is your employer brand a talent magnet? your how-to guide

2 is your employer brand a talent magnet? your how-to guide

about RandstadRandstad is one of the world’s leading recruitment & HR services companies, with operations spanning more than 40 countries and employs over 575,000 people every day.

Founded in The Netherlands in 1960, the Randstad brand was established in Australia in 2009 following the global merger of Randstad and Vedior. With offices across Australia and over 25 years local market experience, Randstad offers specialised recruitment and HR solutions across the broadest range of skills, disciplines and industry sectors.

employer brands — a powerful force An employer brand is often described as a story or promise that effectively communicates why people should choose to work for a particular employer, in much the same way a consumer might choose one brand or product over another. At Randstad, we go further. We see employer brands as evidence of an organisation’s commitment and ability to attract and retain great people — a growing performance indicator for business and HR leaders who want their organisations to become talent magnets.

Definitions may differ but one thing is certain: the proven benefits of a powerful employer brand on strategic objectives and the bottom line. Magnetic employers enjoy better retention and productivity, and attract a higher calibre of talent — while reducing recruitment, training and development costs. How do they do it? They know what potential employees want and what influences their priorities; they engage with the talent pool, embrace diversity, and most importantly, focus on creating jobs that people love.

factors contributing to business success

competitive imageto attract top class talent

business success & competitive advantage

what is the Randstad Award? Every year, Randstad conducts a global employer branding research program — the largest survey of its kind conducted with independent research agency ICMA — to track the trends that influence people when choosing to work for an organisation. The Randstad Award is then granted to the most attractive employers in each country based on a public opinion survey of the top 150 companies by workforce size in that market. The research program started in Belgium in 1999 and has grown to become the world’s largest employer branding study based on the opinion of over 160,000 people.

With a survey sample of 7,000 respondents representing the working age population and in its third consecutive year of the research program in Australia, the Randstad Award offers unique insights into the trends and influences shaping the employment decisions of today’s workforce.

satisfied customers

highly skilled workforce

high retentionto sustain a productive workforce

improve recruitment efficiencyto reduce costs per hire

what potential employees wantKnowing what drives and motivates a particular target market is a hallmark of all successful brands.Whether you’re a small business owner, managing director of a medium enterprise or CEO of a global corporation, the ability to understand what potential employees want — what motivates them to seek and choose a particular employer — is the first step in creating a powerful employer brand.

While competitive salary & employee benefits comes out as the most important factor influencing employment decisions in Australia this year, our Randstad Award research shows people base their choices on a combination of economic and psycho-social factors — including pleasant working atmosphere, long-term job security and interesting job content. Creating a strong employee value proposition that communicates your strengths in these areas will help you engage with talent pools that are being targeted in ever more sophisticated ways.

As well as getting the foundations of their proposition right, successful brands often sense shifting market sentiment before their competitors do. Never complacent, great employer brands also arm themselves with insights into the changing priorities of the talent pool. It is notable, for example, that three of the top five reasons Australians choose a specific employer relate to flexibility and work/life balance — highlighting its growing importance to both men and women in the workforce.

How to: develop an employee value proposition

An Employee Value Proposition (EVP) describes all the reasons potential employees would want to work for your organisation. Include your values, philosophy, goals, higher purpose and history. Explain what potential employees can expect if they join your organisation, with detailed information about employee benefits and what makes your workplace special. Focus on what appeals to the talent pool you are trying to attract, which may be different to what appeals to your leadership team. Using your EVP to attract talent is just the first step — leading brands know the next critical step is to live up to the employer brand promise they create, developing an enduring reputation as a desirable employer.

64% competitive salary

& employee benefits

57% long-term

job security

54% good work/ life balance

49% conveniently

located

42% flexible working

the top 5 reasons why people choose to work for a specific company

The above graph shows the % of respondents (potential employees) that have selected the above factors at any position in their top 5 most important factors when choosing to work for a specific company.

