In today's economic climate, companies know that they need to do more for less. From a human capital perspective, this means that attracting and retaining the most talented and productive employees, are more important than ever. An effective way to do this is to create a healthy Employment Brand.
An Employment or Employer Brand is an organisation's reputation as an employer, both within the company, and the perception from without. More importantly, a healthy Employment Brand, leads to Employee Engagement.
According to a Forbes Contributor, Kevin Kruse, Employee Engagement is the emotional commitment the employee has to the organization.
How does employee engagement lead to higher stock prices? The ROI of engagement comes from what he calls the Engagement-Profit Chain:
Engaged Employees lead to:
- Higher service, quality, and productivity, which leads to,
- Higher customer satisfaction, which leads to,
- Increased sales (repeat business and referrals), which leads to,
- Higher levels of profit, which leads to,
- Higher shareholder returns.
As former Campbell's Soup CEO, Doug Conant, once said, "To win in the marketplace you must first win in the workplace."