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Human Resource Development

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Leveraging employer branding,

performance management and human
resource development to enhance
employee retention
a
Wayne F. Cascio
a
Business School, University of Colorado Denver, Denver, CO, USA
Published online: 10 Apr 2014.

To cite this article: Wayne F. Cascio (2014) Leveraging employer branding, performance
management and human resource development to enhance employee retention, Human Resource
Development International, 17:2, 121-128, DOI: 10.1080/13678868.2014.886443

To link to this article: http://dx.doi.org/10.1080/13678868.2014.886443

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 Human Resource Development International, 2014
Vol. 17, No. 2, 121–128, http://dx.doi.org/10.1080/13678868.2014.886443

Leveraging employer branding, performance management and human

resource development to enhance employee retention
Wayne F. Cascio*

Business School, University of Colorado Denver, Denver, CO, USA

(Received 5 January 2014; accepted 7 January 2014)
Downloaded by [University of Aberdeen] at 02:19 05 October 2014

Global economic recovery from years of depressed growth has accelerated voluntary
turnover, along with employer concerns about retention. More employers are also
promoting from within their ranks, and this has put growing emphasis on HRD and
career-development initiatives. This article argues that the biggest winners in this
emerging economic environment, at least from a talent perspective, are organizations
with positive employer brands, performance management strategies that help employ-
ees develop expertise that maximizes their potential, and innovative approaches to the
design and delivery of HRD initiatives, especially technology-delivered instruction
(e.g., mobile and virtual applications, simulations, MOOCs) and social-learning tools
(e.g., wikis, communities of practice, social media). These strategies are by no means
exhaustive, but they are three key elements of employee retention.
Keywords: employer branding; performance management; technology-delivered
instruction; social-learning tools

As the global economy begins to recover from years of recession and depressed growth,
there has been a manifest shift in the market for talent, moving from buyers to sellers,
particularly among sellers with expertise in fields such as accounting, IT, mobile-
application development, business analytics, and regulatory compliance. In 2013, 51%
of companies surveyed rising voluntary turnover compared to 30% in 2012 (‘Careers’
2013). In the aggregate, according to the US Bureau of Labor Statistics, the number of
voluntary leavers each month surged from about 1.7 million in June 2009 (when the US
recession officially ended) to almost 2.4 million per month by the end of 2013. Both of
these indicators suggest that employee turnover is accelerating, and that has organiza-
tions worried.
During the recession, companies engaged in massive downsizing and restructuring,
slashing more than 8.5 million jobs in the United States alone. Now the pendulum has
begun to swing back, with monthly job creation projected to return to about 200,000 per
month in the United States. Fully, 42% of those new jobs are being filled by internal
candidates, up from 28% in 2007, according to CareerXRoads. This is happening, at least
in part, because it is still cheaper to hire from within (‘Careers’ 2013). Such a pronounced
emphasis on promotion from within suggests that many organizations are moving from
‘buy’ to ‘make’ in order to meet their needs for talent. That has significant implications
for talent acquisition and retention.
Organizations that will be the biggest winners in this emerging economic environ-
ment, at least from a talent perspective, are those with positive employer brands,

*Email: wayne.cascio@ucdenver.edu

© 2014 Taylor & Francis

 122 W.F. Cascio

performance management strategies that help employees develop expertise that maximizes
their potential, and innovative approaches to the design and delivery of Human Resource
Development (HRD) initiatives. These strategies are by no means exhaustive, but they are
three linchpins of employee retention. The following sections consider each one in more
detail, with special emphasis on two HRD initiatives: technology-delivered instruction
and social learning tools.