4 is your employer brand a talent magnet? your how-to guide

what influences work priorities Successful brands understand the impact of broader economic sentiment on the way people behave. Just as our level of optimism influences the goods and services we buy, it also influences our priorities when choosing an employer. When gloomy economic news dominated the media in 2012, the Randstad Award research showed long-term job security was top of the list when choosing an employer in Australia. A year later, as markets rally and sentiment improves, competitive salary & employee benefits is back on top, ahead of job security. Further demonstrating improved confidence in the job market, good work/life balance and flexible working are back in the top 5 most important factors. Financial health, considered very attractive during the economic upheaval of recent years, has fallen well down the list from 4th to 8th place.

favourite sectors

The top 3 most attractive industry sectors that employees in Australia prefer to work in are:

How to: steer your employer brand through good times and bad

Labour market priorities are likely to shift in good times and bad. Successful employer brands can respond to changing needs by having a range of brand attributes that appeal to existing and prospective employees during volatile times. Keep communicating with the talent pool through traditional and social media — even if you‘re not hiring. This will demonstrate a steady hand and consistent focus on attracting and retaining the best talent, regardless of market cycles.

39%Aviation (known for interesting jobs, strong workplace culture and corporate social responsibility)

36%Mining & Resources (known for good career opportunities, training & development, strong leadership and competitive salary & benefits)

35%FMCG (known for good work/life balance and job security)

with high quality, ethical products and services — combined with strong systems and processes to support multi-generational staff — will generally be more appealing to older employee groups. While fast growing organisations in emerging sectors with plenty of opportunity to learn new skills and technologies, along with rapid career progression, may have more appeal for younger groups.

Education levels also impact the priorities of potential employees. Those with higher education levels are attracted to organisations with strong leadership, values and workplace culture, while those with less education are more focused on job security and a convenient location. When it comes to the motivation for remaining with a current employer, the dynamics shift again. Long-term job security is the number one factor, especially for men and those in unskilled jobs or the not-for-profit sector, while more women say flexibility, interesting job content and convenience are most important. Those who are considering leaving their job point to career progression and a convenient location as reasons to stay. This shows how important it is to offer competitive salary & employee benefits tailored to the individual and to engage with local talent pools.

engage with the talent poolIt’s not just economic trends that influence the priorities of potential employees. Current job level, career aspirations, gender, education and life stage, can all play a role when it comes to attracting and retaining talent. For example, the Randstad Award research indicates financially healthy organisations that offer strong management, long-term job security and career progression opportunities are more attractive to men, whereas women often place more value on flexible working arrangements, good diversity management and a convenient location. These varying preferences make sense when the needs of different employee groups are considered, and many organisations do tailor employee benefits and work conditions accordingly. Yet, more can be done to tailor employer brands to actively communicate particular benefits to different talent pool segments.

Our research highlights some good places to start. Those aged 40-65 favour high quality, financially healthy organisations with strong diversity management, whereas those under 40 are more focused on good training and career progression. This tells us successful, established organisations

How to: tailor your employer brand

Targeting specific groups of people who share common values, goals and desires is something strong brands have mastered. Take steps to find out how potential employees perceive your employer brand and use these insights to match the most compelling elements of your EVP to the needs of different segments in the talent pool. Tailor your mix of communication channels — face-to-face, print advertising, events, direct mail, digital & social media — based on the way each segment prefers to research and connect with employers.

%more women

conveniently located

flexible working

career progression opportunities

financially healthy

strong management/leadership

diversity management

%more men

differences between the genders

The above graph shows the key differences between men and women when it comes to workplace preferences.

Women prefer:• organisations that offer flexible working options (19%)• organisations that offer good work-life balance (12%)• organisations that are conveniently located to

home/schools (9%)

Men prefer:• financially healthy organisations (18%)• organisations with strong management/leadership (11%)• organisation that offer career progression

opportunities (11%)

6 is your employer brand a talent magnet? your how-to guide

the top 5 things that make a job interesting

embrace diversityIt’s no surprise that leading employer brands aspire to build and nurture diverse workforces. They know having the broadest range of employees at all levels offers the best chance to connect with customers by understanding and reflecting the needs of different demographics. Similarly, attracting a diverse workforce by appealing to a wide range of potential employees is an important part of your employer brand’s job. With more generations working alongside each other at one time than ever before, that job is becoming ever more complex.

