ROOM FOR CHANGE
With a solid external brand, IHG looked to its internal culture to drive change within the business. Emily Andrews discusses the hotelier’s employer brand transformation
Usually, a brand refresh, a new brand or a brand repositioning, includes every aspect of an organisation’s consumer, investor and employee communications touchpoints. A company’s employer brand is both a part of this and a separate entity. It is predominantly concerned with the organisation’s employees and potential employees; a certain sub-category of consumer. However, it is also a part of the overall brand and so must embody the same values and driving principles as the overarching brand.
A recent survey conducted by Communicate magazine, in partnership with Emperor and Rethink, showed that the majority of companies cite attraction and retention as the most important motive for an employer brand management strategy. This was certainly a major motivation for InterContinental Hotels Group (IHG) which has more than 4,900 hotels worldwide and over 1,200 hotels in the development pipeline. Over 350,000 people work across IHG’s hotels and corporate offices worldwide and it will be recruiting up to 90,000 people in the next three years.
Employer brand management has been on the IHG corporate agenda for the last six to eight years, but it recently chose to reassess its strategy so as to improve its efficiency and effectiveness. The company had been experiencing fast growth and, with revenue a key focus, talent had become an afterthought. Tracy Robbins, group HR director at IHG, whose background is in employer brand management, says, “At the time, there was a recognition that we needed to grow very fast as an organisation. There was a need to compete for the best talent, not just in our industry but more broadly,” she says. “If you grow your revenue faster than you grow your talent then you have a real problem.”
The employer brand as it stood varied from location to location. IHG manages Crowne Plaza, Holiday Inn and InterContinental Hotels & Resorts, to name a few. Delivering a consistent brand experience across a wide range of different hotels in nearly 100 countries was no easy task. In addition, IHG’s hotels are both managed and franchised, and with the franchised estate, of which 70% are in the US, IHG can’t be seen to be the direct employer. Creating a strong employer brand that delivers across all of these different locations and environments was a big challenge for IHG.
IHG aimed to make itself a leading employer, not just in its industry, but worldwide. Lianne Corriette, global employer brand director at IHG, says, “We’re always taking on board external data to understand how we can improve and make sure that we continue to have a world-class employment brand.” Although recruitment was a major concern, the new employer brand strategy needed to be strong internally as well as externally. Robbins speaks about the brand as a promise which must be upheld. Practically, this means that the brand experience promised to new hires is delivered once they join the company. A proposition that lures new talent, but isn’t upheld once the talent joins the company, is only a half-baked and short term solution. IHG already had a strong company culture, but this wasn’t being consistently or effectively communicated.
Robbins says, “The type of people we bring into the company are people that will serve our guests. They will live our corporate brand because they’re happy, engaged and motivated. This will be the result of how they’re being treated through the employment promise – our employment brand.”
Peer review
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IHG knew that employer brand was a priority, but it needed to develop a more consistent employment experience that would set it apart from its competitors. It began by conducting research among its international employees. The research found that employees wanted to be treated as individuals and that they wanted to be recognised and valued. This formed the basis of the new employer brand. The new brand proposition, ‘All of you at IHG,’ was coined.
Corriette says that the new proposition encourages employees to bring every aspect of themselves to work, leading with the professional but without losing their personal identity. She says, “‘All of You’ is much the same, it’s about the ‘you’ that has passions, the ‘you’ that has hobbies, the ‘you’ that has interests – all of that is welcomed at IHG. You can see that through the new images that we’ve created; leading with your professional self, but flanked by the other versions of you.”
The images use real employees, rather than actors or models, which demonstrates to the employees that they are valued by IHG. The photos show the featured employees in both traditionally professional stances and in more fun poses with indicators of their hobbies or interests. The employees were asked to bring props to the photoshoots, the items are intended to give an idea of who the people are and what they enjoy outside of work. Corriette says, “Being a service business, passion for people is so important and we really wanted that to come through in our employment brand.” IHG found that 20% more people would consider working for the company after seeing these materials.
IHG’s culture code promises employees ‘Room to be yourself.’ That concept has been expanded upon so that it is more visible externally and more succinct. The new identity allows employees to tell the brand’s story, a strategy which is both authentic and economical. Individuality and personality inspire feelings of trust, particularly within the Generation Y group; which is IHG’s core recruitment market and is identifiable as the generation that trusts its peers above more traditional sources of information such as positions of authority. An employee-generated approach also gets employees onside with the new brand strategy which is crucial for the successful implementation of an employer brand internally.
For the duration of the project it was important that the employer brand stay in line with IHG’s overall brand strategy. Corriette says, “We worked very closely with the IHG corporate brand team and key stakeholders in the sign-off and approval of the employer brand refresh.” The overarching IHG brand has a set of key principles, including: ‘Do the right thing,’ ‘Show we care,’ ‘Aim higher,’ ‘Celebrate difference’ and ‘Work better together.’ These values were developed through research conducted among IHG employees.
IHG defines itself by its commitment to putting its people first, and this is also crucial to the new employer brand strategy. Ultimately, a strong and consistent company culture translates into good service and a welcoming environment for the guests that stay in IHG hotels and helps to deliver IHG’s core purpose, ‘Great Hotels Guests Love.’
Employee images, stories and videos are displayed across a new recruitment website with an improved user experience. The site is fully optimised for mobile use and allows visitors to apply for roles by brand and across different regions. IHG’s focus on digital platforms when communicating the new employer brand is also suitable for the millennial audience it is targeting, particularly in the case of the company’s graduate schemes.
The refreshed employer brand delivers a framework that leaders within the business can work to. It is the regional managers who ensure that company culture remains consistent with the employer brand guidelines. This also influences the recruitment process since recruiters know what they are offering and what kind of person they need to fit in with the internal culture. The new employer brand clearly communicates the merits of a career in hospitality and service, while differentiating itself from other major brands in the sector.
The success of IHG’s new employer brand strategy was measured by Taylor Nelson Sofres. The market research agency created a bespoke survey that was directly linked to the brand promise. Robbins says, “Over the last eight-and-a-half years engagement has grown globally from 60% to 86.4%, and pride is now at 95%, which is higher than the industry average. We are now known for engagement and for our culture, which is fantastic.” High engagement scores are particularly important in the hospitality industry. IHG’s 2015 Trend Report showed that, in order to deliver true hospitality, it needs to continually build trust in IHG and its sub- brands. By communicating the value of working for IHG, and the value of building a successful career in the hospitality industry, the group builds trust overall.
Although IHG’s overall brand remained unchanged, the realignment of the employer brand has the potential to drastically improve the company’s business. Stronger engagement and better talent has a direct influence on the group’s bottom line. IHG found that a 5% rise in engagement equals ¢70 of increased revenue per available room per night. This means that a 200-bed hotel could make more than $50,000 in additional revenue each year by simply improving its staff engagement. Add on the financial benefits of attracting the best staff, outdoing not only other hotel brands but also major brands worldwide, and IHG has the potential to see rewards beyond its highly engaged workforce.