Here are a handful of the unique ways employer branding benefits companies: A strong employer brand improves name recognition among customers and job seekers alike. Branding is based on concepts like (i) value proposition, (ii) brand personality, (iii) brand positioning and (iv) brand management and development. August 31, 2020. (2). Retaining the top talent will provide company with a competitive advantage and reduce the expenses associated with recruiting and on-boarding new candidates. It also helps improve organizational performance in different HR functions such as recruitment, retention, and engagement. In addition, employee engagement and retention can suffer if employer brand is neglected. This is because these brands have highly engaged employees and possess above average employee attitude. To get involved in the conversation on Glassdoor and start managing and promoting your employer brand reputation, unlock your Free Employer Profile today. By specifically targeting your organization as a desired employer, these candidates demonstrate initiative and personal investment in your brand—two attributes that speak to their characteristics as a potential employee. There are recruiters and marketers out there who trick themselves into believing that employer branding is but a HR fad leading to superficial results and wasted time and money. According to a research by Glassdoor, 11% of job seekers would decline a job offer from an employer with a bad reputation, even if they were unemployed. Therefore, it is important to build a strong employer brand as it will control the reputation of your company and ultimately determine whether the top talent will choose to explore the company further for a job opportunity or move on. To put it simply, salary isn’t always what is most important to candidates in our hiring landscape. Employer branding is more important than ever and the benefits are huge. A good employer using the employer branding strategy should provide employees’ personal growth, a great working environment, social responsibility, career development, constant motivation, a feeling of being part of a team and much more. Hence, employer branding is indispensable for small business owners. The term “branding” today is just not restricted to defining consumer goods or services. There exists a link between strong employee engagement and increased financial performance of a business. Employer branding benefits customer loyalty, too. When a solution is required, they work harder to find out how to solve the problem, Employees are very reliable, can be trusted and feel confident. Shaping and promoting a powerful, authentic employer brand will play a major role in helping you attract the best talent to your organisation, and keep them engaged. Cutting back on vacancies not only helps uphold morale and propel workflow forward, but can also save your company time and money usually spent on recruiting and training new hires. Your email address will not be published. In any economy - but especially during a decline - it's critical to actively foster and nurture a reputation as a great place to work so you draw the best job seekers from an oversaturated pool of candidates. If you're considering investing more in your employer brand, here are 5 great reasons to do so: Strengthening your employer brand is a priority for the most effective hiring organizations - and for good reason. By investing in employer branding, making sure your website has a dedicated careers page, building a community on your social media platforms and encouraging your current employees to share their own experiences online, you’re giving candidates the information they crave and making your brand significantly more attractive. During this lockdown, how much of your time is spent in virtual meetings? (1). On the one hand, having a strong employer brand allows you to attract qualified applicants. In essence, the idea is that people who have a positive perception of your brand may be more likely to buy your products and services, and vice-versa. Companies need to delve deep to know more about employees. While offering a higher salary is generally the most effective way of attracting passive candidates, having a strong employer brand provides your organization with more selling points with which to pull them in. By contrast, the talent pool is bigger in a recession, so it's crucial for your business to be proactive about nurturing and maintaining a great reputation as a place to work so you draw high-quality job seekers. 72% of the recruiting leaders across the globe agreed that employer brand has a great impact on recruiting and hiring. In other words, no matter how interesting the role you’re trying to fill may be, you’ll never attract the right candidates if people struggle to find information on your company or if you have a poor online reputation. One way of comparing employee engagement levels is to approach employee research agencies. This in turn means that your employees will be more inclined to refer your organization to other professionals and that you may have a ready-made talent community from which to draw from. Candidates tend to trust a company’s employees 3 times more than the company to provide credible information on what it’s like to work there, which is why it’s so important to encourage high levels of staff engagement. Action plan: One size does not fit all when it comes to employer branding. The benefits of employer branding are all closely linked, and they all play a crucial role in finding, attracting and retaining top talent. Terms and conditions, features, support, pricing, and service options subject to change without notice. This is mostly achieved by making sure that values promised as a part of employer brand are practiced even after the candidates are hired. An authentic, well-defined employer brand is essential to