Documente Academic
Documente Profesional
Documente Cultură
Introduction
Employer branding is the image of the organization as perceived by the employees as well
as other stakeholders. It helps differentiate a firm from its competitors. The employment
brand highlights the unique aspects of the firms employment offerings. Employer
branding is about capturing the essence of a company in a way that engages employees and
other stakeholders. It involves promoting both within as well as outside the firm and
makes a firm different and desirable as an employer. The manifold objective of employer
branding is to convince the employees that their organization is a good workplace, to
retain them and to ensure their understanding of the organizations goals and
commitment is in synchronization with the organizations vision and mission. The process
of employer branding can be viewed as a holistic one, which presents the way in which
the organization develops its employees positive attitude and commitment towards the
organization.
Organizations comprise both external and internal stakeholders. The internal
stakeholders are individuals who reside inside the company as board members, executives,
managers, employees and trade unions and who benefit directly from their contributions
to the growth of the company. They are committed to serve their organization. The
internal marketing concept specifies that an organizations employees are its first market.
Employees are the most important internal stakeholders as they play a vital role in the
growth and sustainability of the organization. Internal marketing is important because it
*
Postgraduate Student, Delhi Institute of Advanced Studies, New Delhi, India; and is the corresponding
author. E-mail: kanikasehgal99@gmail.com
* * Faculty, Department of Management, Delhi Institute of Advanced Studies, New Delhi, India.
E-mail: malati_nvs@yahoo.com
Employer
Branding:
A Potent
Organizational Tool
2013 IUP
. All Rights
Reserved.
for Enhancing Competitive Advantage
51
carries the brand promise made to recruits in the firm and incorporates it as a part of
the organizational culture. The goal of internal marketing, also known as internal
branding, is to develop a workforce that is committed to the set of values and
organizational goals established by the firm. Employees who feel good about the synergy
between the business model and brand values tend to stay longer and be more engaged,
leading to higher productivity. Employer branding enhances the level of staff engagement
and also minimizes the loss of talented employees. It increases the productivity and
profitability of the organization and also improves employee relations. Being an employer
of choice not only ensures that the employee joins the company and stays with it but also
identifies with its visions, values and gives it loyalty, commitment and performance. A
good employer brand helps maintain the organizations core competencies and ensures
long-term competitiveness.
According to Figure 1, potential employees develop an employer brand image to form
brand associations that are an outcome of the firms employer branding. Also, employer
brand loyalty is a function of organizational identity and organizational culture which
ultimately lead to enhanced employee productivity.
Figure 1: Employer Branding Framework
Employer
Brand
Associations
Employer
Branding
Organization
Identity
Organizational
Culture
Employer
Brand
Loyalty
Employer
Image
Employer
Attraction
Employee
Productivity
Hotels in India are broadly classified into seven categories (five star deluxe, five star,
four star, three star, two star, one star and heritage hotels) by the ministry of tourism,
Government of India, based on the general features and facilities offered. Some of the
major players in the hotel industry are: The ITC, The Oberoi, The Leela, The Taj Hotels,
The Bharat Hotels Group, The Ashok Group and The Jaypee Hotels Limited. Based on
the financial performance and the market capitalization, The ITC, The Oberoi and The
Leela are among the top 10 hotels in India.
HR managers in the hotel industry are challenged by a rise in the shortage of skilled
workforce and competition from within the hotel sector. Both these factors, combined
with the inability of new comers to cope with the work pressure, are contributory to the
high attrition levels in the hotel industry. To overcome this challenge, the HR managers
in the hotel industry tend to make use of employer branding as a strategy to appeal to
desired current and future ideal talent. There are a lot of branding practices that are
adopted by the hotels to develop a good brand image and to attract better employees as
well as increased customers.
This paper tries to comprehend the employee perspective towards the employer brand
of the organizations in the hotel industry.
