EMPLOYER BRANDING

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HOW TELEGATE AG CAN IMPROVE

ITS RECRUITMENT ACTIVITIES

Master thesis, MSc Human Resource Management

University of Groningen, Faculty of Management and Organization

24 June 2007

SARA ANNA MARIA DIEDERICHS Student number 1663011

Weißenstein 103, 40764 Langenfeld, Germany Tel.: +49 (0)2173-208158

E-Mail: sara.diederichs@web.de

Supervisors / university 1. Dr. J. van Polen 2. Dr. O. Janssen

Supervisor / field of study L. Altmann

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ABSTRACT

EMPLOYER BRANDING

HOW TELEGATE AG CAN IMPROVE ITS RECRUITMENT ACTIVITIES

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-LIST OF FIGURES AND TABLES

FIGURES PAGE

Figure 1 Conceptual framework 8

-Figure 2 telegate AG’s early recruitment activities 13

-Figure A1 Simplified organisational structure 30

-Figure B1 telegate AG’s current career website 31

-Figure B2 Example of telegate AG’s new career website 31

-TABLES PAGE

Table 1 Comments on product awareness, employer familiarity, 12

-reputation and job information

Table 2 Employer branding tools 16

-Table 3 Positions, which are difficult to occupy at telegate AG 17

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-1. INTRODUCTION

With fiercer rivalry in the market place, competitive advantage is more important, but also more difficult to achieve than ever before. As competitiveness is gained either through cost reduction and/or value creation (Porter, 1986), firms are increasingly focusing on reducing overheads and differentiating themselves. This has shifted the attention to human resource (HR) management as people, although being costly can set firms apart from competitors (Boxall & Purcell, 2003). Thus, methods to improve the workforce’s effectiveness are of significant interest to enterprises.

This explains the rising amount of literature focusing on human resource management and especially on the area of recruitment (e.g. Leopold, 2002; Cascio & Aguinis, 2005). However, although much research has been conducted on this topic, companies still invest considerable amounts in recruiting personnel, without being convinced of their methods’ effectiveness (Viney, Adamson & Doherty, 1997). It shows that enterprises waste resources in the form of expenses, time and human assets, possibly diminishing their competitive advantage (McDermott, Mangan & O’Connor, 2006).

This is critical, as due to ageing workforces and more demand for well-qualified personnel, many nations are expected to experience a shortage of skilled labour, which will intensify the “war for talent” (Corporate Leadership Council, 2003; Ng & Burke, 2006). With more firms competing for fewer well-skilled workers, positioning an enterprise as an attractive employer has become an essential activity, explaining the rising interest in employer branding, as a tool to improve recruitment procedures.

1.1 Research aim and justification

An initial analysis of the literature showed that while employer branding is widely discussed among practitioners it has received limited attention in academic research (see e.g. Backhaus & Tikoo, 2004, Collins, 2007). Previous studies focused either on graduates’ expectations when entering the labour market (e.g. Ng & Burke, 2006; Rizzardi, 2005), firms’ anticipations of workers and their integration into the organisation (e.g. Viney et al, 1997; McDermott et al, 2006) or the impact of employer branding on recruitment processes in general (Collins, 2007; Lievens, 2007). Individual companies and their position in the market as attractive employers have received little attention so far (Barrow & Mosley, 2005; Miles & Mangold, 2005).

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a process increasingly becoming critical for firms. The study is based on the conclusions by Collins and Collins (2007) and Stevens (2002) that employer branding can influence the effectiveness of recruitment activities.

The rising focus on human resources as a source of competitive advantage and the increasing “war for talents” affecting companies’ recruitment strategies, justify the topic choice (see e.g. Wiese, 2005). Additionally, as telegate AG, in whose name this study was undertaken, so far has no employer brand strategy and struggles in recruiting new employees, this topic is of critical importance to the firm. The focus of this paper, its research questions and methodology are consequently based on the firm’s requirements. Working with humancaps consulting Ltd., a recruitment agency of telegate AG, gave me access to the required resources, making this study highly feasible.

1.2 Thesis structure

After presenting the nature of the study and the context within which the research was completed in the first chapter, the subsequent chapter provides a critical review of prior literature and highlights gaps of previous studies. The chapter also presents the study’s conceptual framework and identifies the paper’s research questions.

This is followed by an overview of the project’s methodology including its design, philosophy and strategy. The third chapter also highlights the rationale behind the choice of data collection.

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2. THEORY SECTION

This chapter provides information on previous studies and clarifies the theoretical concepts behind recruitment and employer branding. This then justifies the choice of research questions. Besides highlighting limitations of prior studies, the conceptual framework is introduced.

2.1 Employer Branding

Due to limited prior research on employer branding the underlying theoretical framework has not yet been fully explored (Backhaus & Tikoo, 2004; Cable & Turban, 2001). However, it is clear that it is based on the resource-based view, which sees employees as key assets of an enterprise critically contributing to its competitive advantage. People thus participate in creating a unique organisational culture and as their skills are hard to imitate or duplicate they can enable a firm to move ahead of competitors. This is critical in the service industry, where people are the predominant tool to distinguish companies (Barney, 1991; Knox & Freeman, 2006).

