Business Horizons (2007) 50, 423–433

www.elsevier.com/locate/bushor

The employee brand: Is yours an all-star?

W. Glynn Mangold, Sandra Jeanquart Miles ⁎

College of Business and Public Affairs, Murray State University, Murray, KY 42071, USA

KEYWORDS Abstract In this article, a typology is presented which will help organizations better
Employee branding; reflect the brand image they desire. The assisting typology is based on the extent to
Employee brand; which employees know and understand the organization's mission, values, and
Service branding; desired brand image, and the degree to which they perceive their psychological
Psychological contracts; contracts with the organization as being honored. Organizations can be classified as
Internal marketing; all-stars, rookies, injured reserves, or strike-out kings, based on the characteristics of
Relationship marketing a preponderance of their employees. As categorized, rookie organizations cannot
deliver the desired brand image because most of their employees lack the knowledge
and understanding to do so. Injured reserve organizations, on the other hand, cannot
achieve the same because firm employees perceive their psychological contracts with
the organization as having been violated, which renders the individuals unwilling and
unmotivated. For their part, strike-out king organizations share rookie and injured
reserve organizations' worst characteristics. Finally, and conversely, all-star
organizations consistently deliver the desired brand image to others because their
employees are both able and motivated to do so. To help firms attain this highly
desired status, specific guidelines are presented herein which may help organizations
become “all-stars” in their own right.
© 2007 Kelley School of Business, Indiana University. All rights reserved.

1. The employee brand in part, by relying on its employees as primary

Highlighting a topic that has become increasingly
important in today's dynamic and ultra-competitive
business environment, the October 2006 cover of
HR Magazine offered business managers and owners
the following sage advice: “Make sure employees
support your brand.” Inside the issue, Fox (2006)
discussed just how valuable a brand can be, noting
as an example Starbucks, which was ranked 91st on
a list of the 100 best brands. Despite investing very
little in advertising, Starbucks has achieved success,
⁎ Corresponding author.
E-mail addresses: glynn.mangold@murraystate.edu
(W.G. Mangold), sandy.miles@murraystate.edu (S.J. Miles).
conveyors of the company brand.
Starbucks is not alone in this regard. In fact, it is
evident that employees drive the brand image for
many organizations, particularly those in the service
sector. JetBlue Airways, for instance, has developed
a strong customer following that is largely based on
high levels of customer service and friendly, caring
employees. Just as companies' staff members have
the power to positively influence brand image,
however, they also now have more opportunities
than ever before to tarnish that image. One does not
have to look very hard to see how employees' actions
and communications can steamroll into a public
relations and organizational nightmare. Consider,
for example, the recent Hewlett–Packard spy

0007-6813/$ - see front matter © 2007 Kelley School of Business, Indiana University. All rights reserved.
doi:10.1016/j.bushor.2007.06.001
424
scandal, which began when a staff member posted
sensitive company information on Yahoo's message
boards. In order to find out who was behind the leak,
Hewlett–Packard engaged in questionable tactics,
ones that eventually resulted in charges being filed
against the company by the state of California.
In less highly charged situations, employees are
regularly posting on the Internet testimonies about
their experiences with the organizations for which
they work. For instance, the website www.wakeup-
walmart.com provides a forum for current and
former Wal-Mart employees to tell about their
dealings with the organization. HRM Guide recently
noted that 16% of bloggers admit they have posted
negative entries about their employer or workplace.
When one considers that, according to the same
publication, one in twenty workers maintains a
blog, the potential for significant corporate damage
becomes quite obvious (http://www.hrmguide.net/
usa/commitment/negativity.htm).
By definition, the employee brand is the image
presented to an organization's customers and other
stakeholders through its employees. It is tremendous-
ly important to the well-being of most organizations,
given employees' potential for creating either ex-
tremely positive or extremely negative images.
Heretofore, scholarly research in the field has focused
mainly on the process of employee branding and the
positive outcomes that are likely to be realized by
organizations that successfully manage the process.
Taking things a step further, this article presents a
typology which will help leaders better direct the
employee branding process in their organizations.
Specifically, our diagnostic framework identifies four
employee brand types, based on a preponderance of
the characteristics of the organization's employees.
Further, guidelines are presented for developing a
strong employee brand, which can help enhance
brand equity and cultivate a sustainable competitive
advantage in the marketplace.
2. The employee brand typology
Two issues are critical in determining whether an
employee will reflect the organization's desired
brand image, and thus favorably impact the percep-
tions of customers and others. First, do employees
know what image they are expected to project?
