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How to Build a Comprehensive Employer Branding and Talent Acquisition Strategy? Attracting Talents from Slovakia

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How to Build a Comprehensive Employer Branding and Talent Acquisition Strategy? Attracting Talents from Slovakia How to build a comprehensive employer branding and talent acquisition strategy? Attracting talents from Slovakia Copyright © 2017 Case Solvers Zsolt Ábrahám, Marcell Paulitsch and Áron Rigó prepared this case. The case was developed solely as the basis for class discussion, and is not intended to serve as endorsement, source of primary data, or illustration of effective or ineffective management. All rights reserved. This publication may not be digitized, photocopied or otherwise reproduced, posted, or transmitted without the permission of Case Solvers. More info: www.case-solvers.com Introduction On a cloudy, foggy morning, Marcela Krajcova, the HR manager of Philip Morris Slovakia was walking on a narrow and tiny street in Bratislava. People around her were on their way to work, everyone looking tired in this early hour. She stopped at a junction and while she was waiting for the green light, she started to think loudly. ‘How should we develop our new employer branding and talent acquisition strategy? The tobacco industry is facing new challenges and we need smart and motivated people. How can we make PM SK sexy and attract more young people to the company? PMI has new global HR and employer branding initiatives, how can we localize and align them to the Slovakian needs?’ When the light turned green, Marcela took a deep breath and crossed the street. She has to deliver the newest plans for the cluster management within a week. As she has quite limited time to come up with a comprehensive employer branding and talent acquisition strategy, she decided to ask the opinion of university students from all around Slovakia… Game changer global trends Global HR trends Nowadays, attracting talents is one of the most important challenges companies face. While a decade ago the talents were fighting for the companies’ best positions, for now the whole setup has changed. Currently we are talking about the war for talents instead of the war of talents. Being so, the role of the HR department within a company changed a lot and the employer branding will have a strategic importance due the following global HR trends: Employee experience & Consumerization Teams & Blended workforce The question of performance reviews End of the open space, rise of office customization Digitalization Employee experience & Consumerization As in every other field, people look more and more for experiences. Young people especially leave behind traditional preferences of ownership to seek experiences. This trend also translates to the labor market: individuals do not seek a job anymore, but would like the time they spend working to be something they enjoy. They take into account several criteria for this, including the environment they work in and their opportunities for personal development – to name the most important ones. Some companies already account for this: a recent survey found that 83% of HR leaders think that employee experience is either important or very important for their organization’s success. In 2016, GE appointed a Head of Employee Experience whose task is to develop a strategy to create an employee experience taking into account the physical environment and the tools and technologies their employees use to be able to attract talent and enable top performances. The employee experience spans the whole employee lifecycle, therefore an HR strategy should take it into account in employer branding, recruitment and employee development as well. Some companies, typically consultancies also invest in creating a smooth exit for their employees. HR organizations need to react to this trend by treating (potential) employees as consumers, who choose between companies based on the experience they offer. In order to achieve this, innovative HR organizations are transforming themselves to apply practices known from consumer marketing to be able to sell the experience to their employees. Teams & Blended workforce The composition of the workforce has substantially changed recently and continues to do so: according to a 2015 survey, only 54% of the workforce consists of traditional, full-time, salaried employees, while a quarter of them are part-timers or remote workers – the other 20% being contractors, freelancers and others not on the payroll. HR departments, however, lack to have a control over this last, rising group of workers, and therefore might be less able to execute their HR strategies, while their employees work more and more with people from this 20%. Therefore, HR departments need to look at teams as a whole, including everyone from full-time employees to contractors, aiming their strategies to enabling productivity of these diverse teams, and not the individuals. In an environment where more and more time is spent working with semi-external teams, HR departments need to make sure that employees are not only team-players but can also facilitate cross-team work streams. The question of performance reviews Yearly performance reviews, as the key tool for employee evaluation seem to be dying out – companies like Deloitte, Adobe, Accenture, GE and SAP have announced their intentions to move away from this tool. A new best practice has yet to emerge though. Some of the companies mentioned above reported shrinking performances and employee engagement as a result of dropping yearly performance reviews. An emerging trend is a more consultative approach to performance management. Companies are experimenting with putting less of an emphasis on performance labels (“You are 76%”) and trying to give concrete, personalized feedback for employees. This “performance consulting” is done in a dialogued form with the employee, and focuses on specific development needs and opportunities of individuals. End of the open space, rise of office customization Open office space is not providing an environment for top productivity any more. With more flexible forms of work comes a need for more flexible, more customized office spaces, which is closely related to the fact that employees seek experiences in work. To be able to serve the rising share of creative workers and to accommodate the needs of part- timers, freelances and external consultants, companies need to be able to provide an inspiring office space. For this, HR departments are well positioned to take the lead but they also need to reach out to other departments (especially real estate / facility management) to be able to make an impact, and this is not always simple. The effort does pay off though: a survey using a sample of over 12 000 employees globally has shown that employees who are free to choose a working location that best fits their current tasks are 88% more engaged at work. Digitalization The generation X has been overtaken by the Millennials as the largest cohort of the workforce. This generation grew up with technology at their hands, and expect the same circumstances at the workplace as well. They want to use it for work, just like they use Netflix, Uber or Tinder outside of work. This means the implication of HR organizations which often employ outdated software that complies with corporate IT systems, but lacks the usability of consumer technology sought by Millennials. On the other hand, companies have an ever growing number of suppliers to choose from, covering the whole range of HR activities: from recruiting through promotion to training opportunities. Startups like Officevibe provide a way for managers to track employee satisfaction almost real time, while Impraise and similar companies offer solutions to replace outdated feedback tools with easy-to-use technology to promote timely and actionable recommendations. Other aspects of technology are also gaining ground in HR as companies start to apply the Agile development method, originally used for software development for HR practices. GE, for example, experienced a drop from 10-15 to 2-6 weeks in the time needed to deliver talent to clients after embracing Agile in recruitment. Learning and development is another field where Agile techniques are used: IBM, Visa, MasterCard and Adidas all created digital platforms to give a digitalized, Netflix-like learning experience for their employees. Changes in the tobacco industry The tobacco industry sells around 5 600 billion cigarettes a year and the volume keeps rising, but with geographical differences. While in developed countries the volumes are slightly shrinking every year, emerging market sales continue to expand driven by population growth and higher disposable incomes. Changing regulation and a new wave of alternative tobacco products are the defining trends that will shape the industry in the near future. With a global market estimated at €550bn, the industry remains profitable with shares outperforming indexes due to high dividend payout ratios and stable earnings. Changing regulation Tobacco companies are facing ever stricter regulations in the face of health concerns, especially in developed countries. Restrictive regulation on tobacco advertisement has been in place for several years in most countries, but new regulations now require companies to display repulsive images of body parts thought to be harmfully affected by smoking in many countries. Another trend is plain packaging, already introduced in Australia, France, Ireland and considered by Canada among others. This bans tobacco companies from displaying trademarks on cigarette packages, stripping them from one of the last marketing tools they have at their disposal. Tobacco companies argue that this move violates their intellectual property rights. Rising excess tax levied on tobacco products is another trend defining tobacco markets. These trends have different impacts on tobacco companies. While the range of marketing tools they have available narrows. The other effect is the reduced risk of new entrants on their markets, given the lack of possibilities to promote new products, leaving incumbents less exposed. Higher taxes on tobacco products have two side effects. The higher the levies, the more likely consumers are to switch to illegally trafficked cigarettes, stripping governments from revenues, therefore these taxes cannot grow forever.
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