In articles and industry journals, the three concepts of Employer Branding, Employee Engagement and company productivity are so closely linked, it often seems as if the phrases are used interchangeably. These three ideas do not refer to the same thing – but they are extremely interrelated. If you consider Employer Branding as the strategy, employee engagement can be seen as a measureable by-product and productivity should be your result.
Employer Branding sets the strategy to address and measure the ROI on productivity. Successful branding initiatives are highly customized from organization to organization – or even between departments in the same organization. Branding has to start by looking at the goal and working back from that. What does the company want to achieve? How do they measure success? Aside from the bottom line, what else does productivity look like? Every company will have a unique context and it’s critical to choose milestones and measures that are relevant to that context.
Employee engagement is often described as the measure of overall happiness at work. Employee engagement is not really a stand-alone initiative. It’s a measurement of all the little things that add up to how valued an employee feels, and how much they value what the company has to offer them. Employer Branding starts with this EVP as the base. What does the company have to offer their employees or potential employees? Branding can help companies describe their benefits, their culture, and tell their stories in a way that will showcase all the advantages that organization can offer the right people. Successful branding ensures that you communicate with your employees in a way that aligns with their own experiences. It helps organizations reinforce and show appreciation in a way that is consistent and is valued by employees. Employees who understand that they are an essential and valued contributor are more engaged employees. More engaged employees are more likely to stay longer and grow their careers with a company. They are more likely to speak positively of the company and become brand ambassadors within their communities. Engaged employees are happier employees and happier employees are more productive employees.
In fact, research has quantified that happier people are 12% more productive – according to a study from the University of Warwick, to be published in the Journal of Labour Economics. This productivity goes beyond the individual employee, as multiple studies from organizations like Great Place to Work, or Healthstream Inc demonstrate that organizations with higher employee engagement, who effectively value their employees, show a higher return on equity and assets than companies that don’t. Looking at “Fortune’s 100 Best Companies to Work For”, stock prices rose an average of 14% per year from 1998-2005 compared to 6% in overall market.
Productivity is the end result of successful employer branding, leading to higher employee engagement.