What is internal branding?

Internal branding is a complex, but essential part of an organisation's brand strategy. Overcoming its challenges and building a strong internal brand culture requires effort, commitment, and resources. This article highlights some of the most common internal branding challenges, and discusses strategies for overcoming them.

What is internal branding?

Internal branding focuses on cultivating the brand's values, mission, vision, and internal commitments within the organisation. It ensures employees not only understand and identify with the brand but also represent it in their daily work. Closely tied to employer branding, it helps position the organisation as an appealing and trustworthy employer, attracting and retaining top talent.

While external branding is often about how an organisation appears to customers and the market, internal branding is about building a strong culture and identity within the company. This includes creating a work environment that reflects the brand's values and encourages the employees to be brand ambassadors.

The importance of internal branding

Cost : $8.9 trillion annually. That's the cost of "disengaged employees," according to Gallup's State of the Global Workforce report. A study conducted by McKinsey in the US in 2023 found that the number of actively disengaged employees was at its highest in a decade. The reasons include limited career opportunities, poor leadership, excessive workloads, and a lack of connection to the company's purpose ( McKinsey & Company )​.

Another study shows that only 5% of employees are capable of articulating their organisation's strategy clearly, which leads to frustration and a lack of implementation of strategic plans. One key reason for this is the failure to involve employees in strategic processes ( LSA Global )​.

8.9bn

the cost of "disengaged employees"

5%

of employees are able to articulate the organization's strategy clearly.

23%

potential increase in profitability, with engaged employees.

18%

reduction in employee turnover, through active employee engagement.

41%

lower absenteeism at highly engaged companies.

17%

higher productivity in highly engaged companies.

Revenue: According to Gallup's research, highly engaged employees will increase profitability by 23%. Additionally, companies that actively engage their employees experience an 18% reduction in turnover, cutting recruitment and training costs. Further, the data shows that highly engaged businesses achieve 41% lower employee absence and 17% higher productivity, contributing to improved operational efficiency and financial results.

A strong internal brand doesn't just inspire employees; it creates unity and a shared sense of purpose across the organisation – which is vital to long-term success. Employees who are well-informed and engaged in the brand will do better and deliver a more authentic customer experience. This also makes it easier to attract talent, as a good reputation as an employer is becoming increasingly important in today's competitive labour market.

Challenges in internal branding

Despite the benefits of a strong internal brand, many organisations face considerable challenges in implementing and maintaining this type of culture. Here are some of the most common challenges:

1. Resisting change

One of the most significant challenges of internal branding is resistance to change. Change processes are challenging, particularly if employees are used to a certain way of working. Resistance to change often stems from a variety of causes, including:

Natural skepticism
Few people like change, and it's natural for employees to be sceptical towards new initiatives or changes in the organisation's values and strategies. They might fear the changes will negatively affect their work or that they'll lose their familiar routines.

Lack of understanding
If employees don't understand why the change is necessary or how it will benefit them or the organisation, they might oppose it. Clearly communicating the purpose and benefits of the change is essential to gaining their support.

Cultural differences
In global companies, cultural differences across geographical locations can cause challenges. What works in one culture may not work in another, potentially leading to resistance.

Difficult personalities
While we like to believe most employees want their workplace to succeed, there are sometimes detractors who actively oppose new ideas and measures simply because they aren't their own.

2. Unified communication

Effective communication is essential in establishing the brand internally. Inconsistent or lousy communication will always undermine a branding process.

Unclear messaging
If the messages about a brand's values and goals aren't clear, this can create confusion among employees and lead to them not taking the brand initiatives seriously.

Fragmented communication
When information is distributed across various channels without a clear strategy, it may fail to reach all employees, causing inconsistencies in understanding and involvement across the organisation.

Lack of feedback
Missing feedback mechanisms can lead to employees feeling overlooked, which will likely reduce their will to participate in brand initiatives.

3. Lack of management involvement

Management plays a pivotal role in internal branding. If leaders are disengaged, why should their employees care? Every deviation from the brand at the management level amplifies inconsistencies throughout the organisation:

The responsibilities of being a role model
Managers should embody the brand's values in their daily work and ensure that employees understand their role within the brand. Without this, it will be hard for employees to take branding initiatives seriously.

Low priority = poor results
If management does not consider internal branding a priority, this might result in a lack of resources and support for necessary initiatives.

Inconsistent decisions
If management makes decisions inconsistent with the brand values, this can undermine the brand's credibility. Employees will notice if there's a mismatch between what is said and what is done.

4. Insufficient resources for internal branding

Effective internal branding requires time, money and human capital. Without sufficient resources, it will be challenging to go through with the necessary measures:

Limited budget
Many organisations may have a limited budget for internal branding, making it difficult to implement training programs, communication campaigns, and other important initiatives.

Time constraints
Employees and management often face tight schedules, making prioritising branding efforts challenging.

Lack of expertise
Internal branding requires specialised expertise in communication, HR, and organisational development. A lack of access to these skills can hinder effective implementation.

5. Achieving consistency

Maintaining consistency in brand messaging and practices across the entire organisation could be challenging, especially in large and geographically dispersed companies.

Geographical differences
Geographic differences in multinational corporations could create challenges in alignment. What works in one region might not work in another, disrupting the overall brand experience.

Departmental differences
Different departments can have distinct internal cultures and workflows. Ensuring all departments follow the same brand values and practices could be a challenge.

Consistency over time
Branding is a long-term effort. It can be challenging to uphold momentum over time, especially if there are changes to management or in the market.

6. Measuring results and evaluating progress

Developing effective KPIs for internal branding is essential for monitoring, adapting and improving strategies. Key issues include:

Subjective goals
Many aspects of branding are subjective and can be hard to quantify. For example, how do you measure an employee's sense of connection to your brand?

Long-term effects
The effects of internal branding will take time to manifest, making it challenging to evaluate short-term measures and adjust strategies along the way.

Accessing data
Access to reliable data is crucial for an effective evaluation. Do we have that insight? Can we gather it? Can we do it continuously, and long term? Missing data and problems with data collection can hinder precise evaluation.

Strategies to overcome the challenges

Despite these obstacles, there are strategies that you can implement to overcome them and build a strong internal brand:

1. Change management
Implementing a structured approach to change management to handle resistance, including clear communication about why the change is necessary, engaging employees in the process and giving support throughout the change journey.

2. Unified communication
Ensure that all communication is unified and consistent. Create a communication strategy with clear messaging across different channels to reach all employees. Create feedback mechanisms to ensure all employees feel heard.

3. Management engagement
Ensure management actively participates in internal branding efforts, models the brand's values, and advocates for its importance. This could include participating in training programs and communicating the brand's value to the entire organisation.

4. Resource allocation
Allocate enough resources to internal branding, including putting a budget aside for training, communication campaigns, and all necessary tools. Prioritise time and resources to ensure the brand initiatives can be implemented effectively.

5. Consistency throughout the organization
Work on upholding consistency in brand messaging and practices across the organisation. Develop guidelines and standards to ensure brand consistency in all departments and regions. Create a team or a committee to oversee and ensure consistency.

6. Measurement and evaluation
Find or create methods for measuring and evaluating the effect of internal branding. This can include employee surveys, measuring customer satisfaction and analysing achievement indicators. Use the data to continuously improve and adapt brand strategies.