Conceptualizing to Gain Competitive Advantages

Employer Branding:- Conceptualizing to Gain Competitive advantages *Raju Kumar Shaw Abstract: There is a fundamentals shift in how business is conducted. Corporates are moving from labour-based business to knowledge-based business. They are trying to capitalize on their intellectual assets. Today’s businesses are positioning themselves within the new economic realities. By facing these burning issue i. e. Global Markets, technological changing, competitive pressures and developing employees Through Employee Value Proposition on Employer branding seems to be the best way to gain competitive advantage.

On one hand, many organizations think that their existence is depend on developing new applications of information technology. But on the other hand, only few organizations believe that the most valuable assets are their employees. Employer branding is defined as a targeted long-term strategy to manage awareness and perceptions of employees, potential employees and related stakeholders with regards to a particular firm. This includes direct and indirect experiences of dealing with the firm.

Like actual product branding, organizations have started to invest employer branding as employees are the internal customers of the firm. The employer brand builds an image confirming the organization as a good place to work. Today, an effective employer brand is essential for competitive advantage. With the liberalization of the Indian economy in 1991 and subsequent economic reforms, Indian companies are becoming internationally strategic to utilize the employer brand to attract and retain talent which leads to expand and growth of the business.

This paper gives some concept on employer branding and also to examine how Indian organizations with a positive corporate reputation can attract and retain employees. It also focuses to explain the importance, applicability, outcome and creating an effective employer Branding strategy of Indian companies. Key words: Employer branding, Branding, Indian corporates *Junior Research Fellow, Faculty of Commerce, Banaras Hindu University, Varanasi . Introduction: Branding was originally used to differentiate tangible products, but over the years it has been applied to differentiating people, places and firms. Employer branding has become a new approach for gaining an edge in the competitive world. It refers to the process of identifying and creating a company brand message, applying traditional marketing principles to achieving the status of employer of choice.

According to Barrow and Mosley “employer branding is used not only to transfer the message of the personality of a company as an employer of choice, but it also has been used to adapt the tools and techniques usually used to motivate and engage employees”. It have also defined employer branding as the development and communication of an organization’s culture as an employer in the marketplace. It is the package of functional, economic and psychological benefits provided by employment, and identified with the employing company.

It conveys the “value proposition” the totality of the organisation’s culture, systems, attitudes, and employee relationship along with encouraging your people to embrace and share goals for success, productivity, and satisfaction both on personal and professional levels. 2. Significance of employer branding: Employer branding is a distinguishing and relevant opportunity for a company to differentiate itself from the competition creating its branded factors as its employee satisfaction and happiness resulting in retention, productivity and efficiency.

It is a long term strategy to manage the awareness and perceptions of employees, potential employees, and related stakeholders with regards to a particular firm. The employer brand puts forth an image showing the organization as a good place to work. This means involving employees at all levels in the development of the brand so that it accurately reflects both the realities and aspirations of the business and its workforce In recent years and also in the globalised economies, the world has witnessed the dramatic entrance and success of Indian corporations in the global marketplace.

With the continued influx of multinational corporations in India—as well as Indian corporations expanding beyond their own borders—the opportunities for India to contribute to the world economy have significantly increased, with the likelihood of favourable outcomes for “Brand India” in the domestic and international markets. Thus, as India, Inc. forges forward to make a wider mark in the world, the employer brand as a strategic HR tool will take on greater importance in Indian organizations—in how it is developed, communicated, marketed and ultimately.

Big companies of India are using to solidify their brand to tap the tremendous growth potential that diverse markets represent. In product marketing, consumers make purchase decisions based on their brand perceptions and expectations of the brand experience. Similarly, for enhancing the brand image of these companies, employer branding not only would enhance and solidify corporate reputation for fairness, inclusion and opportunity for all, but also encourage more motivations and productivities in the work. Employer branding closely relies on marketing concepts for highlighting the positioning of a company as an employer.

The ‘customer’ here is the ‘employee/potential employee’, while the aim remains the same: attracting new customers while retaining the current ones. Also, just like a consumer brand, the employer brand highlights the emotional and rational benefits that the employer provides to the employees. 2. Literature Review: There are a lot of theories about marketing and branding, and a large number of literatures discussing corporate image and corporate reputation, however, there are only a few theories available concerning employer branding, especially the linkage between employer brand and consumer marketing communication methods.

A brand was defined as a name, term, sign, symbol or design, or combination of them which is intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitors (Gardner ; Levy,1995). However, in recent years, especially in today’s competitive market, employer branding is used to recruit and retain good employees from a diverse work force.

Most companies tend to promote factors that make their firm a good place to work and also offering a bright and cheerful office space, an ethos of collaboration and teamwork, flexible working hours, creche facilities, or even an excellent canteen. Levering (1996) has opined that a good workplace is believed to produce higher quality products, support more innovation, have the ability to attract more talented people, and experience less resistance to change and lower turnover costs, all of which translate directly into a better bottom line.

According to Sutherland, Torricelli, ; Karg (2002), in organization’s skilled employees are hard to attract and difficult to retain and it has become critical to business success. The employer branding is used for corporate identity and reputation which communicates its image to current and potential employees. Luthans and Peterson (2002) have found employees who are engaged in their organization with satisfaction demonstrate good performance and achieve success. This helps the corporate managers to be more effective and successful, which in turn increases the manager’s self e efficacy.

Research has shown that self e efficacy is positively linked to work performance, in that individuals with higher self e efficacy are more likely to be proactive in initiating work, and show sustained effort and determination in their pursuit to achieve the task, even when problems occur. According to Robert ; Dowling (2002), superior performing firms have a greater chance of sustaining superior performance over time if they also possess relatively good reputations. It is consistent with the growing body of strategy research that links high quality intangible assets with sustained superior performance.

Collins and Stevens (2002) have also stated that early recruitment and advertising may have beneficial effects on increasing the quantity and quality of applicants. Fulmer, Gerhart and Scott (2003) have analyzed employer branding policies on top 100 US companies. They found that employer branding policies were associated with not only stable and highly positive workforce attitudes but also had effect on organization’s performance. Turban and Cable (2003) have argued that firms higher in corporate social performance (CSP) have more positive reputations and are more attractive employers to employees than firms lower in CSP.

Such results suggest that potential applicants are aware of firms’ CSP and that those with more positive ratings may have competitive advantages because they attract more potential applicants than firms. Levinson (2007) also suggests that employees who are happy in their work are more likely to stay in that organization, and found that work engagement is significantly related to organizational commitment. 3. Employer branding:- Conceptual ; theoretical foundation Employer branding is the process to communicate an organization’s culture as an employer in the marketplace.

An employer brand is the sum of all the characteristics and distinguishable features that prospective candidates and current employees perceive about an organization’s employment experience. The employment experience serves as the foundation of the employer brand and includes tangible features such as salary, rewards and benefits, but also extends to intangibles such as an organization’s culture, values, management style and opportunities for employee learning, development and recognition. Figure 1, which is described below gives an idea about employer branding and its determinants.

In establishing employer branding, organizational identity comes when there is a common ownership of an organizational philosophy which is manifested in a distinct corporate culture. It helps organizations to enhance employer brand identity. An organization’s image refers to how the potential and existing employee receives and perceives the employer brand. Organizational culture is an idea in the field of organizational studies and management which describes the psychology, attitudes, experiences, beliefs and values (personal and cultural values) of an organization.