HRM Project Report on Employer Branding

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Employer branding

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<p>Human Resource ManagementEmployer BrandingAchieving Competitive Advantage</p> <p>School of Business Management NMIMS Mumbai</p> <p>March 19, 2012</p> <p>Executive Summary Brett Minchington (The Employer Brand Institute), defines employer branding as the image of the organization as a great place to work in the minds of current employees and key stakeholders in the external market (active and passive candidates, clients, customers and other key stakeholders). Building a strong employer brand is a complex and continuous process that needs concentrated efforts. Only those organizations that build their employer brands around their DNA with a well-planned and structured approach ultimately succeed. The strongest influencers of the brand image are the existing employees. Their perception and experience often translates in the workplace being deemed as a Desirable Place to be. The reverse also holds equally true. IT is a sector intensive on Human Capital. Employees in the IT sector are often well networked with people working in competitor firms, and theres a free flow of information as far as the company policies and practices of each others firms are concerned. The attrition rate is amongst the highest in the IT sector, and many a times while switching companies prospective employees prefer branding of the employer over a fat paycheck. To assess the effectiveness of Employer Branding as a tool for Competitive Advantage in I.T., we have chosen IBM and Infosys. The methodology adopted is making a questionnaire which covers the various aspects regarding Employer Branding. The HR managers serving in these two organizations were asked to respond to the questions. Attempt was made to gather as much information as possible about the various policies and practices which serve the purpose of brand building. After primary data collection, extensive information was collected from secondary sources as well. The analysis is presented in the following pattern. Starting with Vision, Mission and the Core Values of the organization, we go on to the various strategies adopted by the organization. We also look at some special initiatives to promote Workforce Diversity and Social Responsibility. The effectiveness of all these is judged by considering Awards and Recognitions that the company has received. After individual analysis, we go on to compare the two organizations to see what differentiating motivators are in place. From this study we conclude that effective Employer Branding Policies definitely give a competitive edge. Not only HR function, but the Core Values and the overall Corporate Strategy of the company have to be in line with this. To keep the Employee Satisfaction and Motivation levels high, companies have to come up with innovations in its Performance and Talent Management Practices.</p> <p>EMPLOYER BRANDING IN THE I.T. SECTORIt is said that an unsatisfied customer tells ten people about his experience while an unsatisfied employee tells a hundred! The goal of any business is to build on its strategic capabilities (resources and competencies), to attain a competitive advantage over others. In the past, such an advantage required first and foremost focus on factors like Capital investment, raw materials, technology, patents or licenses. Today, all these factors are no barriers to competitiveness due to their easy access. What matters is the right talent, and by all means this talent is scarce, difficult to obtain and even more difficult to retain! I. EMPLOYER BRANDING Creating a competitive advantage In a knowledge-based domain like the Information Technology, competition actually takes place over one key issue: the talent of those involved in the business and engaged in the companys success. It is thus important to attract, attain and retain such valuable human talent. Gauging Employee perception</p> <p>Source: Business Today, 2011. Sample: 3500 companies, 9000 employees Employer Branding is one important strategy to fulfil this purpose of attract, attain and retain. There are several ways in which employer branding can be defined: A targeted, long-term strategy to manage the awareness and perceptions of employees, potential employees, and related stakeholders with regards to a particular firm.</p> <p>Applying marketing techniques to the labour market, in order to get our targets (talent) to want to come and work for us.</p> <p>The sum of a companys efforts to communicate to existing and prospective staff what makes it a desirable place to work and the active management of a companys image as seen through the eyes of its associates and potential hires.</p> <p>The goal of employer branding is to create loyal customers; the customers here being the employees. Every employer brand requires a well-defined EMPLOYEE VALUE PROPOSITION, the EVP, which serves to: define what the organization would like the most to be associated with as an employer; highlight the attributes that differentiate the organization from other employers; and clarify the give and get of the employment. Employer Branding has a lot to do with creating expectations, in potential employees, about what it is like to work for a specific organization, but it also has a lot to do with the experience and perception of those same employees once they have joined.</p> <p>MAPPING THE TWO SIDES OF EMPLOYER BRANDING</p> <p>The key lies in managing to set this virtuous circle of internal and external initiatives in motion. Employee satisfaction will have an external impact which, together with the effect of other marketing tools will contribute to creating a public image, an employer brand. This, in turn, and in combination with public recognition, will make employees feel a stronger sense of belonging.</p> <p>II. ASSESSING EMPLOYER BRANDING IN I.T.IBM and Infosys are two key players in the I.T. sector that have adopted innovative techniques to build their brand image. The focus of the rest of the document is to gauge the effectiveness of employer branding as a tool for competitive advantage in these two organizations.</p> <p>METHODOLOGY 1. Developed a questionnaire for the executives of the companies in question, aligned with the theme Employer Branding (Exhibit 1) 2. Based on the responses and secondary data (check sources/references at the end of the report), analyzed the employer branding strategies and tools adopted by the 2 companies3. Assessed the effectiveness of the strategies with respect to the business goals of the</p> <p>organization4. Briefly compared competitor strategies and the challenges/opportunities ahead</p> <p>International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. Vision Statement - Solutions for a small planet Mission Statement - At IBM, we strive to lead in the invention, development and manufacture of the industry's most advanced information technologies, including computer systems, software, storage systems and microelectronics. We translate these advanced technologies into value for our customers through our professional solutions, services and consulting businesses worldwide. IBM is a global technology and innovation company. With operations in over 170 countries, IBMers around the world invent and integrate hardware, software and services to help forward-thinking enterprises, institutions and people everywhere succeed in building a smarter planet. IBM has been present in India since 1992. IBM India's solutions and services span all major industries including financial services, healthcare, government, automotive, telecommunications and education, among others.