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Our infographics serve as a snapshot of the latest in workplace research and practices. These infographics feature content from our renowned white papers, curated and written by our in-house organizational psychology specialist and designed by our award-winning design and communications team.
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Your top employees are top targets. The candidate market is in a unique space: unemployment is low, turnover is at an all-time high, and loyalty isn’t necessarily a priority for all employees – and the finance industry, in particular, is feeling the pressure. As the demand for talent grows and the available candidate pool dwindles, recruiters have their eyes set on your best employees. And often, the temptation to take on a new adventure is too great.
While it’s easier to blame turnover on poachers, most employees quit because internal forces push them out, rather than external forces drawing them in. In so many words, it’s not them, it’s you.
According to TINYpulse, only 22% of financial workers are truly happy at work, putting them at a high risk for turnover. But even your most loyal employees are open to new opportunities, and the slightest nudge can tip the scale. Only 15% of employees are truly satisfied in their jobs and aren’t looking for other opportunities (LinkedIn). That means 85% of your employees could be at risk of leaving your organization.
Mercer states 34% of employees say they plan to leave their current role in the next 12 months. Gallup states a much higher percentage: 51% of workers are looking to leave their current jobs. LinkedIn research shows that 25% of employees are actively looking for new work, with two-thirds of them currently employed. In fact, 3.22 million Americans (2.2% of the workforce) quit their jobs in January 2017, the highest quit rate since February 2001 (Department of Labor).
While statistics on tenure and turnover may vary, one truth remains constant: employees are looking, especially in Finance.
In 2015, Compdata reported average turnover at 16.7%, but turnover within the Finance & Banking was reported at 18.6%. Meanwhile, CPA firms can experience an average turnover rate of up to 25% per year (TINYpulse).
Currently, 75% of jobseekers are employed but open to new opportunities— these are known as “passive candidates.” Almost 60% of workers look at other jobs at least monthly (Indeed). Platforms like LinkedIn and Glassdoor email new opportunities to passive candidates on a daily or weekly basis.
Just because they are open to new opportunities doesn’t mean they don’t like their current jobs: 80% of passive jobseekers are satisfied in their current job (LinkedIn). Among people who “love their jobs,” 50% would be willing to leave for a new opportunity (Adobe) and Glassdoor reports that 84% of candidates would consider leaving their current company if another company with an excellent reputation offered them a job.
More than half of U.S. employers (57%) said hiring activity has increased over the past 12 months, while turnover has picked up by 37% in 2016 (Willis Towers Watson). With demand high and available talent low, recruiters are becoming more aggressive. They aren’t shy about going for your top talent, and their tactics are effective. In 2015, 75% of workers with new jobs hadn’t actively applied for the position, they were referred or “poached” (FRBSF Economic Research).
The reasons they leave go beyond simple temptation.
It’s not just a Millennial problem.
Millennials have developed a reputation as job hoppers. And it’s not an incorrect assessment; 44% of Millennials say, if given the choice, they expect to leave their current employers in the next two years (Deloitte). But it’s not just Millennials: 37% of Gen X and 25% of Boomers are planning to leave their company in the next two years (Lightspeed).
Cost & Effect
When turnover is high, talent becomes a primary concern. According to the Society of Human Resources Management (SHRM), the top three challenges faced by HR organizations today are turnover, employee engagement, and succession planning.
The impact of these challenges all come at a high cost to your budget, to your team, and to your morale. Finding a new employee slows processes, requires recruiting efforts, and impacts culture. The cost of replacing an employee can range from 30%-400% of an employee’s salary (ERE Media).
When you lose an employee, their surrounding team feels the impact, too – not just in their productivity, but their team dynamic as well. Friendships can be a powerful tool in engagement and retention. Employees with a best friend at work tend to be more focused, more passionate, more loyal to their organizations, and they change jobs less frequently (SHRM). Employees agree: 46% of professionals worldwide believe that work friends are important to their overall happiness (LinkedIn) and 50% of employees with a best friend at work report a strong connection with the company (Gallup).
Friendship does have an effect on tenure: 37% of employees say “working with a great team” is their primary reason for staying (Gusto), while 55% of employees have put off job hunting because they didn’t want to leave their coworkers (ICIMS).
