What is Personnel Marketing (HR Marketing)?

1. Definition of the Term Personnel Marketing

Personnel marketing, also known as human resources (HR) marketing, is a central concept in modern HR management that aims to attract qualified employees and retain them in the long term (Schäfer 2004, p. 759). It encompasses all strategic and operational measures that a company takes to position itself as an attractive employer and, thus, attract and retain the best talent. HR marketing can be seen as the interface between traditional marketing and human resources. While marketing primarily aims to sell products and services, HR marketing concentrates on “marketing” the company as an employer (Schäfer 2004, pp.759-761).

The aim of HR marketing is to present the company positively, externally to potential applicants and internally to existing employees (Behrends & Bauer, 2016, p.5-6). The concept of HR marketing can be divided into two main components, internal and external HR marketing, as follows:

• External HR marketing presents the company to the public as an attractive employer to attract potential applicants. This includes measures such as employer branding, job advertisements, career fairs, and using social media.

• Internal HR marketing, conversely, focuses on retaining and motivating the existing workforce through measures including training, employee development, health management, and workplace design (Wehner, 2016, pp. 124-125).

A useful definition of the term HR marketing is provided by Scholz (2014, p. 235), who describes it as “the systematic planning, coordination, and control of all a company’s activities aimed at attracting, motivating, and retaining both current and potential employees.” This definition underlines the strategic dimension of HR marketing and emphasizes that it is a continuous process geared toward long-term goals.

Another important aspect of personnel marketing is differentiation from the competition.

2. Objectives in Personnel Marketing

HR marketing objectives can be divided into various categories, all aimed at increasing the employer’s attractiveness and ensuring a stable, motivated workforce. The primary aim is to attract qualified employees by increasing the number of applicants (Kanning, 2016, p. 15). In times of skills shortages, it is essential for a company to position itself as an attractive employer to attract the best talent. This includes developing and implementing strategies to attract potential applicants. These strategies include measures such as employer branding, a presence at career fairs, the use of social media, and the placement of job advertisements on various platforms (Scholz, 2014, p. 240-241). Retaining existing employees also plays a key role in HR marketing. The aim is to minimize staff turnover and retain expertise within the company. Employee retention measures include creating a positive working environment, attractive training and development opportunities, and fair, performance-based remuneration (Pausenberger, 2018, p. 284-285). Furthermore, flexible working time models and company health programs contribute to increasing employee satisfaction and retention (Wehner, 2016, pp. 123-124).

2.1 Increasing Employer Attractiveness

Another aim of HR marketing is to increase a company’s attractiveness as an employer. This is achieved by improving an employer’s image and corporate culture. Employer branding plays a central role here. Companies must develop a clear and authentic employer brand that communicates their values, culture, and benefits. A strong employer brand helps differentiate the company from the competition for talent and attract potential applicants (Behrends & Bauer, 2016, p. 10).

2.2 Promoting Employee Motivation and Satisfaction

Promoting employee motivation and satisfaction is also a key HR marketing goal. Motivated and satisfied employees are more productive and make a significant contribution to a company’s success. Companies can increase their employees’ motivation and satisfaction through various measures, including recognizing performance, promoting teamwork, and providing development opportunities.

2.3 Corporate Culture and the Communication of Corporate Values

Successful HR marketing also includes increasing employee identification with the company. Employees who identify with their employer are more loyal and committed. This can be achieved by creating a strong corporate culture and communicating the company’s values. Employee identification with a company is also promoted through participative management styles and the involvement of employees in decision-making processes (Scholz, 2014, p. 235-236).

2.4 Personnel Planning and Development

Ensuring a company’s future viability is a long-term HR marketing goal. This includes continuously adapting the HR strategy to changing market conditions and strategic planning of personnel requirements. Companies must ensure they have the necessary talent and skills to master future challenges. This can be achieved through targeted personnel development measures and the promotion of innovation and creativity (Döring, 2017).

Optimizing personnel deployment is another personnel marketing task. This includes the efficient use of existing employee resources and ensuring that the right employees are deployed in the right place at the right time. Optimized personnel deployment planning helps increase productivity and reduce costs, including measures such as flexible working time models and the use of workforce management systems (Pausenberger, 2018, p.286-287).