The terms “brand” and “branding” emerged in the marketing arena, but have increasingly ventured into human resource management, defining a firm’s employment image and attractiveness. Employer branding is seen as a long-term strategy to manage the awareness and perceptions of a firm’s potential and current employees (Sullivan, 2004). Hence, similar to the creation of product brands to increase consumers’ awareness, employer branding aims to identify and position a company as an attractive employer, as people are then more likely to apply (Cable & Turban, 2001; Grout & Perrin, 2002). Backhaus and Tikoo (2004) highlight the importance of employer branding by stating, that its effective use can increase a company’s competitive advantage, through better attracting and retaining current and potential workers while reducing inefficiencies. It hereby influences how people perceive a firm and its role as employer and how this knowledge influences their decision-making. The employer brand thus serves as a signal of unknown organisational characteristics (Knox & Freeman, 2006). A good employer brand positively influences the quantity and quality of applicants and with that reduces recruitment expenses (Wiese, 2005).

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Opposite to internal recruitment, external recruitment procures candidates outside an organisation either directly by the company or by third parties, such as recruitment agencies (Cascio & Aguinis, 2005; Heery & Noon, 2001). The decision, of who is in charge depends on time and budgetary constraints as well as the expertise available to find an optimal fit (Grout & Perrin, 2002). The most important issue hereby is the identification of the right audience and the use of the appropriate recruitment activities. Research (see e.g. Doherty, Viney & Adamson, 1997) in this regard shows that recruitment is most effective, if a specific target group is clearly defined and approached.

This can include unemployed, people working “who would change jobs, if given a fitting offer” (Bax, 2006:29) and graduates ready to enter the labour market. Obtaining people externally makes sense, if the skills needed are generic or generally available (Lepak & Snell, 2003). Consequently, the external labour market should be scanned, if open positions exist, which cannot or should not be filled internally, and to detect critical skills even if no labour demand exists. This is in line with the research on employer branding, which indicates the need for firms to continuously look for talent (see e.g. Backhaus & Tikoo, 2004; Fields, 2001; Schmidbauer, 1974). The vital task of HR departments in this case is to create a fit between labour demand and labour supply. Hereby Bax (2006) states that not only labour supply can be adapted (identifying skills to fill existing vacancies), but that also labour demand, meaning internal structures, functions and roles can be adapted to match the supply side. Thus, the job positions are adapted to the skills available and not vice versa. Changes to both demand and supply are often needed to achieve an optimal fit.

As telegate AG currently receives few job applications, the paper focuses on external employer branding and recruitment. In line with the definition by Lievens (2007), the focus is on early recruitment activities and the group of potential applicants a company can target to convince them to apply to the firm.

External employer branding focuses on building an employer brand association and image, which positively affects the employer’s attractiveness and improves external recruitment processes. Potential workers are attracted to a company if it holds on to similar values as the candidate and if it possesses desired attributes (Rizzardi, 2005). Subsequently, outsiders compare the employer brand image to their own needs and principles (Backhaus & Tikoo, 2004; Crewson, 1997). Similar to internal employer branding the career steeps, working conditions, development opportunities and performance appraisals are essential (Ng & Burke, 1997).

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the firm’s offerings. Hatch and Schultz (2001) therefore state that branding will work if it “expresses the values and/or sources of desire that attract key stakeholders to the organisation and encourage them to feel a sense of belonging” (p. 1046).

This shows that applicants have specific expectations when considering their employer, which means that even the most successful strategy will fail, if these desires are not met (Doherty et al, 1997). Ng and Burke (2006) in this regard identify that e.g. graduates expect firms to spend more time meeting them and using the internet as an information tool. The reason for the latter factor is that students heavily use the World Wide Web to search for job openings or to obtain information about specific companies, their cultures as well as their job and career possibilities (Doherty et al, 1997). Hence, using the internet and all its facets as part of the firm’s recruitment activities is essential for organisations these days (Fields, 2001:72).

Today recruiting graduates is often the most vital form of securing valuable talent (Thom & Friedli, 2003). ‘High flyers, fast trackers, young professionals or high potentials’ are some of the names given to graduates, which have the potential to quickly advance within a firm, becoming precious assets. In addition, if hired at an early stage of their working life, they can be formed and developed easily, while also providing new insights (Bedingfield, 2005; Thom & Friedli, 2003). Unfortunately, the change from the “Diplom” to the “Bachelor/Master” degree system in Germany, aggravated graduates’ entry into organisations as few employers know which qualifications graduates now possess (Heine et al, 2005). As many firms have ignored higher educational changes, a misfit between firms and graduates’ expectations has emerged (Pitcher & Purcell, 1998). Consequently, many graduates are inappropriately employed and dissatisfied with their current position (Gush, 1996). A better match between firms’ demands and graduates’ skills is consequently critical, as it will lead to a more satisfied and productive workforce, influencing firms’ ability to attract and retain candidates.

Thus, besides considering which strategy is most effective for a firm to attract personnel, it also needs to consider how to position itself in the marketplace and build an attractive image, which realistically reflects the firm. This is where employer branding and early recruitment activities play an important role. The use of suitable media for example as part of the recruitment activities can include trade press, local and national newspapers, employment services, the internet and the radio (IPD, 2000). Appropriately used these sources can produce enough responses to make an effective selection, while minimising wasted replies.

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the company website, online job portals or in journals and magazines are used to attract graduates to the company (Thom & Friedli, 2003). These methods are location-independent. All approaches help enterprises to build a relationship with graduates.

Collins (2007) takes a different approach to group recruitment practices differentiating between low and high-information recruitment activities. He defines low-information recruitment activities as general recruitment practices such as advertisements, recruitment posters, banner ads and sponsorships. On the other hand, high-information recruitment activities according to him are “practices that contain detailed specifications and arguments regarding the job and company” (p. 182). He argues that for companies with low product awareness, low-information recruitment activities act as a substitute for product awareness affecting employer familiarity, reputation and job information. On the contrary, high-information recruitment procedures are useful if high product awareness already exists among candidates, leading to more employer familiarity, reputation and job information.