Second, do they perceive their psychological con-
tracts as having been upheld? These two factors are,
in turn, driven by the extent to which the organiza-
tion's messages are consistent with one another and
with the firm's mission, values, and desired brand
image. Together, they underpin the employee brand
typology, and are expanded upon in the sections that
follow.
W.G. Mangold, S.J. Miles
2.1. Knowledge and understanding of the
desired brand image
Employee knowledge and understanding of the
desired brand image is pivotal to the employee
branding process. That is, employees must be
cognizant of and comprehend the image that the
organization wants its customers and other stake-
holders to experience. Understanding what the
desired brand image is and how it is directly linked
to the organization's mission and values will help
staff make better decisions under conditions that
are not explicitly covered in the policy and
procedure manual. For example, most service
organizations tell employees that customer service
is crucial to success; however, the tenets of
customer service are not always communicated or
reinforced to workers. Consequently, they must
interpret for themselves what constitutes good
service and how it should be delivered.
Employees' knowledge and understanding of the
desired brand image can be developed through a
variety of information sources. For example, it can
be heavily influenced by messages that emanate
from the organization's advertising and public
relations efforts. While staff members are some-
times the intended recipients of these messages
(particularly those stemming from public relations
efforts), they are also exposed to many that are
aimed specifically at customers and other external
audiences. Such messages can also be used to
proactively influence employees' knowledge and
understanding of the desired brand image. Consider,
as reported by Anders (2003), a Hewlett–Packard
advertising campaign that focused on the garage in
which the company's first products were developed.
Although the promotion was targeted primarily at
customers, it had a substantial impact on the firm's
employees, as well. Its imagery, along with the
theme claiming “the original start-up will act like
one again,” unleashed a considerable amount of
emotional energy throughout the company. By
making it clear that the desired Hewlett–Packard
brand image was one of innovation, focus, and
bottom-line results, the campaign, among other
things, managed to increase employee knowledge
and understanding. In sum, staff members can
develop an awareness of what the organization
deems important and what customers expect when
messages intended for external audiences are also
designed with employees in mind.
Companies' employee branding efforts are more
likely to be successful when they are staffed with
individuals who have the capacity to internalize the
desired brand image and, then, reflect it to others.
Organizations such as Southwest Airlines, Starbucks,
The employee brand: Is yours an all-star?
and Outback Steakhouse are known for their ability
to hire the right employees and then train them to do
just that. For example, as indicated on its website,
Starbucks values excellence among its employees
(called partners), respectful treatment of fellow
workers (as well as customers), and a dedication to
social responsibility (www.starbucks.com/aboutus/
jobcenter.asp). It is believed that people who share
these values, when properly trained and developed,
will deliver the desired brand image to Starbucks'
customers.
Once organizations are adequately staffed, those
that are successful in their employee branding
initiatives form strong employee brands by contouring
training and development around delivery of the
desired brand image. For instance, employees are
often taught what behaviors are desired by being
given explicit details regarding how to handle difficult
customers or work through complicated situations in a
manner that is most consistent with the organization's
desired brand image.
Performance management and compensation
systems may also be used to help employees know,
understand, and internalize the desired brand
image. Hwang (2004) described “Your Special
Blend,” the so-named identity-providing compensa-
tion system employed by Starbucks. This structure
allows company staff members to satisfy their
particular needs by selecting from a cafeteria-style
array of benefits. Starbucks' effort toward supplying
the wants and desires of individual employees
communicates the company's values, and subtly
suggests that it is important to fulfill the needs of
a diverse array of persons. Most staff members
understand this same importance applies to custo-
mers as well as to themselves, a concept that is
underscored by the term bean stock, which helps
retail salespeople gain a sense of ownership in the
organization and feel personally responsible for
satisfying its customers.
The role of formal messages is certainly important
in building knowledge and understanding of the
desired brand. The role of informal messages
emanating from organizational systems, which is
well-documented in the corporate culture literature,
also needs to be considered. Often, informal mes-
sages come through word-of-mouth, and can stem
from co-workers, managers, and customers. These
interactions can either reinforce the organization's
values and desired brand image, or negate it. As
opposed to formal communication such as advertis-
ing, public relations, and messages originating within
the human resources department, informal commu-
nication is more difficult for organizations to control.
Companies that are successful in employee branding,
however, are able to manage these informal messages
425
to some extent by managing the organizational
culture and the behavior of their leaders.
