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Posts Tagged ‘Employer Brand KPI’

Measure the Employer Brand from the Inside: Factors and KPI Examples

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Image Source: Ben Duchac | Unsplash

Employer branding is a long-term strategy focused on managing the awareness and perceptions of employees, prospective employees, and stakeholders relating to corporate identity and reputation. The process of internalizing employer branding encourages individuals to accept external values and show authentic attitudes. 

Internalization occurs when an employee feels that they share the same or similar values as what their employer branding projects. However, for such internalization to occur, leaders must consistently talk about their employer brand, act as a role model, and therefore, implement their employer brand through “walk the talk.”

Employees feel greater value congruence when messages are communicated through employer brand values and when they experience regular interaction with employer brands. Senior management behavior, which reflects the values of employer brands, can fulfill a vital role in increasing employee engagement through employees who internalize employer branding values. 

In order to successfully increase employee engagement, employees need to internalize the company’s employer branding values as their own. Conformity between employee’s values and employer branding values is called employee brand fit. This concept is derived from the definition of person-organization fit.

Employees who consider their ethical values are in line with employer branding tend to feel a higher similarity and more engaged to the company. The compatibility of the employer brand and employees encourages the latter to develop an emotional attachment to the company. In addition, when employees believe that their values are consistent with the values of their companies’ employer branding, they feel more involved with the company’s vision and beliefs, and they are more likely to be emotionally connected to the company.

Measuring Employer Brand from the Inside

A study regarding internal employer branding reveals that the five main factors to consider when measuring employer branding from the inside are compensation & benefit, training & development, ethics & CSR, work-life balance and healthy work atmosphere.

Compensation and benefit

It reflects the attractive salary and competitive benefits offered by the organization to its employees. An effective compensation and benefits package helps a company to not only be competitive within the market but also to retain talent. You can use these KPIs to measure compensation and benefit:

  • # Salary competitiveness ratio
  • # Compensation market ratio
  • $ Healthcare expenses per current employee
  • % Target percentile
  • $ Internal equity
  • % Human capital  Return on investment (ROI)

Training and development

It reflects the skill development and growth opportunities provided to the employees for their current as well as future job positions. Here are the KPI examples for you to measure training and development:

  • $ Training cost per employee
  • % Employee received personalized training
  • # Training hours per full time equivalent (FTE)
  • $ Training investment per full time equivalent (FTE)
  • % Training programs for newly introduced innovations

Ethics and CSR

It reflects the ethical and social concerns of the organization towards both its employees, in particular, and society, in general. While ethics includes variables like the attitude of the organization towards the employees and legal procedures, CSR is the effect that corporations have on society with the aim of identifying and engaging new customers. You can use these KPIs to measure ethics and CSR:

  • # Company ethics violation
  • % Implementation level for guiding principles
  • # Confidential information leaks
  • % CSR programs implemented
  • # Environmental abnormalities and complaints received

Work-life balance (WLB)

WLB is characterized by the equilibrium between a person’s personal and official life. Organizations these days are becoming cognizant of WLB issues and have started incorporating WLB strategies into their employer brand. Here are the KPI examples for you to measure work-life balance:

  • # Employee Engagement Index (EEI)
  • % Absenteeism
  • # Employee Net Provider Score (eNPS)
  • % Employee turnover
  • # Happiness Index

Healthy work atmosphere

It reflects a friendly and less-stress work atmosphere and the team spirit amongst employees. The work atmosphere of every organization is unique and can be used as an employee value proposition of the company to distinguish it from competing firms. You can use these KPIs to measure healthy work atmosphere:

  • # Reported accidents and incidents
  • # Average overtime hours per employee
  • % Employee perception on management commitment survey
  • # Gender ratio
  • # Female to male salary ratio

Conclusion

To date, many employer brand strategies are delivered as a talent attraction tool. While lots of strategies provide useful insights about the employer brand’s external conceptualization and measurement, it devotes scant attention to the employer brand attributes that are considered to be important by the existing employees of an organization. The most important thing is, what’s implemented inside your organization can greatly influence your employer brand on the outside. If you’re interested in other KPI examples, sign up to our largest KPI database

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