The million-dollar question in today’s competitive recruitment market.
The latest buzz these days in the recruitment world is the notion of being an “Employer of Choice”. It seems you can’t read a newspaper or attend a symposium without tripping across this ubiquitous term. So what’s it all about? Is your company or department an Employer of Choice? Should it be?
According to John Sullivan, profesor of HR management, San Francisco State University, “An Employer of Choice is a term used by recruiters to designate a company that, because of its status and reputation, is always the first choice (or at least on the short list) of world class candidates.”
I would go a little further and say an Employer of Choice is the company or department that everyone wants to work for — not necessarily just the world-class candidates. It’s the company that is featured in the media for their innovation and creativity; and the one whose CEO is quoted and featured in everything from presentations to articles. (How many times have you seen Jack Welch’s name recently?) Publicity is only the half of it. It seems there are many reasons for striving for this esteemed position.
There are certain advantages to being an Employer of Choice in today’s burgeoning economy. Being an Employer of Choice means increased exposure and lower long term recruitment, retention and marketing costs. As your employees champion the news about your organization, you benefit from increased exposure at a significantly lower cost with less effort. Similarly, consider the value of the local media featuring your organization, or the advantage of being a consulting company’s poster child for best practices.
In addition to the savings, you also get to reap the rewards of increased productivity (people are motivated to work for winners). Companies that hold the title of Employer of Choice tend to attract the best and brightest talent. To say the least, this translates into competitive advantages and respect within your industry. Of course, we must not forget the joy of the shareholders as stock prices jump into the stratosphere.
Criteria
But what are the criteria for attaining this prized position? While there is no set definition to describe a company that holds the title of Employer of Choice, there are common characteristics and approaches shared by these enlightened organizations. At the risk of over-simplifying a complex program, there are five concepts to being an Employer of Choice, and within these concepts there are a myriad of approaches. The concepts of individualization, alignment to culture, communication, shared risk and responsibility and commitment are required if your organization is to become an Employer of Choice.
individualization
Individualization is realized in a number of approaches from compensation and employee relations to branding. Organizations can no longer afford to treat everyone the same. Pay for performance, flex hours and sabbaticals are a few examples of how companies can ensure employees’ individual attributes and contributions can be recognized. No one wants to be treated like a number anymore — especially top talent. Company branding is another form of individualization that allows organizations to stand out and declare their uniqueness. Companies that stand out from the crowd have a distinct advantage over their competition.
environment
Recruit, hire and keep those individuals who are motivated by your environment. The “alignment to culture” concept is mainly realized during the recruitment cycle. Do your employees respect and believe in your value proposition? Is the nature of your business one that your employees take pride in? Do you and your employees share common values? This is not brain surgery. Hire people who share your vision and believe in the approach you are taking to get there.
communication
Communication is so vitally important, and yet is usually so poorly done. People would rather have all the news — the good and the bad — rather than a fraction of the truth. Be honest with your people. Set expectations and live up to them, or at the very least explain why you aren’t meeting your goals. Trust them with the truth, and trust will likely be returned. Congruency between internal and external communications is vital — walk the talk — or explain why you can’t. Create excitement and enthusiasm, if you are not excited how do you expect anyone else to be?
shared risk
The concept of shared risk and responsibility is one that is more easily attained in smaller companies. However, to give large organizations credit where it is due, in the past few years they have been trying to level the playing field by increasing the level of authority and responsibility for most employees. Ideally, employees should feel empowered to do their jobs as they see fit. Freedom to make decisions, set work schedules and contribute fully should be the norm — creating an environment that fosters creativity and innovation, and results in both the company and employees reaching their full potential.
commitment
Commitment is the key to success in almost any undertaking; hence commitment to community, employees, customers and your industry are all mandatory in an effort to becoming an Employer of Choice. How can you show commitment to these individual groups? It is often as simple (and as complex) as community involvement — giving back to your community in some form or another; or by providing clearly defined career paths for your employees. A strong customer service program is often a clear sign of commitment to your customers.
The approaches for implementing these five concepts are numerous. Prior to embarking on such a campaign you would do well to first engage in some reflective thinking to understand your culture and what it is that you are trying to accomplish. Then, and only then, can you begin to build the template that will take you on the path to becoming an Employer of Choice.
