Invitations Extended to Talented Job Seekers

Beginning this year, LS Cable launched an advertisement campaign targeting the younger generation with the phrase, “The company for warm-hearted professionals.” Kim Jin-koo, team manager of the human resources division, said, “The campaign began out of concerns that after LS Cable was split from LG Group, the presence of the company and our chances of recruiting high-caliber workers weakened.”

Companies are rushing to create ‘employer brands’ to attract talented people because just as brands affect consumer purchases, so too do employer brands impact job seeker choices.

For talented employees, even companies can be marketed-

LG Electronics started to develop its Employee Value Proposition (EVP) starting in 2004. It is promoting new values, such as ‘incentives to achievement’; ‘the sprit of challenge’; and ‘opportunity to grow’’ to draw job hunters and retain employees. The Doosan Group also is creating Employee Value Program (EVP) with phrases like, ‘The company that values change’ and ‘the company worth working for.’ It goes to the length of equipping employees who participate in recruiting seminars with appropriate manners and suits with a young and edgy look.

General Manager Oh Yeong-seop of Doosan’s human resources and planning division said, “With a positive employer brand, early resignation of employees decreased, whereas applications from talented people increased. We will hold our first recruiting seminar in China at the end of the year with an employer brand that emphasizes growth.”

In the Doosan Group, the resignation rate of employees who have worked for less than a year is 5%, much lower than the domestic average of 30%. Park Ji-won, a researcher in the LG Economic Research Institute, pointed out, “Luxury brands are paid a higher price for their products. For qualified employees, companies need to market their brand to the job seekers.”

Medium-sized enterprises and B2B-oriented companies paying close attention-

Companies focused on B2B transactions, such as LS Cable, and rapidly growing mid-sized enterprises are especially interested in developing an employer brand.

A manager in a mid-sized enterprise conceded, “We are one of the best companies in the industry, but since we have a weak presence, it is hard to attract talented people compared to subsidiaries of conglomerates.”

Park Jae-hang, head of the Cheil Communication Brand Marketing Institute, said, “Corporate PR advertisements targeting certain stakeholders are increasing. In the U.S., there is a large market for advertisements targeting job seekers.” Conglomerates with a stronger presence in the labor market also maintain their employer brand by surveying university students about which companies they prefer.

Last year, SK Telecom concluded that job seekers are unaware of the global content business of the company through a survey on university students. It started an internship program this year.

Recruitment marketing on the Internet is also active. Examples are ‘Young Samsung’; ‘KT&G imagination’; ‘Young Hyundai’; and KTF’s ‘Mobile Futurist.’

Unrealistic catchphrases have an adverse effect-

Unrealistic employer brands weaken job seekers’ trust, however. A one-time campaign also creates a negative effect. An official in the HR division of a Korean conglomerate said, “A company once promoted ‘the best compensation in the industry’ as its employer brand. However, when its business deteriorated, it attained the image of an untrustworthy company.”

On the contrary, global companies known for having the best workplaces highlight consistency in their employer brand.

P&G, well known as home to many CEOs, does not hire experienced people. However, they stress that they are looking for a future CEO when they recruit first-time job seekers.

In fact, GE chairman Jeffrey Immelt, and Boeing chairman Jim McNerney used to work for P&G.

The Ritz Carlton Hotel Company has the motto, “We are ladies and gentlemen serving ladies and gentlemen.” and holds employee meetings in banquet halls just like their customers do.

Pete Sanborn, a Hewitt Organization Effectiveness consultant, pointed out, “Korean companies spend a lot in compensation because of their weak employer brand. They need to develop a global employer brand that will work even in foreign markets.”

parky@donga.com