What makes Google such a great place to work? Universally recognized and respected for its high-quality tech offerings, the firm has a popular corporate brand and no shortage of applicants. Another reason for its robust recruitment is that Google has a reputation for taking very good care of its employees. Google’s benefits package created this reputation, and it epitomizes its human resources brand. As a result, Google has the ability to attract quality candidates and edge out similar companies in the competition to hire. Due to its satisfied employees, the company also has superior retention. For six years running, Google has been ranked at number-one among the 100 Best Companies to Work For, according to Fortune Magazine.
The HR Brand and Attracting Talent
Human resources departments’ goals must be tightly connected to their corporate goals. Once those goals are defined, human resources departments must outline the characteristics of the candidates that it is looking for in order to meet corporate goals. For instance, the company Tops Friendly Markets seeks a hiring pool of friendly people. Styling itself as “Your Friendly Neighborhood Store,” Tops Markets endeavors to find candidates who will provide excellent service to customers. Moreover, Amazon, which is known for holding employees to very high standards, might define an ideal employee as ambitious, focused, and hard-working. Once the characteristics of the ideal employee are defined, human resources departments are tasked with figuring out what will attract them to the company.
If an HR brand is positive, it is easy to attract talent. In the case of McDonald’s, the corporate brand was solid, but it was perceived as a poor place to work. This was in spite of the fact that 80% of employees gave positive evaluations of the company as a place to work in the first decade of the 21st century. When McDonald’s discovered that its HR brand had a problem, the firm built a strategy around changing those perceptions.
First, the company set out to find out why employees were so satisfied. Through a series of surveys, they discovered that employees valued what they termed as the 3 F’s: family and friends (the social aspects of work), flexibility (flexible work hours and a variety of duties), and future (career opportunities). From there, McDonald’s only needed to effectively communicate this to potential employees. After getting buy-in from leadership and franchises through formal presentations, the company decentralized control in communicating to the market of potential talent according to geographic location. The careful research and communication yielded positive results, and in 2011 McDonald’s ranked eighth on the Great Place to Work Institute’s Best Multinational Companies to Work For list.
The HR Brand and Selection
When companies’ salaries and benefits packages are similar, HR branding helps prospective employees to decide between job offers. An employee value proposition (EVP) with competitive extrinsic rewards and valuable intrinsic rewards helps build the HR brand. A high reward EVP should include employee development and the potential for career advancement. Starwood Resorts and Hotels staked its HR brand in part on outstanding employee development programs. The hospitality company has had great success in employing recent graduates who are interested in the management trainee program. Sofitel secures potential employees with its “Global ambassador” training program. The 12- to 18- month training program has the potential to advance people’s careers.
In order to secure a positive brand image, human resources officers must communicate the value of the EVP to potential and current employees. Starbucks invests in many employee perks, including a free pound of coffee every week, a 30% discount off of Starbucks merchandise, tuition reimbursement, subsidized gym memberships, and of course, free coffee. Starbucks takes pains to communicate these perks so that employees not only understand their benefits, but value these extrinsic rewards for their work.
Moreover, Marriott discovered that employees themselves are the best source of information on the most valued benefits. The company’s popular 401(k) matching program was available only to employees who had been there for one full year. After distributing surveys to employees, the company found the 401(k) so highly valued that it could potentially improve the selection and retention of new employees. Marriott changed its 401(k) policy so that all employees were eligible. This savvy adjustment to reflect employee preferences led to a reduction in turnover and gave the company an edge over other employers in the hospitality industry.
The HR Brand and Retention
Employees are more likely to stay when a firm’s culture makes them feel like part of a team. Samsung in Korea calls its employees “the People of Samsung,” portraying them as an elite group equal in status to professionals, such as doctors and lawyers. The Ritz-Carlton refers to its employees as “ladies and gentlemen at Ritz-Carlton,” fostering a sense of importance and unity among its personnel. Similarly, Southwest Airlines created a culture of pride by making its employees a key part of the corporate brand of service and quality. The company says its employees should be “Living the Southwest Way” by “displaying a Warrior Spirit,” having a “Servant’s Heart,” and embodying a “Fun-LUVing Attitude.” These kinds of unifying, specific principles foster a feeling of teamwork and lead to employee satisfaction.
Being proud of an employers’ policies and ethos is another important element of employee satisfaction. Google recently extended paid maternity leave, branding itself as a company that values women and supports families. Likewise, Harrah’s culture encourages community involvement and service. Harrah’s Entertainment Reaching Out (HERO) programs compensate employees for community service and recognizes them for these contributions.
While not every company can be Google, most can craft an HR brand that will make a difference in attracting, selecting, and retaining employees.