1 The Right ‘Fit’? Bringing Marketing and HR Together: A literature study of employer branding Introduction The role of employees in creating value through delivering experiences to the customer has been recognised in the literature on relationship and internal marketing (Mosley, 2007; Ballantyne, 2000) and researchers have examined how to attract the right employees, motivate them and motivate them to deliver a better performance (Gounaris, 2006; Ahmed & Rafiq, 2003; Ahmed et al., 2003; Rafiq & Ahmed, 1993). Employer branding is an effective marketing strategy which aims to establish the identity of the firm as a unique and desirable place to work, in line with key objectives such as attracting, motivating and retaining the best employees (Backhaus & Tikoo 2004). Employer branding adapts principles from branding theory and applies them to the management of a company’s human resources. As such, employer branding is a cross- functional management approach which encompasses both marketing and HR (Martin et at., 2011; Maxwell & Knox 2009; Hulberg, 2006; Burmann & Zeplin 2004). However, while employer branding has been explored both conceptually and empirically in the marketing literature, limited attention has been paid to the effect of employer brand-supporting behaviour from the HR perspective (Matanda & Oly Ndubisi 2013; Cable & DeRue 2002). This paper addresses this issue by viewing employer branding as a cross-disciplinary topic. Firstly, employer branding is defined and the theoretical background of the employer branding discussed. Secondly, a route to effective implementation of employer branding strategy is proposed which aligns theory from both the Marketing and HR disciplines. 1. What is Employer branding? Employer branding focuses on how organisation-level variables affect employee behaviour. It aims to establish the identity of the firm as a unique and desirable place to work. Its objectives are attracting job applicants in the job market, retaining and motivating the hired employees to deliver a quality performance (Backhaus & Tikoo, 2004). Similarly, Lloyd (2002) also defines employer branding as the sum of a company’s efforts to communicate to existing and prospective staff that it is a desirable place to work (Lloyd, 2002). Lievens (2007) further confirms that employer branding involves promoting internally to existing employees and externally to potential employees “a clear view of what makes a firm different and desirable as an employer”, so that job seekers will be interested in applying for the job, and existing staff members will be inspired to stay (Lievens, 2007) 2. How does employer branding work? Traditionally, a brand’s functional and symbolic attributes influence consumer behaviour (Lam et al., 2012; Van Hoye & Saks 2011; Lievens 2007; Lievens & Highhouse, 2003). Specifically, functional attributes describe the products’ ‘objective, physical, and tangible attributes that a product either has or does not have’ (Lievens and Highhouse 2003). These functional attributes tend to fulfill consumers’ physical needs through using products. The symbolic attributes describe the products’ ‘subjective and intangible attributes that accrue from how people perceive a product and make inferences about it rather than what they think a product does or has’ (Lievens and Highhouse 2003, Park et al. 1986). These symbolic attributes are identified to fulfill consumers’ personal psychological needs and desire for social approval (Backjaus & Tikoo, 2004).
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1
The Right ‘Fit’? Bringing Marketing and HR Together: A literature study
of employer branding
Introduction
The role of employees in creating value through delivering experiences to the customer has
been recognised in the literature on relationship and internal marketing (Mosley, 2007;
Ballantyne, 2000) and researchers have examined how to attract the right employees,
motivate them and motivate them to deliver a better performance (Gounaris, 2006; Ahmed &
Rafiq, 2003; Ahmed et al., 2003; Rafiq & Ahmed, 1993). Employer branding is an effective
marketing strategy which aims to establish the identity of the firm as a unique and desirable
place to work, in line with key objectives such as attracting, motivating and retaining the best
employees (Backhaus & Tikoo 2004).
Employer branding adapts principles from branding theory and applies them to the
management of a company’s human resources. As such, employer branding is a cross-
functional management approach which encompasses both marketing and HR (Martin et at.,
2011; Maxwell & Knox 2009; Hulberg, 2006; Burmann & Zeplin 2004). However, while
employer branding has been explored both conceptually and empirically in the marketing
literature, limited attention has been paid to the effect of employer brand-supporting
behaviour from the HR perspective (Matanda & Oly Ndubisi 2013; Cable & DeRue 2002).
This paper addresses this issue by viewing employer branding as a cross-disciplinary topic.
Firstly, employer branding is defined and the theoretical background of the employer
branding discussed. Secondly, a route to effective implementation of employer branding
strategy is proposed which aligns theory from both the Marketing and HR disciplines.
1. What is Employer branding?
Employer branding focuses on how organisation-level variables affect employee behaviour. It
aims to establish the identity of the firm as a unique and desirable place to work. Its
objectives are attracting job applicants in the job market, retaining and motivating the hired
employees to deliver a quality performance (Backhaus & Tikoo, 2004). Similarly, Lloyd
(2002) also defines employer branding as the sum of a company’s efforts to communicate to
existing and prospective staff that it is a desirable place to work (Lloyd, 2002). Lievens (2007)
further confirms that employer branding involves promoting internally to existing employees
and externally to potential employees “a clear view of what makes a firm different and
desirable as an employer”, so that job seekers will be interested in applying for the job, and
existing staff members will be inspired to stay (Lievens, 2007)
2. How does employer branding work?
Traditionally, a brand’s functional and symbolic attributes influence consumer behaviour
(Lam et al., 2012; Van Hoye & Saks 2011; Lievens 2007; Lievens & Highhouse, 2003).
Specifically, functional attributes describe the products’ ‘objective, physical, and tangible
attributes that a product either has or does not have’ (Lievens and Highhouse 2003). These
functional attributes tend to fulfill consumers’ physical needs through using products. The
symbolic attributes describe the products’ ‘subjective and intangible attributes that accrue
from how people perceive a product and make inferences about it rather than what they think
a product does or has’ (Lievens and Highhouse 2003, Park et al. 1986). These symbolic
attributes are identified to fulfill consumers’ personal psychological needs and desire for
social approval (Backjaus & Tikoo, 2004).