A revolving door of teammates does not allow for this kind of synergy. Meanwhile, a solid tenured workforce can:
Help guide strategic planning Acquire cross-training Mentor and train others Nurture culture Tenure’s impact on culture will be your biggest asset, and turnover’s impact on culture will be your biggest detriment. Longevity helps solidify and support culture, setting and maintaining the standard. A consistent culture is effective in its practices and expectations.
Why They Go & Why They Stay
There is no one factor that influences employee tenure. The U.S. Bureau of Labor Statistics currently defines the average employee tenure at 4.2 years. Typically, the top reasons job seekers will leave for another job are:
More compensation (61%) Location (42%) Better work-life balance (40%) Health benefits (36%) Growth opportunities (35%) Company culture (21%) Leadership (15%) (Jobvite)
All of these factors address employees’ human needs—the need to grow, the need to be valued, the need to live a full life.
Growth and opportunity are a particular driving force. Forty-one percent of employees said they would need to leave their current employer in order to advance their careers (Towers Watson). More than 60% don’t feel their career goals are aligned with the plans their employers have for them (Forbes), and another 47% of Americans would leave for their ideal job even if it meant less pay (Adobe).
Interaction between work and life can seriously influence tenure. Bamboo HR reports that 14% will leave if they don’t have a healthy work-life balance, while 46% of HR leaders say employee burnout is responsible for up to half of their annual workforce turnover (Kronos).
Sometimes it’s just a matter of timing. Job searching fluctuates in accordance with life events. Around birthdays, job searching increases by 12%, 16% around class reunions, and up to 9% around work anniversaries (HBR). Any life events that inspire reflection can lead your employees to wonder, “What’s next?”
There is an eternal human search for “something better.” The good news is, your organization can proactively address every single one of these factors.
Rob Beanett, author of Passion Saving: the Path to Plentiful Free-Time and Soul- Satisfying Work defines the Employee Life Cycle, defines the cycle at seven years and SHRM’s 2016 Human Capital Benchmarking Report defines average employee tenure at eight years, but it’s shortening. The U.S. Bureau of Labor Statistics currently defines the average employee tenure at 4.2 years. The cycle includes:
Starting a new job or position initially begins as stressful, but the new challenge drives them forward. New hire initiatives are crucial in balancing stress and engagement. (continued…)
- Happily Challenged
Within six months, the employee is still being challenged but enjoys the experience.
- Smooth Sailing
After another 6-12 months, the employee is confident in his ability to handle the job. They still enjoy the work, but there is not as much of a challenge and they are not learning as much.
It can take 3-7 years before an employee can feel like they can do their job in their sleep. Now the employee must actively begin looking for a new challenge.
Left unchallenged, the employee becomes unhappy with the company. They won’t care enough about the work to do it well. But if they find a new challenge, the cycle can begin again.
In the life cycle of an employee, it’s up to you to intervene and empower.
Lead the Way
How you involve your company’s leadership will make all the difference. They will set the tone and build a tenured team. In fact, 51% of employees who don’t feel they have the support of leadership plan to leave their job in the next year, compared to 25% of those who do have leadership support (American Psychological Association). In addition, 14% of HR leaders say lack of executive support is an obstacle to improving retention in 2017 (Kronos).
Through dedicated practices and daily efforts, your company’s leadership creates the employee experience—and plays a huge role in engagement. According to employees, the most memorable recognition comes from their manager (28%), a high-level leader or CEO (24%), and their manager’s manager (12%), followed by customers and peers.
We know that people don’t quit their jobs, they quit their boss. The main factor in workplace discontent is an employee’s manager—not wages, benefits, or hours (Gallup).
Half of U.S. adults have left their job to get away from their manager (Gallup), which is understandable considering the way the manager influences the factors mentioned earlier. Managers account for at least 70% of variance in employee engagement scores (Gallup).
But don’t be so quick to point the finger of blame. Your company’s leaders need great managers, too. Leaders need the same support from the individuals they report to. Just 35% of U.S. managers are engaged, while 51% are not engaged at all (Gallup). Meanwhile, 42% of managers are currently looking for jobs with other organizations (Modern Survey).
Managers actively influence nearly every factor of tenure and engagement. They require support, growth, and recognition to fill their own cup first—then they can nurture other employees.
Building Loyalty, Achieving Retention
If you want to retain your top employees, you must implement a dedicated, proactive strategy.
If your top employee won the lottery, who would do their job tomorrow? There should be no position on your team or in your organization that only one employee knows how to do. Cross-training employees can not only keep them challenged, it provides opportunities for growth and can come in handy when looking for a replacement.
Financial temptation can be your biggest enemy: 35% of employees will start looking for a job if they don’t receive a raise in the next 12 months (Glassdoor). Fix this by offering truly competitive pay. Give raises and adjustments proactively and always connect it with some other form of recognition. Never let a paycheck speak for itself. To ensure your pay is competitive, see our Salary Guide.
Don’t forget benefits. Your employees need them. It’s as simple as that.
Frequent Forbes contributor and seasoned Fortune 500 HR SVP Liz Ryan discusses a unique process at one of her former organizations. As her employees were receiving an avalanche of recruiter calls, turnover was becoming a top concern. Instead of punishing employees, the leadership team created a “poaching form.”
The form asked for the name of the recruiter, the hiring company, the name and description of the project or position, salary offered, and other details. Then, the company paid their employees $50 for each completed form. It worked like a charm. They were able to inspire an open dialogue about what employees were looking for and know what their competition was up to. Once recruiters figured out what was going on, the poaching slowed considerably.
A program like this can demonstrate trust, give you a chance to address concerns and efficiently enact retention strategies based directly on employee feedback.
Surveillance falls under the transparency umbrella. And it can be a tricky game. If you are or want to monitor employee internet or phone use, only use it to help, not punish.
For instance, if you notice an employee is spending considerably more time on LinkedIn, use that information to have a discussion about what the organization can do in service to that employee, rather than telling the employee to stop doing that.
Do not try to limit their behavior. The harder you press down the lid, the harder it will pop up.
Create Structured Career Paths
Everyone needs something to work towards. Work with employees on an individual basis to define a career path within your organization. Frequently check in on this path and adjust according to their needs and goals, ensuring they are challenged appropriately.
This is also how you will select your next group of leaders who will affect the tenure and performance of other employees. Promote according to performance and strengths, while rewarding tenure.
When 82% of employees don’t think they’re recognized for their work as often as they deserve (BambooHR), they will look for it elsewhere. Your top performers give you plenty to recognize. Create a structured program that allows for an abundance of both formal and informal recognition.
To address issues of location and work-life balance, allow for flexible work options. This is an effective demonstration of trust and appreciation while proactively meeting employee needs. Additionally, workers who were offered telecommuting options were more productive and had lower turnover (HBR). Make sure employees have the appropriate tools and training available to do their work well.
Surveying allows you to keep an eye on engagement and give employees a chance to speak candidly. Take results seriously and make adjustments accordingly.
Promote the right people into management roles, and make sure your leaders have the tools available to keep employees engaged.
Whether you recognize it or not, your organization has a culture. It’s simply the personality of your organization. You do not need ping pong tables to have an effective culture. You simply need to build your organization around your values, and in turn, implement programs that strengthen those values.
Keep a pulse on your culture and continuously nurture it. Every program, every technology, every process should somehow revert back to one of the values of the company. Always keep your culture at the forefront of every company communication.
No matter how great your organization is, some people will quit. It’s just part of life! Master the flow of talent and support your employees in their next step. Write recommendations and use your connections to help them build their careers. Soon, your organization will build a reputation as a launch pad, and you’ll get flooded with talent. Plus, you’d be surprised how many of those former employees will come back as boomerang employees—40% say they’d consider returning to their former company (Workplacetrends).
There’s nothing about the tenure crisis that you can’t manage. With dedicated programs, you can build effective longevity and reap all the benefits. The most important factor is to focus on helping your employees build their livelihood. When your employees are your main focus, they will find a career worth staying for within your organization.
Tips from Within
Creating Structured Career Paths
Jess Bushey serves as Market Vice President for Roth Staffing Companies, parent company of Ledgent. She oversees some of Roth’s most successful and tenured teams. Here’s what she has to say about creating structured career paths:
“I find that having a structured career path has empowered our coworkers, benefitting the overall organization. As a new employee is on-boarded, we lay an outline of several career opportunities relative to where they are starting, establishing what each stepping-stone requires. We then check in during quarterly performance reviews, outlining and benchmarking goals and outcomes that are needed to reach those next steps.
The key component to this is clear and consistent communication and allowing coworkers to explore different options than they originally thought they might aspire to.
Having a clear career path for promotion encourages coworkers to take ownership, keeping them engaged in their current role and within our organization. It has also allowed us to retain our top talent and have stronger succession planning for organic growth. It preserves and enlivens our company culture to have leaders who started in entry-level positions and grew into leadership positions, where they have authentic stories to tell our newest coworkers.”
How you present yourself as an employer on social media not only affects the perception of your employees and potential candidates, but can impact the relationship you have with customers. In the new age of accountability and transparency, your audience is constantly looking for better ways to make informed decisions. What they find online creates a multidimensional profile of who you are as an organization. Learn more in our latest Vidfographic!
How you present yourself as an employer on social media not only affects the perception of your employees and potential candidates, but can impact the relationship you have with customers. In the new age of accountability and transparency, your audience is constantly looking for better ways to make informed decisions. What they find online creates a multidimensional profile of who you are as an organization.
Welcome to the new frontier. Social media is no longer viewed as a young person’s time-waster; instead, it has transformed into one of the most proliferate forms of communication today–legal space included. While it’s true that more firms and businesses embrace the use of social media, too many solely focus on speaking to clients and ignore a vital audience: their current and future employees.
How you present yourself as an employer on social media not only affects the perception of your employees and potential candidates, but can impact the relationship you have with clients. In the new age of accountability and transparency, your audience is constantly looking for better ways to make informed decisions. What they find online creates a multidimensional profile of who you are as an organization.
The Current Social Media Climate
Social media usage is soaring. Currently, 83% of Americans have a social media account (Hootsuite) and social media comprises 30% of all time spent online (Global Wed Index). Due to widespread adoption, a once leisurely novelty now blurs the lines between social, professional, and consumer spaces.
Not only do people expect to find their friends online, but they expect to find the businesses they interact with on social media. Amongst Americans, 48% have interacted with companies or institutions on at least one social media network, and 28% would rather engage with a brand/organization on social media than visit a physical location (Hootsuite).
At the bare minimum, an employer should maintain a presence on these channels:
More savvy organizations will also typically adopt Twitter, YouTube, Pinterest, Instagram, Google+… the list goes on and on.
Social media has a very personal approach in a relatively public space, creating a unique vortex of expectation centered on transparency, authenticity, presence, and accountability. How you use these channels as an employer can boost employee engagement, recruiting efforts, retention, and your overall image as a brand, which can further boost your reach to clients.
Beyond advertising, employers should use social media to:
- Display your culture
- Praise employees
- Address complaints and negative feedback
- Celebrate organizational accomplishments and employee achievements
- Announce changes
- Promote your blog or other expertise
Job Ad ≠ Presence
When you think of the relationship between employers and social media, most minds immediately jump to LinkedIn and job postings. While LinkedIn is an important and vital tool, your reach should stretch beyond this professional networking site. Strictly from a recruiting perspective, 93% of companies use LinkedIn for recruiting, but only 36% of jobseekers are actually active on LinkedIn (Jobcast). And among people who found their current job through a social network, 78% attributed their job to Facebook, while only 40% cited assistance from LinkedIn (Jobvite). In general, Facebook has a higher engagement rate: 70% of Facebook users engage daily compared to only 13% of LinkedIn users (Pew Research), and 83% of jobseekers are active on Facebook (Jobcast). An in-depth, multi-channel approach creates the presence you need.
The time has come to present yourself as a multidimensional entity, beyond your service. The inner workings of your organization are not only intriguing, but they speak to your competence and trustworthiness.
Leading with Transparency
Yelp has demanded a new level of accountability and transparency from businesses. Glassdoor has done the same with internal organizational policies and conduct. While this can feel detrimental to business, this actually strengthens it. Privacy is no longer a virtue, it is a caution sign to customers.
In this new era of vulnerability, a lack of online presence suggests you have something to hide. Your clients want candid information on your services and your internal operations—even the non-favorable reviews. (Too perfect of a reputation can imply bribery or tampering.) Referrals are consistently the best way to gain new business. Let the internet be your referral service. Perfect your service and address issues or complaints brought up online. This will give your clients and potential candidates a taste of the service they can expect.