Interesting job content may be high on the wish-list of potential employees, but what makes a job interesting is different for key segments of the talent pool in Australia — based on life stage, gender and/or education.

According to the Randstad Award research, making good use of someone’s skills is the biggest factor in determining interesting job content. This is particularly important to those with higher levels of education, as is having ideas valued and the opportunity to meet other professionals. This explains why successful employer brands are able to engage with this market so effectively at professional networking events or via online networks such as LinkedIn. However, our findings indicate this may be a better strategy for connecting with entry-level professionals or those in middle management.

People over 40 are less interested in meeting other professionals and say an interesting job is more about job variation, feeling valued, independence and sharing knowledge with colleagues. Organisations looking to attract and retain senior skilled professionals should promote opportunities for autonomy, utilising niche experience and mentoring junior staff. Unsurprisingly, people with higher education often find loftier aims more stimulating. They seek challenging roles where creativity is encouraged and ideas are valued. For those under age 40, the acquisition of new skills, being challenged and having their creativity encouraged all make for an interesting job. For entry-level office employees it’s all about job variation, while unskilled workers value independence.

More money and career progression opportunities are the main reasons those under 40 would change their current employer, while those over 40 would make the change because of an unpleasant work atmosphere, lack of support from management or poor management. Men are more likely to leave for more money or to move into a management role. As a sign of changing parenting roles, men will increasingly change employers for better work/life balance, a driver traditionally associated with women. In fact, our research shows good work/life balance is a major factor in retention for all employees, even when they are dissatisfied with other elements of their job.

How to: bridge the generation gap

Tailor your employment offering to different generations. Keep track of tenures and the changing life stages of key employee groups and adapt your EVP to remain relevant to those who have the skills you need. A menu of different benefits allows you to appeal to a parent returning to the workforce, a Gen Y climbing the career ladder or a senior professional delaying retirement. Everyone wants flexibility — so make it a key part of your approach. Pre-empt generational clashes through shared values and education. Pair inter-generational workers on projects to learn from each other’s assumptions and work styles. Let everyone be master of their domain, but encourage wisdom sharing and an exchange of foundation knowledge. A consultant with decades of selling experience has valuable skills despite changing markets, while digital natives will find technology easier to master than older generations, no matter how much training the latter has had. Magnetic employers embrace diversity and focus on getting the most from each generation in their workforce — knowing the bottom line value the diversity of skills, knowledge and experience this brings.

job makes good use of my skills 52%

acquisition of new skills 43%

independence 42%

ideas are valued 37%

variation in job 35%

create jobs people love Leading brands never stop exploring what makes people love their particular product or service. To create magnetic employer brands, organisations should never stop asking: what makes people love their work? The answer comes down to a combination of financial rewards, work atmosphere, job content, work/life balance and fulfilment of potential — that is unique to every person based on their background, needs and life stage. Often career needs are more basic at the outset — a foot in the door, training and job security. But as our education, experience and job status grows, so too does our need for self-actualisation — or the need to stretch the limits of one’s potential. Most organisations need to attract and retain talent right across this spectrum, so it pays to focus on creating jobs people love.

The Randstad Award research found an unpleasant work atmosphere is a key reason for people to change employers — particularly older workers and those with higher education. Given the current shortage of skilled professionals in Australia, it’s important for organisations to understand how they can improve an ailing workplace culture or build a positive one. It’s also important to know what people value at work is likely to change over time, based on factors like the type of work they do and their career stage. For example, managers more often link pleasant work atmosphere to open, honest communication and a shared sense of commitment — understandable, as their job satisfaction is heavily dependent on effective internal communication and teamwork. Conversely, people on the production floor associate pleasant work atmosphere with teamwork, fun and friendship.

