Employer branding is not an illusion. It’s of absolute importance for organizations eyeing on the best industry talent, aiming to drive innovation and aspiring to remain at the forefront of the competition. It is an important element of recruitment that is often overlooked, but it can have a huge impact on your company’s workforce. And it’s important for all companies, not just for the ones that have to find talented employees in tight labor market conditions. Because all companies want to hire the best possible candidates.
Importance of Employer Branding
Hiring teams need to understand the importance of employer branding in recruitment as well as in maintaining the company’s reputation. The importance of strong employer branding is an extensive affair. Here are five reasons for the importance of employer branding and why you should implement an effective employer branding strategy in your company. Here is some key beneficial importance of employer branding.
#1 Builds your Brand Identity
In today’s tech-savvy world, establishing and maintaining your presence online has become the need of the hour. Having a stronger presence online helps you increase your brand awareness, which is, in turn, beneficial for your organization. You can demonstrate your company culture and show your candidates how it is to work for your company.
#2 Betters Talent Acquisition
The main principle or the idea behind the whole concept of employer brand is to build your talent brand. Secondly, the employer brand helps you attract, engage, and retain the best and talented individuals in your organization. Having an effective employer branding strategy not only helps you attract job seekers but also reduces the time required to fill a position.
#3 Delivers a great candidate experience
The recruitment process has evolved to be a candidate-centric one. It is the candidates who choose and decide his employer. Job seekers nowadays are not only interested in what the company offers but also on what vision it holds and what environment it provides. So, a strong employer brand name will surely have a significant impact on the candidate’s decision to select his next employer.
#4 Ensures lesser employee turnover and better engagement
Another benefit of employer branding is employee engagement and turnover, which is achieved only by hiring the right set of individuals. Your employer brand should reflect your work culture, the work environment, and the opportunities for the growth of your employees.
#5 Generates financial stability
Companies with strong employer branding do not have to put in a lot of effort into attracting exceptional talent. Their employer brand speaks for the company. This also means employer branding indirectly decreases the amount of time you spend on filling a position and its subsequent costs.
#6 Build credibility with customers
Your employer brand can greatly affect your business because top talent will serve your customers better. Having the best team in place makes a difference in customer satisfaction, so if you’re not able to attract quality employees, you can expect a subpar customer experience. If you can guarantee that every customer will have a positive experience, regardless of which employee is serving them, you’ll build trust among your customer base.
8 Benefits of Employer Branding
Now 72% of recruiting leaders around the world agree that the employer brand has a significant impact on hiring, and even more so has a significant impact on your business’s success. A staggering 78% of people will look into a company’s reputation as an employer before applying for a job and 88% of millennials believe that being part of the right company culture is very important. Listed below are 8 benefits of Employer Branding
#1 Lower Cost Per Hire
A strong employer brand fosters a great work environment and makes your brand more attractive to potential candidates. 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 generated through referrals are the 2nd cheapest means of sourcing and more and more job seekers admit they use social media platforms to gather information about employer brands and open positions.
#2 Faster Time to Hire
By investing in employer branding, you’re able to attract more talent. And companies that can attract more talent can also hire that talent faster, thereby improving time-to-hire.
One of the main benefits of having a strong employer brand is that you’ll have a larger and better talent pool from which to fill vacancies. Basically, this means you’ll be able to spend less time selling and more time closing candidates.
#3 Lower Employee Turnover
On the one hand, having a strong employer brand allows you to attract qualified applicants. And usually speaking, you want to keep your best assets, meaning you won’t be replacing them anytime soon. And on the other hand, if you create a bond with prospective employees before and during the recruitment process including onboarding, you’re encouraging those future employees to have a high level of engagement with the company.
#4 Savings on Salaries
A very important factor, top talent candidates seek more than just an attractive salary. Investing in employer branding gives you a competitive advantage and enables you to hire top talents without necessarily having to break the bank.
#5 Attract Passive Candidates
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. Passive candidates could be just as tempted by a company that offers better growth opportunities or a healthier work/life balance, once again underlining the potential impact of investing in employer branding.
#6 Visibility Equals Trust
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. By investing in employer branding, making sure your website is well communicative, building social media communities and encouraging your current employees to share their own experiences online, you’re giving candidates the information they crave, making your brand significantly more attractive.
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.
#7 Improve company performance
People who have a positive perception of your brand may be more likely to buy your products and services, and vice-versa. Having an employer brand that is focused on your people translates well to social media and other outlets where your customers interact, and the process of investing in employer branding builds a bridge between talent acquisition and driving revenue.
#8 Gain a competitive edge
In crowded markets it is important to gain an edge over your competitor. One of the ways you can stand out is by creating a strong employer brand. When you focus on improving the perception of the company you will inevitably start looking at how you can make your internal operations more inclusive, collaborative and efficient. Research shows that highly inclusive organizations generate 1.4 times more revenue and are 120% more capable of meeting financial targets.
When it comes to employer branding, your company needs to set time to focus on this. It’s important to understand why it matters and how a strategy can benefit your company in the long term.
For as long as business competition has existed, a company’s reputation has played a vital role in attracting customers and increasing revenue. But what hasn’t been evident is the crucial role your employer brand plays in attracting top choice candidates. Establishing a great employer brand is not a one-step process anymore. It is a continuous process that requires a lot of effort. It begins with understanding the importance of employer branding and its impact on your recruitment processes.
FAQs on Employer Branding
Why is employer branding important for employers?
A big reason employer branding is so important is it’s the business identity of your company. It’s what makes your company a good employer and stands out to candidates who are looking for jobs. Yet, it also helps your recruiting team attract and improve the talent pool of applicants as well
What is the meaning of employee branding?
Employment branding, also known as employer branding, refers to an employer’s strategy designed to promote their company as a good place to work. This targeted marketing strategy is used to form how the potential employees, current employees and the public / investment community see the company.
What is the key to having a strong employer brand?
A positive employer brand communicates that the organization is a good employer and a great place to work. Employer brand affects recruitment of new employees, retention and engagement of current employees, and the overall perception of the organization in the market.
Who is responsible for employer branding?
Employer branding is how people perceive the company’s values and work environment. Therefore, employer branding is everything a company is doing, whether intentionally or not to promote its unique identity as an employer among current and potential employees.
What is employer branding strategy?
An employer branding strategy allows you to control and positively change the dialogue surrounding your company to ensure higher talent acquisition and retention. At its most basic, employer branding is how you market your company to job seekers and what employees say about your company as a workplace.
What is employer branding and its importance?
A big reason employer branding is so important is it’s the business identity of your company. It’s what makes your company a good employer and stands out to candidates who are looking for jobs. Yet, it also helps your recruiting team attract and improve the talent pool of applicants as well.