dissertation.docx

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LITERATURE REVIEW Many managers argue that externally oriented marketing is difficult enough without introducing the notion of ‘internal customers’ (Ewing and Caruana, 1999). The internal marketing concept argues that the organization’s personnel are the first market of any company (George and Gronroos, 1989; and George 1990), the rationale being that employees are internal customers and jobs are internal products. Job products must attract, develop and motivate employees, thereby satisfying the needs and wants of these internal customers, while addressing the overall objectives of the organization (Berry and Parasuraman, 1991). According to Barrow (2007), great Employer Brands are built from inside out and the process starts at the top. In fact, Kotler (1994) defined internal marketing as ‘the task of successfully hiring, training and motivating able employees to serve the customer well’. Successful ‘hiring of employees’ in Kotler’s (1994) definition examined how astute employers can embrace the principles and practices associated with external brand management and marketing communication, internally. In other words, it extends beyond the HRM notion of recruitment advertising (Gatewood et al., 1993) and considers how firms might assess the degree to which they are considered to be ‘employers of choice’ and in the process, attract the highest-calibre employees. It is generally recognized that intellectual and human capital is the foundation of competitive

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Page 1: DISSERTATION.docx

LITERATURE REVIEW

Many managers argue that externally oriented marketing is difficult enough without introducing the notion of ‘internal customers’ (Ewing and Caruana, 1999). The internal marketing concept argues that the organization’s personnel are the first market of any company (George and Gronroos, 1989; and George 1990), the rationale being that employees are internal customers and jobs are internal products. Job products must attract, develop and motivate employees, thereby satisfying the needs and wants of these internal customers, while addressing the overall objectives of the organization (Berry and Parasuraman, 1991). According to Barrow (2007), great Employer Brands are built from inside out and the process starts at the top. In fact, Kotler (1994) defined internal marketing as ‘the task of successfully hiring, training and motivating able employees to serve the customer well’. Successful ‘hiring of employees’ in Kotler’s (1994) definition examined how astute employers can embrace the principles and practices associated with external brand management and marketing communication, internally. In other words, it extends beyond the HRM notion of recruitment advertising (Gatewood et al., 1993) and considers how firms might assess the degree to which they are considered to be ‘employers of choice’ and in the process, attract the highest-calibre employees. It is generally recognized that intellectual and human capital is the foundation of competitive advantage in the modern economy. Accordingly, the contest among employers to attract and retain talented workers takes place in a world where technological advances and global competition are driving widespread change in employment patterns (Osborn-Jones, 2001).

OBJECTIVE

To undertake a comparative analysis of the hotels (Mayfair, Ginger, Sandy’s Tower) in terms of their branding practices.

To find out the ranking of the three hotels in the context of ‘Employer Branding.

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INTRODUCTION

Employer branding is the ‘image of the organization’ as perceived by the employees as well as other stakeholders. It helps differentiate a firm from its competitors. The employment brand highlights the unique aspects of the firm’s employment offerings. Employer branding is about capturing the essence of a company in a way that engages employees and other stakeholders. It involves promoting both within as well as outside the firm and makes a firm different and desirable as an employer. The manifold objective of employer branding is to convince the employees that their organization is a good workplace, to retain them and to ensure their understanding of the organization’s goals and commitment is in synchronization with the organization’s vision and mission. The process of employer branding can be viewed as a holistic one, which presents the way in which the organization develops its employees’ positive attitude and commitment towards the organization.

Organizations comprise both external and internal stakeholders. The internal stakeholders are individuals who reside inside the company as board members, executives, managers, employees and trade unions and who benefit directly from their contributions to the growth of the company. They are committed to serve their organization. The internal marketing concept specifies that an organization’s employees are its first market. Employees are the most important internal stakeholders as they play a vital role in the growth and sustainability of the organization. Internal marketing is important because it carries the brand ‘promise’ made to recruits in the firm and incorporates it as a part of the organizational culture. The goal of internal marketing, also known as internal branding, is to develop a workforce that is committed to the set of values and organizational goals established by the firm. Employees who feel good about the synergy between the business model and brand values tend to stay longer and be more engaged, leading to higher productivity. ‘Employer branding’ enhances the level of staff engagement and also minimizes the loss of talented employees. It increases the productivity and profitability of the organization and also improves employee relations. Being an ‘employer of choice’ not only ensures that the employee joins the company and stays with it but also identifies with its visions, values and gives it loyalty, commitment and performance. A good employer brand helps maintain the organization’s core competencies and ensures long-term competitiveness.

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According to Figure 1, potential employees develop an employer brand image to form brand associations that are an outcome of the firm’s employer branding. Also, employer brand loyalty is a function of organizational identity and organizational culture which ultimately lead to enhanced employee productivity.Prospective employees also develop employer brand associations based on information sources that are not employer-controlled. A powerful employer brand has the capacity to attract and retain talent and represent quality to its customers, with the goal of gaining global recognition in a sustainable manner.

The term employer branding is used for the application of branding principles to human resource management. The concept is being increasingly used for attracting prospective employees while engaging the present employees to the organisation.