Employer branding
A brand is a name, symbol, design or combination that identifies the goods or services of
one seller or group of sellers, and distinguishes them from the goods and services of
competitors. Consultants, lawyers, doctors, and other professionals sometimes identify
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their businesses by their personal names. Their names are therefore their brands, and
everything they do that is known by the public is associated with their names. Other
organizations identify themselves by their company names. Those company names are
therefore their brands. Each employee is a representative of his or her company, and is
known for all that his or her company stands for (good and bad). ‘Brand’ is shorthand for
the goods and services provided (e.g., Apple, Google, Coca Cola, CNN, Sony). More
important, brand is shorthand for the quality and distinctiveness of those goods and
services. In general, the public is attracted to good-name brands and repelled by bad-
name brands (Keller 1993). Why worry about your brand? Evidence indicates that from
the consumer’s perspective, brands simplify choice, increase trust, reduce risk, and
promise a particular level of value (Keller 2012).
‘Branding’ provides several valuable functions. It endows products and services with
the power of a brand. It creates meaningful differences between products and services
available to customers. It teaches customers what a product does and why customers
should care. Finally, it creates mental structures that help customers organize their knowl-
edge about products and services and clarify their decision-making. Research shows that
the pay-offs from well-known brands are significant (Kotler and Keller 2009). They
include: higher margins and returns, higher perceived quality, consistency and reliability,
resilience to product or service failures, resilience to competition, stronger customer
loyalty, higher recognition and awareness, and less price elasticity.
Do you know what your employer brand is? Think about the critical role that your
employer brand plays in recruiting and retaining talent. Consider also that your brand
walks out the door every night, as employees go home and post news on Facebook or
LinkedIn about what happened at work. Tools like Glassdoor, Twitter, and Facebook
make it very easy for your employees to communicate the pros and cons of working at
your company. Companies like Apple, Ford Motor Company, Hyatt Hotels, and others
recognize this, and have taken systematic steps to assess and update their employee value
propositions. If you do not know what your employment brand is, or have not updated it
recently, begin by interviewing and surveying your current employees, because nothing is
more damaging than an employment brand that does not turn out to be true when a newly
hired employee shows up at work (Bersin 2013). Be crystal clear about what your
organization stands for, and be sure that executives and employees at all levels model
the kinds of behaviours that are consistent with your employment brand. After all, as
Doug Conant, former CEO of Campbell Soup noted, ‘You can’t talk your way out of
something you behaved your way into. You have to behave your way out of it’ (Conant,
in Eisenstat et al. 2008, 6).
 Human Resource Development International 123

Performance management
Performance management is a continuous process of identifying, measuring, and devel-
oping individuals or teams, and of aligning that performance with the strategic goals of an
organization (Aguinis 2009; Cascio and Aguinis 2011). Like a compass, the purpose of
performance management is to provide orientation as well as direction. It shows both
one’s actual direction as well as one’s desired direction (Cascio 1996). Like a compass,
the job of the manager is to identify where a person is now, as well as to focus effort and
attention on the desired direction. Performance management should be much more than a
once-a-year performance review. Rather, it should be an everyday part of a high-perfor-
mance organizational culture.
In recent years there has been much rethinking about the role and function of
performance management. One comprehensive review and re-examination of this impor-
tant process concluded that effective performance management requires three regular and
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ongoing activities (Meyrowitz et al. 2012):

● Communicating expectations on a regular basis

● Providing feedback in real time whenever exceptional or poor performance is
observed, and
● Helping employees develop expertise that maximizes their potential

Although the descriptions are slightly different, the same three elements are reflected
clearly in the American National Standard on performance management (American
National Standards Institute 2012). Those three elements are:

● Goal setting: the process of establishing objectives to be achieved over a period of

time
● Performance review: the process of assessing progress towards goals, and
● Performance improvement plans: the process of addressing a specific individual
performance issue

Goal setting helps communicate expectations. Performance review generates feedback,

and performance improvement plans help employees develop expertise that maximizes
their potential. While a thorough treatment of performance management issues is beyond
the scope of this article, it is important at least to comment on the feedback process. As
one observer noted: ‘If the process does not facilitate regular feedback, it probably is not
working’ (Bersin 2013, 26). Unfortunately, evidence indicates that performance manage-
ment is not working in many organizations, as a survey of 750 HR executives revealed
(Light 2010):

● Fifty-eight per cent graded their own performance management systems ‘C’ or
lower
● Only 30% agreed that employees trust those systems
● The majority were frustrated that many managers do not have the courage to give
constructive feedback to employees