Literature Review
Many managers argue that externally oriented marketing is difficult enough without
introducing the notion of internal customers (Ewing and Caruana, 1999). The internal
marketing concept argues that the organizations personnel are the first market of any
company (George and Gronroos, 1989; and George 1990), the rationale being that
employees are internal customers and jobs are internal products. Job products must attract,
develop and motivate employees, thereby satisfying the needs and wants of these internal
customers, while addressing the overall objectives of the organization (Berry and
Parasuraman, 1991). According to Barrow (2007), great Employer Brands are built from
inside out and the process starts at the top. In fact, Kotler (1994) defined internal
marketing as the task of successfully hiring, training and motivating able employees to
serve the customer well. Successful hiring of employees in Kotlers (1994) definition
examined how astute employers can embrace the principles and practices associated with
external brand management and marketing communication, internally. In other words, it
extends beyond the HRM notion of recruitment advertising (Gatewood et al., 1993) and
considers how firms might assess the degree to which they are considered to be employers
of choice and in the process, attract the highest-calibre employees. It is generally
recognized that intellectual and human capital is the foundation of competitive advantage
in the modern economy. Accordingly, the contest among employers to attract and retain
talented workers takes place in a world where technological advances and global
competition are driving widespread change in employment patterns (Osborn-Jones, 2001).
Organizations are increasingly competing to attract highly skilled personnel in various
professional areas (Mahroum, 2000). There is a possibility that, in future, competition for
Employer Branding: A Potent Organizational Tool
for Enhancing Competitive Advantage
53
the best employees will be as fierce as competition for customers. Organizations that can
attract the best minds will have a distinct edge in the marketplace (Harari, 1998). The
concept of employer brand has become an important development since the early 1990s.
Ambler and Barrow (1996) defined the term employer branding and considered it a
package of functional, economic and psychological benefits provided by employment and
identified with the employing company. Sullivan (1999) stated it to be the hottest
strategy in employment and also claimed that it is fundamental to employer branding that
the employer brand be consistent with all other branding efforts of the firm. Walker
(2007) opined that employer branding is a set of attributes and qualities that makes an
organization distinctive and promises a particular kind of employment experience. It
appeals to those people who will thrive and perform to their best in its culture. Peters
(1999) purported that branding was originally used to differentiate tangible products, but
over the years it has been applied to differentiate between people, places and firms. Priem
and Butler (2001) opined that we commonly think of plant, equipment and capital as
resources that create competitive advantage; human capital has also been shown to
operate as an important resource creating competitive advantage. According to Ind
(2007), companies need to involve employees in the early stages of building their employer
brand or else the employees would not see the brand as more than something to do with
a logo creation. Employee participation results in creating a sense of brand ownership and
this generates understanding and commitment.
According to the Manpower quarterly India hiring survey, one in three employers in
the hospitality and leisure industry is expected to hire all across the countrymore than
any other sector. The net employment outlook for hospitalitywhich factors out
employers that expect layoffs or other staff reductionsis 27%, or more than twice, as
robust as education and healthcare, information or construction, which typically hire
many people in the spring and summer months. According to Diana M Meisenhelter,
Principal of Long Beach, Calif.-based Riviera Advisors, a Management Consultancy
focused on talent-management issues, The hotel business in particular demands that
talent-seekers step up. We need to be strategic in finding the right people that provide
desired results to our clients (Retrieved from http://www.hotel-online.com/News/
PR2007_3rd/Sept07_HRConf.html). Gehrels and Looij (2010) examined the current
problems in the hospitality industry and formulated a number of suggestions to implement
employer branding in the hotel industry. According to Kimpakorn and Tocquer (2007),
lack of a significant relationship between employees perception of the employer brand
differentiation and employees brand commitment, in the hotel industry occurs due to two
reasons. Firstly, employees do not see any differentiation between hotels management
practices, and secondly, the employer brand differentiation with competitors does exist
only at the cognitive level and they do not influence employees brand commitment
significantly. They state that in order to increase the level of employees brand
commitment, the major strategic and operational emphasis of hotel management should
54
Hypothesis
H1: There is no significant difference in the employees perspective towards the branding
practices carried out at the hotels.
Methodology
A structured questionnaire (Appendix) was designed to collect the data. Different factors
were identified through literature review and exploratory study. The questionnaires were
prepared for the employees of the three hotels. Validity of the questionnaires was checked
through face validity method and was found to be high. Items were rated on a Likert scale
of five points which is the most popular choice for ordinal scale. The opinions indicated
as strongly agree were assigned a weight of 5. The questionnaires were pretested on a
sample of 30 employees and then the reliability test was carried out using SPSS 17.0. There
were six sub-headings in the questionnaire. Question no. 1-3 dealt with recruitment,
4-7 with employment experience, 8-10 with training and development, 11-13 with
employee benefits, 14-15 with exit and 16-20 with brand management. Cronbachs alpha
was computed for each subheading. The value of the Cronbachs alpha for recruitment (for
3 items) was 0.829, employment experience (for 4 items) was 0.851, training and
development (for 3 items) was 0.811, employee benefits (for 3 items) was 0.803, exit
(for 2 items) was 0.827 and brand management (for 5 items) was 0.838. One-way Anova
and post-hoc test were applied to test the difference in the employees perspective towards
the branding practices carried out at the hotels.