Thus, this component of employee branding
focuses on comprehending the desired brand
image, as well as understanding the underlying
value system. Knowledge and understanding is
driven by the extent to which the desired brand
image and values are frequently communicated and
reinforced through organizational messages; the
more recurrent and constant the messages, the
greater employee knowledge and understanding is
likely to be. Conversely, when messages are less
frequently and less consistently reinforced, employ-
ees' levels of knowledge and understanding are likely
to be lower. In this light, the knowledge and
understanding dimension can be viewed as a
continuum, with high knowledge on one end and
low knowledge on the other (see Fig. 1).
In organizations with high levels of knowledge
and understanding, the desired brand image is
clearly defined in light of the mission and values.
Then, the image is consistently and frequently
communicated through the organization's formal
and informal mechanisms. The employees of high-
knowledge organizations know what their employ-
ers are trying to accomplish. They also know and
understand the behaviors that are needed to
deliver the desired brand image to organizational
constituents. This perspective is consistent with
Boswell, Bingham, and Colvin's (2006) article,
which uses the term line of sight to underscore
the importance of aligning employees with the
organization's goals and strategies.
In low-knowledge organizations, employees are
not certain of the desired brand image or of the
organization's mission and values. This confusion is
often due to the sending of different, and some-
times conflicting, messages to various constituents.
Customers may receive one set of messages,
employees another, and stockholders still yet
another. Employees who hear the messages that
are intended for other audiences may become
confused about the organization's true priorities.
They may even call the organization's integrity into
question when they perceive that duplicity exists. In
such situations, employees are likely to work to
Figure 1 Knowledge and understanding continuum.
426
achieve their own ends rather than reflect the
desired brand image.
Low levels of knowledge and understanding may
also come about when organizations do not success-
fully tie their desired brand image back to their
mission and values. For example, an organization may
emphasize that high levels of customer service are
critical to its success, but provide no guidance for the
manner in which that service is to be delivered. In
such situations, employees are left to choose for
themselves the demeanor that is to be used when
delivering the service. Some staff members might
choose a perky, upbeat demeanor that conveys a
sense of humor, much like the demeanor of Southwest
Airlines' employees. This approach is not appropriate
for all companies and industries, though. Consider
the banking industry, for example. Depending on the
specific transaction, the use of too much humor in
this setting could be interpreted as insincerity. In a
worst case scenario, customers might label the bank
as unprofessional, and might thus take their business
to a more “sincere” competitor.
To analyze where your company is in terms of
employee knowledge of the desired brand image,
refer back to Fig. 1 and mark an “X” in the appropriate
spot on the continuum. Again, employees of high-
knowledge organizations receive frequent and con-
sistent messages that define and reinforce the desired
brand image, along with the values that support that
image. Employees of low-knowledge organizations do
not receive or experience internal messages articu-
lating appropriate brand images. In this case, employ-
ees are unclear about the desired brand image, the
manner in which the desired brand image is to be
delivered, or both.
In conclusion, employees' knowledge and under-
standing of the desired brand image is developed and
enhanced when the organization's various message
systems frequently and consistently communicate
and reinforce the desired brand image. Their mes-
sages should be constant and unswerving, both in
relation to each other and with the organization's
mission and values, so that staff members develop a
sense of the organizational purpose that underlies the
desired brand image. This can be further enhanced
when the messages that are intended for internal
audiences are consistent with those aimed at custo-
mers and other external audiences. The human
resource management system's role is pivotal to this
effort. The desired brand image must be fully
integrated into its processes and the messages that
are embedded inside those processes. When this is not
done, employees may be unclear about what beha-
viors are expected of them. They are also likely to use
their own judgment or their personal disposition in
choosing the behaviors they display.
W.G. Mangold, S.J. Miles
2.2. Upholding psychological contracts
A psychological contract represents an employee's
perceptual agreement about the exchange relation-
ship he/she has with the organization. Among others,
extensive research by Robinson (1996); Robinson,
Kraatz, and Rousseau (1994); Rousseau (1989, 1995);
and Robinson and Morrison (1995) has indicated that
employee motivation, trust, performance, organiza-
tional commitment, and satisfaction are contingent
upon the extent to which employees perceive their
psychological contracts as being upheld. It is impor-
tant to note that psychological contracts exist only in
employees' minds and that management is often
unaware of the terms of the contracts, or even of
their existence. Psychological contracts are formed
based on formal and informal messages received from
organizations and their representatives. For exam-
ple, during the pre-employment phase of the hiring
process, formal documentation and personal inter-
actions with employees typically form the basis of
employee perceptions as to what life will be like
working for the organization. Prospective staff
members make assessments based on these messages
as to what the organization deems important, as well
as the benefits of working for the company.
Potential employees also make assessments about
what they will have to give to the organization in
exchange for the benefits they expect to receive.