Feedback, or information about one’s efforts to improve, is a key feature of the perfor-
mance-management process, for it serves as a personal development tool. However, the
mere presence of performance feedback does not guarantee a positive effect on future
 124 W.F. Cascio

performance. In fact, a meta-analysis that included 131 studies showed that, overall,
feedback has a positive effect on performance (less than one-half of one standard devia-
tion improvement in performance), but that 38% of the feedback interventions reviewed
had a negative effect on performance (Kluger and DeNisi 1996). Thus, in many cases,
feedback does not have a positive effect; in fact, some forms of feedback, such as
destructive criticism, can actually have harmful effects on future performance.
Here are three other research-based findings regarding feedback. First, more feedback
is not always better. A 10-month field study of the behavioural safety performance of
factory employees found that providing feedback once every two weeks was about as
effective as providing it once a week (Chhokar and Wallin 1984).
Second, immediate feedback may not be appropriate for all learners. Withholding
feedback from more experienced learners can help them think more critically about their
own performance, and as a result improve retention and generalization. In short, provide
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immediate feedback to novices, and less frequent feedback to experienced learners

(Brown and Ford 2002; Schmidt and Bjork 1992). Third, to be accepted by performers
as accurate, feedback should include positive information first, followed by negative
information (not vice versa) (Stone, Gueutal, and McIntosh 1984).
Several factors are driving the need for more frequent and more effective feedback:
technology, the growing number of millennials in the workforce and high performers of
every generation. To be effective, feedback needs to be provided regularly when it makes
sense to do so, not only once or twice a year during formal reviews. Evidence indicates
that informal, continuous feedback is most valuable (Center for Creative Leadership,
Kirkland, and Manoogian 2007).
Current thinking about performance management has evolved from annual appraisal and
rating to continuous feedback and coaching, and from annual goals and objectives to quarterly
or even more frequent goal setting, with informal check-in processes. Other changes include
moving from development as an afterthought to development as a core element of the
performance-management process, and from a bell-curve distribution of raises to a focus on
ensuring that high performers receive significantly higher levels of compensation than mid- or
lower-level performers. In 2013, for example, star performers received raises that were more
than 75% larger than what average performers received (‘Careers’ 2013). That kind of
differentiation makes ‘pay for performance’ a meaningful philosophy.

Innovative approaches to the design and delivery of HRD initiatives

We live in a digital age and a smartphone world. Consider the development of cloud
computing as just one example. Cloud computing – the practice of using a network of
remote servers hosted on the Internet to store, manage and process data, rather than a local
server, is exploding in popularity. It gives consumers, as well as companies, cheap,
unlimited access to cutting-edge computing power and applications. As recently as
2009, many organizations looked at cloud computing as a novelty or danger to security.
Today, many of those same organizations are touting its agility, power and ability to
innovate business processes. Indeed, by 2015, a projected 2.5 billion users and 15 billion
devices will be accessing cloud services. In 2014, companies are expecting to handle data
demands from one billion smartphones alone (O’Mahony 2013).
Mobile computing is moving faster than anyone might have expected. Today, more than
88% of all mobile devices are smartphones, and more than 5 billion of them are in use around
the world. People check their phones as often as 150 times a day, and more and more business
is now conducted via smartphone. As just one example, talent-acquisition leaders are
 Human Resource Development International 125

reporting that more than 40% of all job candidates now apply on mobile devices (Bersin
2013). What this means is that there is a pressing need to ensure that all HR functions, from
recruitment to HRD, work well on mobile and tablet devices, and that your organization’s IT
function has adopted a ‘BYO’ (‘bring your own’) technology strategy. While technology is
surely not the answer to all people-related business issues, it is critical to recognize how
prevalent it is, and the high expectations that employees, job candidates, suppliers, customers,
and other stakeholders have that it will operate well.
Fortunately, technology also enables innovations in HRD design and delivery. The
following sections present two such innovations, ‘technology-delivered instruction,’ or
TDI, and HRD using social-learning tools.1

