Steps and strategies for internal branding to enhance employee engagement

Nearly Half of Companies Have Yet to Implement It? Internal Branding

Internal branding, which also contributes to enhancing employee engagement, is supported by some noteworthy data regarding its implementation.
According to a 2024 survey conducted by Tanabe Consulting (see Reference 2), approximately 53.3% of companies have not formulated a branding strategy. In other words, more than half of companies have yet to establish a branding strategy.

In other words, a significant number of companies have yet to formulate a branding strategy that includes internal branding. Moreover, this data only reflects companies that have established such strategies; in reality, the number of organizations where branding is effectively implemented and functioning is likely even smaller.
This also means that by understanding and implementing internal branding initiatives outlined in this article, companies can not only enhance employee engagement but also gain a competitive advantage by adopting organizational improvement measures that many competitors have yet to fully recognize.

What Is Internal Branding? Understanding the Difference from External Branding

Internal branding refers to a series of processes that align employees’ mindsets and behavioral norms with the corporate brand, ensuring that MVV is deeply embedded within the organization.

MVV stands for Mission, Vision, and Value—concepts that articulate “where the company is heading” and “what it stands for.”
In recent years, it has become increasingly common to include Purpose—representing the organization’s fundamental reason for being—resulting in what is referred to as PMVV.
By defining MVV or PMVV, each employee is better able to act autonomously in ways that are consistent with the company’s brand and philosophy.

To illustrate this more concretely:
What would happen if a company advocates a “safety-first” principle, yet its employees operate under a “sales-first” mindset, neglecting safety in their day-to-day work?

Such inconsistency would create a lack of trust—not only among stakeholders but also from the perspective of customers.
At an individual level, it would raise concerns such as, “Is there a disconnect between what is being said and what is actually being done?”
To avoid this kind of misalignment between words and actions, establishing MVV or PMVV is essential.
We will discuss key considerations when defining MVV and PMVV later in this article, so please read on.

Alongside internal branding, the term external branding is also commonly used.

The difference between the two lies in their target and purpose.
While internal branding focuses primarily on employees and the organization itself, external branding is directed toward customers, markets, and business partners.

External branding aims to communicate the value of a company or its products to the outside world, enhancing recognition and trust. As such, it encompasses approaches such as advertising and PR activities, product and service design, customer communication design, and initiatives to strengthen brand loyalty.

When people hear the term “branding,” they most often think of external branding.

The Benefits of Internal Branding and Its Five Key Effects

Now that we have outlined what internal branding is, let us take a closer look at the tangible benefits and effects that can be achieved by implementing it.

Overview of Benefits

One of the most significant benefits of adopting internal branding is the improvement of employee engagement. When a company’s philosophy and future vision are clearly defined, each employee can better understand how their work contributes to the organization’s future. This, in turn, encourages them to connect their personal motivation for working with what the company aims to achieve.
In other words, employees begin to perceive their work as something personal and meaningful. As this perspective takes hold, their approach to work changes—they develop a stronger sense of contribution, which fosters a feeling of fulfillment and ultimately leads to higher employee retention.
However, the benefits of internal branding extend beyond this. Below, we introduce its specific effects in greater detail.

Five Key Effects

・Consistency in Direction and Values
By adopting internal branding, employees gain a clear understanding of the company’s PMVV and act in alignment with it, creating consistency across customer interactions, services, and products. In addition, when employees share common values, decision-making and actions become more unified and efficient, strengthening a sense of cohesion throughout the organization.
・Synergistic Effects with External Branding
As discussed earlier, while internal and external branding differ in focus, they are closely interconnected. Companies often tend to prioritize outward-facing branding strategies; however, branding from the inside out is, in fact, more effective from a long-term perspective. Employees’ attitudes and approaches to their work are directly reflected in the quality of services they deliver. Internal branding helps streamline workflows, eliminate inefficiencies, and improve overall work environments. As a result, productivity increases, corporate value is enhanced, and costs associated with marketing and sales promotion can be minimized.
・Improved Alignment with Recruited Talent
Closely related to employer branding, internal branding attracts job seekers who resonate with the company’s direction and values, thereby reducing mismatches after hiring. As the company becomes recognized as a desirable place to work, it attracts individuals who already understand and align with its brand values. This can also lead to reduced costs associated with employee training and development.
・Enhanced Sense of Belonging Among Employees
Implementing internal branding initiatives fosters a deeper sense of attachment and identification with the organization. By understanding the future the company aims to achieve, employees are more likely to think proactively about how their work contributes. This mindset leads not only to greater outcomes but also to a stronger sense of fulfillment and purpose in their work.
・Improved Customer Satisfaction
Through internal branding, employees develop a deeper understanding of the company’s brand, enabling them to communicate its value accurately to stakeholders. As each employee becomes more aware of their role and contribution, their sense of hospitality is strengthened. As a result, this leads to improved customer satisfaction, as well as an increase in repeat customers and brand advocates.