recruiting and retaining quality talent in any market, whether booming or receding. A Legislation Guide for Hiring Remote Developers, Employer Branding: 19 frequently asked questions, now answered, Why Reverse Recruitment is the Future of Tech Hiring, Linkedin’s Ultimate List of Employer Brand Statistics, Hudson: How to Launch a Successful Employer Brand, Linkedin: The Real Cost of a Poor Reputation. Employer branding helps candidates choose the right fit, which boosts retention. The main message and philosophy is “this is the best place to work”, if people believe that they won’t find a better environment to build a career, then they’ll fight for a position. What is Employer Branding and Why is it Important? To have an effective Employer branding it is necessary to align management and HR practices that create an employee experience matching with the perception portrayed. It also extends to improving the financial performance of a company. These surveys did not consider a wider approach to understand the employees. To deliver benefits, it is important that the employer brand is not merely rhetoric espousing the organisation’s values, but is reflective of the actual experience of employees. The difference lies in the brand value that these companies offer to their prospective employees. Employer branding is just as essential as corporate branding—that is, if you want to attract and retain top talent. Furthermore, employers who fail to invest in their reputation could be paying up to an additional $4,723 per employee hired (data related to American organizations) and the overall cost of a bad reputation for a company in Germany with 10,000 employees could be as much as €7.3 million in additional wages! The employee benefits, the brand benefits, and ultimately, the consumer benefits, too. These values are advocated both within and outside the firm. Your employer brand can help you attract candidates that will have long-term success at your company. We help HR leaders worldwide succeed in their recruitment and outplacement efforts. Organization that is talked about positively by present and past employees. Each day the challenge to find the best and most talented employees increases. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. This is the reason … Further, these companies also enjoy the benefit of lower employee turnover costs over competitors. Glassdoor for Employers › Blog › Manage Your Brand › The ROI of Employer Branding. Happy employees are often responsible for happy customers, which naturally means a better bottom line. Beyond the prestige and notoriety or the high salaries, these companies have built their employer brand by word of mouth. One of these techniques include starting every branding endeavor with the following questions: Thus, the employer brand so created is able to speak to your exact target audience. Negative employer brand has a negative effect on your consumer base; 64% of consumers report having stopped purchasing from a brand after hearing news of that company’s poor employee treatment. Further, if the company has a very strong employer brand, chances are that as an employer it would not have to go out looking for “the talent” but talent would come around looking for them and eagerly choose them as their preferred place to work. And in the midst of today’s COVID-19-induced furloughs, layoffs, and cutbacks, employer branding is quickly becoming more important than ever before. Glassdoor.com U.S. Site Survey, November 2019. When he's not reaching out for backlinks, Stefan likes to write about tech, make music, and support his beloved AFC. What are the benefits of employer branding? Before we dive into the actual benefits of employer branding, here are some interesting insights regarding the current popularity of employer branding among HR professionals and middle market executives: As illustrated by the aforementioned statistics, having an effective employer branding strategy is becoming increasingly important in today’s competitive landscape. Employer branding is statistically proven to make a night and day difference to your business’s talent attraction efforts. The vast majority (80%) of Glassdoor users agree their perception of a company improves after seeing an employer respond to a review. Some of these news stories demonstrate examples of compassion, like, Clif Bar’s choice to donate  three million bars to health care workers. Top 7 HR Questions, Answered: How to transition back to work…, Top 8 HR Questions today: Coronavirus, workforce diversity, and what’s forever…, The ultimate stress test: How to use your employer brand under…, Top 5 Employer Scenarios and Strategies to Navigate the Coronavirus Crisis, Sharita Hanley Pivots to Her Dream Career as a Writer Amid…, How to promote your DEI initiatives through social media to drive…, How to Face the Top 7 HR Challenges in the Healthcare…. Digital Transformation In Recruitment: Need Of The Hour. This is because engaged and satisfied employees deliver the requisite satisfaction to the brand’s customers. Companies who prioritize employer branding, experience a 28 percent increase in retention. More professional development opportunities. As per a study, it was found that there exists a strong link between employee engagement and customer satisfaction. It is not just restricted to the tangible benefits that the employees receive such as compensation benefits. It is important to undertake research on a continuous basis since change is something that remains constant. This kind of candidate—one who specifically seeks out a brand whose mission aligns with their own and actively pursues your brand—has the potential to be a higher quality candidate. All Rights Reserved. By having highly qualified, talented, trustworthy and 100% committed employees, staff turnover will decrease. 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