Once hired, their psychological contracts are formed
on the bases provided by these early messages, and
are upheld if the messages remain consistent after
employment. Consider, for example, a prospective
worker who is told prior to employment that promo-
tions are based exclusively on high levels of perfor-
mance. This individual's psychological contract will be
upheld if she/he perceives this to be true after
observing the organization's real-life promotion prac-
tices. In essence, the consistency of the communica-
tion flowing through the firm's message systems allows
prospective employees to form realistic psychological
contracts and enables organizations to effectively
manage the psychological contracts that are formed.
If inconsistencies arise and are interpreted as
numerous and severe enough, however, employees
may perceive their psychological contracts as being
violated. It is imperative to note that, as Rousseau
(1995) points out, failure to uphold psychological
contracts does not have a negative impact on the
employee. If the psychological contract is not upheld,
the employee makes an assessment about the
employer's willingness and ability to honor the
contract. Inadvertent and unavoidable failure to
uphold a contract does not typically result in negative
consequences. When a staff member judges the firm
able but unwilling to fulfill the perceived obligations,
The employee brand: Is yours an all-star?
though, a breach can be expected to occur. This
breached contract results in negative perceptions and
behaviors that can seriously undermine the relation-
ship. Morrison and Robinson (1997) point out that
psychological contract violations are the affective
states that may come about as a result of perceived
breaches.
Inconsistent messages and violations of psycholog-
ical contracts can be expected to result in employees'
perception that fewer obligations are owed to the
organization, as well as lower levels of organizational
citizenship behavior, motivation, organizational com-
mitment, and satisfaction. Diminished trust is anoth-
er significant outcome associated with psychological
contract violation. Rousseau (1989) stated that:
“reaction [to violation] is directly attributable not
only to unmet expectations of specific rewards or
benefits, but also to more general beliefs about
respect of persons, codes of conduct, and other
patterns of behavior associated with relationships
involving trust.” (p. 129)
These negative employee outcomes also directly
affect customer experiences and, hence, customer
satisfaction and loyalty.
In summary, organizations can manage the psy-
chological contracts they have with workers by
achieving message consistency. That is, messages
emanating from organizational systems, such as the
human resource management system, must be
harmonious with one another and with the organiza-
Figure 2 Organizational message systems.
427
tion's mission, values, and desired brand image.
Success toward this end can be expected to enhance
employees' willingness to deliver the desired brand
image and to reflect organizational values to others.
While critical, issuing consistent organizational
messages is harder to achieve than conceptualize; in
other words, easier said than done. To perform an
assessment of the message consistency level within
your own organization, first list the values that are
central to your desired brand image. Next, look at
each of the organizational systems identified in Fig. 2
and determine the messages being sent.
For instance, suppose working as a team is
necessary to achieve your organizational objectives.
Therefore, you want your employees to exhibit team
behaviors. Start with the internal message systems in
your organization such as recruitment, selection,
training, performance management, and compensa-
tion. Do you emphasize the importance of teamwork
in your recruitment efforts? Does your selection
process delineate team players from non-team
players? Are your performance checks based on
team or individual behavior? Do you reward for
individual accomplishments or team accomplish-
ments? Do your corporate legends portray individual
or team players? Are your employees provided with
the necessary tools to engage in team behaviors?
After testing the internal systems for continuity,
turn your consideration to the messages that reach
external constituents. The greater the variation, the
more confused and the less trusting your employees
are likely to be. If confusion and lack of trust are
428
Figure 3 Upholding employees' psychological contracts
with the organization.
common, you can be assured that employees'
psychological contracts with the organization have
been broken. In such cases, staff members are going
to be inclined to put forth the minimum amount of
effort that is required for the job. In essence, they
will be compliant, but not committed.
To assess the consistency of the communication
(both verbal and behavioral) that emanates from
your organization's message systems, refer to the
continuum depicted in Fig. 3 and mark an “X” where
appropriate. Staff members whose psychological
contracts have been upheld will perceive that
message and behavioral consistency exists within
the organization. They will also be willing to project
the desired brand image to those with whom they
come into contact. Conversely, employees whose
psychological contracts have not been upheld will
perceive that duplicity exists within the organiza-
tion; that is, they will feel that contradictory
messages are being sent. Their trust in the organi-
zation will have broken down and their psychological
contracts will have eroded. While they may be
compliant, they will not be committed and many will
pursue their own agendas, rather than strive for the
good of the firm. Thus, these individuals will not be
willing to consistently deliver the desired brand
Figure 4 A typology of employee branding.