Terri Duguay is managing partner of TRANS-IT-IONS HR Consulting Corp. She can be reached via e-mail at [email protected] and welcomes comments.
According to John Sullivan, profesor of HR management, San Francisco State University, “An Employer of Choice is a term used by recruiters to designate a company that, because of its status and reputation, is always the first choice (or at least on the short list) of world class candidates.”
I would go a little further and say an Employer of Choice is the company or department that everyone wants to work for — not necessarily just the world-class candidates. It’s the company that is featured in the media for their innovation and creativity; and the one whose CEO is quoted and featured in everything from presentations to articles. (How many times have you seen Jack Welch’s name recently?) Publicity is only the half of it. It seems there are many reasons for striving for this esteemed position.
There are certain advantages to being an Employer of Choice in today’s burgeoning economy. Being an Employer of Choice means increased exposure and lower long term recruitment, retention and marketing costs. As your employees champion the news about your organization, you benefit from increased exposure at a significantly lower cost with less effort. Similarly, consider the value of the local media featuring your organization, or the advantage of being a consulting company’s poster child for best practices.
In addition to the savings, you also get to reap the rewards of increased productivity (people are motivated to work for winners). Companies that hold the title of Employer of Choice tend to attract the best and brightest talent. To say the least, this translates into competitive advantages and respect within your industry. Of course, we must not forget the joy of the shareholders as stock prices jump into the stratosphere.
Criteria
But what are the criteria for attaining this prized position? While there is no set definition to describe a company that holds the title of Employer of Choice, there are common characteristics and approaches shared by these enlightened organizations. At the risk of over-simplifying a complex program, there are five concepts to being an Employer of Choice, and within these concepts there are a myriad of approaches. The concepts of individualization, alignment to culture, communication, shared risk and responsibility and commitment are required if your organization is to become an Employer of Choice.
individualization
Individualization is realized in a number of approaches from compensation and employee relations to branding. Organizations can no longer afford to treat everyone the same. Pay for performance, flex hours and sabbaticals are a few examples of how companies can ensure employees’ individual attributes and contributions can be recognized. No one wants to be treated like a number anymore — especially top talent. Company branding is another form of individualization that allows organizations to stand out and declare their uniqueness. Companies that stand out from the crowd have a distinct advantage over their competition.
environment
Recruit, hire and keep those individuals who are motivated by your environment. The “alignment to culture” concept is mainly realized during the recruitment cycle. Do your employees respect and believe in your value proposition? Is the nature of your business one that your employees take pride in? Do you and your employees share common values? This is not brain surgery. Hire people who share your vision and believe in the approach you are taking to get there.
communication
Communication is so vitally important, and yet is usually so poorly done. People would rather have all the news — the good and the bad — rather than a fraction of the truth. Be honest with your people. Set expectations and live up to them, or at the very least explain why you aren’t meeting your goals. Trust them with the truth, and trust will likely be returned. Congruency between internal and external communications is vital — walk the talk — or explain why you can’t. Create excitement and enthusiasm, if you are not excited how do you expect anyone else to be?
shared risk
The concept of shared risk and responsibility is one that is more easily attained in smaller companies. However, to give large organizations credit where it is due, in the past few years they have been trying to level the playing field by increasing the level of authority and responsibility for most employees. Ideally, employees should feel empowered to do their jobs as they see fit. Freedom to make decisions, set work schedules and contribute fully should be the norm — creating an environment that fosters creativity and innovation, and results in both the company and employees reaching their full potential.
commitment
Commitment is the key to success in almost any undertaking; hence commitment to community, employees, customers and your industry are all mandatory in an effort to becoming an Employer of Choice. How can you show commitment to these individual groups? It is often as simple (and as complex) as community involvement — giving back to your community in some form or another; or by providing clearly defined career paths for your employees. A strong customer service program is often a clear sign of commitment to your customers.
The approaches for implementing these five concepts are numerous. Prior to embarking on such a campaign you would do well to first engage in some reflective thinking to understand your culture and what it is that you are trying to accomplish. Then, and only then, can you begin to build the template that will take you on the path to becoming an Employer of Choice.
Terri Duguay is managing partner of TRANS-IT-IONS HR Consulting Corp. She can be reached via e-mail at [email protected] and welcomes comments.
