Attracting High Quality Human Capital by the Value of a Company Brand

Bachelor Thesis from the year 2010 in the subject Business economics - Business Management, Corporate Governance, grade: 1,6, University of Applied Sciences Essen, language: English, abstract: It is indisputable that brands influence operating results as well as the reputation of a firm. Some statements even consider a brand as one of the most valuable assets of a company. The relation between the brand and the consumer can be considered as a pact. The customer is loyal and trustful while the brand guarantees a consistent quality and pricing. What is questionable is whether a brand has the same effect on current and potential employees. Hence the question is: Does a brand also influence the employer attractiveness? Improving or even creating a brand's value requires a variety of both expensive and risky actions. This is one of the reasons many companies may under invest in that area. From the business point of view, the threat of spending money on measures which do not have a relevant effect on the business bears no relation to the few benefits to be expected. Thus, especially for SMEs, it is essential to know if investments to increase the brand value can be beneficial for a company's recruitment. Practice shows that the market activity of a company does influence the image also as an employer. Good examples are BMW and Porsche whose employer brand also benefits from the success of their businesses. The knowledge about a correlation between the brand value and the attractiveness as an employer can be of big advantage for companies that do not maintain a valuable brand. They would get a chance to change their mindset concerning the investments in creating brand value in order to attract high quality human capital and benefit from other advantages a known brand brings in.