This is an excerpt from the article which was published in Australia, Poland and in South Africa's leading HR publication, HR Future where Brett Minchington is an International guest columnist.
This article provides some insights into Employer Branding 3.0 as featured in Brett's new book Employer Brand Leadership - A Global Perspective.
Employer Branding 3.0 - Connecting employees and customers for a better society
For the past two and half years I have been travelling the world interacting with leaders and sharing best practice in employer branding. Each new country provides an opportunity to learn about the local nuances and the challenges of delivering an employment experience which positively impacts on an employee’s ability to deliver a brand experience expected by their customers.
In each of the twenty countries I have travelled to, it is evident there are political, economic, social and technological forces confronting companies which will require a combined stakeholder effort to ensure business sustainability. However I find there is one common force that connects us all - the human will to create a better society. We hear political leaders talk about it in discussions on critical issues such as climate change, financial reform and labour practices. Future sustainability will require a collaborative effort to maintain a healthy balance of ‘what’s good for profit’ and ‘what’s good for society.’
A study by the US Federal Reserve Board showed the dramatic increase in the importance of intangibles such as brand to overall corporate value in the second half of the twentieth century. Today it is possible to argue that in general the majority of business value is derived from intangibles such as the employer brand.
Since its inception in the early 1990’s employer branding has evolved through three stages: employer branding 1.0, employer branding 2.0 and employer branding 3.0 (see table 1).
Employer branding 1.0 was characterised by one-way interactions between employers and their employees and customers. Employees were seen as an infinite resource and talent was in abundance during the industrial revolution. Jobs were for life and employer branding was used to fill jobs as companies experienced growth.
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The post Global Financial Crisis (GFC) landscape changed the business world in so many ways. Business models have had to be re-designed, credit has become harder to access and the world’s largest economy, the U.S., there is talk of a job-less recovery which is causing concern amongst many Americans. Many thought the GFC would bring an end (or at least a pause) to the talent shortage that was gripping the world during the years of protracted growth in the first ten years of this century.
Early research showed the talent shortage had slowed but not reversed as top talent choose to stay with their current employer rather than risk moving to a new employer when the economic environment was so fragile. Following the aftermath of a near global recession, economies in many regions are starting to show positive signs of grow now with China forecast to grow around 10 percent in the 2010/2011 year. The talent shortages are likely to be more evident this time around as companies are also faced with an exodus of baby boomer employees who will choose to retire over the next 5 years. This is likely in many countries except places such as Turkey where there is an abundance of young labour with more than half the population under the median age of 28 years.
It is apparent that talent management has become one of the most critical issues companies are facing in the new millennium. In a recent survey by PwC they asked 56 company representatives in Turkey about their projections on talent management in the next five years and 47 percent of the participants responded that the biggest challenge will be managing the expectations of Generation Y (people born between 1980-2000).
Brett is an International monthly columnist on employer branding for HR Future
Brett Minchington shares with HR Future's Editor, Alan Hosking some of the key outcomes from a year long employer branding global research project to explore how to “Optimising the value of your intangible assets through leveraging your brand portfolio (employer, consumer and corporate brands)”
Brett Minchington MBA will be live and in person in Johannesburg to Chair the 2010 South African Employer Branding Summit on 23 March 2010. For more information, visit www.collectivelearningaustralia.com
Can you tell us about your recent global research project?
The uptake in employer branding research, theory and practice has grown significantly over the past 5 years including the past two following the Global Financial Crisis (GFC) where employer branding became a key priority of the leadership agenda. During times of economic growth the focus of employer branding was on talent acquisition strategies. However with the reduction in recruitment and headcount as a result of the GFC, companies shifted their focus to engagement and retention of the talent they already had. The economic downturn has actually been positive for the field of employer branding as companies are now seeing the benefits of applying a holistic approach to employer branding as a talent attraction, engagement and retention strategy.
The key objectives of the research study were:
As part of the research project we conducted face-face research forums in South Africa USA, Denmark and Australia with 8-15 senior-executive leaders from top companies from the regions. We also conducted 1-1- interviews with industry and corporate leaders around the world.
What did you find is the relationship between the employer brand, corporate brand and consumer brand?
Having spent the best part of the last decade researching, writing, speaking and consulting in the field of employer branding, I thought as this new decade begins now would be a good time to reflect and share my opinion on employer branding trends towards 2020 and how they will impact on the workplace.
My views have been shaped by leaders, practitioners and academics I have been fortunate to collaborate with over the past 10 years with the past 3 spent travelling to 30 cities in 20 countries as part of my Employer Brand Global Masterclass Tour.
Some of the trends below have already started and will gain momentum towards 2020. Whilst it is by no means a complete list, I hope it will provide insights, awareness and facilitate discussions into how I see employer branding evolving over the next decade and your preparedness to meet these challenges.
Article originally published in Employer Brand Bulletin by Peer Group Communications Issue 2 Spring 2009
In 2008 Brett delivered keynote addresses at conferences, conducted employer brand educational workshops for senior managers in 12 countries and consulted with corporations on their global employer branding strategies. Peer Group caught up with Brett to ask his views on the trends he sees emerging in employer branding and what advice he would give as a consequence to companies in the UK.
In this issue, Brett shares some insights into the future directions of employer branding. The rise of inter-departmental teams working on the employer brand strategy in collaboration with pockets of excellence across the globe is becoming more commonplace today. Traditional consulting models are being enhanced by virtual consulting models which optimise the benefits that VOIP and global networks provide by bringing corporations closer to accessing global best practice at a fraction of the costs under traditional consulting models. Companies should investigate how to leverage pockets of excellence in the virtual economy to access global best practice, keep costs down and to contract talent that would otherwise be inaccessible. This could involve engaging a team in India to work on an employer branding solution whilst your employees in UK are asleep.
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