Employer familiarity is the job seekers’ ability to identify the firm as a potential employer, while employer reputation looks at the beliefs potential employees have about the company. Finally, job information investigates the beliefs jobs seekers have relating to specific job attributes. These three factors then influence the application intentions of candidates.

2.2 Building an employer brand

This paper is based on the findings of the DGFP (2006), the German institute for research in the area of HR. Their results on employer branding are taken as the paper’s theoretical framework. The DGFP (2006) states that to develop an employer brand strategy a three-folded analysis is required, which focuses on (1) a specific firm and its recruitment processes, (2) the external environment including competitors’ employer branding approaches and finally (3) the target group, which the firm wants to attract, recruit and retain. They claim that this framework allows firms to obtain a thorough overview of employer branding issues to consider, while ensuring that any activity is well aligned with the company’s objective and overall strategy.

Applying this analysis hence could allow companies to gain an overview of challenges to consider relating to employer branding and highlights how it can best position itself in the market. It also helps in developing employer brand propositions, which identify the strengths and values of the company as an employer. These propositions can then be used as the basis for image campaigns, events and advertisements (Barrow & Mosley, 2005; Wiese, 2005). Finally, to ensure that the employer brand strategy is effective and reaches its objectives, a feedback loop and controlling mechanisms should be implemented.

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portray a consistent image (Fields, 2001). This explains why studies stress the need for a close collaboration between the different functional departments (e.g. Knox & Freeman, 2006; Wiese, 2005). This is supported by Granovetter (1995) and Schuler, Dowling and Decieri (1993), who state that all HR activities need to be consistent with each other, the other corporate functions and the firm’s goals.

Overall, it is vital to acknowledge that the employer brand is intangible and rests on individuals’ different perceptions. It is therefore difficult to form once installed in people’s heads (Fields, 2001). Subsequently, building, developing and maintaining an effective employer brand is a long-term process requiring dedication, continuity and consistency to set the firm apart from rivals.

2.3 Limitations of previous research

Relevant to this paper, some limitations of previous studies have to be addressed. Most prior research was either done by Anglo-Saxon authors or focused on Anglo-Saxon companies (e.g. Knox & Freeman, 2006; Miles & Mangold, 2005). It will thus be interesting to discover if their findings have implications for other countries. Furthermore, many studies are based solely on quantitative data and take a very general approach (e.g. Collins & Stevens, 2002; Doherty et al, 1997; Wiese, 2005). Consequently, using qualitative information and focusing on a specific company might provide different insights. Additionally, as most authors investigate employer branding from graduates’ point of view (e.g. Ng & Burke, 2006; Rizzardi, 2005); studies provide little insight of how firms approach this topic area. Moreover, due to the study’s time constraints, investigating one company was more feasible than approaching a larger sample of graduate students. Finally, due to various different definitions of “employer branding” and references to both marketing and HR literature discourses often lack focus (e.g. Barrow & Mosley, 2005; Knox & Freeman, 2006). Thus, this paper and its specific research questions could add information to a theme increasingly becoming a focus of attention.

2.4 Conceptual framework

Using the theoretical framework of the DGFP (2006) (see page 6) and all other previous findings I defined the research questions and developed a conceptual framework (Figure 1), which is the basis for this study. telegate AG’s objectives, namely the interest in implementing an employer brand strategy, is the starting point for this paper. The first step is then to ascertain telegate AG’s early recruitment practices in order to identify current recruitment problems.

Additionally, employer brand strategies currently used by companies operating in Germany are investigated. With little expertise and references available of how companies exactly approach employer branding, looking at approaches taken by some other firms is essential, making benchmarking a necessity. This is supported by both humancaps consulting Ltd. and telegate AG, who saw this method of data gathering as highly essential.

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Research method and strategy), should allow me to provide telegate AG with a concept of how it can, through a well-targeted employer brand strategy better attract skilled personnel. The next stage would then be the implementation of the most adequate methods and a consequent feedback loop to investigate if telegate AG’s objectives were met. However, this step will not be discussed in this paper.

It has to be stressed that the concepts behind the three research questions do not only work towards one common goal, namely the development of an employer brand strategy, but that they also influence each other. Hence, the conceptual framework below is rather simplified. It has to be said that e.g. competitors’ specific target groups influence, how the recruitment processes and the employer strategy are carried out. This is in line with findings by Wiese (2006) that all concepts of employer branding are interrelated and hence influence each other.

FIGURE 1 Conceptual framework

telegate AG’s objectives

Analysis of recruitment process

Overview of challenges and options

Implementation of new practices

F

ee

d

b

ac

k Analysis of employer _{branding approaches} Analysis of target _group Chapter 4.0

Chapter 5.0 telegate AG’s objectives

Analysis of recruitment process

Overview of challenges and options

Implementation of new practices

F

ee

d

b

ac

k Analysis of employer _{branding approaches} Analysis of target _group Chapter 4.0

Chapter 5.0

Using this conceptual framework, the following research questions were defined:

RESEARCH QUESTION 1: How are telegate AG’s early recruitment activities organised? RESEARCH QUESTION 2: How do other firms in Germany deal with employer branding? RESEARCH QUESTION 3: How does telegate AG need to target potential candidates?

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3. RESEARCH METHOD AND STRATEGY

The elaboration and justification of the research questions and a conceptual framework were needed before identifying the most feasible research process, which is the focus of this chapter.

