When we talk about building a strong employer brand through Human Capital Management (the shorter version is HCM), we refer to a series of practices. These practices will establish a relevant, positive, and strong brand for our company. Your company brand is the one thing that will stand out when you present yourself to your customer. And as bigger your company gets, the more your brand will affect what talent you can attract.
We've already covered how HCM can help your company better manage your recourses. In this case, the strategic approach to HCM can help you build a positive reputation. In addition, some HCM practices, such as talent management, performance management, and employee learning and development, can all be attributed to employee performance and experience.
So in this article, we will explore the question of employer branding and its importance. We will also explore the relationship between HCM, employer branding, and best practices and measure the success and effectiveness of HCM when it comes to employer branding.
Understanding Employer Branding and Its Importance
The most important thing about employer branding is both attracting and retaining the best possible talent in the talent pool. Employer branding, when it comes to HCM, is how your company will present itself to current and future employees. The most important thing here is your company culture and the values that drive your company. It is how you run your brand internally, while corporate branding is how you present yourself to the world.
Naturally, you will attract talent when your company has a strong employer brand and when you are known as a fantastic workplace. This means your company will have the luxury of hiring the top people for the job. When you make it to the Forbes list of the best 100 companies to work for, you know you don't have a problem when hiring new talent.
This goes both ways, though, and negative employer branding can seriously hinder your company's growth and HCM. Unfortunately, this also leads to high attrition rates and unmet KPIs that lead to either stagnant or negative profits.
The Relationship Between HCM and Employer Branding
If you want to build a strong employer brand, the organizations within your company must sync their HCM strategies with your company goals. This means that your HCM practices will support and reinforce your company's brand image.
For example, if you want to be a company known for its work-life balance, you should implement flexible working hours. This kind of benefit shows that this is a part of your core company value.
When you invest in innovative and engaging HCM practices, your organization is more effective in creating a more positive work experience. Companies like Marriot International and HubSport have successfully leveraged their HCM practices and built strong employer brands.
Best Practices in Building a Strong Employer Brand through HCM
You can employ several essential best practices when you want to build a strong employer brand through HCM. And they are:
- Recruitment and Selection practices that will contribute to a strong employer brand. This means that when you hire people, the candidates reflect your desired brand image and values. For example, when you make a job description and go through the hiring process, emphasize your company culture and values. This will help in attracting suitable candidates.
- Train and develop your employees. Your company should provide an opportunity for your employee's professional growth.
- Recognize when your employees reach milestones. Through HCM you will implement employee recognition programs that regularly reward and recognize employees who embody your brand values. This can include anything from public recognition and awards to cash incentives.
- Diversity and inclusion of employees are essential to a positive employer brand image. Your company should prioritize diversity and inclusion in their HCM practices, such as recruitment. If you have a global company, try to hire outside your country. Not only will it enrich your company culture, but it will do wonders for your corporate brand image as well.
Measure the Effectiveness of HCM on Employer Branding
There are quite a few KPIs or key performance indicators that you can use to follow how effective your HCM practices are when it comes to employer branding. One of the most important ways to measure effectiveness is to track employee retention rates. Closely following that is employee satisfaction and the quality of your new hires. By monitoring these KPIs, your company will have the necessary insight into the impact of your HCM practices.
Then you can use employee engagement surveys, similar to Airbnb. This is also an excellent way to measure your diversity and how your managers are implementing HCM practices.
In Conclusion
Developing a strong employer brand through human capital management (HCM) is crucial for attracting top people and keeping them on board. You must support these efforts through standard HCM practices like recruitment and selection, training and development, employee engagement, and recognition programs.
Your company needs to be consistent and mindful of its branding goals and culture. Track your key performance indicators to see how well the HCM procedures impact your employer branding.
Your company needs to stand out in a crowded talent market by improving employee engagement and retention and propelling your business.