It has become instrumental for the HR function to embark on a serious employer branding strategy if they are to be successful in talent retention and talent attractiveness, says Matthew Naudi, FHRD president.

Month after month, surveys have shown that the pandemic and other socio-economic factors have been a catalyst for a global talent shortage of epic proportions.

On a global level, studies show that three out of four organisations are finding it difficult to recruit employees with the adequate set of skills and character strengths needed for the job.

Matthew Naudi

Employers in Europe are struggling to fill over 1.2 million job vacancies, and studies show that there will be an estimated shortage of some 85 million workers around the world by 2030. 

Locally, the picture is not much different. According to the latest Malta HR Pulse Survey carried out jointly between PwC and FHRD, which will be presented at the up-and-coming FHRD national conference being held at the Hilton on Friday, October 21, 2022, many local companies look at recruitment and selection as their top priority while 75 per cent of the survey participants listed the difficulty in attracting the right talent as their main people-related concern. Over and above this, there’s an apparent total skills mismatch in Malta, with the NSO saying that more than half of workers are in the wrong job for their skill sets. Employee retention also seems to be a serious concern among local employers.

These figures, plus other unique challenges specific to Malta, such as very low unemployment rates, salaries, immigration, aging population, and other factors, clearly show that shortage of talent and adequate skills across all industries is the biggest challenge HR professionals face today.

This shrinking talent pool is hindering the growth of many organisations and obstructing them from achieving their long-term goals and objectives.

This all points to a dramatic shift in the labour market from a market driven by employers, to one driven by candidates who are becoming highly selective when it comes to making career moves and will easily jump ship when the next best opportunity arises. And not just for higher salaries.

Job seekers today will look at employee reviews which are usually at the heart of an employer brand strategy. In fact, on average a potential job seeker today would read up to six reviews before actually applying for a job and many will even refuse a job with a company which has an adverse reputation.

A concerted effort into designing an employer branding strategy that would shape the company’s image into something the company is proud of

In all this labour market chaos, it has become instrumental for the HR function to embark on a serious employer branding strategy if they are to be successful in talent retention and talent attractiveness.

HR leaders need to have their ears to the ground and be aware of how both current and former employees view the company. HR leaders should partner with other company leaders, such as in marketing, to help improve and promote the perception on the employer brand by its unique cultural characteristics.

They should use employer branding as a fulcrum that helps leverage the HR recruitment and retention strategy.

So, what is employer branding really?

In my mind it is the way a company showcases its uniqueness and its reputation as an employer of choice.

An employer brand is built on and around the company’s Employee Value Proposition (EVP), so that’s a good place to start from. The EVP is basically a clear vision how people should be treated and empowered; a promise the company makes to employees in return for their commitment and performance. The Employer Brand builds on that EVP, on the company culture, on employee opinions, on candidate opinions, on career paths, on diversity and on the overall corporate brand to influence the company’s reputation as an employer among job seekers and employees.

Every organisation, large or small, from any industry, has a perceived employer brand because the reputation of the company exists in people’s minds. Employees will talk about the company internally and perceptions are formed by the people external to the company, whether we like it or not; whether we promote it or not.

Even worse, the competition might be putting stories out there about what it’s like to work at your company, and without any proof to the contrary, their story can stick.

It’s not a matter of biting the bullet but more of taking the bull by the horns to put a concerted effort into designing an employer branding strategy that would shape the company’s image into something the company is proud of.

HR professionals must be in control of what is being said about their organisation on all digital platforms through exciting storytelling with photos, videos, blog posts and uplifting employee testimonials.

The storytelling should be a true reflection of what the company stands for, a true reflection of the company culture, its vision, mission and values, and not used as a lure based on false pretences and promises that cannot be kept. Employer branding should not become a reflection of what the audience wants to hear but what it actually is. No fake news will work. It should be based on the truth that makes an organisation unique… or not. It should be authentic, well-defined, credible and meaningful.

Simon Barrow, who is said to be the creator of employer brand as a concept, refers to an employer brand that needs to be distinctive (unique) which sets you aside from the competition, compelling but above all “rooted in reality”.