W.G. Mangold, S.J. Miles
image in a manner that is consonant with the
organization's values.
3. What is your type?
Having plotted your employees' knowledge and
understanding of the desired brand image, as well
as the extent to which psychological contracts in the
organization have been upheld, you may now
categorize your organization's type by applying
these assessments to the four quadrants depicted
in Fig. 4. Do this by rotating the knowledge and
understanding continuum into a vertical position.
Then, convert your plots into the four quadrants. If
you indicated that your employees were below the
midpoint on both knowledge/understanding and the
extent to which their psychological contracts have
been honored, they chart in the lower left quadrant
of Fig. 4. We refer to the members of this quadrant
as strike-out kings (for reasons we will discuss
later). If your employees are above the midpoint on
knowledge/understanding, but below the midpoint
on the extent to which their psychological contracts
have been honored, they chart in the upper left
quadrant. We call this group injured reserves. If,
however, your employees are below the midpoint on
knowledge/understanding, but above the midpoint
as regards the upholding of their psychological
contracts, they chart in the lower right quadrant.
This group constitutes the rookies.
Finally, if your firm is one of the fortunate few
whose employees are above the midpoint on both
knowledge/understanding of the desired brand
image and the extent to which psychological con-
tracts have been honored, yours qualifies as an all-
star organization. Your employee branding process is
The employee brand: Is yours an all-star?
working effectively and you are probably enjoying
the sustainable competitive advantage that this has
engendered. Your challenge, then, is to maintain the
all-star position during times of change. Next, the
four organizational types, along with their brand
strengths, are described in detail. Finally, the stra-
tegic steps necessary for converting strike-out kings,
injured reserves, and rookies into all-stars are
addressed.
3.1. Rookie organizations
Rookie organizations cannot deliver the desired
brand image to their customers because a prepon-
derance of their employees suffer from low levels of
knowledge and understanding. That is, they are not
familiar with and/or do not comprehend the desired
brand image, nor the organization's underlying
mission and values. This lack of understanding often
comes about either because the mission, values, and
desired brand image are not well thought out, or
because they have not been clearly communicated
through the organizational message systems.
Two types of organizations are particularly sub-
ject to rookie status: entrepreneurial organizations
and those with a large number of new employees.
Entrepreneurial organizations frequently have rook-
ie status because their channels of communication
are not well developed. Although leaders commonly
know the company's mission, values, and desired
brand image, they often fail to effectively share
them with staff. The latter weakness is sometimes
attributable to the informality that characterizes
many small organizations.
Rapid growth can also play a role in many
entrepreneurial organizations' rookie status. That
is, a busy entrepreneur consumed with development
may overlook his/her organization's internal mes-
sage systems to focus on short-term revenue
generation and organizational expansion. The infor-
mal nature of smaller firms results in few formal
documents and processes. While this paucity of
information can be expected to contribute to low
levels of knowledge and understanding, it does not
necessarily lead to violations of employees' psycho-
logical contracts. Rather, these may be upheld by a
close-knit environment, a charismatic entrepre-
neurial leader, or the exuberance that frequently
accompanies rapid growth.
Companies with a large number of new employees
are also likely to be rookie organizations. New staff
members cannot be expected to fully understand
their firm's mission, values, and desired brand image
because they have not yet been fully assimilated into
the organization. Unfortunately, training and orien-
tation often focuses on specific job details rather
429
than these broader, but critical, issues. In other
cases, management may feel that the people hired do
not need much training. When this happens, indivi-
duals are not informed about the mission, values, and
desired brand image the organization wants them to
reflect. Therefore, lack of tenure and lack of
knowledge and understanding often go hand-in-hand.
The majority of employees in rookie organiza-
tions perceive that they have received consistent
messages from their employers, even though they
may not have a good handle on the desired brand
image or the underlying mission and values.
Therefore, their psychological contracts are intact
and they are intrinsically motivated to deliver the
desired brand image to customers, co-workers, and
others with whom they come into contact. Regret-
tably, however, they are not clear about what the
organization expects. For instance, should customer
service be delivered with a sense of fun and humor?
Or should a sense of seriousness pervade the service
experience? How should specific customer requests
and situations be handled?
Motivation is high and knowledge is low in rookie
organizations. These low levels of knowledge are
problematic when the employees of rookie organi-
zations encounter myriad circumstances that are
not explicitly covered in the policy and procedure
manual. In such cases, inconsistent performance is
likely to occur, as the individuals must interpret for
themselves what constitutes good performance and
appropriate behavior. Unfortunately, their interpre-
tation is not supported by a full comprehension of
the desired brand image. Therefore, the employee
brand image that is ultimately reflected to others
may not be the organization's desired brand image,
and the employee brand may not be consistently
experienced by all customers.
