Employer branding is an essential strategy for any organization—be it market perception or attracting the right talents to the organization.
What is employer branding?
It is managing your reputation as an employer among job seekers, employees and key stakeholders. It includes everything your organization does or stands for to become an employer of choice.
According to LinkedIn data, a strong employer brand can reduce turnover by 28 percent and cost-to-hire by a staggering 50 percent.
Your employer brand can be the deciding factor in whether top talent chooses you over your competitors. Steve Forbes has said that it’s “the single most important investment you can make in your business.”
So how does employer branding work in your favor—
- Allows you to differentiate your organization from competitors.
- Attracts informed candidates to your job openings .
- Moves candidates down the funnel more efficiently.
- Signals to prospective candidates that your company is a great place to work .
- Improves retention of existing employees .
- Makes your organization more credible in the marketplace .
Every touchpoint mentioned above is about what impression candidates and the business world carries about you. Without proper management, each one of those touchpoints can become a deal-breaker, costing you candidates and employees.
In today’s social media-driven world and where online recruiting and job seeking is the norm, employer branding is crucial.
According to Glassdoor research, 95% of candidates identify a company’s reputation as a key consideration when exploring new career opportunities.
66% of job seekers want to learn about your culture and values. There is ample evidence out there revealing what candidates are looking for when searching for a job. Your employer branding efforts can be a great way to communicate these features.
There are other advantages of building an employer brand. The cost of hiring a new employee goes down by 43 percent. By investing in your employer brand, you don’t have to spend too much on advertising and marketing campaigns creating awareness for your business.
Instead invest in building a company culture that values its employees, believes in building a reputation of innovation, engagement and care.
A consistent brand image will naturally attract the best talent for the company.
A non-brand in the market costs companies nearly $4000 more in attracting the right talent. CareerBuilder reports that 67% of candidates would essentially accept lower pay if the company they were interested in had very positive reviews online.
In this new era of social media and work from home and hybrid culture, employees are looking at more than salaries and perks. They are looking for values in their place of work. Research shows that among the younger generation employees, nearly 75 percent look into a company’s reputation before applying for a job and 88% of millennials believe that being part of the right company culture is very important.
Having a strong employer brand presence, especially online, allows them to access your reputation as a company more easily.
This is where the actual initial fit between a candidate and prospective employee is done.
A presence on social media is essential as nearly 79% of people do their job browsing in such platforms.
With the skill gap becoming wider in almost all sectors, employers are looking for a hiring process that is efficient, flexible, and agile. The competition for the right fit is fierce.
Proper employer branding makes the process more efficient as such companies attract better candidates. A strong employer leads to 50 percent better-qualified applicants for jobs in the company.
These statistics prove that employer branding impacts every aspect of the employer-employee relationship. While it is most often associated with recruitment, employer branding also affects employee engagement, retention, and even profitability.