UniversumQuarterly Issue #2, 2008
B e s t P r a c t i c e s a n d G l o b a l Tr e n d s i n E m p l o y e r B r a n d i n g Universum Hall of Fame: This brand new series takes a closer look at companies that excel in the Universum surveys. In this issue, we focus on Sony Ericsson, a veteran at the top and Accenture, the most impressive climber this year. page 14
Universum Awards Sweden: The Universum Awards in Stockholm kicked off the 2008 Universum Survey results, which will be released in a record 30 countries this coming year. World-class speakers were invited to share their thoughts on employer branding. Read and be inspired! page 3
Employer branding – a no-nonsense approach: A new report by the CIPD suggests HR is ready to add strategic business value to companies. Universum Quarterly presents three case studies and lessons learned from the report. page 24
C A M P U S TR E N D S :
Companies enter the classroom Employer branding is no longer only about attracting the right talent, but making sure the right talent is being created. Many companies are now actively taking part in education ensuring graduates have the skill set they need to drive their business forward. page 16
S U C C E E D I N G I N T H E M I L ITA R Y S E C T O R :
Guest writer:
Wanted: more than a few good men
Cheer for the Millennials!
Military services around the world are experiencing tough times recruiting to the armed
The L’Oréal Group’s director of international recruitment, François De Wazieres, explains why the Millennial generation is an opportunity, not a threat. page 20
forces – and the need for recruits is as great as ever. Read how the armed forces use innovative techniques to reach their recruiting goals. page 11
TR E N D W AT C H :
Banks behaving badly Universum Quarterly investigation: the last year has been an intense ride for the finan-
Featured companies Accenture Bertelsmann BP Burger King Corp. Chevron CIPD Citi Diesel Ebay Google Government Communications Headquarters (UK) Grant Thornton LLP HM Prison Service HSBC JP Morgan Chase L’Oréal McKinsey MPRI, Inc.
© Universum 2008
Orange P&G PricewaterhouseCoopers LLP RAA Sprague Gibbons Shell Sony Ericsson Mobile Communications AB Statoil The London School of Economics and Political Science The US. Department of Defence TMP Unilever University of Minnesota US Army Accessions Command Utrecht University
cial sector world-wide. The global credit crunch, scandals and leaders stepping down, has all been part and parcel of the last eighteen months. Companies within this sector must act carefully to minimise collateral damage to their employer brands. page 26
S TR E N G T H E N I N G T H E E X T E R N A L B R A N D :
Wall Street vs. the Valley
It’s not just pure tech and IT companies who require IT competence. Today, banks, investment banks and hedge funds are the largest recruiters of IT specialists. Find out how non-IT firms and the high tech Mecca, Silicon Valley compete for scarce IT talent? page 8
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TREND
WAT C H
Banks behaving badly By Michelle Boyde
Krishna De Managing Director of Oneocean Ltd and the Founder and Vice Chair of The Association for Coaching in Ireland, Dublin, Ireland Described as one of Europe’s leading experts in employer branding, personal branding and social media, Krishna De is an award winning brand engagement and leadership development strategist. She has over 20 years of experience, worked in over 30 countries and lived in three continents. Further details can be found at: bizgrowthnews.com and oneoceangroup.com
26 Universum Quarterly Issue #2, 2008
The last year has been an intense ride for the financial sector worldwide. The global credit crunch, the odd scandal here and there and leaders stepping-down have all been part and parcel of the last eighteen months. However, it seems that even in the mist of an ongoing media storm, the industry itself and the employer brands of the companies in it have not been toppled. To dissect this topic, Universum Quarterly consulted employer branding experts to identify the challenges facing the industry, what damage it may have sustained and how companies can minimise collateral damage to their employer brands. At the end of 2006, a crisis started in the US subprime mortgage market, as a result of the practice of lending to borrowers who did not qualify for the best market interest rates. A record number of borrowers defaulted on loans and in June 2007, Bear Stearns, which was one of the world’s leading global investment banks, made substantial losses on two of its hedge funds backed by sub-prime loans. This sent shock-waves through the industry and financial institutions became cautious lending money to each other. This credit freeze created problems for many financial institutions that relied on cheap credit. Many financial institutions have experienced significant losses and few can claim they have been unaffected. Two high profile rescues have taken place: Bear Stearns was purchased by JP Morgan Chase, a global financial services firm in March this year. On the other side of the Atlantic, Northern Rock, a UK mortgage provider was saved by the British Government and nationalised. Aside from the credit crunch, other banks such as Société Générale, France’s second largest bank, has spawned headlines with a high profile scandal courtesy of Jerome Kerviel, the trader behind the “biggest fraud investigation in banking history” (Telegraph.co.uk, January 25th 2008). This further elevates the negative attention the industry receives.
