Most companies invest heavily in compensation and benefits to win the war for talent, neglecting their best weapon: their brand.
To attract the right people with the right skills for future business success, a positive public perception is vital. Companies often suffer or benefit from a pervasive industry stereotype that precedes them but, in reality, may not apply to them.
Companies in an industry with a poor brand must promote their own image and stand above the crowd. Otherwise, even companies that offer high growth, progressive policies, innovation, societal awareness and/or work flexibility might need to pay a premium on market rates to attract talent away from trendy industries. This begs the question: If your company — or worse yet, your entire industry — is plagued by a negative brand, who fixes it and how? Conversely, if your industry and company are riding high on a positive brand for the newest thinking and brightest future, how do you maintain that standing?
In either case, attracting talent is a job for the brand or marketing team more than the compensation, benefits or corporate responsibility teams. Let’s look at a tale of two industries:
Technology
Technology companies have been the hot commodity for talent, seen as the disruptors and innovators of the future. They all fell under the branding umbrella of famous luminaries, cool office spaces and high entry-level salaries. But the shiny reputation of tech companies in Silicon Valley is becoming muted from some self-generated issues as well as external impressions. A few companies have been faulted for a lack of setting behavioral standards. Many tech companies have fulfilled the promise of disruption, but some have not fully lived up to workers’ values. Outside the tech industry, some people worry that tech advancements might steal jobs. Fear of a product and frustration with a corporate culture can potentially hurt recruiting and retention of new generations of workers.
Meanwhile, companies in traditional industries aim to attract talent, leveraging the strength of their values while incorporating the best of the tech industry's reputation for disruption, creative license and investment in innovation. Companies ranging from consumer services to aviation are beginning to proclaim they are tech companies, hoping to woo top engineers, software developers and designers.
Oil And Gas
A recent study for the oil and gas (O&G) industry by our firm found recruitment is challenged by a lower public awareness of the industry's modern attributes and strengths.
The workforce of today and tomorrow (millennials and Gen Zers) saw the mature industry as old-fashioned and recalled sharp memories of a few environmentally destructive news events. Without awareness of the industry’s operational innovation and exploration of new resources, some questioned its economic and ecological sustainability. This image becomes a hurdle for leading O&G companies to recruit the most qualified talent.
This is where brand management and promotion makes a difference. O&G, one of the country’s biggest employment sectors, is growing and creating jobs. Its product has a larger purpose: energy runs our homes, our cars and our hospitals, and it makes all other industries possible. The sector is also a leader in technological advancement, with heavy investment in clean energy and harvesting shale to keep the country energy-independent. In other words, the O&G employee has many reasons to be proud, engaged and excited about the future of the industry. But nobody knows it.
Fortunately, O&G companies are learning to communicate those advantages more clearly, and the timing is right. By publicly and voluntarily upholding the environmental standards originally agreed to in the Paris Agreement, these companies have taken the opportunity to signal their commitment to alter the perception of the entire sector.
Steps To Rebranding
There are ways to build, protect or change your brand. Even if CEOs innovate and commit to purpose, their companies must proactively celebrate the changes internally and consistently promote them externally. Four steps to communications that make it easier to attract talent include:
1. Announce the new you. Offer visibility to new hires, promoted leaders and experts who drive your desired image, and feature milestones in corporate social responsibility. Make search optimization work for you as potential employees research your firm. Consider hiring a brand manager from a well-respected company to develop an impactful marketing campaign that will change the perception of your brand.
2. Lead the industry. Don’t be shy about announcing a change that fixes a perceived problem, then maintaining a campaign to communicate the new corporate direction. Gaining a reputation as a problem-solver creates a competitive advantage in the war for talent. For industry-wide issues, consider leading a coalition to drive image change en masse to draw talent to the industry.
3. Rethink leadership recruitment. Take the risk of recruiting business leaders from outside your sector. The fresh perspective could bring more value than industry expertise. Let these leaders stand tall for innovation, opportunity and purpose, and visibly promote empathy in designing both future products/services and career paths for their employees. As influencers, they will become critical culture carriers across the organization.
4. Build a workforce of believers and ambassadors. By committing to a common purpose and engaging all employees, companies plant seeds of pride and ownership. Offer visibility to employees who will carry the corporate torch. A workforce of engaged ambassadors empowers every branding program with credibility and grassroots recognition.
Today’s CEOs in all industries know they need to change their business models, services, products and operations to stay relevant. This gives every company an opportunity to improve or reinforce its brand. Those in front need to protect their image. Those playing from behind need to promote their progressive ways that build on their valued traditions.
These steps of consistent internal and external communications can create a positive perception that attracts top talent. “Right” will only make “might” if you manage perception and reinforce your brand every day in every way.
The views expressed are those of the author and do not necessarily represent the views of Ernst & Young LLP or any other member firm of the global Ernst & Young organization.