3.2. Injured reserve organizations
The staff members of injured reserve organizations
know what image to project, as their employers have
successfully communicated both the desired brand
image and the organizational mission and values.
Thus, knowledge is present. Regrettably, however,
their psychological contracts have been violated by
inconsistent messages they have received from the
organization. For example, the employees of injured
reserve organizations may have been told during the
hiring process that family values are important and
that the company takes extra measures to ensure
family time is safely guarded. Despite this declara-
tion, though, meetings may routinely be scheduled
for evenings and Saturdays, with negative sanctions
for those who do not attend. In a real-life example,
Schneider (1980) observed that some of the bank
430
employees included in his study knew they were
supposed to be service oriented, but perceived that
signals from the bank's management encouraged a
more bureaucratic approach. Such inconsistent mes-
sages break down employee trust in the organization
and violate psychological contracts, thereby render-
ing workers dissatisfied and likely to leave. Employee
dissatisfaction, in turn, often results in an unwilling-
ness to project the desired brand image to others.
When this occurs, the originally intended brand
image is unlikely to be reflected to customers.
The performance framework presented by Blum-
berg and Pringle (1982) suggests that employee
performance in injured reserve organizations is likely
to be low to moderate because willingness is low,
even though opportunity is favorable. This is consis-
tent with the point of view that violations of
employees' psychological contracts are likely to
bring about lack of trust, dissatisfaction, and greater
turnover. Taking this a step further, worker dissatis-
faction can be expected to negatively impact the
service experience of customers. Therefore, custo-
mers and other stakeholders may feel that the staff
members of injured reserve organizations exhibit a
high level of variation in the images they project,
resulting in employee brands that are inconsistent
with the desired brand image. Such negative experi-
ences are likely to influence customers' future de-
cisions to do business with the organization,
especially when substitutes abound.
3.3. Strike-out kings
Strike-out king organizations have some serious
problems. Owing to low levels of knowledge and
understanding, most employees in these firms are
unfamiliar with what image they should reflect or, if
they actually do possess this vital information, are
unsure of how to project it. Even worse, the
inconsistent messages they perceive violate their
psychological contracts, as well as their trust in the
organization. Because their intrinsic motivation has
been damaged, strike-out king organizations' employ-
ees would be unwilling to project the desired brand
image even if they had the necessary knowledge and
understanding. This point of view is also supported by
Blumberg and Pringle's (1982) performance frame-
work, which substantiates that very low performance
is the result of less favorable opportunities and low
willingness to perform.
Strike-out kings position their employees for
failure. Workers are often confused by the apparent
conflicts between the niceties put forth by the
organization's advertising and public relations pro-
grams, and the day-to-day realities of life in the firm.
Productivity on the job is reduced, due to distrust for
W.G. Mangold, S.J. Miles
the organization and fallout from violated psycholog-
ical contracts. Employees subject to such conditions
are likely to engage in negative word-of-mouth
communication, aimed at anyone and everyone who
will listen, including other employees, customers,
and potential clients. Inside the organization, they
may display the ‘what's-in-it-for-me’ syndrome, since
they have no real loyalty to the company. Indeed,
these workers have even been known to engage in
various forms of organizational sabotage.
In strike-out king organizations, where insuffi-
cient knowledge and feelings of psychological
contract violation abound, employees will be
unmotivated, distrustful, dissatisfied, unproduc-
tive, and looking for an opportunity to leave. The
negative climate will adversely impact customer
experiences and, consequently, customer satisfac-
tion and loyalty. This could spell disaster for the
organization, as brand equity is likely to be
diminished. For example, one does not have to
reflect too far back to remember the extreme
challenges faced by Continental Airlines prior to
1994. As highlighted by Brenneman (1998), custom-
er satisfaction with the airline was so low that one
organization went so far as to choose for its branch
office location Dallas rather than Houston, so that
company employees could fly American instead of
Continental.
3.4. All-stars
Organizations that can be classified as all-stars have
been successful in building their employee brands.
Staff members of these firms have a high level of
knowledge and understanding regarding the desired
brand image, as well as the underlying organizational
mission and values. Importantly, they also interpret
messages received from the organization as being
consonant with one another, and with the company's
mission and values. This perceived consistency honors
the employee psychological contract and creates a
sense of trust in the firm. Thus, all-star organizations'
employees are both able and motivated to project
the desired brand image to others.
The employee brand is a source of sustainable
competitive advantage in all-star organizations.