Why Internal Branding Contributes to Improving Employee Engagement

Employee engagement refers to the willingness of employees to empathize with the company’s direction and actively contribute to it. It is often confused with employee motivation.

Employee engagement focuses on the relationship between employees and the organization—specifically, the degree to which employees resonate with the company’s direction and feel a strong desire to contribute. In contrast, motivation refers to the psychological state of each individual employee.

A critical factor in enhancing employee engagement is the clear articulation and sharing of a company’s philosophy and vision. When employees form a relationship with the organization, their ability to empathize with its values and the future it seeks to realize plays a significant role.

If the goal is to strengthen employees’ sense of belonging, it is essential to create a meaningful link between their personal lives and the company’s future. Internal branding supports the development of such a relationship by aligning shared goals and values between employees and the organization. Therefore, by implementing the internal branding initiatives introduced below, companies can also achieve improvements in employee engagement.

1. Assess the Current State

When initiating internal branding, the first step is to gain a clear understanding of your organization’s current state. In particular, it is important to review the following three points:

• ・Are the company’s brand values and corporate philosophy clearly defined?
• ・To what extent is the company’s direction shared and understood among employees?
• ・Is top management clearly communicating and embodying the company’s policies and philosophy?

It is essential to identify the existing challenges and share these insights across the entire organization.

2. Define PMVV

In advancing internal branding, it is essential to first establish PMVV (Purpose, Mission, Vision, and Values).

If elements such as the mission or values remain unclear, teams and organizations can lose alignment and weaken over time. This may lead to the kind of inconsistency between words and actions mentioned earlier.
Even if a company strives to move in a specific direction, if employees act in ways that diverge from it, the organization risks losing cohesion—or even falling apart.
If we liken a company to a ship navigating the vast ocean of the market, PMVV and MVV serve as its guiding “North Star.”
One can easily imagine how risky it would be to embark on such a journey without a clear compass to follow.

3. Internalization and Implementation

Once the principles of internal branding have been articulated and translated into PMVV, the next step is to promote internalization across the organization.
While the specific initiatives will be discussed in Section 3, the purpose of these activities is to create mechanisms and opportunities for employees to connect with the background of the corporate philosophy, the founder’s vision, and the future the company aims to achieve.
After defining the initiatives, it is also effective to appoint internal ambassadors—individuals who act as advocates and promoters of internal branding within the organization. Starting from top management and leadership, and gradually extending to frontline employees, these ambassadors play a key role in bridging different layers of the organization.
To ensure that internal branding becomes embedded in employees’ daily routines, it is important to link these initiatives with performance evaluation systems and integrate them into the company’s culture.

4. Effectiveness Analysis

When advancing internal branding, it is essential to regularly assess the extent to which results and impacts are being achieved. Conducting employee surveys and holding one-on-one meetings are important ways to evaluate effectiveness. Additional methods such as eNPS and organizational surveys can also be utilized, particularly when you want to quantify outcomes.

Measuring Employee Loyalty Through eNPS

eNPS stands for “Employee Net Promoter Score.” It is a method used to measure employee loyalty—specifically, the level of attachment and trust employees have toward their workplace. It also quantifies the likelihood that employees would recommend the company’s products, services, or workplace to others.
Typically, employees respond to survey questions using a scale from 0 to 10.
For example, responses to a question such as “Would you recommend this company as a place to work to someone you know?” are categorized as follows:

• ・9–10: Promoters (highly satisfied employees who actively recommend the company)
• ・7–8: Passives (employees who are generally satisfied but not strongly attached)
• ・0–6: Detractors (employees who are dissatisfied, indifferent, or unlikely to recommend the company)

Based on the proportion of these groups, eNPS is calculated by comparing promoters and detractors.
Organizations with high eNPS scores tend to have higher employee engagement and lower turnover rates. Conversely, if eNPS is low, it is necessary to reassess internal challenges and revisit internal branding initiatives.

Using Organizational Surveys

Another effective approach for measuring the impact of internal branding is the use of organizational surveys. These are structured assessments used when selecting and evaluating initiatives, helping to identify issues related to employee awareness and workplace environment. They are commonly used to measure indicators such as employee engagement, satisfaction, sense of fulfillment, and the level of internal communication.

Organizational surveys are typically conducted through the following four steps:

• ① Define measurement items (e.g., employee engagement, satisfaction, communication)
• ② Select appropriate question formats (e.g., Likert scales, open-ended responses)
• ③ Conduct surveys regularly while ensuring anonymity
• ④ Analyze results and implement improvements based on feedback

When conducting surveys, it is important to clearly communicate the purpose and ensure anonymity in order to improve response rates. If the response rate falls below 50%, the reliability of the data may be compromised, so efforts to encourage participation are essential.

When analyzing collected data, it is important to consider not only quantitative data but also qualitative insights. For example, in addition to numerical scores such as eNPS, including open-ended questions allows employees to share their thoughts and perceptions, leading to deeper insights.

