By Michal Kalinowski, CEO of UNIVERSUM

Twenty years ago, employer branding was not even known by that name, or any name for that matter. Communication with talent was often indistinguishable from other corporate communication.  Talent communication was then focused on general messages directed to whole populations.

Ten years ago, general marketing became more recognisable as the employer branding we know today. It was characterised by demographic targeting, where certain schools were selected for focused campaigns. Universities were classified as tier 1, tier 2, tier 3 and so on. The classification was typically based on the reputation of the universities. Top schools became tier 1, and pretty much everybody focused their resources on those top universities.

Then several things happened: the Internet revolution, attitude shifts amongst talent groups, and the maturity of employer branding. Using technology instead of geographical presence made it possible to brand oneself at more universities, and more developed employer branding strategies made the corporate identity stronger. Simultaneously, talent groups shifted from prioritising salary and benefits when choosing employers, to putting greater value on corporate values and culture.

Enter personality targeting
In today’s mature employer branding world, employers have shifted their focus from “top talent from top universities” to “ideal talent for our culture.” In other words, the level of academic skill is less important than the person’s ability to apply those skills within the specific company culture. Employers have also realised that diversity – academic as well as ethnic – strengthens their business. So mixing people from different universities and with different degrees is a high priority. At the same time, talent groups are continuing to prioritise cultural fit and values over financial benfits when they choose employers.

So as we move into a new decade, personality and culture are fundamental words for successful employer branding. I, for one, am looking forward to this new reality. I hope you are too!

Fig 1 Illustrates the historical development of Employer Branding

Employer branding now means finding and attracting people who fit your culture.

An employer’s success relies on its ability to attract and retain key performers: employees who are able to deliver the best results, achieve business objectives, and contribute significantly to corporate value—that’s the purpose of employer branding. Companies have always understood that finding the right people is critical for business. In the past, employers used mass communications to reach ideal employees, and that was all right in a rather homogeneous and geographically isolated world. Yet today, communication experts are expected to be culturally dexterous, as audiences are fractured in various likes and dislikes, into diverse values and sub-cultures, and society as a whole has become more complex and segmented. Due to this, organizations are confronted with the challenge to create a common identity and vision in a multicultural world. If organizations are able to build consensus among their people, unity will result in greater performance. Often this boils down to establishing a common ground of work ethics and culture, one that can lead people in the right direction. The matchmaking between employer and employee thus needs to be done correctly if there is to be a harmonious environment in the organization. If not undertaken well, breakups between the two are bound to happen and are a real inconvenience for both parties. What facilitates this matchmaking process is what is called “personality targeting,” the practice of identifying and engaging with a group who share the organization’s culture—that’s the area in which employer branding is developing.

Historically, candidates applied to companies for a job. Now, companies will apply to candidates. Due to the effects of an aging population, there will be a shortage in the supply of a talented workforce. Between now and 2030, the number of people over 65 will increase by more than 40% in the European Union. The fertility rate is currently below 2 in the E.U. and 2.1 in the U.S. In Russia and China, there is a known “depopulation bomb.” In China, the one child policy is resulting in the cousin disappearing from the family tree (1). In Japan, the median age (44) and life expectancy (83) are among the highest in the world and its birth rate (1.4 per woman) is among the lowest anywhere (2). Due to these seismic movements, the competition to attract and retain key performers will become more fierce—companies will solicit candidates and not vice versa.

In the 1990s mass communications was the norm, as companies recruited candidates by advertising open positions via a limited number of channels, and waited for candidates to apply. In the years after the millennium, as the market became increasingly complex, companies started to focus their efforts by selecting candidates from the top colleges and certain areas of study. Today, the focus has moved away slightly from targeting individuals based on their personal credentials to targeting individuals based on their personal values (see diagram 1). A whole new communication disciple is being born, whereby recruiters are now trying to identify and target people who have the right cultural fit to the organization instead of skills or qualifications per se. And due to demographic shifts and a more sophisticated recruitment market, personality targeting will become imperative should companies wish to secure their talent pipeline.

Generation Y’s (born in 1980s and 1990s) mentality has been the subject of conversation among HR and marketing circles for the last five years, as organizations struggle to find ways to integrate them into the traditional corporate culture. As baby boomers (born during 1946 and 1965) start retiring, Generation X (born after 1965) will have more space to maneuver, if not already, and will run the show. Women and minority groups will also be an important source of talent for recruiters; it’s estimated that women now account for more than 50% of the American workforce and that there are a majority of female graduates in OECD countries (3). Some of the world’s largest companies, such as PepsiCo, Areva, Kraft, Xerox, and others are run by women, and they’ll takeup more leadership positions in the future. All this proves that the workforce is more diverse and sophisticated in comparison to five decades ago. Employers will need to find ways to appeal to various audiences, which will require them to be flexible in what they offer. Yet employers will also need to create a culture of their own and find members who belong to the corporate family.