For Your Employees…
Your social media movement should begin with your employees. They will be your first followers/friends, give your first shares and likes, and leave your best comments. Your employees will be your strongest testament for your employer brand and their presence will have the greatest influence on your potential candidates and client base.
According to Forbes, when employers encourage their employees to be active on social platforms, those employees are more likely to help increase sales. However, nearly 3 in 4 employees say their employer does not (or does not know how to) promote their employer brand on social media (Glassdoor). Meanwhile, 69% of jobseekers are more likely to apply for a job if the employer actively manages its employer brand (e.g., responds to reviews, updates their profile, shares updates on the culture and work environment, etc.).
How you engage your employees and how they engage with you will contribute to and strengthen your employer brand and overall reputation on social media. Glassdoor recommends utilizing social media as a tool for employee engagement through:
- Collaboration and visibility
- Employee feedback
- Motivational work environment
Alongside your advertisements, news updates, and other content, celebrate your employees (with their permission, of course): tenure, accomplishments, who they are, the work that they do, and especially their contributions to your culture—individually and as a whole. Nearly one-third of employees would rather be recognized in a company-wide email from an executive than receive a bonus of $500 (BambooHR). Acknowledging your employees publicly can give them the recognition they crave.
Recognition often becomes a two-way street – when employees are part of the company’s story, they actively participate in telling that story to others. Employees who feel connected will be eager to share your content online. This is key because employee involvement is crucial for an organization’s social media strategy to be effective.
Only 26% of baby boomers, 40% of Gen Xers, and 49% of Millennials follow their organization on social media (Modern Survey), and only 33% of employees post messages, pictures, or videos about their employer on social media without any encouragement from their employer (Weber Shandwick/KRC Research). Meanwhile, only 33% of employers encourage employees to use social media to share news and information about their work or employer (Glassdoor).
You must demonstrate that social media participation is a valuable behavior. Involve leadership and, without bribing, reward employees’ social media activity.
Culture Check, Purpose Reigns
Across your social media channels, culture and purpose should be your building blocks and your guidelines. All of your communication should express both.
Begin by defining your culture and your purpose. Culture is the personality of your organization based on a shared set of values and beliefs, while purpose is why your organization exists at all, distinguishing your business in a sea of corporate-ness. All of your communication should align with these two narratives.
If your culture is not brag-worthy yet, build and nurture it. If you share anything that is untrue or uncharacteristic, you risk backlash from your employees.
Demonstrating that your organization is successful (in a business and cultural sense), combined with the widespread influence of your employees and their pride, is attractive to your clients and future candidates. Your reputation will spread, and your clients and future candidates will get to know who they will be working with.
When employees share information about their employer on social media, it influences a concept known as BIRGing – or Basking In the Reflected Glory. People like to associate themselves with successful entities. It’s one of the reasons we wear hats with our favorite sports teams or shirts with our favorite bands. Employees reflect in the glory of their organization’s triumph and are eager to advertise shared success.
Social media also influences the brain’s reward system, inducing feel-good chemicals with every “like.” When value is defined by both sides – employer and friends – it boosts the ego and creates feelings of pride. Your employees will be eager to share and maintain their participation, but only if your organization defines social media activity as important first.
For Your Jobseekers…
What your employees say about your organization will have an effect on job candidates. Remember, this is a candidate’s market. Jobseekers have more options than you do. How your organization is perceived has more impact than what your recruiters boast.
Even if you don’t maintain a strong presence, jobseekers are still looking to your social media platforms for information. In the US alone, 14.4 million have used social media to search for a job, while 48% used social media to find their current job (Jobvite).
When jobseekers are on the prowl, 76% want details on what makes an organization an attractive place to work, 59% use social media to research the company culture of organizations they are interested in (Jobvite), and 54% read company reviews from employees (Glassdoor). The information that they find – more so than what you present on company-sponsored pages – can be extraordinarily beneficial or drastically detrimental.
Glassdoor reports 84% of candidates would consider leaving their current position if another organization with an excellent reputation offered them a job, while 70% would not take a job with an organization that had a bad reputation, even if they were unemployed (Corporate Responsibility Magazine).
Social media can even increase the number of high quality candidates you attract. Of companies that have implemented social recruiting, 42% say that their candidate quality has improved and 20% say it takes less time to hire (Jobvite). When they get a clear and candid picture of your workplace, candidates almost screen themselves.
