As in 2000, the data showed that strong employee commitment leads

to higher shareholder returns. Even more important, it also suggests that employee commitment may pay off even more for companies in

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bad times than in good. High-commitment companies outperformed low-commitment companies by 47 percent in the 2000 study and by 200 percent in the 2002 study.

It can be concluded from the Watson Wyatt study that there are some serious issues for organisations to address. Organisations should undertake ongoing employee research to ensure that their perceptions of their performance does not fall short of their employees’

expectations. Furthermore, strategies should be aligned to address any deficiencies.

The brands people want to work for

According to a 2005 survey by specialist recruiters Hays8 _{of employees} in Australia and New Zealand, the most popular brands people want to work for in Australia are the Government/public sector, ANZ, Virgin and Telstra. In New Zealand, the popular brands were Vodafone, the

Government/public sector, Telecom NZ and Westpac.

Without any prompting, why were these companies named most frequently as ideal employers? Predominately because of the perceived employee experience they offered, or in other words, their employer brand. Career opportunities, reputation of the company and the professional development and training offered were the top three reasons provided by Australian survey respondents for selecting their nominated 'ideal' employer. In New Zealand, the reputation of the company was the primary reason, followed by professional development and training provided, then career opportunities. In both countries, these justifications were ahead of salary and benefits, which

demonstrates the value of creating a reputation for a strong employer brand in the marketplace.8

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Of 614 responses, the top-ten Australian most frequently named ideal employers were:

1. Government/public sector 2. ANZ 3. Virgin 4. Telstra 5. Westpac 6. IBM 7. Optus 8. Microsoft 9. Vodafone 10. PricewaterhouseCoopers

Of 260 responses, the top-ten New Zealand most frequently named ideal employers were:

1. Vodafone 2. Government/public sector 3. Telecom NZ 4. Westpac 5. Air NZ 6. Fonterra 7. Bank NZ 8. ANZ 9. National Bank 10. ASB

Understanding the value of diversity

In an interview with Marietta Cozzi, Vice President of Talent Resourcing at American Express for the Universum Communication's 2005

employer branding global best practices report, Ms Cozzi said, ‘To win in the marketplace, American Express must attract the most talented people and help them thrive so they remain with the company. That is one of several reasons why commitment to diversity is an important business priority when developing an employer brand. The best and

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brightest people don't all look and think the same way. People of character, competence and integrity come from all backgrounds.

Moreover, being a leader in diversity provides American Express with a competitive advantage. Reaching our goals, pioneering new products and providing superior service can't happen if we all think the same way. We need to draw on different perspectives to remain innovative, to truly understand the needs of our diverse customers, and to gain market share. Being a leader in diversity strengthens our company's brand image, employee satisfaction and customer loyalty. A majority of our communication with students goes through our website or by email. But last year when we were on campus we found that most of the students still wanted a brochure. They do visit our website, but they still wanted something tangible to walk away with after our

presentation’.6

The value of how a focus on face-to-face interaction contributes to developing a strong employer brand is also evident in the following section where Steve Canale, who manages General Electric's entry-level recruitment, discusses how making an early connection with the

students leads to successful hires.6

In the Spotlight - General Electric

Commitment and international focus attract talent

People often associate GE with quality, integrity, good ethics and high performance. That strong corporate brand helps the company build an attractive employer brand. Steve Canale elaborates: ‘I believe our international focus and our leadership training programs add to our good reputation. Although not everyone within the organisation can travel abroad regularly, it is very common for people to make

international connections on a daily basis as part of their job’. GE invests more than $1 billion per year in employee training. That commitment to its employees is what attracts many talented young people to the company. In building its employer brand, GE values face- to-face interaction. The best and brightest GE representatives involve themselves in many campus activities such as classroom visits and speaker presentations.6

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‘I want our potential employees to say that 'he was so passionate about his work', or 'she got back to me so quickly', when they talk about their experience with GE. ‘Every year GE hires 1,800 interns and co-ops. It is important to reach out to the target audience early. GE's internship programme was recently recognised on the Wall Street Journal's list of America's top internships. This is a great opportunity for them to learn about our business and for us to see if they will be a good fit for our organisation. Today, 60 percent of our leadership development program hires come from our pool of interns and co-ops’ Canale said.6

Diversity goes beyond gender and ethnicity

GE annually recruits nearly 1,000 students in the US. The company looks for people with a proven record of academic and leadership achievements. Canale said, ‘We want team players with high integrity, a commitment to life-time learning and a passion for their field of study. The aim for the company is to attract a diverse group of people from different backgrounds. Last year our entry-level hires in the US were 34 percent minority and 38 percent female. But we don't just focus on ethnicity and gender. We want to recruit from a variety of schools, a range of minority associations and from various parts of the country’.6 To measure the success in communicating and upholding the brand, GE conducts its own hire and decline survey. Through the interviews, GE collects valuable information about how the company is perceived. ‘By interviewing students who select us as well as students who select a different employer, I believe we obtain a well-rounded understanding of our image. But we can always improve. It's a continuous process...’ Canale said.6

Employer branding and the public sector

Aside from a few obvious exceptions such as uniformed police and the defence forces, public sector organisations have not traditionally invested in shaping a distinctive image or perception around the particular employment experience they provide. Traditionally the marketing of public sector careers and specific roles has been a relative low-key affair, characterised by bland newspaper advertisements and a highly process-oriented approach to candidate sourcing, attraction and

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selection. Some employees are likely to have some sense as to what differentiates their agency's employer value proposition from the next, however the clearest distinctions tend to have been drawn between public sector employment as a whole and alternative careers in the private sector.

Evidence suggests this may be changing, as more and more public sector organisations realise that to compete successfully for candidates and to retain high performing employees, they need to be more

proactive in shaping a positive and compelling perception around what it is that they have to offer. This doesn't just mean 'spicing up' their image and being more pro-active with their promotion. It also means deciding on the specific attributes that define their employment experience and delivering them in a way that builds a reputation over time as a great place to work.

There are a number of reasons these changes are occurring: