21 Mar 2022


How the companies’ EOC policies and practices create advantages or disadvantages for their sustainability and growth

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Employee of Choice

An employer of choice is any public, private, or not-for-profit firm of any size, which has fully met the set high standards and policies, established by Employer of Choice body and in the process earning the coveted certification status. The employers of choice are recognized for their organizational, leadership, culture, and compensation schemes and packages which, attract, retain talent and develop employees and in the process achieving corporate objectives. The employer of choice type of organizations must offer broad service portfolio to all levels of employees to nature, develop and motivate them. The companies that qualify to be termed as an employer of choice include Toyota and IBM organizations.

How the companies’ EOC policies and practices create advantages or disadvantages for their sustainability and growth.

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Workforce/employee stability is a corporation’s most lucrative competitive advantage in the market. The labor market is tight and stiff, which makes employers to continually locate, optimize, attract and retain talented employees by inspiring, developing and giving them growth opportunities to safeguard their reputation.

The advantages of companies’ EOC policies and practices:

The potential job seekers in the market have the knowledge Toyota and IBM companies having better-working environment and payment terms which make these two companies easier to hire and at cost effective. The potential employees even practice the walk-in type of job seeking where they physically present themselves to the company for inquiries about job opportunities. This features and qualities have made them more attractive to job seekers . Thus, they spent less regarding recruitment. The Employer of choice takes advantage of their reputation only concentrates on evaluation of the qualified applicants for hire thus having the best.

Employees will be willing to join an employer, and at the same time decide consciously to be loyal (Mosley, 2007). When the workforce pledges loyalty to work with the companies, the two parties enjoy the benefits. There is a better level of comfort and trust among employees who have spent more years working together which leads to their understanding each other, mastering the processes and procedures of work, familiarity with both suppliers, customers, and environment which leads to operational efficiency.

The companies have a reduced turnover rates due to increased loyalty, trust and confidence in the employer. This is mainly because they are well compensated for, and environment they work in is conducive for growth and development. Increased loyalty leads to a strong working relationship, ethics and quality of productivity. The high-quality level and experience minimizes waste due to re-work, saves time and money leading to increased profits, motivated employees and company integrity.

An Employer of Choice company attracts a qualified and experienced workforce as compared to others. Not only will the company have more applicants to choose from, but also the overall quality of candidates will be better than companies that are not recognized as Employers of Choice (Edwards, 2010). High-quality top of the shelf people seek opportunities with companies they can be able to develop further, be highly productive, where they can feel valued, and where re skills, and knowledge is put to use. Thus, star companies attract star performers leading to improved productivity, reputation and profitability.

What could the companies learn from each other?

The two companies’ compensation scheme and plans for their workforce differ. The Toyota workforce is well compensated and given opportunities for growth and development in their particular areas of interest and specialization. This is seen by the promotion of junior employees to head different created and opened function or branch, commission payment system based on a number of potential sales contracts and deals closed and also based on nature of the job being performed (Barrow, 2007). Thus, the IBM Company should learn and incorporate the same scheme to motivate and win over their employee's loyalty and confidence.

The Toyota and IBM Company have different qualities and capabilities in there management teams and workforce. The criterion for team and workforce member qualification in Toyota significantly differs with that of IBM in the sense that the combination of skills, knowledge and experience needed for one to work in each varies. IBM can implement the core capability of Toyota workforce criteria in selecting employees and vice versa which will benefit both companies making them more profitable and reputable brands.

Toyota Company’s strategy is to be a leading provider of quality vehicles worldwide which is seen through its different and broad Toyota brand lines of outlets all over the World. This is absent in IBM company which relies on intermediaries and few suppliers of the computers and its components. For IBM to be more competitive and profitable to be able to attract more qualified employees with development minds, then it has to learn how to diversify and decentralize its operations and not only specialize in computers.

The IBM and Toyota firms should learn from each other on the importance of specialization and optimization. This feature helps cut costs, minimize wastages and increase profits for the respective firm. IBM strategy of specializing in computer components making enables it to use minimum inputs for maximum outputs at cost effectively. This leads to quality products due to specialization and optimum utilization of both inputs and a workers capability, which increases customers’ confidence in the products and company, employees’ loyalty as they feel, appreciated and valued and in the end, the IBM brand is associated with quality, integrity, and value. Toyota can cut its costs of recalls and insurance by specializing in the production of few quality brand lines.

Which company would you find more attractive as a potential employee? Why?

Toyota Company is more employer of choice than IBM to most job seekers in the market. The company’s reputation has best employee developer. It has best compensation schemes for their workforce that includes better wages/salaries, bonus and commissions for work well done and deals closed up, growth and development opportunities, promotions among others that attracts and retains employees for long periods.

Toyota Company also has many brand or product lines with decentralized management in different regions all over the world thus creating job opportunities for many people. The company’s workforce if most qualified and specialized in their respective functional areas, which help appeal and attract more job seekers who wish to learn from the experienced established seniors. 


Barrow, S. (2007). 'The Future of Employer Branding and HR?,' London: Research Insight – The Chartered Institute of Personnel and Development , 12-14

Edwards, M. R. (2010). “An Integrative Review of Employer Branding and OB Theory,” The Journal of Personnel Review , 39, 1, 5-23.

Mosley, R. W. (2007). “Customer Experience, Organisational Culture and the Employer Brand,” Journal of Brand Management , 15 (2) 123-134.

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StudyBounty. (2023, September 16). How the companies’ EOC policies and practices create advantages or disadvantages for their sustainability and growth.


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