3.1 Research philosophy and strategy

To undertake this project research was guided by various authors, who have grappled with different rationales. Although, research rarely falls into one philosophical category (Hussey & Hussey, 1997), this study is best approached using an interpretivist philosophy. Using a case study in connection with interviews and personal observations (see 3.2.1 and 3.2.2) enabled me to gain in-depths information, while reducing the study’s subjectivity. Moreover, in line with an interpretivist approach the location of the study is natural, leading to a high validity of the data (Saunders, Lewis & Thornhill, 2003). Using the interpretivist philosophy thus provided a reliable framework for this study.

As no study could be identified which takes a similar approach as this study, it was most feasible to devise research questions to receive a deeper understanding of the company and its environment as well as the meaning interviewees attached to an event or process (Zikmund, 2003). As the aim for all three research questions was to discover ‘what is happening’ and to clarify my understanding of the situation, the approach taken was exploratory, whereby my findings can inform future studies (Robson, 2002; Saunders et al, 2003). As this paper is of pure qualitative nature, no statistics were used and the research questions were fully answered through identifying common themes and concepts stressed in the interviews and summarising the main subjects addressed (Saunders et al, 2003). A case study such as mine is appropriate for exploring new areas and when the researcher is interested in questions focusing on “how” and “why” something occurs (Leonard-Barton, 1990). Hence, this approach and the combination of internal and external interviews as well as my observations are ideal to understand participants’ perceptions, which are critical for this study’s success.

3.2 Data collection and analysis

Primary data was gathered while I was working at humancaps consulting Ltd. conducting this research for telegate AG. To answer the research questions qualitative data was collected through interviews with employees of telegate AG and HR personnel of other firms. As the rate of return has historically been very low when conducting research in the area of HR (e.g. Bonache, 2005; Waxin & Panaccio, 2005), I was agreed that collecting qualitative data using interviews would be most suitable.

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employer branding in some of the most renowned organisations in Germany was more effective than contacting many people, potentially not directly involved in employer branding projects. Finally, a cross-sectional approach was used, which focuses on a situation at a specific time to identify differences between the sample group’s members (Remenyi et al, 2001). This was appropriate, as due to time constraints a longitudinal analysis was not viable.

3.2.1 Participant observation

Working at humancaps consulting Ltd. for four months and visiting telegate AG’s headquarters and its call-centres in Neubrandenburg and Rostock allowed me to understand the issues addressed in the interviews and enabled me to obtain a detailed insight of the firm’s recruitment procedures. Hence, using telegate AG as a case study was advantageous, as it gave me a deep insight into the organisation and its practices (Robertson, 2002). Thereby, I compared my own observations relating to employer familiarity, reputation, job information and high and low-information recruitment activities (see Collins, 2007) to the interviews’ findings. Additionally, behaviours and comments of potential candidates were taken into account. I subsequently acted as a participant observer, emerging in the research setting to comprehend the behaviour of the people under investigation (Jankowicz, 2005). This enabled me to understand the data collected and interpret the results, while taking telegate AG’s specific context into account (Saunders et al, 2003; Ghauri & Gronhaug, 2002). This was very beneficial as the objective was to provide an overview of the current situation and challenges.

3.2.2 In-depth interviews

In-depth interviews are commonly unstructured and informal. They are used to obtain detailed information on a specific area (Saunders et al, 2003; Zikmund, 2003). The interviews conducted took place on a one-to-one basis. They were all respondent interviews, as I directed them through the questions I posed. Taking thorough notes during the interviews and writing summaries immediately afterwards allowed me to identify important themes, which continuously re-emerged. Due to the geographical distance and time constraints, some interviews were conducted via telephone.

To answer the first research question, focusing on telegate AG’s early recruitment activities, 15 people were interviewed internally. This included the Head of the HR department, one HR specialist, three team leaders, two operators as well as three call-centre managers and five call-centre manager’s assistants. Applying Collins’ (2007) findings the recruitment activities were assessed taking telegate AG’s product awareness, employer familiarity, reputation and job information into account. Moreover, distinctions were made relating to high and low-information recruitment activities used. Identifying common themes among respondents’ perceptions helped to identify challenges currently faced as well as the effectiveness of the methods used.

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for employer branding at Vodafone D2 GmbH, Accenture GmbH, Kaufhof Warenhaus AG, Continental AG, Peek & Cloppenburg KG, Deloitte & Touche GmbH and T-Mobile Deutschland GmbH. In line with the first research question, attention was given to the low and high-information recruitment practices used and their effectiveness. Moreover, I aimed to identify how these companies defined employer branding and how their strategy was developed. As these firms are well recognized, it was taken as granted that they enjoy a high product awareness, employer familiarity and reputation in the market. These interviews were used to build my knowledge on employer branding methods actually adopted by firms in Germany in the struggle to recruit the best personnel. This helped to identify how firms approach employer branding and highlighted issues telegate AG needs to consider.

To answer the final research question on which target group telegate AG should approach in the future, results from both the internal and external interviews were used. In both interview groups, questions were asked on: which people are currently targeted, how they are approached and what experiences have been made with these methods so far. As telegate AG currently struggles in attracting candidates to the company, I hoped to identify obscurities or differences between how telegate AG targets applicants and how other companies approach this topic. Additionally, as the theory section highlighted applicants, such as graduates, are demanding nowadays and expect a lot of information from companies. Considering this issue, identifying the optimal target group for telegate AG can only be advantageous.

For both the internal and external interviews, I conducted interviews until they did not provide any new insights. Then I concluded that a level of saturation was reached and that no additional talks were required to get a better understanding of the situation.

Due to its exploratory nature, this study is of high importance to telegate AG and other German enterprises, who are considering using employer branding in the future. Hence, the study’s practical usability for the actual business society could be immense. Moreover, it may contribute to the findings of the DGFP (2006), which served as the basis for this study.