The economic recession in 2008 has changed the way people work. The work world has become more flexible, more freelance, more collaborative, and far less secure. A new workforce is arriving; one that is run by a generation with new values, different from the Baby Boomers and Generation X—and women are increasingly taking command. Taking all this into account, one skill Generation X will need to develop is participative decision-making that will involve team members scattered around the world, where the project team leader may never meet in person his/her team and the interaction is done online. Every future leader will have to be culturally dexterous, knowing how to motivate and reward people of different backgrounds. To overcome generational and cultural differences and ensure solidarity in the workforce, will be dictated by an organization’s ability to forge a corporate culture and identify individuals who have a strong affinity to the same ideals. The means to this end is personality targeting.

Six reasons why companies should do personality targeting

1. Young people focus on your corporate values and image

Career-seekers of the Generation Y cohort are selective about employers and shop around to find companies that match their personal values as well as image. More importantly, their tendency to be more self-centered make them choose employers that will help them get the professional training and development necessary to excel in their career, as well as make them more employable on the recruitment market. By targeted messaging you can reach out with your corporate values differently to different talent pools to engage in your brand.

2. Employee engagement is driven by their cultural fit to your organization — and not solely monetary benefits

Employee engagement, and the tendency of staff to use discretionary efforts to achieve business goals, is driven by their affiliation to your brand and values, by connection and loyalty to colleagues and not monetary benefits per se. If they feel they belong to a community, are respected and acknowledged in that environment and can develop within, their commitment to your organization and to their work will be stronger. Personality targeting will help you define the individuals connecting with your brand.

3. Diversity of employees is required for success in a globalized world

Companies should not only recruit based on demographic criteria, but should also consider the cultural fit of the person. You should ask the question: “Does the person have the type of mindset that we need for this specific job?” Surely enough you’ll need different personality types in your organization, not to mention different teams, to achieve your business objectives. This is partly achieved by targeting beyond the obvious or traditional skill pools to identify what an ideal candidate would represent for your organization.

4.  Application of skills is more important than level of knowledge

The ability to apply professional skills in a certain organization becomes more important than theoretical knowledge or type of degree. So-called professionals might perform considerably worse than less knowledgeable colleagues, who fit well with the organization, are highly motivated, learn quickly and can be shaped to succeed.

5.  Traditional skill pools are too small to satisfy demand

There is a huge increase in competition for talent from traditional skill pools, namely top universities and/or people who hold certain technical degrees, which makes it restrictive and expensive to rely on them as the main source of your talent pool. A targeted approach is better than mass communications, but basing your targeting on personality-types and skill-sets will broaden your horizons and get you the right people.

6.  Internet makes personality targeting affordable

Various Internet-based services make it possible for employers to target personalities beyond traditional target audiences. Your target audience is now global and can be easily reached via your corporate website, blog, presence in social media, and other online channels.

Four success factors for messaging in personality targeting

1. Be personal and base your communications on your current employees

Formal communications is something Generation Y doesn’t particularly like. Your tone and style has to be in line with current times. The best way of being personal is to allow your employees to explain the job and your corporate culture to potential candidates, in a more direct and informal way.

2. Do documentaries rather than advertise

Generation Y likes to have an insider view and wants to see what your people really do.They want to know all about what the job entails, should they be recruited. Let them decide if your organization is a good place for them instead of just selling your employer value proposition.

3. Be channel independent: use an integrated communication approach

The most effective communication approach is a holistic one. Consider all your various touchpoints and ensure that you are communicating in a consistent manner via all of them. There is no one place where your talent will be, but ensure that you are saying the same key messages in all meeting places.

4. Be honest and admit that you are not everything for everyone

Don’t sell the company, but rather explain what it’s like to work in your organization. Give your audience all the right information so they can make the best decision for them to either choose your organization as their future employer or potentially opt out of the recruitment process. Your personal mantra should be to attract quality over quantity of candidates.

Notes
1. Sandler, Lauren. “One and Done.” Time Magazine 19 July 2010: 38-39. Print.
2. “A special report on Japan: Into the unknown.” The Economist. 8 December 2010.Web. 18 Nov. 2010
3. “We did it! The rich world’s quiet revolution: women are gradually taking over the workplace.” The Economist. 8 December 2010.Web. 30 Dec. 2009