The requirements for employee workplace perfor-
mance are present according to the classic con-
struct presented by Blumberg and Pringle (1982).
Because they possess such high knowledge levels,
staff members of all-star organizations are likely to
feel confident regarding their ability to make
decisions that are consistent with organizational
priorities, thereby adding to job satisfaction. In
addition, these individuals may be less likely to
separate from the organization, resulting in a more
The employee brand: Is yours an all-star?
stable workforce featuring highly experienced
employees. All-star team members' affirmative
feelings can also be expected to result in more
positive, and less negative, word-of-mouth commu-
nication about the organization. In turn, the in-
creased flow of interpersonal communication will
most likely have a favorable impact on customers,
as well as the firm's other employees.
All-star status can be achieved when the organiza-
tion's message systems act in a complimentary manner
to communicate clear and consistent messages that
continually reinforce one another. The staff of all-star
organizations can be relied upon to steadfastly reflect
the brand image to others. This uniformity will enable
all-star organizations to best position themselves and
their offerings in the minds of customers and other
relevant stakeholders. It is also likely to produce
enhanced customer satisfaction and higher levels of
customer loyalty, thereby resulting in a sustainable
competitive advantage for the organization.
4. Becoming an all-star
The key to attaining all-star status is consistent
communication directed toward achieving two
goals: (1) ensuring that all the organization's
message systems steadfastly reinforce the desired
brand image, as well as the underlying mission and
values; and (2) upholding employees' psychological
contracts with the organization. Specific guidelines
for transforming your organization into an all-star
include the following:
• Consistently communicate and reinforce the
organization's mission, values, and desired
brand image. For example, O'Reilly, Perlstein,
and Capur (2006) relate that the term Life
Engine is used at Yahoo! to unify the company's
mission, values, and employee value proposition
into an internal brand concept that is easy to
grasp and understand. The Life Engine message
underpins many of the organization's contests
and events, and is supported by such internal
media as posters, customized license plate
frames, and visitor name tags.
• Help staff members establish healthy psycho-
logical contracts with the organization by
clearly stating both what they can anticipate
from the company and what they are expected
to give in return. As indicated on its website, the
employee benefits company, CIGNA, uses the
employee value proposition to establish and
reinforce the psychological contracts it main-
tains with its workers:
431
“CIGNA is a leading employee-benefits provider to
employers and employees in the U.S. and selected
international markets. We succeed through our
commitment to serving our customers, the strength
of our people and our drive for superior financial
results. We recognize the value of a passionately
committed, energized and diverse workforce. We
reward excellence, promote development, expect
high standards and encourage work/life balance.”
(www.cigna.com)
• Empower employees to always deliver the
desired brand image, even when doing so is not
totally consistent with the policy and procedure
manual. For instance, Outback Steakhouse
emphasizes the importance of using good judg-
ment in a manner that is consonant with the
company's principles and beliefs (www.outback.
com/careeropportunities/management.asp).
This approach can be expected to contribute to
the development of employees' knowledge and
understanding, rather than a propensity to
strictly adhere to the letter of the ‘rule book’.
The internalization process may be further
augmented when staff members are engaged in
the organization's decision-making processes
and, perhaps, in establishing the mission,
values, and desired brand image.
• Use the performance management and compen-
sation systems to help employees know, under-
stand, internalize, and deliver the desired brand
image. Walt Disney Company is an organization
which employs many recognition and reward
programs to ensure that its cast members
achieve this goal. Among others, Disney regu-
larly hands out “‘Applause-o-Gram’ cards…to
anyone caught doing a good deed, ‘Thumbs Up’
certificates for landscaping staff, ‘Golden Hang-
er’ gift certificates for costuming workers, and
Department of the Month awards” (Rubis, 1998,
p. 115).
• Make delivery of the desired brand image the
central focus of training and development efforts.
For example, customer service employees should
be taught what behaviors are desired by being
supplied with explicit instructions regarding how
to handle specific situations. These directives
should also explain how the behaviors are
consistent with the organization's values and the
desired brand image. The 2003 Baldrige National
Quality Program award recipient, Pensacola,
Florida's Baptist Hospital Incorporated, even
goes so far as to provide its workers with scripts
that are to be used in certain circumstances. As
432
stated on page 18 of the winner's profile, “any
employee who sees a visitor who appears lost
will ask, ‘May I take you to where you are going?’
Upon leaving a patient's room, employees always
ask, ‘Is there anything else that I may do for you?
I have the time.’” (http://www.quality.nist.
gov/PDF_files/Baptist_Hospital_Application_
Summary.pdf).
