Employer Branding is not exclusive to the IT industry – it should be applied across all sectors
When we observe companies across different industries through the labor market’s lens of supply and demand, we notice distinct approaches to their presence in the job market. Specifically, we see a varied approach to building a company’s reputation through Employer Branding.
Have you noticed that the hot topic of Employer Branding is mainly associated with IT companies today? The reason for this is clear. In my opinion, it’s due to the supply and demand dynamics in this industry’s labor market – a smaller workforce compared to the demand has led companies to invest in employer image and develop their Employer Branding strategies.
You’ve likely noticed the growing presence of tools and platforms dedicated to recruiting developers and metrics for satisfaction, processes, and more. Companies have realized they must fiercely compete with rivals to secure top talent for their growth. Modern-day craftsmen, especially in our region, are highly sought after, delivering excellent work at lower wages compared to their global peers. This is evidenced by the number of foreign IT companies outsourcing to local teams or acquiring our firms.
These are wonderful developments. Despite wages being lower locally than on a global scale, they are still far above the average income in our country. As a result, attention is drawn to this wonderful field that places marketing in service of HR – Employer Branding.
But this article is not about that. It’s great to talk about positive things, like the angel investment Joberty received, or the success stories from other IT companies. This time, I want to shift the focus to the “ordinary” jobs, the ones less glamorous but far more prevalent in society: positions in sales, transportation, construction, and so on.
The saying “there’s always work for those willing to do it” doesn’t mean people should work in inadequate conditions
Someone once said, “There’s always work for those who want to work.” This statement is true, but the catch lies in a more detailed analysis. There’s indeed work, and it’s also true that people are willing to work, but what’s missing to connect these two is the adequate conditions that the job offers to those willing to work.
Let me explain with a personal example, set on my return from a business trip on an intercity bus, somewhere between Bonn and Belgrade.
Due to specific circumstances, the bus picked up a group of construction workers in Stuttgart returning to Serbia after finishing their jobs. I found myself seated next to a gentleman heading home from a worksite, and naturally, I couldn’t resist asking about his experience.
He explained that he’s from Niš and regularly works on construction projects in Germany. Each tour lasts three months, the maximum stay allowed abroad, after which he returns to his family and waits for the next call. Upon arrival, the workers are housed in accommodations close to the construction site, designed for the employees. Meals and accommodation are provided. His hourly wage is an impressive 11 euros, with an 8-hour workday. That’s 88 euros per day, and with 22 working days in a month, it totals nearly 2,000 euros. He also mentioned that, due to the provided accommodation and meals, he didn’t need to spend his earnings while abroad.
My travel companion has several years of experience in similar jobs and explained that comparable positions in Serbia pay about 20 to 25 euros a day. That’s roughly 3 euros per hour, which is 440 euros a month. Quite a difference, right?
Investing in people makes them happy, and that will reflect on the company’s reputation
The example above relates to fixed wages, but performance-based roles are becoming increasingly popular. However, is performance-based pay a good practice?
Sales roles are likely the most widespread positions in the job market. Sales are a vital segment of any society, and in recent years, compensation for most sales positions has become performance-based. This methodology is entirely reasonable, but where it falters is in defining realistic performance metrics.
Setting a target is one thing, but achieving it is quite another. Observing the daily work of a salesperson in a telecommunications company reveals both the benefits and drawbacks of performance-based pay. The base salary is set at a reasonable level but still not enough to easily qualify for a mortgage. However, the variable portion of the salary is tied to meeting the sales targets, which, if achieved, results in a solid income for the position.
But the threshold for achievement is where we need to pay attention.
It’s not good for the company if the target is set too low, making goals easy to achieve. On the other hand, if the threshold is set too high, it becomes difficult for the salesperson to meet, leading to additional pressure and stress at work. These are the two sides of the same coin, and I’m sure you know which side shines brighter.
How does target-setting typically work in sales? Management defines the goals and monitors performance. If the sales division easily meets the target, the bar is raised. Now, more sales are required to achieve 100% performance. The pressure is on the salespeople, but once they meet the targets, there’s an expectation that the routine will stabilize. Unfortunately, that’s not usually the case, as the bar often gets raised until the sales division is barely keeping up. The sky’s the limit, right?
The answer is – yes, it is. But at what cost?
The ideal balance should be somewhere in the middle, but it’s hard to define. This is why turnover in sales positions is incredibly high. To reduce this, it’s necessary to invest in people and boost the employer’s image, bringing us back to the topic of Employer Branding. The process is cyclical – invest in people to create a positive awareness and satisfaction, which in turn boosts the employer’s image and creates a positive public perception, ultimately attracting top talent.
Find ways and channels to communicate positive examples with the public
In theory, everything mentioned above seems simple. However, now we have the reverse situation compared to the IT industry we discussed earlier. Here’s why.
Unlike the IT sector, blue-collar jobs are facing the opposite issue. At first glance, it seems like the supply of labor exceeds demand, and the country’s economic situation and unemployment rate further contribute to this. Higher unemployment leads to more job applications, which in turn lowers wages.
There are two reasons for this:
- First, the simplicity of the work itself. Simply put, these roles don’t require extensive qualifications and can be learned quickly. While simple, they are fundamentally important to the organization.
- The second reason is that people in these roles have limited options, so they see job security in sales. Companies take advantage of this, and we see minimal investment in people in these positions. Sales divisions are often the largest within organizations, but because of the nature of the work, they are far removed from management’s attention. The logic is simple – if you won’t do it, someone else will. And again, we circle back to high turnover. Yet, despite this, companies claim that “people come first.”
Let’s conclude on a positive note: there’s a light at the end of the tunnel, albeit faint – just enough to know it’s there.
Companies are beginning to recognize the need to improve their image and invest in their branding, but this still needs to be addressed. Communications are still not tailored to the audience’s sensitivities, and it’s difficult to identify the right channels. For example, if you need a driver, you’re unlikely to find them on LinkedIn. Or if you need a warehouse worker, using managerial language won’t attract them. Simplicity is key.
What further complicates things is budgeting for Employer Branding activities. Companies still don’t understand that investment in hiring campaigns is necessary to yield returns in the form of quality talent. We’ve learned that increasing sales is paramount, so there’s always funding for sales and marketing efforts. But who will handle the sales? Well, we’ll manage somehow.
A strong reputation starts from within. When we create a community where its members are satisfied, we must find the means to share these positive examples with the public. But this can’t be done halfway – it takes time and dedication.
Article published on www.netokracija.rs
