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Take a look at the newest Best Places to Work list by Fortune and you will see an interesting pattern. More often than not, the same companies show up on the list every year, and its not a coincidence. Sure, these companies are probably pretty good places to work, but more importantly, they recognize the value in employer branding.
Brand recognition is not employer branding. Brand recognition is easy - it’s advertising. Authorize a huge budget; hire a creative advertising firm, make a funny Superbowl ad and people all across the country will recognize your company logo. That’s great if you just want people to buy what you’re selling.
Employer branding is much different and equally important. It gets the right people in the door to create and improve what you’re selling. But, employer branding is all about the story you tell – its marketing.
A funny Superbowl ad is not going to make me think “Wow, that looks like a great place to work.” In fact, I’ll probably forget about the ad by the time the game comes back on. On the other hand, a well crafted story that I read on my favorite blog or on the Best Places to Work list will make me consider rewriting my resume and passing it on to your company.
Google has a story. Googlers get to work at the coolest company on the planet. They sit on brightly colored bean bag chairs and they get on-site dry cleaning and free lunches. Oh yeah, they work hard too, that’s cool.
Zappos has a story. Zappos employees get fee lunch, concierge service, and 100% health insurance premium coverage. If you start with Zappos and decide after training that you don’t want to work there, they will GIVE you $2,000.00 to go home. Zappos does not want dead weight, and neither do their employees.
During the Q&A session of my Gen-Y speech at State Farm last week, a gentleman asked if strictly branding to Gen Y would alienate other generations. It was a great question. And the answer is yes; strictly trying to appeal to people in their twenties will alienate older employees. But that’s the beauty of marketing, you don’t need just one story. As long as every story you craft is true, you can and should have multiple messages for multiple audiences.
For example, State Farm’s story for Gen Y could be that becoming an agent gives you a great taste for entrepreneurship without all the risk. Learn how to run your own business with the guidance of people who have been there and done that.
For Gen X the story could be that starting an agency gives you the freedom to spend time with your spouse and kids while earning plenty of money to support your family. And you become an important part of your community.
And for Baby Boomers the story could be that working at State Farm is a great way to finish your career on your terms. You can call the shots and make your hours. And if they’re interested, you can get your kids involved in the business.
Each of these messages is completely different and from what I learned at the conference, completely true. Different audiences want to hear different stories. And if you actually are a great company like State Farm is, crafting a story is easy. Take a good look at how your business operates, ask your current employees in every area and at every age level why they like the company. I guarantee the answers will give you the perfect story for every demographic.
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Comments
02.10.09
I like Google because my perception of them is that they never feel as though they have perfected a product (it's always in beta with them or so it seems). Add to that they're always looking for customer input to improve the usability and functionality of their product or service.
You mention above State Farm is a great company but don't say why or from what perspective (employee or customer or both). I have no ax to grind here but I am curious.
02.10.09
Hey Mark, thanks for the comment. The reason I say State Farm is a great company is simply because of the experience i had at the conference. Everyone there, from entry level people to VP's, loved working for State Farm. I actually spoke with a group of twentysomething women who said they disagreed with my statement that Gen Y is not loyal to a brand or logo. They said they are all loyal to State Farm and they all plan to work there for a very long time.(And there were no higher level people around to overhear)
So, I guess the only perspective I know if is from the employee perspective. I do need new car insurance though, so I'll lt you know about the customer perspective in the next couple of months!
Ryan
02.11.09
Who were those folks at the State Farm conference last week? They sound awesome. :)
I'm obviously compelled to comment here, though I'll admit I'm quite biased. Because of this I'll call in "the experts" - Dr. Andrew White, a professor from Oxford University. Dr. White was asked to analyze Fortune 500-type companies internationally and offer his opinion on which had the best business models. His response: "There is something inherently right and effective about how State Farm® has led and managed its business over various cycles, environments and enormous business challenges to have this type of success over time"
State Farm is a company that does not buy floundering companies in back door acquisitions, it does not rely on risky business investments to satisfy stockholders...it has built itself organically policy by policy while being conservative/safe/"boring" since 1922. Should the doors ever shut on this industry, State Farm will be the company turning out the lights cause we'll be the last ones out.
All that being said, who wouldn't want to respresent a company like that? Cause in the end, State Farm is a brand you are proud to be a part of as an employee, not a time card you punch twice (maybe four with lunch) times a day.
02.23.09
I definitely think you are correct that employer brands play a crucial role in attracting the next generation of talent. It is interesting to note that each of the companies you mention in your post does something different than many of their competitors: their employer brand is actually representative of their company culture.
Too often companies come up with empty slogans that don't actually say anything, and instead contribute to the feeling of a soulless corporation. This next generation does not want the empty promises corporations supplied to their parents, and are instead looking for honesty, transparency, and a frank discussion about a company's culture and values. What companies should realize is that they do not have to appeal to everyone, and those companies that are not afraid of being different (Google, Zappos, etc.) actually attract the highest quality talent. There is a really interesting article written in Fast Company magazine that you might want to check out called "Kill The Slogans Dead" by Chip and Dan Heath (the author's of Made to Stick). Its really good and I think is very complimentary to your post.
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