</p> <p>IBM has a presence in over 200 cities and towns across the country - either directly or through its strong business partner network. IBM India has clearly established itself as one of the leaders in the Indian Information Technology (IT) Industry - and continues to transform itself to align with global markets and geographies to grow this leadership position. Widely recognised as an employer of choice, IBM holds numerous awards for its industry-leading employment practices and policies. At present IBM employs over 70000 people in India. Core values of IBM are: Dedication to every clients success. Innovation that matters for our company and for the world. Trust and personal responsibility in all relationships.</p> <p>EMPLOYER BRANDING IN IBM INDIA Based on a survey Questionnaire (Exhibit 1) floated to Jesu Mathews and Sahana Nagaraj (Exhibit 2) and secondary data sources, it is clear that IBM has built its employer branding techniques in alignment with the following broad features. 1. EMPLOYER BRANDING USING HR STRATEGY At IBM, the employer brand is developed through a robust HR strategy, rather than a separate exercise of branding. This is well reflected through the recruitment, selection and development procedure adopted by IBM. The idea is to keep enhancing the IBM brand, by enhancing the employee experience at each step.</p> <p>For a new recruit or an experienced professional, performance based opportunities and a value-driven culture of work keeps satisfaction levels high. On an average, every IBM employee takes advantage of more than 60 hours of training a year. IBM offers competitive benefits, as well as an industry-leading practice of performancebased bonuses for all employees. What also acts as a USP for IBM is the opportunity to give back to the global community through the community service initiatives, well incorporated in the HR module. A detailed analysis is taken up in the subsequent points.</p> <p>2. A VALUE DRIVEN WORK CULTURE IBM Values</p> <p>"IBM has reinvented itself many times. But through it all, its DNA, its soul remained intact... IBM's most important innovation wasn't a technology or management system. Its revolutionary idea was to define and run a company by a set of strongly held beliefs." - Sam Palmisano, IBM Chairman &amp; CEO These values were framed by the IBMers themselves. Through "Values-Jam," an unprecedented 72-hour discussion on IBM's global intranet, IBMers came together to define the essence of the company. This unique way of formulating values, gives a potential recruit and the present IBMer the belief of autonomy and flexibility at work. IBM has built itself as a sought after brand by setting in place a mechanism of employee engagement and giving the employee a sense of belongingness and freedom, both at the same time! 3. SOCIAL RESPONSIBILITY IBM values community development, and as an IBMer one is well acquainted with this responsibility. This community building exercise is termed as The Network of Hope, a corporate and citizenship initiative. IBMs unique leadership programme, the Corporate Service Corps is giving opportunities to IBMers in India a chance to volunteer their time in over 350 organizations in an effort to bring about social change that matter. These volunteers call themselves Desi Corps and are proud on being a tribe for community development in India! The enrollment process is through the intranet and with the option of choosing an area of volunteering of ones choice; IBM has given its employees an opportunity to extend support in matters close to the heart. What is appealing to the employee is also that IBM strives to provide Smart solutions to the community issues, rather than mundane volunteering. The idea is to work towards a smarter planet through smart solutions.</p> <p>4. DIVERSITY INITIATIVES IBM has consciously sought to recruit diverse talent. In India, certain key facts include:</p> <p>IBM firmly believes in diversity with equality. This is well reflected by the equal opportunity statement</p> <p>IBM equal opportunity statementIBM is committed to creating a diverse environment and is proud to be an equal opportunity employer. All qualified applicants will receive consideration for employment without regard to race, color, religion, gender, gender identity or expression, sexual orientation, national origin, genetics, disability, age, or veteran status.</p> <p>Initiatives for the women employees</p> <p>Initiatives for people with disabilities (PwD)</p> <p>5. LEADERSHIP BUILDING We strive to make sure that IBM is seen as the best choice for people with talent to develop themselves and their careers. Having IBM on your CV not only shows you have worked for a blue-chip company that is a recognised leader in its field, but also that you will have had world-class training and development. The quality of leadership and development at IBM attracts people who are both the most talented and who have the highest expectations of what the company does to nurture them. The components of the IBM approach to leadership and development are people management and a competency-led philosophy. We see the leadership development focus as being fundamentally about people management</p> <p>EXPERTS SPEAK @IBM Even if someone is in a technical role which does not have management responsibility, the chances are that he or she will have to engage with people and informally influence them.</p> <p>Two people with different backgrounds would go through the same training in their first two years. They will be rotated round a number of different assignments, to find out what kinds of roles really suit them. This is then followed by two years or so working in a regular business area where training is related to the areas that they may ultimately want to develop into.</p> <p>The second stage of development is known as Leadership Foundation. This is the first formal contact that the Global Leadership Development Organization has with prospective leaders. The person's manager usually identifies the individual as having leadership potential and supervises a program of work-enabled learning supported by on-line, self-paced learning. Someone who performs well at Leadership Foundation would then be brought into a program known as Emerging Leaders. Topics are a blend of business acumen understanding how a company achieves its financial and business growth and personal skills, such as emotional intelligence, motivating others or team-working. The next stage is reached when someone takes on their first management role. Known as Basic Blue, it involves an intensive examination of a manager's strengths and weaknesses and a lot of experiential and peer-to-peer training. Once a manager has participated in Basic Blue there are then a range of development programs available which depend on the needs of the individual. At this juncture, those identified as very high potential are likely to be selected out to join the global executive resource talent pool and so become the next generation of IBM executives, but what's important for IBM is that the process is transparent. In India the focus is more on line manager and executive development. There is also a culture of leaders developing leaders, where mentorship comes into the picture. IBM strongly believes in the value of women employee contribution and hence has taken up recent initiatives to build women...</p>