High-skilled service sectors operate in a competitive environment where retaining customers and retaining talent both demand constant attention. When economic conditions tighten, competition to hold on to skilled professionals intensifies, and the balance of power between employer and employee can shift markedly. Understanding that shift, and responding to it, is central to long-term organisational success.
When the balance of power shifts towards employees
In a buyers' market, customers hold a greater degree of influence over high-skilled service firms, and skilled professionals may look elsewhere when conditions allow. As confidence and stability return, employee turnover tends to rise before settling on a firmer foundation of genuine, rather than reluctant, confidence. Dissatisfied talent becomes more willing to move to a competitor, and the value organisations place on their people becomes increasingly visible in customer expectations and in the quality of service delivered.
As conditions stabilise, sellers' market dynamics can emerge, in which employees hold greater control and choice over how they offer their time and expertise to current or prospective employers. In this environment, the management of the employer-employee relationship carries a real risk of becoming transactional, treating people as interchangeable links in a supply chain rather than as the source of an organisation's competitive advantage.
Becoming an employer of choice
To establish competitive advantage in response to this shift, it is prudent for firms to position themselves as an employer of choice, attracting talent from competing organisations while ensuring existing talent remains thoroughly engaged. Adopting strong engagement practices increases job satisfaction and encourages employees to identify with the corporate brand and the promise that brand makes to customers.
Approached well, this delivers a superior product relative to competitors, deeper knowledge of the market and of business practice, a stronger professional network, more efficient operations whose benefits can be passed on to customers, and a clear advantage in the eyes of customers who value doing business with a firm that attracts and retains top talent.
Aligning marketing with human resources
Achieving this requires the marketing function to work far more closely with human resources. Many organisations already do this well, and the result is a strengthening of the brand both internally and externally. Depth of research into what employees value is a sound starting point for shaping an organisation's offering as an employer. Where leaders and marketers invest genuine quality time in their people, the return on that investment is seen in stronger internal relationships, a more motivated, skilled and engaged workforce, and a strong reputation in the eyes of customers.
This alignment brings together employer brand, brand value, brand authenticity, brand identity, talent retention and employee engagement under a model of transformational management and leadership. Brand authenticity, in particular, depends on fulfilling the brand promise by aligning brand identity with the brand image customers actually experience.
How Professional Academy Supports Your Journey
Developing the leadership and management capability to align brand, marketing and human resources takes structured learning. Professional Academy delivers CMI management and leadership qualifications designed to build these skills at every level, from emerging managers through to senior leaders. To explore which qualification fits a particular role or organisation, the qualification advice team can talk through the options.
Find out more about CMI management and leadership qualifications or speak directly with the team.
Source: "The Re-Integration of Employees Out of the Supply Chain Back Under the Corporate Fold", International Journal of Management and Organizational Studies, Volume 3, Issue 2, June 2014 (ISSN: 2305-2600). Available at: http://www.ijmos.net/wp-content/uploads/2014/08/Joseph-Mckenna.pdf
