linking employer branding to financial results

June 22, 2014

Randstad Award winners provide clear evidence of talent management’s impact on organizational performance


More than ever, employer branding and engaging top talent is critical to organizational performance. Not convinced? Have a look at the 2014 Global Randstad Award winners, all of which have highly admired product
and employer brands. These traits go hand-in-hand, and Randstad research shows strong evidence of a correlation between robust employer brand management and business performance.

Launching the Global Randstad Award study for the first time in 2014 to measure the attractiveness of the world's largest 100 companies, it comes as no surprise that BMW was recognized as this year’s most attractive global employer, followed by Sony and Samsung. The automotive giant was named by 61% of the 200,000 employees surveyed around the world as an employer they would like to work for. BMW led a pack of highly recognized brands such as Sony, Samsung, GE, Coca-Cola, Siemens, HP, IBM, Johnson & Johnson, and Volkswagen.



A closer look shows that BMW adheres to a rigorous process for measuring and monitoring employer brand and employee satisfaction, effectively communicates its employer value proposition, and emphasizes its training and career growth opportunities available. As a result, the company is a highly sought-after employer in its industry and is able to drive performance throughout the organization –that most importantly, translates into financial performance. Among its peers, it leads in three-year stock returns with an impressive rate of 55%. Volkswagen, also among the top 10 employers in the global Randstad Award, posted a return of 44%, second in the category. In fact, most of the top 10 companies finished ahead of competitors in the same industry.

Critically important to their success is the ability to innovate within their markets. Seven of the top 10 are on Thompson Reuters’ 100 Most Innovative Companies list in 2013. Siemens, for instance, reports an average of 38 inventions a day. Samsung works closely with a network of universities and research centers around the world. Only by investing in their employer brands can these companies hope to attract the talent they need to deliver on continuous innovation.

What are other traits of the 10 most admired employer brands profiled by the Randstad Award?

  • Aggressive market expansion. Companies such as Coca-Cola, Porsche, and IBM are moving into many emerging markets seeking opportunities. Meanwhile, Siemens has launched a capital fund to convert innovation into revenues.
  • Focus on market share. All of these organizations have maintained leadership or significantly grown their share in recent years. For instance, Coca-Cola had more than twice the share of its nearest competitor, and Volkswagen has improved its share by nearly 20% in the past decade.
  • Continuous revenue and margin improvements. Of the top 10, seven have seen positive revenue growth in the past three years. Additionally, companies such as BMW, Volkswagen, Coca-Cola, and others report profit margins that are higher than their peers.
  • Organizational evolution. In recent years, BMW, Sony, Coca-Cola, and Siemens all announced major structural and management changes despite their success. In other words, these businesses are not standing still to allow competition to pass them by.
  • Clear communication of EVP. Finally, these companies fuel their growth with top talent from around the world. By clearly communicating their employee value proposition, companies such as BMW, Sony, Samsung, Coca-Cola, and GE have made themselves into the most attractive employers in the world, and the 2014 Global Randstad Award affirms their status.

At the same time, these companies score well among the most desirable traits employees look for. Their employer brands are viewed as being reliable, honest, and secure. They also compete effectively in the key criteria that workers consider when choosing an employer, including compensation and benefits, job security, and a pleasant working environment.

So as you can see, there is a clear correlation between business performance and talent management. Being able to attract the brightest and the best is not only an HR imperative but a business one as well. As we look ahead to compiling next year’s Randstad Award, we’re certain the next batch of winners and leaders will further affirm the relationship between employer branding, talent management and financial results.

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