3.3 Ethical issues

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4. RESULTS AND ANALYSIS

This chapter focuses on the information obtained from the interviews, while including some personal observations made. The findings are presented in three sections, following the study’s research questions.

4.1 How are telegate AG’s early recruitment activities organised?

The first research question focuses on identifying telegate AG’s early recruitment activities. Hereby Collin’s (2007) findings were taken as a point of reference and attention was given to the following issues: product awareness, employer familiarity, employer reputation, job information (see table 1) and low and high-information recruitment activities.

TABLE 1

Comments on product awareness, employer familiarity, reputation and job information

Variables Comments

1 Product awareness All candidates know our main product, the “11880”. However, only few are aware of our other products and offerings.

2 Employer familiarity It no longer comes as a surprise that hardly anyone has heard of telegate AG. This means that I always have to say that our main brand is the “11880”. This makes our job to recruit people very difficult.

3 Employer reputation I think that among call-centre workers we have a good reputation. However, in the labour market, telegate AG suffers from the poor call-centre image. This means that many people think call-centres consist purely of people making telephone calls all day. Many do not regard it as an interesting work environment.

4 Job information Candidates get the job information through our advertisements. However, to be honest, we do not provide a lot of information. Some candidates have looked at our website before, but they complain that this is not very helpful

Product awareness, employer familiarity, employer reputation and job information

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the marketing department are non-existent. This is supported by my personal observations. During the interviews I conducted with potential job candidates while working at humancaps consulting Ltd, an explanation of the company was often requested, as most did not know the organisation.

However, as there is a high familiarity in the market with the brand “11880”, this product awareness leads to a partial employer familiarity. Alas, this product awareness and familiarity negatively influence the reputation of the company, as it shows the firm as an enquiry service reducing its image and attractiveness.

Relating to job information two other issues arose in the interviews. These are related to the titles currently used at telegate AG and its flat hierarchy, which limits the ability to vertically progress within the firm. The historically grown structure, according to the Head of HR, bares the risk of workers leaving if vertical career steps no longer exist. Another respondent highlighted in this regard:

The problem of our company is that progression mainly occurs based on an employee’s own initiative. For most positions, there is no formal development process. This means that I have to apply for a new position, if I want to develop within the firm. (…) Another dilemma that we have, is the discrepancy between the job titles we use at telegate AG. They often deviate from titles used in other companies.

In this regard, the Head of HR stressed, that this could make the job vacancies at telegate AG less attractive for external candidates.

Low and high-information recruitment activities

Figure 2 shows the different recruitment sources used to post job vacancies that were identified during the interviews. It indicates that vacancies are posted internally, on the company homepage, on internet job portals (e.g. Stepstone) and depending on the type of vacancy in trade journals and magazines as well as regional newspapers (e.g. Schweriner Volkszeitung) and free sheets (Güstrower Blitz and Express).

FIGURE 2

telegate AG’s early recruitment activities

Recruitment sources Internal Labour Market External Labour Market Newspaper Journals / Magazines Internet Free sheets Recruitment

agencies Radio & TV channels

Job portals _homepageCompany Federal Employment _Services

Recruitment sources Internal Labour Market External Labour Market Newspaper Journals / Magazines Internet Free sheets Recruitment

agencies Radio & TV channels

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The latter two methods are especially relevant for vacancies at the call-centres. Furthermore, a recruitment agency is sometimes instructed to search for potential candidates and some call-centres use regional TV and radio channels (e.g. Antenne MV, Ostseewelle and TV Stralsund) to advertise their vacancies. However, it has to be stressed that sources used by the call-centres differ and that not all call-centres use the methods mentioned to the same extend. One respondent in this regard said:

Methods used in the call-centres vary according to the creativity and engagement of each call-centre and its managers. Some are more active and some less. I think only the “open days” are carried out in each call-centre.

To identify potential candidates some call-centres additionally use “recruit a friend schemes” and fairs organised by the ‘Bundesagentur für Arbeit’ (Federal Employment Service). While the headquarters does not attend any recruitment fairs, some call-centres participate in such events. The call-centre in Rostock for example attends the “campus day”, a recruitment event of the University of Rostock, while the call-centre in Schwedt attends the “inkontakt” a recruitment fair organised by regional employer associations. Furthermore, vacancies are posted on the career website. In this regard, interviewees however stress that this tool provides little additional information, which could attract candidates. My observations back this finding up, as the vacancies posted on the website were often out-dated, lacked information and did not invite people to actively engage with the website due to their unattractive design.

The company presentations and the open days are the only recruitment activities currently carried out, which provide vast amount of information to potential candidates. All other procedures are highly general and superficial and hence provide little information. Relating to the effectiveness of methods used one respondents identified:

The most successful methods are company presentations and open-days. Here those interested in the firm have the chance to learn more about our jobs, our work atmosphere and us. They are often very surprised and many say that they did not expect such a positive and friendly work environment.

The next step will now be to investigate how other companies approach this topic area.

4.2 How do other firms in Germany deal with employer branding?

Speaking to HR managers of different companies, the second research question investigates, how employer branding is approached by other enterprises in light of their early recruitment procedures.

Employer branding

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through speedily filling vacant positions with the best people available and better positioning the company as an attractive employer in the end. However, the emphasis companies put on these two aspects varied. In this regard, one interviewee stressed that:

We use employer branding to fill vacancies with the best people we can find. This is our main priority. Positioning ourselves as an attractive employer receives less attention.