Technology-delivered instruction
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TDI is the presentation of text, graphics, video, audio or animation in digitized form for
the purpose of building job-relevant knowledge and skill. TDI includes asynchronous
(meaning it is not delivered to every user at the same time) text-based courses, job aids,
educational games and video and audio segments, as well as synchronous media, such as
video-conferencing and chat rooms (Aguinis and Kraiger 2009; Jana 2006; Totty 2005).
Whether training is web-based, delivered on a single workstation, on a PDA or on an
MP3 player, TDI is catching on. Here is just one example of it. At Boeing, mechanics going
through the company’s 25-day training course for the 787 Dreamliner learn to fix all kinds
of problems. Those problems range from broken lights in the cabin to major malfunctions
with flight controls. One thing they won’t soon do, however, is actually touch one of the
planes. Instead, they use laptop and desktop computers inside a classroom that includes
huge wall-mounted diagrams of the various sections of the plane. Computers display an
interactive 787 cockpit, as well as a 3-D exterior of the plane. Using a mouse, the mechanics
‘walk’ around the jet, open virtual maintenance access panels and go inside the plane to
repair and replace parts. At the end of the course, the mechanics get all training materials on
a tiny memory stick. In the field, staring up at an actual Dreamliner, they use tablet PCs to
diagnose and solve real problems with the planes. To accommodate worldwide demand for
the plane, Boeing has established eight Dreamliner ‘training suites,’ including those in
London, Seattle, Shanghai, Singapore and Tokyo (Sanders 2010).
TDI is projected to boom in the next five years, as both demand and supply forces
encourage its adoption. On the demand side, rapid obsolescence of knowledge and
training makes learning and relearning essential if workers are to keep up with the latest
developments in their fields. In addition, there is a growing demand for just-in-time
training delivery, coupled with demand for cost-effective ways to meet the learning
needs of a globally distributed workforce. Finally, there is demand for flexible access to
lifelong learning. Earlier we noted that in the United States, organizations are filling 42%
of their new jobs with internal candidates. That creates sustained, ongoing demand for
career-development opportunities and HRD offerings.
On the supply side, Internet access is becoming standard at work and at home, and
advances in digital technologies now enable training designers to create interactive,
media-rich content. In addition, increasing bandwidth and better delivery platforms
make TDI particularly attractive. Finally, there is a growing selection of high-quality
products and services.
Simulation games are one popular type of TDI. They refer to instruction delivered via
personal computer that immerses trainees in a decision-making exercise in an artificial
environment in order to learn the consequences of their decisions. The games are
 126 W.F. Cascio

intrinsically motivating, and some people report that they actually lose track of time when
playing their favourite ones. When used for training, they seem to pay off nicely. Meta-
analysis results indicate that relative to a comparison group, post-training self-efficacy
(belief that one can succeed) was 20% higher, knowledge of facts was 11% higher, skill-
based knowledge was 14% higher and retention was 9% higher for trainees taught with
simulation games (Sitzmann 2011).
Trainees learned more when simulation games conveyed course material actively
rather than passively, trainees could access the simulation game as many times as they
desired, and the simulation game was a supplement to other instructional methods rather
than stand-alone instruction. Trainees learned less, however, when the instruction the
comparison group received as a substitute for the simulation game actively engaged them
in the learning experience.
TDI allows small companies, such as Broadwing, Inc., a Cincinnati-based telecom-
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munications firm, to offer a safety course delivered over the Internet. It also permits large
firms, such as General Motors, to reach more than 175,000 employees at 7500 dealerships
in less than a week, using interactive distance learning (IDL) technology. IDL will let
employees view a live course beamed in by satellite and ask questions of the instructor
without leaving their dealerships, which slashes travel time and costs, and improves
quality, because GM can select its best instructors to teach each course. What about the
broader use of MOOCS (massive, open, online courses)?
MOOCS are free, or low-cost courses offered by major universities and a wide variety
of other providers. Although great expectations remain about the academic market for
MOOCS, recent evaluations of their effects are disappointing. A 2013 study of a million
users of MOOCs, by the University of Pennsylvania Graduate School of Education found
that, on average, only about half of those who registered for a course ever viewed a
lecture, and only about 4% completed the courses (Lewin 2013). Fully, 70% of the
employers in one survey said they were suspicious of the credibility of an online degree,
but 80% of those same employers believed that their own companies will use technology
to deliver more workplace learning in the future (Bradshaw 2013).
When it comes to the potential use of MOOCs in the corporate market, many
questions remain (Weiss 2013). Do training units have the skills and technology needed
to assemble, launch and manage a MOOC? How will MOOC-style learning be evaluated?
Are there data to guide decisions about the best uses of MOOCs? What kind of feedback
and testing can be done using the MOOC platform? As learning becomes more a part of
every job – and of day-to-day life – researchers might fruitfully examine the kinds of
HRD policies regarding these issues that seem to be most effective.