2
An attractive brand image, which successfully reflects both functional and symbolic benefits
is an initial step to attract custom (Lam et al., 2012; Van Hoye & Saks, 2011; Lievens, 2007;
Lievens & Highhouse, 2003). When the brands’ symbolic meanings resonate with individual
consumers’ self-identity, the intensity of the psychological bond between the consumer and
the brand will be enhanced. It is argued that this psychological bond transfers into consumer
buying and re-buying decisions, thus building and enhancing customer loyalty. Consumers
may demonstrate a high degree of loyalty by, for example, introducing the products to others
and convincing them to purchase (Kim et at., 2011) (See Appendix A: Company’s branding
strategy influences customers’ behaviors).
Employer branding is the application of branding principles to employees (Backhaus & Tikoo,
2004). Within the employee branding paradigm, the experiences of employees in relation to
the company appear to be core products whose quality is largely shaped by the employer
(Moroko & Uncles 2008; Ambler & Barrow, 1996).
Early impressions of an employer brand image, generating from both the functional and
symbolic benefits offered by employer branding, form the basis of job seekers’ perceptions of
their future life working in the company. Building the brand image includes the company
firstly offering tangible job benefits, or functional benefits which can be observed, such as
salary, position and company location, and secondly offering intangible job benefits, or
symbolic benefits which cannot be observed directly, such as job promotion opportunities, a
friendly working environment and positive organisational culture (Burmann & Zeplin, 2005).
Symbolic benefits can also be explained as employees’ perceptions about the company’s
prestige, and the social identity job seekers believe they would gain or enjoy if they work for
the company. For example, in terms of symbolic benefits, job seekers may aspire to work for
a company with a prestigious reputation as they anticipate their own social identity will be
enhanced (Backhaus & Tikko, 2004). It is argued that when the symbolic attributes of the
brand image resonates with the job seekers’ perception towards their self-identity, the
possibility that the job seeker will choose the company is high. It is also suggested that initial
perception of the brand image can be a starting point for the development and enhancement
of the intensity of the relationship between the job seeker and company at a later stage
(Wilden et al., 2010) (See Appendix B: The role of branding with customers and employees).
Consumers build relationships with companies based on whether companies successfully
deliver promised benefits. Similarly, the intensity of the relationship with the employer for
new employees starts to develop according to the extent to which the company can
successfully deliver the promised benefits in the recruitment advertising (Gounaris, 2006;
Hoeffler & Keller 2002).
A psychological contract is held to be based on the subjective beliefs individual employees
have concerning the exchange agreement they have with their employer (Backhause & Tikoo,
2004). Accordingly, when the benefits and rewards promised, such as the agreed salary and
associated benefits, are perceived to be true, individual employees will consider the company
as trustworthy (based on their subjective beliefs). In exchange, employees will start to build a
psychological contract with the company. The extent of employee’s perceptions of the
psychological contract will influence employee motivation, trust, performance, commitment
and satisfaction (Mangold & Miles, 2007). Furthermore, a long and stable psychological
relationship with the company will positively impact employees’ job retention decisions.
Employees tend to stay longer and be loyal to such companies (Wilden et al., 2010).
3
Consistently delivering the promised benefits to extend the psychological contract encourages
employees to commit to the employer brand. Brand commitment is the extending of
employees’ psychological contract to the brand which involves employees’ understanding of
and identification with the organisation’s value (Burmann & Zeplin, 2004; Heskett et al.,
2003).
Committed consumers continuously purchase the same product even when the product is of
poor quality if they are committed to the brand. Similarly, employees who are committed to
the employer brand are less likely to leave the company even when their working situation
allows them to consider other employer opportunities (Backhaus & Tikoo 2004). A further
benefit of employer brand commitment is that employees are willing to exert extra effort to
help company achieve their goals. O’Reilly and Chatman (1986) explain that such
commitment related behaviour includes employees’ high levels of motivation for extending
effort beyond the basic job requirements and considering the company’s welfare (O’Reilly &
Chatman 1986). As such, not only will employees’ intention to leave be reduced but they will
also be inspired to engage with their job and contribute extra efforts (See Appendix C: How
the characters of branding influence customer and employees’ behaviour).
3. Implementing employer branding: aligning theory from Marketing and HR
3.1 Employees make their job decisions when the employer branding attributes match
their needs
In line with the theoretical foundations examined in the branding literature, it can be
concluded that to achieve the objectives of employer branding it is vital to ensure that the
employer branding attributes successfully meet with individuals’ personal requirements and
expectations.
Specifically, according to ‘needs theory’, individuals’ behaviour is motivated by the drive to
satisfy unmet needs. People’s needs are differentiated in a hierarchy ranging from the lower-
order needs (which largely comprise basic needs for living such as shelter), to the higher-
order needs, which are grounded in the psychological and social needs (such as esteem).
Examples of hierarchy-based needs theory include Maslow’s ‘hierarchy of needs’,
Herzberg’s ‘Hygiene-motivation’ framework and work by Alderfer and McClelland (Haslam
et al., 2000). It is argued, therefore, that only when the employer branding attributes,
including both functional and symbolic attributes, match with employees’ hierarchical needs,
will job applicants be attracted and existing employees be motivated to stay (Lievens, 2007;
Lievens & Highhouse, 2003).
3.2 Exploring employee job decisions within the HR discipline
The concept of ‘fit’ within the HR paradigm largely focuses on employee recruitment,
selection and retention. It is well established in the literature that employees structure and use
the ‘fit’ perceptions when they look for jobs and make decisions as to whether to stay or