The conjunction of several activities and the alignment of employer branding with all other corporate activities and the corporate strategy was seen as having the best effect on recruitment. Furthermore, interviewees emphasised that unless messages communicated to potential applicants are supported by internal procedures, the will certainly fail.

Interviewees in this regard also stressed that a close collaboration between the marketing and HR department is essential to guarantee the effectiveness of any employer branding activities. However, divergence existed between the firms as in some employer branding is conducted by the marketing department while others see it as a HR responsibility. Some companies even use joined campaigns between the two functions to target both customers and potential employees.

All managers pointed out that a critical step when developing their employer brand approach was to identify internal “Employer Value Propositions (EVPs)” or “Recruitment Attractiveness Trackings (RATs)”, which stated the company’s values, its perceived image and the strongest characteristics defining it as a potential employer of choice. These propositions were then used for various image campaigns and were the basis of all job postings (e.g. in journals, magazines or the internet). Divergence however exists in the degree of formality and structure. While some firms seem to have a clear idea of how to carry out employer branding, most interviewees confessed that they conduct employer branding on a “trial and error basis”. One respondent said in this regard:

As one of the first companies in Germany, we invested in employer branding approximately 7 year ago. We are hence a pioneer in this field. Due to limited knowledge on this subject area we have followed a strategy of “learning by doing”. We are thus prepared to take some risks when developing our employer brand.

Low and high-information recruitment activities

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For students, graduates and people with work experience we have special sections on our career website to give them as much relevant information on e.g. career possibilities, the firm’s culture and work atmosphere as possible. This guarantees that they quickly see what we have to offer.

Additionally, the majority stressed the need to present potential candidates with various options to contact the firm. Table 2 gives an overview of the different early recruitment activities and employer branding tools used by the companies investigated.

TABLE 2

Employer branding tools

Job & image advertisements Other tools - national / regional papers - sponsorships - magazines - study funds - internet job portals - video clips - local radio & TV stations - web-logs - company career website

Collaborations with Events

- Federal Employment Service - recruitment fairs - Chamber of Commerce & Industry - seminars & workshops - regional employment agencies - company presentations - temporary work agencies - open days

This supports the comments made, that the firms try to extensively inform potential candidates through numerous channels and activities. According to the interviewees this is a vital approach, as all respondents believe that the “war for talents” will intensify, making effective employer brand methods a necessity to attract personnel.

To ensure the effectiveness of the employer branding approaches firms use frequent internal studies to get feedback from employees recently hired. Additionally, some firms also use external studies to analyse the effectiveness of their approaches, allowing them to quickly make adaptations.

After analysing companies’ employer branding approaches attention will be turned to the target groups approached by both telegate AG and the other companies under investigation. Hereby, focus is on the effectiveness of the different methods.

4.3 How does telegate AG need to target potential candidates?

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this method. The subsequent section then identifies how the other companies approach potential candidates and which experiences they have made.

Presently the recruitment process is short-term and focuses on filling ad hoc positions. The only long-term objective is to recruit 12 team leaders until 2008. Although long-term budgeting plans are made, the HR specialist said that these are rapidly outdated, due to the industry’s unsteady growth.

telegate AG’s recruitment process is centralised and carried out by the HR group department in Munich for all vacancies except operator positions. After receiving the applications, successful candidates are invited for two consecutive interviews or an assessment centre depending on the position and the number of applicants. Both HR personnel and members of the relevant functional department are present at the interviews. The functional department or call-centre in which the candidate will work later on makes the final recruitment decision.

Table 3 highlights positions, which are currently difficult to occupy. In these cases, it often takes several months until a position is filled. My personal observations are in line with this finding, as in some cases it can take humancaps consulting Ltd. over half a year to find suitable candidates for telegate AG.

TABLE 3

Positions, which are difficult to occupy at telegate AG

Location Position

1 Call-Centre Team leader trainees

2 Call-Centre Team leader

3 Headquarters Specialised positions such as software developer and IT specialists

4 Headquarters All higher hierarchical positions

Presently both external and internal sources are targeted to fill e.g. team leader and trainee positions. Assessment centres are constantly conducted at the call-centres to identify operators with leadership potential. The Head of HR however lamented:

We continuously conduct internal assessment centres to find people that demonstrate the qualities needed. However, out of maybe 30 people we see, one or two show some potential. This is very frustrating. We hence increasingly target external workers.

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desired, but not essential, as all team leaders interviewed pointed out that most skills could be acquired quickly. Hence, the type of study and previous experiences are relatively irrelevant, as soft skills are more essential.

Finding candidates for headquarters positions is difficult due to several reasons. While the location is attractive, being situated in a suburb of Munich, the firm only offers few career possibilities due to its flat hierarchy (see page 13). Consequently, vertical career steps are limited. This often creates reluctance among applicants to accept the job. Best results have however been achieved with workers, who entered the firm at the lowest hierarchical level, as these required longer to progress through the company. One respondent in this regard stated:

We have discovered that when we hire highly qualified people they are often quickly frustrated as options to progress within the firm are limited. Hence, we need people who have some of the qualities needed, but still need to be developed over a longer period. This satisfies both the demands of workers and the company.

Personal observations support this statement, as workers with little work experience were often most interested in occupying the advertised positions, while still possessing sufficient qualifications.

