What is Employer Branding?
Employer branding is a magnet that creates magnetic fields to attract top talent, which is crucial for any business’s success and can be a vital source of competitive advantage. It is an emotional reverberation of what the employees, existing and possible future job candidates expect and think of a company.
Every successful business strategy now includes Employer Branding as a subset of Employee Value Proposition (EVP). It is an example of how an employer constructs an Employee Value Proposition for their workers. Employee value proposition (EVP) is a package of benefits that an employee receives in exchange for their skills, abilities, and experience.
A Google search for “employer branding” in 2004 would have returned 3000 results(1). That figure has risen too far over 2 million today. Employer branding is becoming more strategic in the present professional ecosystem.
It offers the capability of the organization to prove its worth to its candidates. It is a stratagem to attract, engage and retain top talent in the organization.
( Also Read: Business Branding 101 )
Following are the Vital Benefits of Creating a Strong Employer Brand
Employer branding is essential for organizations to preserve the value they place on their employees. It involves everything to portray the company as a desirable employer. The branding manages and shapes the employer’s reputation.
The research reports reveal that employer branding has a major impact on hiring, according to 72 percent(2) of global recruiting leaders. It also states that a proactive employer branding strategy is used by 55% of global recruiting() executives. Organizations with strong employer brands reported a 20% boost in revenue and a 12% rise in workforce growth(3).
Strong Employer brand Enables Top Talent Acquisition
Statistics indicate that 94 percent(4) of job seekers prefer to apply for a position at a company that actively holds a solid employer brand in the business world.
New generation professionals choose to work for a company that reflects their values and goals. Recruiter’s preference, the “Employee referral programs” are often fueled by an employer’s brand where existing employees feel a connection with the company’s vision
Employee poaching (talent poaching) or job poaching is the employer’s nightmare. Today’s firms face not just employee acquisition but also retention issues, as competitors increase salary packages to poach the market’s best talents.
The Employee value proposition (EVP) offering a tough employer brand is valued as a strategic framework for combating the competitor enticements. Employees of companies having a distinctive brand image turn down the competitor’s alluring offers themselves and continue their association with the same employer.
If employees experience a positive employer brand, have job security, professional development opportunities, the chance to work on a better team, and an organization that is talked about positively by current or past employees, they will continue their services even without any pay increase.
People want to work for a firm that has a good reputation and treats its employees well, so employers must make a concerted effort to ensure that they are a fantastic place to work.
Impeccable Employer Brand Mitigate Time and Cost per Hire to Stabilize ROI
Time and money are irreversible resources, and if they are not used wisely, they can result in losses. The average cost-to-hire in the recruiting sector is roughly $4000, and the average time to complete a hiring process is 40 days.
The amount of time it takes to hire has a negative impact on the cost of hiring. Companies with a strong employer brand can see a 28 percent boost in retention and a 50 percent(5) reduction in cost per hire.
Studies state that the cost per hire for first openings determines the hiring strategy for the future. Employer branding helps in the removal of bottlenecks for a better candidate and recruitment experience. As a result, a recruitment process backed by an outstanding employer brand demonstrates a lower cost-per-hire and prevents the draining of hiring budgets. According to Gartner, accelerating recruitment might result in a 32 percent reduction in costs.
Companies with an impactful employer brand enjoy several advantages, including a stronger image, cheaper marketing expenses, and increased profitability. Employee referrals endorsed by an employer brand have the highest ROI, and HR technologist says employee referrals come in 55 percent faster(6) than those sourced from job sites.
The perfect employer brand attracts high-quality job applicants while also boosting employee satisfaction and loyalty.
Employer branding contributes to the development of a robust talent pipeline with qualified and diverse prospects, allowing recruiters to find the best candidates for every new job at any time. The constant stream of applications from outstanding individuals builds a database of people who may not be right for a specific job function right now, but who may be considered for future openings.
The ownership of such a pool of talent is an asset in itself for an employer. This talent hub guarantees uninterrupted productivity and a constant progression.
Effective Employer Brand Increase Employee Morale
When you’re a celebrity, everyone wants to be associated with you. The same may be said for the company. Employees take pride in being articulated with an organized and disciplined system that presents a defined vision, mission, and growth spectrum when they join an esteemed organization.
Employee morale is strong not only because they are well compensated, but also because of the corporate culture. Employee morale is boosted as a result of how well they are treated and how their contribution to the company’s objective is valued and recognized.
Inflated employee morale leads to increased production. Employee productivity rises when they trust in the company’s objective and envision themselves progressing in their careers with the company. It leads to a lower rate of absenteeism and a higher rate of retention.
Employees that are motivated provide superior customer service and are more creative and imaginative in the workplace.
Consistent Employer Brand Image Boost Retention
Positive company culture and an impressive employer brand enable Higher employee retention which implies that the company experiences an increased employee loyalty which means lowered attrition.
This on the whole results in decreased investment in the cost of hiring. The employer can have a more skilled workforce by having fewer employee transactions.
Employee morale is directly proportionate to the employer’s reputation, and employee retention rates are also proportionate to the employer’s reputation. Give employees a reason to like going to work, and you’ll see a large drop in turnover.
Impressive Employer Brand Develop Integrity with Customers
As the well-defined employer brand encourages association and the employees feel the connection with the company objective. The employee engrosses themselves with the employer in a way that they strive hard to serve their customers the best. These employees endorse their company by presenting great work ethics.
The company having a high turnover rate gets clients’ attention. Customers who want to support businesses with positive company cultures may be concerned about this. Clients get the opportunity to get to know employees when organizations keep their personnel on staff. Clients may feel brand loyalty as a result of working with a favorite employee, which can help firms. Developing ties and rapport with clients is critical to obtaining recurring business.
Employers with a strong brand can easily outsmart the fierce talent acquisition battle. Companies will be able to secure great employees at no additional cost if they spend early in creating their employer brand.
Employer branding is important for employers to preserve the value they place on their workforce. It’s the process of managing and shaping your employer’s reputation.
A good employer brand is becoming increasingly crucial as new generation prospects become more interested in knowing about what it’s like to work at a company. Employees evaluate what they will accomplish in addition to their daily living expenses. A well-planned strategy When a great EVP is integrated into all aspects of a business, it may assist retain top staff and acquiring the best external talent.
Employees want to be able to experience the organization for what it purports to be: authentic and transparent. This is when these employees transform into brand ambassadors for their organization, bringing in top talent through talent advocacy and word of mouth, making the job more important and rewarding.