Employer Branding - A New Tool of Strategic HRM for Corporate Competitiveness

Abstract

An employer brand represents the core values of an organisation. Organisations that are considered as good employers have a strong identity and a positive image in the marketplace. To be successful, they need to attract the employee market. Marketing tools associated with brand management have been applied by the HR (human resources) in order to attract, engage and retain employees in the same way as marketing applies such tools to attract and retain customers. 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, organisations have started to invest in employer branding as employees are the internal customers of the firm. The employer brand builds an image, confirming the organisation as a good place to work. Today, an effective employer brand is essential for competitive advantage. With the liberalisation of economy and subsequent economic reforms, companies are becoming internationally strategic to utilise the employer brand to attract and retain talent, which leads to expand and growth of the business. This paper throws some light on the employer branding and also helps to examine how organisations with a positive corporate reputation can attract and retain employees. It also focuses on explaining the importance, applicability and outcome of creating an effective employer branding strategy of the companies.