As telegate AG has problems identifying and attracting personnel humancaps Consulting Ltd. is often approached to find candidates for both the call-centres and the headquarters. This is advantageous as both active and passive job seekers are targeted. Additionally, it makes sense as the interviewees stressed that call-centre employees in general are very loyal and would thus not actively search for new jobs. However, the recruitment agency is costly and can hence only be used if a budget exists and if telegate AG cannot identify candidates on its own.

telegate AG’s recruitment activities are highly passive and very general. Vacancies are advertised openly across Germany and for some positions in the regional media. However, except for the call-centres in Rostock and Schwedt (see page 14) no specific target group is approached to fill the vacancies. Additionally, little information is provided to potential candidates and telegate AG sticks to recruitment activities used in the past, without showing any flexibility. This varies highly to approaches taken by the other companies investigated.

Hereby all external respondents emphasised that any method used has to be adapted to the specific group targeted. Most firms make differentiations between students, graduates and professionals. Relating to graduates, e.g. most companies identified specific universities and degree programmes with which they collaborate closely. One person in this regard emphasised:

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collaborate. At these institutions we attend recruitment fairs and hold company presentations.

Furthermore, these firms increasingly adapt their approaches to new technologies using e.g. videos clips to give applicants an idea of the company, its work atmosphere and organisational culture. One interviewee however stressed in this regard:

For us it is vital that any tool we use is in line with our corporate objectives. We do not simply adopt competitor’s approaches, as this could reduce the degree to which the tools reflect the corporate message communicated. Hence, we have e.g. decided not to use radio advertisements.

This is in line with findings on page 15, that the companies interviewed try to offer as much information to potential candidates as possible, while trying to adapt this information to the specific groups targeted. Hence, every vacancy is published using specific media channels, which guarantee that those most suited to fill the vacancy are aware of the position.

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5. DISCUSSION

After analysing the data, this chapter summarises the findings, provides conclusions, offers implications for telegate AG and highlights areas, which can be considered for future research.

5.1 Key challenges

Looking at the information obtained from the internal interviews, some problems could be identified, which currently reduce the company’s recruitment effectiveness (see table 4).

TABLE 4

Problems complicating telegate AG’s recruitment procedures

Few applications due to:

 Poor call-centre image and low company awareness  Remote call-centre locations

 Insufficient information on jobs, career steps etc.

 Centralised recruitment responsibility, but decentralised recruitment activities

 General recruitment activities which fail to target specific groups

The overall challenge is the low number of applications received for higher hierarchical positions, specialised vacancies and team leader / trainee posts. Respondents believe this is due to the poor call-centre image, which reflects onto the telegate AG, and the poor company awareness. In addition, recruitment is aggravated by the remote call-centre locations and the fact that little information is provided relating to career opportunities, the working atmosphere and the exact job specifications.

Another problem is the centralised recruitment responsibility, whereby the full accountability rests with the HR department in Munich. At the same time the actual recruitment activities used are decentralised and every call-centre does what it finds most effective. In addition, the overall recruitment process is very passive.

An effective employer brand strategy has to consider these factors, when aiming to reduce their negative effects. Solutions will be discussed below.

5.2 Combating the problems

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The reason for this can be found in the work of Collins (2007), who states that low-information early recruitment activities are appropriate for firms with no product awareness. This is not the case with telegate AG, as its brand “11880” is well known in the market. Hence, although it has a poor reputation due to the call-centre image, it still enjoys some familiarity. This means that telegate AG would have to use more high-information early recruitment activities to better position itself as an attractive employer and attract more applicants. This is in line with findings from the external interviews, which demonstrate that candidates should be given as much information as possible.

Most applicants nowadays use the internet extensively when looking for a new job (see page 5). Thus, as also the external interviews show, to spark outsiders’ interest, the career website should be the main focus of the firm’s employer branding campaign, allowing telegate AG to position itself as an attractive employer (Fields, 2001). This is a critical finding, as currently telegate AG’s career website offers little information, hereby restricting the recruitment process (see page 14 and Appendix B).

Therefore, I developed a new layout of this website1 (see Appendix B), which could be the basis for the new employer brand strategy. As the main tool for reaching out to candidates, this site could bring all employer branding approaches together. More information on the company, its work atmosphere and career opportunities as well as facts for the different target groups could allow applicants to better understand telegate AG and its offerings. The website could e.g. include video clips showing the work environment and testimonials by workers communicating their daily activities or impressions. This is in line with Bröckermann and Pepels (2002b) who stress that an informative, user-friendly and interactive career website is necessary nowadays.

At the same time, continuing to use “open days” and holding company presentations and informative events could help telegate AG to pass its positive work atmosphere on to potential applicants. Moreover, attending recruitment fairs at specifically selected universities could help to combat the negative company image and increase its awareness among graduates (see page 16). As only few candidates exist for most positions, approaching them early and building long-term relationships could be critical (Grout & Perrin, 2002).

To ensure all early recruitment activities are aligned (Lievens, 2007); an internal study among employees could be conducted to identify the company’s values, its perceived image and the strongest characteristics defining it as a potential employer of choice. The propositions identified can then be the foundation for all recruitment procedures aimed at attracting more applicants.

Also, as the theory section (page 6) and the interviews with external HR managers (page 15) show, a close collaboration between the HR and the marketing department is needed. Collins (2007) highlights

1

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that exposure to non-recruitment sources such as advertising campaigns can support any activities taken to create employer brand awareness in the labour market. A joint image campaign or the use of Public Relation’s articles combined with job postings would hence enable the firm to build on the existing brand awareness. This is a two-way process as the marketing department can support the HR department and vice versa, by putting the firm’s name out in the market place (Barrow & Mosley, 2005; Grout & Perrin, 2002). Any approach implemented should hence use both the company and the brand name “11880”.