Another important consideration is avoiding “survey fatigue.” Conducting surveys too frequently can become burdensome for employees, and may lead them to provide answers they believe are expected rather than their true opinions. It is also important to be mindful of confirmation bias—where analysts focus only on information that supports their own assumptions while overlooking opposing viewpoints.

Five Key Points to Keep in Mind When Advancing Internal Branding

We have outlined the process of internal branding thus far. Here, we introduce five important points to keep in mind when implementing these initiatives.
To ensure that your efforts do not lose momentum, be sure to consider these points in advance.

・Commitment from Top Management
Internal branding cannot be realized without leadership taking the initiative to communicate the corporate philosophy and PMVV. Gaining employees’ trust and empathy requires strong commitment from top management.
・Adopt a Mid- to Long-Term Perspective
A defining characteristic of internal branding is that its effects do not emerge in the short term. By developing a long-term strategy and embedding it gradually, companies can sustainably maintain and enhance their brand value over time.
・Respect Employees’ Values While Fostering Alignment
Each employee has their own values and perspectives, so it is important not to impose the corporate philosophy or PMVV unilaterally. If employees perceive these efforts as being forced from the top down, it may lead to an undesirable organizational culture where they feel that “speaking up is pointless.”
・Keep Brand Messages Simple
Brand messages, including PMVV, should be as simple and clear as possible. If they are overly abstract, even management may struggle to fully understand them. Use straightforward and accessible language to ensure they are easily communicated and widely understood.
・Commit to Continuous Efforts (Implement a Strong PDCA Cycle)
There is no final “completed” state in internal branding. It should always be approached as an ongoing process. By continuously applying the PDCA cycle and maintaining a mid- to long-term perspective, organizations can steadily refine their efforts. Focusing only on short-term results may lead to premature failure, so caution is required.
Above all, creating an environment in which employees can understand and put the company’s brand values into practice is a decisive factor in the success of internal branding and the strengthening of overall brand value.

Now that we have covered the process of internal branding and key points to keep in mind, let us look at five concrete examples of initiatives that can be implemented in practice.

Examples of Internal Branding Initiatives

1. Internal Communications (Company Newsletters and Media)

One effective approach to advancing internal branding is the use of internal newsletters and company-owned media such as websites. While printed materials like newsletters and magazines were traditionally the norm, many companies today utilize digital channels including websites, mobile apps, and video messages.

This is particularly useful for large organizations with many employees, where opportunities for direct communication between management and individual employees are limited.

2. Credo

A credo refers to a set of behavioral guidelines for employees based on the company’s philosophy and values. The key benefit of establishing a credo is that it clarifies what employees should prioritize in their daily work. By unifying decision-making standards, employees are able to act consistently in line with the brand concept, enabling more appropriate engagement with external stakeholders.

It can also serve as a basis for performance evaluation, helping to reinforce and embed the values that the company seeks to promote. As such, it is a highly effective initiative worth adopting.

For reference, BOEL also utilizes a credo, which may be helpful for those considering what elements to formalize.

3. Workshops and On-the-Job Training (OJT)

Some organizations introduce practical training programs such as workshops and OJT to deepen understanding of the corporate philosophy and PMVV, and to translate them into concrete actions. In addition to enhancing employees’ skills, these initiatives help foster a stronger sense of ownership and personal connection to the organization’s values.

4. Internal Events

While workshops and OJT tend to focus on formal training, internal branding initiatives can also include social gatherings, sports events, and participation in CSR-related community or environmental volunteer activities. By experiencing firsthand how the company engages with society beyond profit-making, employees may develop a stronger sense of connection to the organization. These activities also contribute to improved teamwork and more active internal communication.

Additionally, engaging in CSR initiatives can further enhance employee engagement and motivation.

5. Leadership Messaging

Leadership messaging involves executives and senior management regularly communicating the company’s direction, strategies, and goals they aim to achieve together with employees. In recent years, it has become increasingly common for leaders to share such messages through channels like social media.

For employees who have limited day-to-day interaction with leadership, direct exposure to these messages helps make leadership perspectives and the company’s envisioned future feel more tangible and accessible.

Although non-face-to-face communication has become more prevalent, whenever possible, creating opportunities for in-person sessions between leadership and employees can be even more effective. Sharing the company’s vision and direction in a shared space can significantly enhance employee engagement and strengthen organizational cohesion.

If you are facing challenges in improving employee engagement, we encourage you to consider implementing the internal branding initiatives introduced above.
In this article, we have outlined how advancing internal branding not only enhances employee engagement but also delivers a range of broader organizational improvements. We have also explored concrete approaches and practical initiatives for implementing internal branding.
By putting these initiatives into action, you can cultivate a workplace where more employees feel, “I want to contribute to this company” and “I want to help shape its future.” There may already be employees waiting for such an opportunity.
Why not take the first step toward addressing your employee engagement challenges through internal branding?