• Understand that messages are communicated
through decisions and actions, as well as through
words. The characteristics of new hires, for
example, send powerful signals regarding the
firm's true priorities. Certain organizations, such
as Brinker International, are known for their
ability to appoint the right employees and train
them to reflect the desired brand image to others.
As indicated on its website (www.brinkerjobs.
com), Brinker aggressively seeks individuals who
share the company's six values: growth, diversity,
family, integrity, balance, and passion. Workers
whose values are aligned with those of the
company, when properly trained and developed,
will have a strong propensity to deliver the desired
brand image to customers.
• Weave the desired brand image into all internal
and external message systems. It is only when the
mission, values, and desired brand image are
clearly defined and continuously reinforced that
employees will be able to consistently reflect the
desired brand image to others. Internal news-
letters and employee-oriented websites may be
used toward this end. Consider Southwest Air-
lines, which is noted for its use of the company
house publication, Luv Lines, to clarify and
reinforce the behavior that is expected and
rewarded, as well as the mission and values that
drive those expectations.
• Carefully integrate the messages that are in-
tended for external audiences with those aimed
at internal audiences. As employees are exposed
to both, it is particularly important that the
messages be consistent with one another in
order to avoid a sense of organizational dupli-
city. Libby Sartein, Chief People Officer at
Yahoo! uses the term internal branding to refer
to this alignment of internal and external
messages (O'Reilly et al., 2006).
• Lead by example! Remember that leader
behavior is a key element in fostering a
corporate culture that is consistent with the
organization's mission, values, and desired
brand image. The ability of employees to
W.G. Mangold, S.J. Miles
internalize the desired brand image will be
enhanced when organizational leaders, man-
agers, and co-workers regularly reflect the
mission, values, and desired brand image in
their decision making, as well as interpersonal
communications. Sam Walton, founder of Wal-
Mart, put this principle into practice by
maintaining very spartan office furnishings.
Setting the firm's standard for frugality and a
corporate emphasis on cost-cutting, Walton is
said to have constructed and used a desk
made of plywood set across two sawhorses in
the early years of the business (Trimble,
1990).
• Make tough decisions when necessary. Consider
the manager of a retail organization who fired an
employee after a poor customer service incident.
This type of behavior reinforces the firm's
commitment to customer service and clearly
communicates the consequences of delivering
service that is not consistent with the company's
values and desired brand image.
• Conduct a message audit to assess the consis-
tency of the messages emanating from the
organization. For example, a message audit
conducted by S'Portable Scoreboards revealed a
considerable amount of employee misunder-
standing about the company's compensation
system and decisions related to budget alloca-
tions. The firm subsequently used its internal
public relations system to clear up various points
of confusion.
The message audit process begins with a review
of the formal and informal messages coming from
the organization. When inconsistencies are found,
corrective action must be taken to ensure that the
organization's mission, values, and desired brand
image are being consistently and accurately
communicated. Assume, for instance, that team-
work is an essential corporate value and part of
the desired brand image. In this case, the
performance management system should be
assessed in terms of the extent to which it
supports teamwork. Perhaps the performance
management system incorporates an employee
evaluation system that has a negative impact on
teamwork because it requires that employees be
rated in relation to one another, rather than in
relation to a set standard. If such a system is
found to have a negative impact on teamwork by
discouraging employees from sharing information,
the system should be changed to reflect and
reinforce the teamwork value.
The employee brand: Is yours an all-star?
Next, advertising and public relations messages
should be checked to ensure that the communication
directed to staff members is consistent with the
communication directed to customers and other
stakeholders. Steps must also be taken to ensure
that management's decisions are in synch with the
organization's mission, values, and desired brand
image, and are therefore aligned with the commu-
nications emanating from the other message systems.
Review processes may be established for this pur-
pose. Perhaps message consonance is most likely to
be attained when reward systems are put into place
to encourage decision making that is consistent with
the mission, values, and desired brand image, and to
discourage decision making that does not meet that
standard.
5. The employee brand: A final word
Organizations can achieve a sustainable competitive
advantage by successfully developing their employee
brand. The typology we have presented is a
diagnostic framework that is intended to help leaders
accomplish this goal. It enables them to understand
where their organizations are and facilitates identi-
fication of what needs to be done to get them where
they want to be. The guidelines emphasized herein
are applicable to the broad range of companies in
which success is largely driven by the point of
interface between the employee and the customer.
An organization that is able to effectively develop its
employee brand should benefit from high levels of
service quality, customer satisfaction, repeat pur-
chase behavior, and lower employee turnover.
433
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