All employer brands should aim to impress two sets of people: their employees and the candidates they are trying to recruit. When hiring professionals want buy-in from the workforce, they should present a solid employee value proposition (EVP)—benefits and perks offered in exchange for the employees' skills, engagement, and loyalty.
When recruitment marketing professionals wish to attract new talent, it’s essential to present the EVP as part of a more prominent employer brand: the brand's reputation with potential candidates. Strong employer branding is crucial for several reasons, including revenue growth. With a favorable employer brand, a company can attract and retain the best talent, decrease cost-per-hire and turnover costs, and experience innovation that increases market share.
During uncertain economic times, investing in your employer brand is crucial. A strong employer brand drives long-term growth and provides a strategic market advantage. Here's why it matters.
Multiple companies may seek the same highly skilled professionals in a tight talent landscape. Consequently, the employer brand should be strong enough to get the best candidates to sign on the dotted line. In addition to a positive candidate experience and competitive compensation and benefits, employers need to offer an attractive culture, clear career development opportunities, and support for work-life balance.
For most employers, putting in the work to attract quality hires pays off. When an employer has a supportive culture, highly skilled professionals are more likely to feel comfortable contributing their best, most innovative ideas. Additionally, employees who feel connected to their company, and its culture and brand are four times as likely to be productive and engaged and 62% less likely to be burned out.
Strengthening the employer brand also helps organizations retain current employees. Gallup estimates that voluntary turnover costs U.S. companies one trillion dollars annually. For an individual organization, the cost of replacing even one employee can be up to two times their salary.
Turnover costs organizations in other ways. When veteran employees leave, they take the knowledge they've gained over the years, meaning that a competitor might benefit from their training, and younger, entry-level employees will not. When time-tested wisdom walks out the door, the company can experience stagnation and, in some cases, even regression.
The employer brand serves as one answer to the turnover issue. Gallup research says those who feel connected to their company are 43% less likely to be actively looking for another job. Strong employer branding fosters high levels of loyalty and engagement.
Strong employer branding attracts talent and retains customers. Consumers want to know they can trust brands to treat everyone well, including their employees.
Recent statistics from the Edelman Trust Barometer reveal that 64% of consumers choose, switch, avoid, or boycott brands based on whether they think the brand is doing the right thing. PwC consumer intelligence data shows that over three-quarters of consumers are willing to discontinue their relationship with a brand over poor employee treatment. Employer branding is essential to building a loyal customer base.
Employer branding also decreases recruitment marketing costs. Highly skilled candidates tend to seek out companies where they know they will be treated well and given opportunities to grow and contribute.
A brand reputation that attracts candidates means less money spent on recruitment marketing. It also makes it easier to convince passive candidates who are not actively looking to consider taking a role.
One example of an organization with successful employer branding is tech giant Apple. The company maintains a theme throughout its recruitment marketing material of seeing and recognizing the "whole employee." Its benefits, perks, and policies build on this unique branding with a state-of-the-art corporate campus, on-site medical care, career development, and an inclusive culture.
Apple also offers competitive salaries, paid family leave, and the promise of gender pay parity. As a result, It has been ranked as one of the most competitive companies for job seekers, receiving more than 50 applications for each job posted.
There is growing evidence that employer branding is a differentiator in the market, allowing some companies to maintain a competitive edge over others. For example, Starbucks has invested heavily in its employees, offering vested stock units, 401(k) matching, upskilling and tuition reimbursement opportunities, and earlier paid vacation accrual to those working at least 20 hours per week.
Part of the brand's "reinvention plan," Starbuck’s leadership recognizes that investing in employees allows them to deliver better customer experiences. This has resulted in yearly growth estimates of 10% to 12% instead of the previously expected eight to 10%. This is one example of how consistent employer branding can help companies prepare in advance for post-downturn growth and market share expansion.
Along with saving on recruitment costs, avoiding the cost of high employee turnover rates, and creating revenue growth through heightened employee engagement and productivity, a positive employer brand helps companies expand market share through increased creativity and innovation.
Strong employer brands help organizations spend less and make more. Building the brand is a strategic decision that creates sustainable growth. This translates to greater long-term value creation for shareholders, which attracts more reliable investors and contributes to organizational consistency and stability.
Hiring professionals should align the brand with organizational values and culture to create an authentic and compelling employer brand that attracts and retains high-quality talent. This ensures that the brand comes across as genuine and cohesive and that candidates accurately understand what the organization stands for.
Organizations should consider leveraging popular digital and social media platforms to grow employer brand exposure and awareness. More than 40% of Gen Z employees have made a career decision based on advice from social media, and more than three-quarters of them use apps for professional networking, highlighting the importance of these marketing avenues.
It's essential to involve employees in recruitment marketing efforts as brand ambassadors. Research indicates that an employee's voice can be up to three times more credible than the CEO's word when describing what it's like to work for the company. Job seekers want to hear from those doing the work to form an accurate opinion on whether the company is a good fit.
Understanding how to measure employer branding is key to knowing whether efforts toward building a cohesive brand pay off. Some KPIs to help hiring professionals track and measure effective branding include:
It's also essential to connect employer branding metrics to financial outcomes by accounting for concrete turnover and recruitment costs and then calculating the return on investment using the following formula:
[(Financial value – project costs)/project costs] x 100
Tip: Recruitics' strategic employer branding services focus on helping companies identify their authentic voice and translate it into customized strategies for activating the EVP through the proper channels, including social media platforms.
An employer brand is so much more than just an outward reputation. It's one of the most significant contributors to long-term revenue growth, as it helps hiring professionals save on recruitment costs, reduce turnover, and enhance employee productivity.
As more people base purchasing, investment, and career decisions on corporate governance, how brands handle candidates and employees will become an important factor in business success.
–
Contact Recruitics today to build or fine-tune your employer brand and enjoy a prosperous future from your talent acquisition efforts.
