Employees are internal customers

Writer: Mitta Xinindlu

Brand equity and human capital are two critical assets that support a firm’s short-term stability and long-term success. While businesses have recognised the power of brand management for attracting and retaining external customers, companies are only beginning to realise the potential benefits of HR brand management for attracting, selecting, and retaining internal customers (i.e., employees).

The purpose of this report is to introduce CHR readers to the concept of HR branding. Our purpose is to review the research and implications of the branding literature and then to describe how human resource management can draw on these lessons to influence human capital. Specifically, we will (1) define HR branding, (2) detail its potential for attracting, selecting, and retaining employees, and (3) describe how firms can manage their HR brand to achieve this potential.