe risk:
• 34% of employees indicate that they have a high likelihood of leaving the organisations once the economy recovers
• 48% of middle management states that they are looking for a new job or that they will start this process a soon as the economy swings back.

Again, also in this situation, clear communication by the organisation on their still solid employership and on their strategy in weathering the storm is paramount.

Conclusion
In today’s uncertain times, it is tempting to scale back on employer branding and associated communication of top employership. CRF believes that prudent organisations actually maintain these investments at an affordable level.

Importance of internal communication in uncertain times is paramount, so supporting the staff with information on the needed cost measures in HR is vital to keep the employees feeling secure, valued and motivated. As engagement and motivation are crucial for retention of talent and for the overall success of the organisation, the focus on communication should not take a backseat.

It is necessary to counter demographic trends now to be a player in the revived war for talent in the next two years. Because demographic developments – imminent retirement of the baby boom generation – are not stopped by economic developments.

So overall, employer branding remains a priority, both for attraction of still scarce talent as well as for internal employee engagement and retention

Sources:
Brett Minchington, Employer Branding; Brockner (1998), Machlowitz (1983), Brockner et al (1985), Cameron, Freeman & Mischra (1991), Davy, Kinicki, & Scheck (1991), Armstrongtassen (1993), Burke and Greenglass (1998); Paul Michelman – Why Retention Should Become a Core Strategy Now (2006)