55
Recruitment
(Participation in Job
Fairs)
Recruitment (Use of
Employee Referral
Programs)
Employment Experience
(Strong Clear Company
Culture)
Employment Experience
(Effective Employee
Communication and
Consultation)
56
Sum of
Squares
df
Mean
Square
Sig.
25.620
0.000
13.150
0.000
0.055
0.946
1.783
0.173
0.220
0.803
Between Groups
14.617
7.308
Within Groups
33.375
117
0.285
Total
47.992
119
Between Groups
13.117
6.558
Within Groups
58.350
117
0.499
Total
71.467
119
Between Groups
0.050
0.025
Within Groups
52.875
117
0.452
Total
52.925
119
Between Groups
0.950
0.475
Within Groups
31.175
117
0.266
Total
32.125
119
Between Groups
0.217
0.108
Within Groups
57.650
117
0.493
Total
57.867
119
Table 1 (Cont.)
Sum of
Squares
Employment Experience
(Stays Interviews)
Between Groups
Mean
Square
Sig.
3.535
0.032
22.011
0.000
3.617
1.808
Within Groups
59.850
117
0.512
Total
63.467
119
df
7.817
3.908
20.775
117
0.178
28.592
119
1.817
0.908
Within Groups
37.775
117
0.323
Total
39.592 119
Between Groups
Training and
Development (Career
Progression)
Between Groups
4.550
2.275
Within Groups
55.775
117
0.477
Total
60.325 119
Training and
Development
(Employee
Development Programs)
Between Groups
Employee Benefits
(Regular Reward
Programs)
Between Groups
7.717
3.858
Within Groups
54.650
117
0.467
Total
62.367 119
2.450
1.225
Within Groups
29.875
117
0.255
Total
32.325 119
Employee Benefits
(Unique Benefits like
Discounts to Fitness
Clubs)
Between Groups
27.350
13.675
Within Groups
48.575
117
0.415
Total
75.925 119
Employee Benefits
(Provision of
Sabbaticals)
Between Groups
47.450
23.725
Within Groups
49.675
117
0.425
Total
97.125 119
Exit (Effective
Implementation of the
Feedback of Exit
Interviews)
Between Groups
3.317
1.658
Within Groups
27.350
117
0.234
Total
30.667 119
Between Groups
3.800
1.900
Within Groups
61.400
117
0.525
Total
65.200 119
2.813
0.064
4.772
0.010
8.260
0.000
4.797
0.010
32.938
0.000
55.880
0.000
7.094
0.001
3.621
0.030
57
Table 1 (Cont.)
Sum of
Squares
Training and Brand
Management (Use of
Social Media)
Between Groups
Within Groups
Total
df
Mean
Square
Sig.
181.834
0.000
130.041
0.000
115.779
0.000
40.543
0.000
2.173
0.118
109.800
54.900
35.325
117
0.302
145.125 119
Brand Management
(Association with a
Charitable Trust or
NGO)
Between Groups
87.917
43.958
Within Groups
39.550
117
0.338
Brand Management
(Align with a
Celebrity)
Between Groups
80.600
40.300
Within Groups
40.725
117
0.348
Brand Management
(Sponsorship of Events)
Between Groups
33.717
16.858
Within Groups
48.650
117
0.416
Total
82.367 119
Brand Management
(Managing the
Potential Employees
Perception of the
Brand)
Total
Total
Between Groups
127.467 119
121.325 119
1.217
0.608
Within Groups
32.750
117
0.280
Total
33.967 119
Post-hoc test organizes the means of the three groups into homogeneous subsets.
Subsets of means that do not differ from each other go together, and subsets that differ
go into separate columns. Groups that do not show up in the same column are significantly
different from each other according to the Tukey Multiple Comparison Procedure.