3. Instruments in Personnel Marketing

HR marketing uses tools to achieve the goals of attracting and retaining qualified employees. These instruments can be divided into various categories, each of which covers specific aspects of personnel marketing. The most important personnel marketing instruments are as follows:

3.1 Employer Branding

Employer branding is a central HR marketing instrument that aims to position a company as an attractive employer. By developing and communicating a strong employer brand, companies can increase their attractiveness and differentiate themselves in the competition for talent (Hesse & Mattmüller, 2015, p. 88-90). Employer branding includes creating a clear and authentic employer promise, designing the company website and career pages, and using social media to address potential applicants (Backhaus & Tikoo, 2004, pp. 501-502). Studies have shown that strong employer branding significantly improves the perception of employer attractiveness (Edwards, 2010, pp. 5-7).

Digitalization has fundamentally changed recruitment processes. Online recruitment, also known as e-recruiting, is now an indispensable tool in personnel marketing. Companies use online job boards, career sites, and social networks like LinkedIn and Xing to advertise jobs and reach out to potential applicants. E-recruiting offers numerous advantages, including greater reach, faster application processes, and improved targeting (Weitzel et al., 2009, pp. 13-14). The use of algorithms and artificial intelligence to pre-select applicants can also further increase recruitment efficiency (Sivertzen et al., 2013, pp. 473-475).

3.2 Personnel Development

Another significant personnel marketing instrument is personnel development. Through targeted training and development programs, companies can continuously improve their employees’ skills and increase their motivation and loyalty. HR development includes internal and external training, mentoring programs, career planning, and management development (Garavan et al., 2012, pp. 20-21). These measures not only contribute to employees’ individual development but also strengthen the competitiveness of a company as a whole.

3.3 Working Time Models

Flexible working time models are another personnel marketing tool that can increase an employer’s attractiveness and boost employee satisfaction and productivity. Models such as flexitime, part-time, home office, and job sharing enable employees to better reconcile their work with their private lives. Studies show that flexible working time models correlate positively with employee satisfaction and loyalty (Schnell, Hill & Esser, 2008, pp. 149-151). Companies that offer flexible working time models can, thus, gain a competitive advantage in the battle for talent.

3.4. Occupational Health Management

Occupational health management (OHM) is another effective personnel marketing tool. OHM includes promoting employees’ physical and mental health, including health checks, sports activities, ergonomic workplace designs, and stress management programs. Comprehensive health management not only helps reduce sickness-related absences but also increases employee satisfaction and performance (Grawitch et al., 2006, pp. 131-133). Companies that invest in their employees’ well-being are perceived as attractive employers.

3.5. Additional Tools

These include incentive systems such as performance-related remuneration, bonuses, premiums, and non-monetary incentives like recognition and appreciation. These are also indispensable instruments for employee retention and motivation. Measures such as team-building activities, company outings, and company parties are also important instruments for strengthening employee satisfaction and loyalty (Lawler, 2003, pp. 52-53).

Open and transparent communication is another key element of HR marketing. Companies should provide regular information about their goals, values, and successes and promote dialog with employees. Internal communication tools, including employee newsletters, intranets, regular meetings, and feedback discussions help gain employees’ trust and strengthen their identification with their company (Clampitt & Downs, 1993, pp. 17-19).

4. Summary: Personnel Marketing

In summary, it can be said that HR marketing is an indispensable part of modern HR management. It encompasses a wide range of measures and strategies aimed at positioning a company as an attractive employer both externally and internally. The successful implementation of personnel marketing strategies contributes significantly to the competitiveness and long-term success of a company. The objectives of HR marketing are diverse and include ensuring the continuous availability of qualified employees, reducing staff turnover, increasing employee motivation and satisfaction, and creating a positive employer image. These objectives are closely interlinked and together contribute to strengthening a company’s competitiveness (Pausenberger, 2018, pp. 281-283).

In an increasingly globalized and interconnected job market, companies must develop innovative and attractive offerings to differentiate themselves from other employers. This can be achieved, for example, through unique corporate values, attractive remuneration packages, flexible working models, and a strong corporate culture. Digitalization also plays a crucial role in modern HR marketing. Using digital channels and tools enables companies to expand their reach and communicate with potential applicants in a targeted manner. Online job boards, career pages on company websites, social media platforms, and professional networks like LinkedIn are today’s indispensable instruments in HR marketing. The importance of HR marketing is also underlined by demographic change and the shortage of skilled workers. In many industries and regions, competition for workers and qualified specialists has intensified. Significantly fewer people are applying for vacant positions (Kanning, 2016, p. 4). Companies must, therefore, develop proactive strategies to increase their attractiveness as employers and attract the best talent.

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