Social-learning tools
As O’Leonard (2013) notes, ‘Employees have always learned from one another, but
technology has made it possible for workers to collaborate in ways that were almost
unimaginable a decade ago’ (13). This has led to a dramatic increase in the use of social-
learning tools. In 2007, for example, just 7% of the US companies were using wikis2 in a
learning environment; by 2012 that number had hit 24% (O’Leonard 2013). Likewise, just
11% of the companies were using communities of practice (CoPs)3 in a learning environ-
ment in 2007. By 2012, that number had tripled to 33%. In addition, 26% of US
organizations use social media such as Facebook, Twitter and Yammer in their
employee-development initiatives (O’Leonard 2013).
 Human Resource Development International 127

At the same time it is important to note that traditional, instructor-led classroom

training is still popular, ranging from 37% of total training hours in manufacturing to
63% in insurance. Organizations of all sizes, from 73% of small ones (100–999 employ-
ees) to 93% of large ones (10,000+ employees) are using learning management systems4
to coordinate these efforts (O’Leonard 2013).
Social-learning tools can be extremely effective if they are combined with more
formal training programs. To do that, organizations are creating employee networks,
connecting novices to experts through online expertise directories and sharing knowledge
through CoPs. This has resulted in a shift from blended training programs to continuous
learning environments (O’Leonard 2013). For HRD researchers, the rapid development of
social-learning tools raises several important questions, namely, what is the relative
effectiveness of alternative social-learning tools? Which features of such tools seem to
have the greatest impact on long-term learning and positive transfer to the job situation?
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What circumstances make social-learning tools more or less effective? Are there interac-
tion effects between social-learning tools and more formal training programs? While the
popularity and expenditures on alternative social-learning tools have risen dramatically,
research on their overall effectiveness is still in its infancy.
Employees and managers at every level must learn to adapt to a workplace that is
becoming more transient, more mobile and more focused on self-service. Workplaces
themselves have become seamless, and also endless, as they roll through a 24/7/365 cycle.
Organizations of every stripe have become ‘borderless’ to their customers as well as to
their employees. The result of all of this change is that HRD teams are rethinking how
best to align their offerings with business needs and evolving trends.

Conclusions
Major changes are underway in labour markets and organizational environments every-
where. As voluntary turnover rates begin to climb, so also do employer concerns about
retention, particularly the retention of top performers. While there are multiple levers that
employers can pull to enhance employee retention, this article has discussed three salient
ones: a positive employer brand, performance management strategies that help employees
develop expertise that maximizes their potential and innovative approaches to the design
and delivery of HRD initiatives. Two of those initiatives are technology-delivered instruc-
tion and social learning tools. Each has enormous promise to accelerate employee learn-
ing, development and retention. At a broader level, careful attention to branding,
performance management and HRD will pay dividends for years to come.

Notes
1. Much of the material in this and the following section comes from Cascio (2014).
2. Wiki is a website developed collaboratively by a community of users, allowing any user to add
and edit content.
3. A ‘community of practice’ (CoP) refers to a group of individuals who share a common interest
in a topic, and who deepen their knowledge of it through ongoing interaction and relationship
building in their group. In HRD, online discussion rooms and other technologies facilitate
ongoing discussions and knowledge sharing.
4. A learning management system is a software application for the administration, documentation,
tracking, reporting and delivery of training programs. Corporate training departments use such
systems to deliver online training, as well as to automate record-keeping and employee registration.
 128 W.F. Cascio

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