Table 2 shows that for the practicesemployee development programs, unique benefits
like discounts to fitness clubs, use of social media, association with a charitable trust or
NGO and align with a celebrity, hotel ITC is significantly different as compared to hotel
Oberoi and hotel Leela. It has been observed that for the practicestie-ups with B-schools,
regular reward programs and exit interviews, hotel Leela is significantly different as
compared to hotel ITC and hotel Oberoi. In case of the practicescreating a great place
to work, provision of sabbaticals and sponsorship of events, all the three hotels are
significantly different. For participation in job fairs, hotel ITC and hotel Leela are similar
in comparison to hotel Oberoi. In case of stay interviews, hotel ITC and hotel Oberoi are
significantly different, while hotel Leela is not different from either of the two. For career
progression, hotel Oberoi and hotel Leela are significantly different,
whereas hotel ITC is not different from either of the two. In case of the practice
effective implementation of the feedback of exit interviews, hotel ITC and hotel
Leela are significantly different, whereas hotel Oberoi is not different from either of the two.
58
Company
Name
Tukey HSDa
Tukey HSDa
40
3.480
Oberoi
40
3.550
Leela
40
Employment
Experience (Stays
Interviews)
Tukey HSD
ITC
40
Oberoi
40
Leela
40
Tukey HSDa
Training and
Development
(Career
Progression)
Tukey HSD
Tukey HSDa
Employee
Benefits (Regular
Reward
Programs)
Tukey HSD
2.480
0.946
Oberoi
40
1.850
Leela
40
2.080
2.080
0.341
0.426
2.280
ITC
40
Oberoi
40
4.250
Leela
40
3.950
ITC
40
Oberoi
40
Leela
40
3.620
1.000
1.000
3.900
3.900
3.700
ITC
40
Oberoi
40
2.450
Leela
40
2.420
0.180
2.980
0.985
1.000
ITC
40
4.450
Oberoi
40
4.400
Leela
40
Sig.
Employer Branding: A Potent Organizational Tool
for Enhancing Competitive Advantage
1.000
4.180
0.401
Sig.
a
1.800
40
Sig.
Training and
Development
(Employee
Development
Programs)
1.000
ITC
Sig.
a
2.520
1.000
Sig.
Employment
Experience
(Creating a Great
Place to Work)
4.250
0.805
Sig.
a
ITC
Sig.
Recruitment
(Participation in
Job Fairs)
4.120
1.000
0.898
59
Table 2 (Cont.)
Employer
Branding
Company
Employee
Benefits (Unique
Benefits like
Discounts to
Fitness Clubs)
Tukey HSDa
Employee
Benefits
(Provision of
Sabbaticals)
Tukey HSDa
Exit (Exit
Interviews)
Tukey HSD
N
40
Oberoi
40
2.18
Leela
40
2.20
40
Oberoi
40
Leela
40
Tukey HSD
Brand
Management
(Use of Social
Media)
Tukey HSD
Tukey HSDa
Brand
Management
(Align with a
Celebrity)
Tukey HSD
Brand
Management
(Sponsorship of
Events)
Tukey HSD
40
4.42
Leela
40
ITC
40
2.95
Oberoi
40
3.30
Leela
40
40
Oberoi
40
2.38
40
2.52
0.443
ITC
40
Oberoi
40
2.60
Leela
40
2.72
ITC
40
Oberoi
40
2.72
Leela
40
2.48
40
Leela
40
60
1.000
1.000
4.32
0.145
Oberoi
0.949
4.48
0.603
40
3.30
4.48
Leela
ITC
0.889
3.35
0.082
ITC
1.000
4.10
1.000
Sig.
Note:
1.000
Oberoi
Sig.
a
2.30
4.48
Sig.
a
3.82
40
Sig.
Brand
Management
(Association with
a Charitable Trust
or NGO)
1.000
ITC
Sig.
a
3.25
1.000
Sig.
Exit (Effective
Implementation
of the Feedback
of Exit
Interviews)
2
3.20
0.984
ITC
Sig.
ITC
Sig.
1.000
4.45
4.02
3.18
1.000
1.000
1.000
The employer branding practices which are prevalent at hotel ITC and need to be
incorporated by hotel Oberoi and hotel Leela are use of social media, corporate social
responsibility and also, association with a celebrity to increase their visibility and create
a good brand image.
The overall comparison of the employee perspective towards the branding practices of
hotel ITC, hotel Oberoi and hotel Leela shows that there is a significant difference in the
branding practices of the three hotels (p < 0.05) (Table 3).
Table 3: One-Way Anova Test Overall Comparison
ANOVA
Mean
Sum of Squares
df
Mean Square
Sig.
Between Groups
5.948
2.974
31.729
0.000
Within Groups
10.967
117
0.094
Total
16.916
119
ITC
40
Oberoi
40
3.3722
Leela
40
3.2472
2
3.7694
Sig.