However, nearly two in three say their current employer does not (or does not know how to) use social media to promote job openings (Glassdoor).
For Your Clients…
A third of Millennials say social media is one of their preferred channels for communicating with businesses, while 84% of CEOs and VPs say they use social media to help make purchasing decisions (B2C).
How you treat your employees, and how you communicate that, matters to your clients. As potential clients Google your organization, they will come across employee feedback – both positive and negative.
Mistreatment of employees can be the ultimate PR blow, while support for employees can be the ultimate boost. When your employees are unsatisfied and unengaged, they won’t deliver the best service to your clients. Companies that excel in client experience have 1.5 times as many engaged employees (Temkin Group).
Your clients want to hear what your employees have to say. Clients are also more likely to trust in-house technical experts than CEOs, reinforcing the overall credibility of a company’s strategy (Edelman). When they share your organization’s content or praise the organization, your clients trust them. Your employer brand complements your consumer brand, and how you advertise it on social media shapes both.
8 Socially Conscious Steps
Your social media strategy should be deliberate, not an afterthought.
1. Build a strategy
Eighty-four percent of companies believe a clearly defined strategy is key to achieving employer branding objectives (Employer Brand International Global Research Study). Before you post anything, define your culture, your purpose, your employer brand, how you can best express it, and who is going to oversee the process.
2. Prepare your website to greet them
All of your social media will lead back to your website, so make sure your site is consistent with your social media channels in regard to branding, message, and content.
3. Involve leadership
Your senior leaders should be your most prominent social media advocates. If you want your employees to be involved, your leaders will set the tone. They should actively post and share content – both business and culture-based.
4. Provide guidelines for employees
Many of your employees may not even know where to begin when supporting their organization online: 14% have posted something about their employer on social media that they wish they hadn’t (Weber Shandwick/KRC Research). While you cannot force your employees to praise your organization, or keep them from speaking their minds, you can provide general guidelines about what can be helpful to share regarding the organization and what information should not be shared.
On more professional platforms like LinkedIn, create stricter guidelines and boilerplates to maintain a consistent message. For example, no one in your organization should create their own job titles such as labeling themselves as a “guru” or “ninja” if, in fact, that is not their professional job title.
Be sure to also create post templates to easily share things like job postings or events.
5. Share your expertise
The world wants to know what you know. Don’t just share your business expertise –share your expertise on corporate culture. Sharing tips will not make you weaker, but will position you as an industry leader and your employees as experts.
6. Incentivize employee social media involvement
There is a 50% increase in employees recommending a company’s products or services when their employer encourages social sharing (Weber Shandwick, Employees Rising, 2014). Reward social media activity and recognize your social media super stars.
7. Designated personnel
Having too many cooks in the kitchen can muddle your message. Have designated team members focus on responding to both client and jobseeker inquiries, complaints, and praise in a timely fashion.
8. Expand your presence to multiple channels
Utilizing more casual tools like Facebook and Instagram can have a more widespread influence. All 100 of the top global brands maintain at least one company YouTube channel, and more than half (27 of 50) of CEOs in top global companies have appeared in a company video (B2C).
While it seems most logical to predominantly maintain a presence on LinkedIn, a multichannel approach is important.
Tips from Within
Link In with LinkedIn Company Pages
Although we just emphasized a multichannel approach, your LinkedIn should still be strong. Valerie Killeen is the Social Media Manager for Roth Staffing Companies (parent company of Adams & Martin Group). She manages more than 100+ social media pages and educates the entire organization on best practices.
Check out her tips on getting the most out of LinkedIn as an employer:
“Claim and develop your (free) LinkedIn company page. Company pages are an excellent platform to share news, press releases, key hires and special events. Create universal profile guidelines, particularly a consistent summary section and background photo. Then celebrate your story and what makes your company unique.
Do you wear Hawaiian shirts on Fridays? Do you decorate desks for Birthdays? Do you have an Ugly Sweater Party for the Holidays?
If so, take a fun team photo and share it on your Company’s social platforms. People love looking at photos of other people, so don’t be afraid to post away!”
In the simplest sense, let the company be its authentic “self.” Your social media presence does not have to be packaged and commercialized, it just has to be real. As an organization, you might already be extraordinary – and social media can help make sure the world knows it.