According to the research, perceptions about what makes for a pleasant work atmosphere also varies between men and women as well as people in current employment and those who are job seeking. The research found feeling part of a team, celebrating company success and connecting with colleagues on a personal level is more important to active job seekers and men in particular, whereas those in active employment are more likely to point to fun and laughter at work. When it comes to women and older workers, open and honest communication, recognition and team spirit are generally more important.

the best work environment

How to: develop a lovable employer brand

There is often a correlation between the brands we love as consumers and the brands we love as potential employees. We want to work for brands we generally admire. The 2013 Randstad Award winner, the Australian Broadcasting Corporation (ABC), is a great example of an independent, ethical and community oriented brand that has successfully extended these values to its employer brand. Consider how your employer brand can leverage your overall brand profile. Give your employees the support and opportunities they need to grow. Seek and listen to their feedback, then improve your employment offering accordingly. Get them involved in developing your employer brand and they’ll spontaneously talk about the benefits of a career with your organisation. The growth of social sharing means ‘friends’ are fast becoming our greatest influencers, quickly spreading the word about great — and not so great — employers.

I am recognised when I do good work 55%

feel part of a team 52%

open & honest communication 49%

respect from colleagues 48%

For Australian employees, a pleasant work atmosphere is primarily determined by recognition for work well done and feeling part of a team.

For more information about the Randstad Award research visit:www.randstadaward.com.au

lessons from magnetic brands

most attractive brands what they’re doing right how to improve your employer brand

Holding the coveted No.1 spot, potential employees consider Australia’s only independent, national commercial-free broadcaster as both financially stable, and environmentally & socially aware. Further appeal lies in interesting job content, good work/life balance and opportunities for learning, development and career progression. What’s not to love?

The ABC’s credibility and sense of community spirit as an independent broadcaster creates a winning employee value proposition. Managing Director, Mark Scott, talks about ‘the ABC revitalising Australia’s town square’ on the careers website which also details their comprehensive approach to flexible work options. Like any good brand, successful employer brands appeal to employee aspirations and lifestyle needs.

Given the high profile of founding father Richard Branson and local CEO John Borghetti, it’s no surprise Virgin Australia top scores on strong management and leadership. Seen as the most financially healthy employer in Australia, potential employees are also drawn to its strong workplace culture, good learning & development, and opportunities for career progression and work/life balance.

Virgin Australia invites employees to be part of its ‘Game Change’ program to redefine the Australian airline industry. It also leverages its broader corporate brand message — putting the magic back into flying — to appeal to potential employees who fit its unique culture. This is a great example of how to engage with both existing and prospective employees to generate the buy-in required to achieve your company vision.

Potential employees see BAE Systems as a financially healthy employer that offers competitive salary & benefits, strong leadership and good opportunities for career progression.

In its prospective employee guide, ‘A Great Place to Work,’ BAE Systems explains how its 5,500 employees work to ensure the Australian Defence Force has the capabilities it needs, when it needs them. A higher cause can be a powerful drawcard for any brand. Effectively promote your organisation’s higher purpose through your employer brand and highlight initiatives that demonstrate social and environmental responsibility. If your organisation lacks credibility in this area, it’s an important aspect to remedy to attract and retain talent, now and in the future.

With high name recognition, Seven Network is seen as a financially healthy, dynamic employer known for interesting job content and for offering competitive salary & benefits, combined with good opportunities for career progression.

Innovation, fun, ethics and diversity are well promoted through videos and interviews on the Yahoo7 careers site, along with an impressive and detailed list of employee benefits. This highlights the importance of knowing your employee value proposition — why someone would want to work for you — and communicating it in an effective and engaging way. Marketing has the brand expertise. Partner with them to strengthen your employer brand and promote it through the best channels to connect to your talent pool.

Interesting job content, a strong workplace culture and opportunities for career development makes this iconic Australian brand a talent magnet.

Qantas epitomises the appeal of the aviation industry and taps into a true sense of national pride. These brand attributes are backed by a significant employee benefits approach, including a health and wellbeing program and access to employer-sponsored childcare centres in capital city hubs. It’s important to package employee benefits and incentives in a compelling story designed to get the attention of top talent in your sector — and a great way to stand out in a competitive, cluttered market by appealing to your employee’s fundamental lifestyle needs. For more information, please contact us on:

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