0.166
1.000
Note: Means for groups in homogeneous subsets are displayed; Uses Harmonic Mean Sample Size = 40.000.
a
Conclusion
Employer branding is an emerging topic, and organizations are trying to formulate
practices to implement the same in organizations. Employer branding involves promoting,
both within and outside the firm, a clear view of what makes a firm different and desirable
as an employer. In order to develop a strong employer brand, it is necessary to demonstrate
what is specific about an organization and its culture. In the hotel industry, there are a
lot of branding practices that are carried out to help the organizations in creating a good
brand image and attracting better employees as well as increased customers. The ITC, The
Oberoi and The Leela are good employer brands in the hotel industry. A variety of
Employer Branding: A Potent Organizational Tool
for Enhancing Competitive Advantage
61
branding practices are adopted by these hotels, which has strengthened their brand
positioning and also increased their attractiveness as a potential employer.
There exists a significant difference in the employee perspective towards the employer
branding practices of the hotelsThe ITC, The Oberoi and The Leela. The mean score
of hotel ITC is the highest (3.77), followed by hotel Oberoi (3.37) and then hotel Leela
(3.25). Hence, as per the employee perspective, hotel ITC ranks 1st, hotel Oberoi ranks 2nd
and hotel Leela ranks 3rd in context of employer branding practices. In case of the financial
performance and market capitalization also, hotel ITC ranks first, followed by hotel Oberoi
and then hotel Leela. This indicates that being a good employer translates into positive
organizational performance enabling the organizations to attract the best of talents, thereby
providing them with a steady flow of recruits. hotel Oberoi and hotel Leela ought to employ
practices such as use of social media, corporate social responsibility and also, association
with a celebrity to increase their visibility and create a good brand image.
Organizations in the hotel industry are facing the challenge of retaining their best
employees. In order to retain the talented workforce they need to adopt practices like
effective leadership, teamwork, training and development, challenging work environment,
rewards and recognition, balance between personal life and career and flexible work
schedule. The need of the hour is to adopt out-of-the-box thinking and take up
innovative initiatives to create and sustain a competitive advantage within the global
economy. Effective employer branding takes a proactive approach by identifying desired
brand associations and then striving to develop these associations. It is through proactive
efforts that the organizations can reduce the likelihood of losing the critical employees
and surge ahead successfully, thereby creating a distinct edge in the marketplace.
References
1. Ambler T and Barrow S (1996), The Employer Brand, Journal of Brand Management,
Vol. 4, No. 3, pp. 185-206.
2. Barrow S (2007), The Future of Employer Branding and HR Research Insight , The
Chartered Institute of Personnel and Development, pp. 12-14, London.
3. Berry L L and Parasuraman A (1991), Marketing Services. Competing Through Quality, The
Free Press, New York.
4. Ewing M T and Caruana A (1999), An Internal Marketing Approach to Public Sector
Management: The Marketing and Human Resources Interface, International Journal of
Public Sector Management, Vol. 12, No. 1, pp. 17-26.
5. Gatewood R D, Gowan M A and Lautenschlager G J (1993), Corporate Image,
Recruitment Image and Initial Job Choice Decisions, Academy of Management Journal,
Vol. 36, No. 2, pp. 414-427.
6. Gehrels and Looij (2010), Employer Branding: A New Approach for the Hospitality
Industry, retrieved from http://www.eurochrie2010.nl/publications/1023.pdf
62
63
Appendix
Questionnaire
Name:
Age:
Less than 25
25-35
More than 35
Gender:
Male
Female
Education:
Graduate
Postgraduate
Others
Tenure:
5-10 years
Designation:
Managerial
Non-Managerial
Organization:
The Oberoi
The ITC
The Leela
Survey Questions:
Using the scale below, please select the response that best describes your opinion about the
branding practices carried out at your company:
(1-Never, 2-Rarely, 3-Sometimes, 4-Mostly and 5-Always)
S. No.
Strategies
Recruitment
1.
2.
3.
4.
5.
6.
Stays interviews
7.
8.
Proper training
9.
Career progression
10.
64
11.
12.
Appendix (Cont.)
S. No.
13.
Strategies
Provision of sabbaticals
Exit
14.
Exit interviews
15.
16.
17.
18.
19.
Sponsorship of events
20.
Reference # 25J-2013-03-03-01
65
Copyright of IUP Journal of Brand Management is the property of IUP Publications and its content may not be
copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written
permission. However, users may print, download, or email articles for individual use.