To efficiently satisfy the needs of external clients, to be competitive at the market, organisation, first of all, must effectively meet the needs of all internal clients, i.e. the staff. Besides, intensification of competitiveness and increase in the number of professionals in modern companies for, higher requirements for the loyalty of employee to the company and to motivation and remuneration systems. Here comes to the aid an internal marketing system.
Purpose: establishing the process of interaction of company’s clients with motivated and client-oriented staff.
Internal marketing is not only one of the key elements of any business philosophy. It is continuous, task-oriented sequence of administrative actions, including those related to the development of client-oriented approach of the company, to quality management, to increase of employees loyalty to the company, to establishment of cooperation between all its subdivision in order to achieve the set goals.
Internal marketing means using marketing approach for HR management:
- Integration of personnel into company’s processes
The object of internal marketing includes employees and internal environment of the firm, reviewed through client’s prism.
The subject of internal marketing includes efficient programmes of staff incentive system.
The elements of internal marketing are:
- Mission, traditions. key values and history of the firm
- Organisation image
- Staff selection, training and professional development
- Organisation structure, job functions
- Quality of service standards
- Staff motivation, evaluation of their work
- Information, communication (vertical and linear)
- Corporate culture
- Internal and external PR
- Employer brand
The tasks of internal marketing include:
- Making each employee the “sandwich men” of the firm.
- Making each employee interested in maximum satisfaction of the needs of firm’s clients.
- Establishing inside the firm such environment that to the fullest degree is client-oriented.
- Considering own employees as internal clients through the development of their motivation potential (motivation potential means the presence of the need, interest, inclination, positive attitude to work / company, internal energy charge of a person).
Key elements of internal marketing strategy
|Client-oriented services||Staff qualification level development||Training in technical and communication skills|
|Extending staff authorities|
|Support of team work|
|Necessary support systems||Development of internal client-oriented processes|
|Necessary technologies and equipment|
|Monitoring internal quality of service|
|Retaining the “right people”||Personnel interests in overall company’s strategy|
|Perception of staff as clients|
|Stimulating the best service providers|
|Recruiting the “right people”||Competing for the “best people”|
|The wish to be the “employer of the choice”|
|Recruiting employees willing to provide high-quality services|
Stages for establishing the loyalty of clients / employees
Company product consumer
|1||Awareness about the product||Adaptation in the company:
|2||Trial (evaluation) of the product||Demonstrated (false) loyalty|
|3||Preferring the product||Affiliation /
Identifying oneself with the company
|4||Loyalty to product or company brand||Commitment to company interests|
During implementation of internal marketing through the development of client-oriented thinking organisation employees become also marketing experts, i.e. everyone in performing their own functions also thinks about client satisfaction.
The potential of marketing technologies for HR lies in:
- Using calibrated marketing tools for work with target auditoria:
- Composite influence
- During establishment of standards of service – understanding / knowing the needs of company customers:
- For the process of providing services to clients
- Client expectations from staff actions
- Competency profile of employees, who provide services to clients
- Knowing competitive labour market and tactical / strategic competitor activities:
- Adjusting requirements for staff
- Adjusting requirements for production processes in the company
- Adjusting communication drives aimed at personnel
- Adjusting C&B policy, etc.
- Company’s communication strategy
In place of conclusions
As we see, all above-mentioned methods do not require substantial financial investments and can be implemented through utilising internal company resources. If during economic upturn the stake lies on quantitative growth, increase in sales volume, expansion of regional network, then in the time of crisis appears the unique possibility to pay attention to qualitative growth through raising staff performance. This is a long-term strategic course: because the crisis will not last forever, and when it ends, the company, which, during hard times, made the stake onto qualitative development, will have an advantage over competitors.
The majority of employers today try to reduce their cost at the expense of employees layoff. Such companies already suffer losses: the level of service reduces, and, as a consequence, clients leave that results in catastrophic drop in earnings. In the long run benefits are received by organisations that can under current challenging conditions keep the work team and normal working atmosphere. The clients from bankrupt companies and clients not satisfied by the level of service in competitor firms, and, after them, qualified specialists “offended” by ex-employers will go to exactly these enterprises.