HR Brand Management: The Value of Enhancing HR’s Image and Reputation

Perception is everything.

In the worst job market since World War II, with unemployment percentages near double digits nationally, it is very important for the Human Resources (HR) function in companies large and small to stay visible and stay viable.

If the brand image of your HR organization is viewed as average, below average or negatively, then options abound for executive management in the handling of HR issues in an organization.

Outsourcing in a down economy is always an option.

Should HR practitioners not build the team’s image and reputation, and get the word out on the good works their team performs, they run the risk of losing the services they try to provide to outsourcing organizations who understand what customer service and accountability is all about.

Communication is the Key
According to Greg Elliott, senior vice president of Human Resources and Administration for Navistar International (NYSE: NAV), a global designer and manufacturer of trucks, diesel engines, busses and specialty military vehicles, headquartered in Warrenville, Ill., it all comes down to communication.

"It is important to have the HR function communicate the value proposition it provides to the organization," Elliott says.

Elliott led the human resources function at Navistar through one of the most tumultuous periods in the company’s 175-year history.

During February 2007, the company was de-listed from the New York Stock Exchange for not meeting U.S. Scurities and Exchange Commision (SEC)-required reporting deadlines.

The shortages in key financial positions led to the issues of being unable to meet the SEC deadlines and requirements for filing of financials.

Navistar executive leadership looked to Elliott to provide answers and solutions about how to overcome such a difficult situation and continue to attract quality talent in the finance, accounting, tax and audit functions.

Moving quickly into action, he refocused the HR organization to provide the needed additions to Navistar’s recruiting capability.

Within 12 months, Navistar was able to hire more than 100 new personnel. This was all the more impressive given the high demand and short supply of this type of talent in the job market at that time.

Building the HR Image, the HR Brand and Getting the Word Out
At Navistar, there were several opportunities to re-build the HR brand.

The predecessor company to Navistar was International Truck and Engine Corporation, which used to be the International Harvester Company. There was tremendous name recognition around the company, Cyrus McCormick, founded more than 175 years ago, but little to no recognition of what the company had evolved to current day.

The new Navistar brand was key in developing common messaging to potential employees. Previously it was difficult for candidates to connect the dots about understanding the company and how it was structured.

Utilizing a "house of brands" theme, where all the company brands would fall under the primary brand of Navistar, it was easier for candidates to get a complete picture of the company under the new Navistar brand.

Having a common theme and messaging about Navistar streamlined the process of creating collateral materials for recruiting and communicating what the company is and does became much easier.

The Biggest Obstacle for HR in Attracting Potential Employees
A solid HR brand was critical for attracting potential employees during the delisting period of February 2007 to March 2008. Especially so, when during this period, the financials for the company were unavailable for review during the restatement period.

Recruiting candidates in the finance, accounting, tax and audit functions was difficult under normal conditions, but the restatement period made it doubly difficult.

"Candidates couldn’t review earnings, and we as an HR organization made a conscious decision to attract these candidates by doing what was necessary," Elliott says.

This meant consistent communication to potential employees about what the company was doing to correct the situation at the time, and, in some cases, paying higher compensation to attract quality candidates.

This approach strengthened the HR brand internally and externally.

How Does Navistar HR Leadership Communicate the HR Brand to Current and Potential Employees?
"In print and in person," Elliott says.

With the re-branding of the company to Navistar, the HR leadership team created Inside Navistar, a bimonthly hard copy publication that goes out to all of Navistar’s 16,000 employees. The publication covers many aspects of the company strategy, what the HR function does to support the company and unites the many and diverse operating entities within the company.

"This initiative has been a big success," he says. "[And it has been] an integral communication strategy for the entire company during a period where a consistent message was really needed."

The in-person aspect came in two different forms.

The development of branding at Navistar was important enough to Elliott that he conducted a series of open-invitation brown bag lunch forums around the company over a two year period introducing employees to the concept of "brand," and why this was important.

This innovative series was so well received that he continued making these presentations well beyond the timeframe originally planned.

Speaking to standing-room only crowds, Elliot conveyed the value proposition of branding, and how important it is to be proactive in developing and managing your personal brand.

This approach created a very positive HR brand, as upper management connected directly with employees, and were seen as providing a helpful and needed set of personal brand management strategies for employees.

Subsequently, the HR brand benefitted greatly from this initiative.

The second very successful HR brand-building took place in the form of "town hall" meetings with a variety of functional areas of the company.

This was an opportunity for full teams at Navistar to have a candid conversation with HR directly, where questions and concerns were delivered to Elliott, unscripted and live. This format demonstrates the commitment of HR to the company, and further enhances the HR brand. Feedback from the employees about this initiative has been very positive.

An HR brand creates an image internally that makes employees want to stay with an organization, and externally for potential employees to join an organization.

Once the HR brand is set and established, it generally results in higher retention rates and a steady flow of high-quality applicants for positions at the company.

The data at Navistar support those assumptions.

Since Navistar began these initiatives, their applicant-tracking database has grown from 10,000 applicants to more than 100,000 applicants in the past three years. Turnover rates at Navistar are below industry averages.

How has the HR brand at your company impacted your organization?

Brian Graham is the Talent Acquisition Practice Leader at HR Remedy, LLC. HR Remedy is a human capital consulting firm that works with our clients to attract, retain and develop their talent. HR Remedy takes a pragmatic and practical approach to helping companies manage their human capital. For additional information regarding HR Remedy and their services please contact Jessica Nelson. You can reach Jessica by contacting her at jessica@yourhrremedy.com or 281-528-1266 or visit the Web site at www.yourhrremedy.com.