The survey reveals how strategic employer branding can help companies attract and retain talent amid business transformation
As businesses navigate an ever-changing environment, transforming business portfolios has become essential for staying competitive. However, a critical challenge faced by many companies is securing the right human capital to drive these transformations. ABeam Consulting's recent survey, "The Importance of Employer Branding as Seen from the "Fact-finding Survey on Business Portfolio Transformation and Attractiveness of Human Capital Both Internally and Externally" | Insights | ABeam Consulting," underscores the importance of employer branding in attracting and retaining top talent both internally and externally. The findings highlight how companies that align their internal and external branding strategies are better positioned to secure the skilled workers they need.
The survey examined 301 senior managers in human resources and corporate planning from major Japanese companies with annual sales of over 50 billion yen. The survey revealed that, while 85.7% of companies consider business portfolio transformation a key strategy, 92.7% struggle to secure sufficient human capital in terms of both quantity and quality. The survey results also show that only 12% of companies reported having enough skilled personnel, and just 21.2% of growing companies feel confident in the quality of their human capital.
Despite companies' recognition of the need for skilled workers, many struggle to attract the necessary talent. The survey points to two primary reasons for the talent shortage: labor market shortages and a lack of attractive employer branding. Companies that successfully communicated their workplace's appeal both internally and externally were more effective in attracting top talent.
ABeam Consulting's research identified three critical success factors for attracting the right human resources. First, companies need to develop a unified employer branding strategy that appeals both internally to existing employees and externally to potential candidates. Historically, many companies have treated internal branding (focused on employee engagement) and recruitment branding (focused on attracting external talent) as separate efforts, which limits their effectiveness. However, the survey found that 75.1% of companies understand the need for a more integrated approach. The second factor is the importance of implementing initiatives that genuinely engage employees and foster loyalty. While many companies have taken steps to improve employee engagement, the survey revealed that these efforts are often poorly executed or poorly received by employees. Only 13.6% of human resources departments felt their engagement measures were making a real impact. The third factor is communicating the company's attractiveness to the outside world. Companies that successfully conveyed their employer brand externally were able to secure higher-quality candidates, especially in mid-career hiring.
The results of the survey point to the increasing importance of employer branding in Japan, an approach that has gained significant traction in Europe and the United States. Employer branding involves creating a compelling image of a company as a desirable place to work, both internally and externally. Companies that successfully communicate their values and culture to the external job market are better positioned to attract and retain the talent they need to succeed long-term. By developing a cohesive employer brand, companies can define their Employee Value Proposition (EVP), which highlights what makes the company an attractive place to work. This EVP should be consistently communicated through both internal and external channels, creating a unified message that resonates with talent at all stages of their career.
To build a strong employer brand, ABeam Consulting recommends three steps. First, companies must define their positioning as an attractive workplace. This involves articulating what makes the company unique and valuable to employees. The EVP, the core of the employer brand, should clearly answer the question: "Why should employees work here instead of at another company?" Second, companies must implement programs that support the EVP. Once the EVP is defined, it's crucial to take concrete actions that demonstrate the company's commitment to its values and improve employee engagement. Third, the company must effectively communicate its EVP externally. By highlighting its workplace culture, development opportunities, and commitment to employees, companies can attract high-quality external candidates.
ABeam Consulting highlights a few examples of companies that have successfully implemented strong employer branding strategies. A major fast-food chain (B2C) has created an EVP focused on customer empowerment, personal growth, and recognition. This strategy has helped the company attract both internal and external talent by positioning itself as a company that values and supports its employees. A leading software vendor (B2B) offers an EVP centered around meaningful work, an inspiring workplace culture, and competitive compensation. This EVP has been instrumental in attracting highly skilled professionals and fostering employee loyalty.
In conclusion, ABeam Consulting's survey emphasizes the crucial role employer branding plays in business transformation. Companies that successfully integrate their internal and external branding efforts, define a clear EVP and consistently communicate their attractiveness to both current employees and potential candidates are more likely to secure the human capital needed for sustainable growth. As companies look to navigate ongoing transformation, a strong employer brand will become increasingly essential in attracting and retaining top talent. ABeam Consulting remains committed to helping companies improve their employer branding strategies and achieve long-term success by building powerful brands that resonate with employees and candidates alike.