There are a number of ideas that HR has borrowed from Marketing-from candidate relationship management to employer branding-but is a good thing or a bad thing?  In one sense there is one fundamental similarity between HR and Marketing - both are often in the position of influencing behavior that they cannot control.  Some take the similarity a bit further-looking at employees (or potential employees) as customers.  The idea being that ´employees´ are ´customers´ and that we are trying to sell them something-employment or participation in a given program.

HR has borrowed from Marketing in a number of places.  When the labor markets are tight we need to sell prospects and candidates on our employment offering.  Similar to product marketing, we define our employment value proposition.  From corporate branding, we define our employment brand.  From relationship marketing, we get candidate relationship management and employee relationship management.  From direct marketing, we implement non-cash incentive systems to reinforce targeted employee behaviors.

Is this a good metaphor?

First, it should be recognized that ´Marketing´ is not a unified discipline.  There are many currents of thinking within Marketing.  For instance, the conceptual underpinnings that underlie corporate branding are much different than the conceptual underpinnings that underlie incentive programs.  Some approaches to corporate branding are very similar to what many OD practitioners think of as organizational culture.  Many approaches to incentives are based on behavior modification principles.  Some Marketing approaches are more like leadership, where the idea is to inspire the desire to ´live the brand.´

Are employees like customers?  Is employment like a product or service?  Is the relationship between a customer and a company like the relationship between an employee and their employer?

For all the similarities between customers and employees, there are some real differences as well.  For one, the relationship between companies and their employees is typically more complex.

Typically, companies do not have that much of a stake in what you do with their product.  But when a candidate ´buys´ your employment offering, they become part of your organization and can impact your organization in all the ways that employees can impact their organizations.

Also, employees expect more from the companies they work for than what customers expect of the companies they do business with.  For employees, their livelihood depends on their employers in ways that is not the case with customers.  Few companies would expect their customers to ´live their brand´ (although many companies would appreciate it if some of their customers were to become true advocates for the brand).

I find that the greatest value of looking at HR issues from a marketing perspective is just that-an opportunity to look at issues from a different perspective.

On Wednesday, August 16, 2006, I will be conducting a webcast on Candidate Relationship Management.  Candidate Relationship Management is one of those ´borrowings´ from Marketing-not only in the perspective but also in some of the enabling technology.  Candidate Relationship Management borrows from relationship marketing.  The idea here is to build a relationship with employment prospects and candidates with the idea that this relationship will translate into a preference for employment with that organization.  I hope you can join us for that webcast.