The global economy felt the effects of the COVID-19 outbreak, and the IT sector was no exception. Because of the economic slump, various IT companies have announced layoffs. Since the beginning of 2023, the IT industry layoffs wave topped the media with a 649% spike in cases reported last year. When workforce reductions take place, the strength of an organization’s employer brand may suffer significantly.
Taking the layoffs at Twitter as an example, only 2% of the remaining employees suggest the company as a good place to work, and 1% believe that the company treated the affected employees with dignity. Understanding the consequences of layoffs on a company’s reputation will enable management to analyze perception trends and develop long-term solutions. One approach is to use key performance indicators (KPIs) such as # Employee Net Promoter Score (eNPS) or # Employment brand strength.
Employment brand strength
# Employment brand strength is an important KPI for any organization that wants to recruit and retain top talent and foster an engaging workplace while maintaining business viability. Employment brand strength is a metric that measures how prospective and current employees view a company.
Tracking # Employment brand strength can help companies monitor their progress over time and identify areas of improvement in different aspects such as brand awareness, work-life balance, career development opportunities, and social responsibility. This will result in a more positive work environment, the attraction of more top talent, and the achievement of their business objectives.
Employee net promoter score is a KPI that companies use to measure employee loyalty and satisfaction. Similarly to the NPS for consumers, eNPS applies the same principle to workers, measuring how likely they are to recommend their company as a place to work. Because it is straightforward and easy to track. It can also assist businesses in assessing their employee experience and evaluating their objectives. eNPS can also be used to compare the performance of a company to that of its competitors.
Figure 1. eNPS | Source: Questpro
eNPS is a valuable KPI that can assist firms in measuring and improving employee happiness and loyalty, leading to increased productivity, fewer attrition, and improved business results.
How to measure it
Employee surveys can be utilized to assess employee satisfaction, engagement, and retention. eNPS is the most dependable and widely used employee survey method. It simply asks, “On a scale from 0 to 10, how likely are you to recommend your workplace?” Negative aggregate eNPS scores (Promoters – Detractors) are a major warning sign.
Candidate surveys can be used to identify areas in which the employer brand appeals to potential candidates.
Social media monitoring can be used to observe online conversations.
Communication is the key
According to Forbes, the company should exhibit compassion for the process. Employees will have numerous questions, and managers must address their concerns, so it is important to implement an open-door policy. Providing job search assistance may also help companies reduce the likelihood of negative comments. Companies should also monitor and anticipate such remarks on social media platforms like Glassdoor and prepare diplomatic responses.
However, it is preferable to forestall it from the beginning.
After Nokia’s 2008 earnings rose 67%, the CEO let off 2,000 or more employees to save expenses, which harmed the employer brand and triggered demonstrations.Three years later, in 2011, Nokia had to go through another layoff wave, but at this point they reformed and included the impacted staff to guarantee a seamless transition and avoid negative feedback.
By handling layoffs with transparency, fairness, and compassion, focusing on employee retention and engagement, and tracking the reputation of the employer brand properly, companies can mitigate the damage and maintain a positive work environment amid the tech industry crisis.
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)
# 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
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.