Industry vs. company
The wide-spread turmoil of the industry does rather beg the question: is it the attractiveness of the industry which is most affected or the employer brands of companies with the most scandalous activities? “It is not the first time the finance industry has been tarnished through scandals, bad investments and bad business and it won’t be the last,” said Brett Minchington, managing director of Collective Learning Australia and co-founding partner of the Employer Brand Institute. “I believe these latest issues will impact more on the companies involved rather than the industry as a whole. Given the nature of the finance industry, turnarounds can be swift. However, the turnaround time on building a company reputation can take much longer, and even then, a black cloud may languish over the company for some time.” Fresh talent most uneasy
Krishna De, managing director of Oneocean Ltd and the founder and vice chair of The Association for Coaching in Ireland, said the effect on the employer brand during a period of crisis is perceived differently depending on whether the individual is already with the company, or contemplating employment with the company. “People early in their career such as recent graduates and MBAs will be aware of what’s happening due to media coverage and this may affect their feelings about the company and/or the industry,” De said. “However, if you are already in the industry this will make little difference. It impacts the most on people who are new.” However, Deborah Korb Maizner, head of global recruitment marketing at JPMorgan in New York, suggests that new graduates are not that easily scared off. “Many students are market savvy and aware of the risks and rewards associated with careers in investment banking – cycles like this are the nature of the industry and the markets. You © Universum 2008
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have to take a longer term view when considering your career path,” she said. Korb also said that no matter what type of market we are in, it is always important to educate students about the industry so they can make the best individual career decisions. Recruiting graduates next year
Korb believes there may be a change in the behaviour of next year’s graduates. “In the past several recruiting seasons, many students have received multiple employment offers and may have taken their time contemplating which to accept,” she said. “Next season, it’s likely we will see students make decisions more rapidly.” Established talent
Current employees will not necessarily be as anxious about the industry as some graduates, but they may question the company they work for. “Am I proud of the company and am I in a position to answer my neighbours’ questions?” This is what current employees at companies suffering scandals are likely to be feeling, De suggested. Companies need to ensure their employees feel informed, Minchington noted. “Companies should communicate frequently and openly with staff during tough times as it is a critical time when staff also contemplate, wheth© Universum 2008
er to stay or leave the firm,” Minchington said. “They should communicate the action being taken to rectify the issues and their commitment to turning the company’s misfortunes around.” “Get your risk manager, marketing director, communication director and HR people all together,” suggested De. “Think about the message of the company and different stakeholder groups. Take on the mindset of employees, clients etc. and make it relevant for each group.” Use the media to mediate
Both Minchington and De advise working with the media (not against it), as this is where potential employees will learn about the company. “The company should hold a media conference at the earliest possible time following the crisis,” Minchington said. “The CEO should front the media and answer any questions relating to the company’s position. This will assist in negating any rumours in the market and show the company is committed to turning around its misfortunes.” “Companies need to see to what degree they are still attractive,” De said. “People are influenced by what they see in the media – not just broad media, but also social media.” De warns that social media is something that most companies have not yet taken account of. “If you google Northern Rock on Google. co.uk (at the time of this interview), the first
EB-tips for handling a crisis
• Identify employee concerns and respond clearly and timely.
• Continue to communicate even if you think you have nothing to say – maintaining communication reassures employees.
• Communicate the change curve – it is better employees hear bad news directly from the company than a second party – they may not like the change, but it will help them understand.
• Communicating change and crisis across a global organisation can be tricky. Time zones require companies to plan for information dissemination to ensure employees hear it before it hits the news, somewhere.
• Track your ‘weather report’ in social media to know what employees, media and potential employees are reading about you – companies with few resources can use Google alerts. Remember main stream media use social media as a source of information!
Issue #2, 2008 Universum Quarterly 27
tre n d watch
TREND
WAT C H
The near future
Key to success – align all communication Recently UBS reported job cuts (Financial Times April 24th 2008), $37 billion of write-downs (BBC News, April 1st 2008) and the departure of its chairman, Marcel Ospel (Financial Times, April 16th 2008). Now, Martin Liechti, a top UBS banker has been detained by US authorities investigating if UBS helped its American clients Brett Minchington
evade US tax (Financial Times, May 6th 2008). However, on the UBS
Managing Director of Collective Learning
Web site it still reads “we are part of one of the world’s most stable
Australia, Co-founding Partner of the Employer
and secure financial institutions”.