Attracting the right talent and retaining it has become a critical aspect for business success. The employer brand encompasses the firm’s value system, policies and behaviors towards the objectives of attracting, motivating and retaining the firm’s current and potential employees. Employer branding is about capturing the essence of a company in a way that engages employees and other stakeholders. It is a set of attributes and qualities that makes an organization distinctive and promises a particular kind of employment experience. Employees are the most important internal stakeholders as they play a vital role in the growth and sustainability of the organization

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HOW EMPLOYER BRANDING IS USED AS A TOOL FOR ENHANCING COMPETITIVE ADVANTAGE

There is no doubt that many practitioners view having a successful employer brand as desirable. Their perceptions of the characteristics of successful/unsuccessful employer brands, however, have not been empirically examined. This, we believe, is a major gap in our understanding of employer branding. One way to address this issue would be to draw directly on the broader branding literature, for instance, by testing whether the characteristics of successful consumer/corporate brands are identical to those of employer brands. Given the embryonic state of employer branding theory, however, it is unclear precisely which consumer/corporate brand success characteristics might apply or which other characteristics may be relevant. It is reasonable to expect that employees experience the employer brand in significantly different ways to consumers experiencing product,service or corporate brands.Three characteristics stand out as highly consistent with consumer-focused and corporate branding theory and practice.

(a) Being known and noticeableBuilding brand awareness is a key communications objective for brand managers; the argument being that without awareness among consumers there is unlikely to be either trial or ongoing purchase. The thinking is very similar for employer brands. Successful employer brands are characterised as being ‘known’ and ‘noticeable’ by employees and prospective emp loyees, as well as by influencers such as recruitment consultants.

(b) Being seen as relevant and resonantIn the context of consumer branding, ongoing brand purchase occurs when a brand ’s value proposition is seen as relevant to consumers (ie when a relevant key bene fit is provided by the brand). Particularly relevant value propositions may give rise to the formation of consumer brand relationships. For employer brands,‘ consumers’ are existing and prospective employees, for whom a distinct value proposition applies.The employee value proposition is a distinct package of benefi ts offered by the firm that relates specifically to prospective and current employees. Successful employer brands are characterised as having a value proposition that is relevant to, and resonant with, their prospective and current employees.

(c) Being differentiated from direct competitorsThe ability to differentiate brands has been linked to corporate and consumer brand health and ongoing success and is regarded as a key step in the brandbuilding

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process. Having a differentiated employer brand is seen as key in winning the ‘war for talent’.

(d) Fulfilling a psychological contractAmong the many and varied defi nitions of ‘brand’ is the notion of brands as a ‘ promise’.The employer brand as an ongoing promise to employees was a very strong and recurrent theme for all our industry experts. Successful employer brands were seen as being accurately portrayed through marketing communications and as consistently delivering on the inherent promise of the brand.

BUILDING A COMPELLING EMPLOYER BRAND:

For any organization, such strategies begin with the creation of a compelling employer brand, one that makes the organization a magnet for talent. An employer brand is the organization’s identity to its employees. It’s the answer to the question, “What is it like to work here?”

An employer brand identifies and amplifies the distinctive values, character and style that set the organization apart from others. Employer brand is an expression of an organization’s values and culture and any given company’s employer brand should be unique. For example, Finland’s Nokia is known for its cutting-edge mobile phone design and usability. Its employer brand reinforces those traits when the company says it is “creating amazing new ways for people to connect to each other, and to the things that matter to them.” It asks potential employees if they want to be “at the heart of the mobile internet revolution” and a part of a “global organization with a dynamic, open culture”. The company is clearly trying to attract individuals with a particular set of skills and working style who will be aligned with its values. The key to building the right employer brand begins with identifying the distinctive qualities of the organization that create an emotional connection between employer and employee the qualities that make people love working there and bring them fulfillment. Such qualities motivate the workforce to help advance the company’s mission.

In employer branding, the “product” is the experience of working for that employer, and the “markets” are current and future employees across a range of skill sets and demographic segments. The organization may want to tailor its

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messaging to drive engagement within each segment, but the messages should always remain consistent with and support the overall employer brand.

Thus, each touch-point between employer and employee, from recruiting to separation, presents an opportunity to reinforce the employer brand’s centrality to the organization.Leadership and management communications; reward and recognition events; career development opportunities; corporate social responsibility initiatives and even routine HR processes and communications—all should reinforce the employer brand and drive employee engagement.

OBJECTIVE

To undertake a comparative analysis of the hotels (Mayfair, Ginger, Sandy’s Tower) in terms of their branding practices.

To find out the ranking of the three hotels in the context of ‘Employer Branding.

CONCLUSION

At a time of increasing layoffs and constrained resources, it may seem counterintuitive to invest energy and capital in devising talent strategies—and especially in strengthening the employer brand. On the contrary, the need for effective employer branding has never been greater. Companies must look beyond this recession to the inevitable recovery and to the intensifying talent shortages that will follow. (This is especially true for companies that may have bruised their employer brands during the downturn; it’s still possible to reverse course—though time is running out.) By focusing now on building their employer brands and enhancing their appeal to talented workers with scarce and vital skills, organizations can position themselves to win lasting competitive advantage in the talent marketplace