At this stage, it has to be stressed however, that before increasing the company’s awareness internal HR processes need to reflect the messages communicated to potential candidates. There is nothing worse than communicating the company’s attractiveness as an employer and then failing to demonstrate these characteristics (Backhaus & Tikoo, 2004). Arthur (2001) in this regard stresses that firms have to deal with applications quickly and professionally. She also emphasises that firms need to be proactive and aggressive in securing workers when these are scarce. This is an important issue for telegate AG, where candidates are not only rare, but positions commonly need to be filled on an ad hoc basis (see page 17). Hence, as emphasised on page 18 both active and passive job seekers need to be targeted to fill vacancies and look for talent. As “applicants rely on general impressions of an organisation”, (Lievens, 2007:55) a more proactive approach would also improve the call-centre image.

The answers to the final research question help to define telegate AG’s desired target group; enabling a further specification of telegate AG’s recruitment and employer brand strategy. Due to the division between the headquarters and call-centres, two different groups have to be approached. However, these groups are not homogenous, as different skills and abilities are required for the different positions.

telegate AG plans to occupy more team leader and team leader trainee positions in the future (see page 17). Thus, it should identify graduates and non-graduates, who show great leadership abilities. Due to the remote call-centre locations, often only those living in the region consider the positions. Thus for these positions it is vital that the recruitment process continues to focus on the regional labour market. However, as interviewees stressed that local people are often insufficiently qualified, job vacancies should also be posted more heavily in the internet, as this allows reaching a large audience including people willing to relocate. Additionally, abilities developed easily should be excluded in job descriptions, thereby widening the pool of potential candidates. This would allow the firm to identify those most qualified (Grout & Perrin, 2002). However, as the perfect match is rarely found compromises will, even with a good employer brand strategy, be inevitable when recruiting new personnel. That means that changes to the labour demand might be required to fill posts (see page 4).

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possible, as these will be able to support any processes through their regional know-how and local labour market insights (Ghoshal & Bartlett, 1995). Thus, for the above target group a higher involvement of local staffs, which are jointly responsible for the regional recruitment, will be indispensable in the end. This would also improve the cooperation between the call-centres enabling joint recruitment campaigns.

The flat hierarchy and the limited career possibilities reduce the attractiveness of headquarters’ positions. telegate AG’s future recruitment strategy for the headquarters should hence focus highly on recruiting people, which can be developed internally for a longer period of time. This would increase firm-specific knowledge and reduce the dependence on the external labour market. Consequently, for the headquarters, personnel who will enter the firm at the level of a “junior specialist”, are most appealing. For this position, graduates with 1-2 years of relevant work experience are most adequate. Thus, so-called high potentials and young professionals are the ideal candidates. As the headquarters is situated relatively attractively in, the suburb of Munich candidates come from all over Germany and no geographical restrictions should be made in the hunt for applicants. Therefore, these job vacancies should be posted nationwide. However, instead of using general job advertisements as is currently the case a closer contact to potential candidates should be procured through directly approaching them proactively at e.g. their universities or through business networks.

Additionally, the interviewees stressed that specialised workers such as system developers and computer scientists are in high demand. Subsequently they also need to be targeted more actively. Hereby, graduates with a business or IT background are most desirable. However, Bröckermann and Pepels (2002b) emphasise that this group is besides high potentials and employees for the service sector the most sought of group. Therefore, right from the beginning it has to be clear that all the people targeted by telegate AG are in high demand and that to recruit them the firm really has to set itself apart from rivals, clearly demonstrating its advantages to potential candidates. It shows that it is inevitable for telegate AG to focus on employer branding.

5.3 Conclusion

The objectives of the activities described above are to attract applicants and promote the employer’s image in the wider marketplace. They thus contribute to enhancing the firm’s reputation and its recruitment success. Most procedures are implemented quickly and cost-effectively, showing that the employer brand awareness can be augmented without committing many resources (Fields, 2001). The key hereby is that all methods used need to communicate a consistent message.

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and with that catch the attention of qualified candidates. It is hence the starting point, which will support telegate AG in planning a well-target employer brand strategy. This shows that the framework adopted from the DGFP (2006), proved useful to analyse the situation and to gain a first insight of happenings, problems and potential solutions. Where telegate AG and other companies now take this knowledge, is beyond the focus of this paper. Finally, this paper is the stepping-stone for more research in this area.

5.4 Future research

The aim of this paper was to give an overview of telegate AG’s current situation and to identify how telegate AG could improve its recruitment procedure, through positioning itself as an attractive employer. Future studies could now investigate how telegate AG can implement the approaches proposed. It could also be useful to investigate the impact of employer branding on the psychological contract that exists between employer and employee. This could include focusing on if promises made through employer branding are kept or if violations occur and how these are dealt with. In addition, studies could investigate, why the number of internal applications is currently very low for open positions. Finally, a longitudinal analysis could be used to discover how employer branding functions under different economic situations. This could be of importance for e.g. companies operating in Germany, where the economy is slowly recovering.

5.5 Research limitations

As the study focused on telegate AG and its specific situation, the ability to generalise findings is limited. However, the study is useful to get an overview of how employer branding is approached, which methods exist and which impact employer branding might have on early recruitment activities.

Another limitation of the study could be the manner in which the contact details were obtained, which reduces the sample’s representativeness (Ghauri & Gronhaug, 2002). However, the convenience of this data and time and budgetary constraints made this approach the most feasible. Additionally, it was interesting to discover that all personal observations made, supported the internal interviews conducted and that nothing was observed, which contradicted the data collected from the respondents. The personal observations hence verified the findings of the internal interviews, increasing the overall reliability of the research conducted. Moreover, due to the advanced knowledge of both the Head of HR at telegate AG and humancaps Consulting Ltd. the sample group is seen as a good reflection of the population.

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