Brand Institute, Australia
“In today’s world of transparent communications, when news breaks about a significant change in the strategy of the organisa-
Brett Minchington is an International Employer
tion, particularly if it refers to people, the HR and communications
Brand strategist who has delivered keynote ad-
teams need to revisit current communication about the company,
dresses and master class events to executives in
which is in the public domain, and amend it to reference the new
11 countries and has been published globally.
situation,” advises Krishna De director of Oneocean Ltd and the
His book Your Employer Brand Attract-Engage-
founder and vice chair of The Association for Coaching in Ireland.
Retain is the international employer brand book
“This is especially important if the information can be found online
of choice and has been sold in over 20 countries.
on the company’s own real estate i.e. their Web site. Company ap-
Further details can be found at: collectivelearningaustralia.com and employerbrandinstitute.com
proved information online must align with the most recent status of the organisation.” “Ideally there would also be a link on the Web site to both formal press releases and information about who to contact if people want more information,” continued De.
Deborah Korb Maizner
item you get is a YouTube video,” she said. “This is open for comment from current employees and offers information for potential employees to see. If your employees do not have faith in you, they can tell everybody.”
JPMorgan Investment Bank, Marketing &
HR’s role
Communications, New York, NY, US
De is quick to emphasise that “we must not forget there are some great companies in this industry and great HR people and leaders doing a fantastic job engaging their employees. The industry has not done anything really bad – no unethical products and nothing life-threatening,” she said. “HR is in an ideal position to communicate to partners, people who supply benefits and external services,” continued De. “This is a great opportunity to strengthen the employer brand by explaining to people how the company is managing the crisis. These people will pass this information on through informal lines of communication.”
a leading global financial services firm with assets of $1.5 trillion and operations in more than 50 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. Headquarters: New York, NY, US Employees: Approximately 20,000
across the Investment Bank 28 Universum Quarterly Issue #2, 2008
.
Sources list: Huges, C., Larsen, P. T. and Simonian, H. UBS faces three-year fight for reputation, Financial Times, April 16th 2008
Head of Global Recruitment Marketing,
JPMorgan is part of JPMorgan Chase & Co.,
Both Minchington and De agree that the attractiveness of the industry itself will bounce back. However, for the companies directly involved, it will take more time for the employer brands to recover. “It can be quite embarrassing for a company when rogue traders put the company’s existence under a cloud,” Minchington said. “However, if the company reacts swiftly and advises the market (and staff) what they are doing to rectify the situation, the impact on the employer brand in the long term may be minimised.” Indignant behaviour is not new to the financial sector and we can be sure there will be more. “We shouldn’t fool ourselves, we can’t pretend that there has been no reputational damage. Experience says its goes away after two or three years,” said Peter Kurer, UBS chairman in an article in the Financial Times, April 16th 2008. Companies can minimise damage to the employer brand through communicating transparently and timely with employees; they are unlikely to want to leave the industry, but may contemplate leaving the company. At the same time, companies must track their reputation in the media. Potential talent may be scared off from the industry or a specific company by this coverage.
Simonian, H., UBS in warning of further job cuts, Financial Times, April 24th 2008 Simonian, H., Top UBS banker detained by US, Financial Times, May 6th 2008 Allen, Peter and Rayner, Gordon, January 25th 2008, Jerome Kerviel behind Société Générale fraud, [online], [Accessed: April 10th 2008]. Available at: http://www.telegraph.co.uk/money/main.jhtml?xml=/ money/2008/01/24/bcnsocgen924.xml BBC News, April 1st 2008, UBS doubles sub-prime writedowns, [online], [Accessed: April 24th 2008]. Available at: http://news.bbc.co.uk/2/hi/business/7323809.stm BBC News, March 17th 2008, Rescue for troubled Wall St bank, [online], [Accessed: April 29th 2008]. Available at: http://news.bbc.co.uk/2/hi/business/7299938.stm Euromonitor archive, February 1st, Global credit crunch: turbulences and outlook, [online], [Accessed: May 8th 2008]. Available at: 2007euromonitor.com/Global_credit_crunch_turbulences_and_outlook, Reuters UK, November 16th 2007, Timeline – the credit crunch of 2007, [online], [Accessed: May 8th 2008]. Available at: http://uk.reuters.com/article/businessNews/idUKL1687521920071116
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