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  • Writer's pictureKathleen Lee

Employer Branding: A Strategic Advantage

Updated: Jun 26, 2022

Why does everyone want to work at Google?

Everyone knows about Google and their lax corporate structure, exciting projects, employee benefits and the all-you-can-eat sushi bar. Their corporate culture and extensive employee benefits are facts known to the public, so much so that people desire to work at Google because it’s cool to work there. This is the product of successful employment branding, where a company’s reputation precedes the experience of working there.

An employment brand is the market perception of what it's like to work for an organisation. It’s the image that your prospective, current, and past employees have about the employment experience at your company. Simply put, it is the reputation of the company that shapes the impression of the industry, jobseekers, employees, and other stakeholders. This includes characteristics like the organization’s company culture, work environment, employee benefits, and employee value proposition (EVP). According to LinkedIn’s 2021 Employer Brand Statistics, 72% of recruiting leaders worldwide agree that employer brand significantly impacts hiring.

Not only does the employment brand illustrate how it’s like to work for your employees, but it also attracts talent, the right talent who share the same values and goals of your organisation. Your employer brand strategy will market your company to job seekers and talent in your industry.

There are numerous reasons why any company needs a strong employment brand:

1. Reputation

Reputation is a delicate and fragile business: a nasty comment could topple years’ work of hard work. Employment branding is a crucial part of your reputation management because nobody wants to do business with a company known not to treat its employees well. Companies with positive employer brands can get up to twice as many applications as companies with negative brands.

2. Talent attraction

In a competitive job market, the best talent is looking for the best place to work at. Benefits, salaries, culture, and mutual talent will attract the best talent to apply to work at your company. HR managers often struggle to hire the talent they need due to skills gaps and other factors, and a good reputation can cause a huge difference in how efficient a hiring manager can be. After all, talent will always flock to best-known organisations that will value their skills and abilities.

3. Compete on another dimension besides compensation

Large corporations can provide attractive salary packages, but younger and smaller companies can increase their desirability by offering other incentives. Expected salaries and compensation packages are also more expensive: Harvard Business Review found that a company with a poor reputation will cost the company at least 10% More Per Hire. On the other hand, 40% of passive candidates would accept a new position without an increase in pay if the company had a good employer brand.

4. Talent retention and employee satisfaction

Branding the experience of working at your company solidifies the identity of your company in general. After all, employees define the company culture. Having clear employer branding helps employees form a tighter bond to the company and will positively influence their work satisfaction. After all, happy employees will always equate to performance and retention. Your employees are also your biggest ambassadors and examples. In many companies, employee referrals are one of the most common ways a company finds new talent.

5. Company value alignment

What does your organisation stand for? What can it offer to society? These are the questions that shape the company’s core values. As people grow more aware of the ethics and practices of their company, people are attracted to companies that align with their values and beliefs. Having a strong emphasis on company values will also attract like-minded talent to work at your company, building a team with compatible and dynamic personalities.

6. A lack of employer branding is costly

The last and most important reason to have strong employer branding is simply the costs of not having one. The positive effects of successful employer branding are long term and may not be apparent immediately. As such, many executives make the mistake of neglecting their employer branding strategy. So, what are the costs of not investing in employer branding?

Poor talent attraction is possibly the most costly. As recruitment specialists, we generally experience more difficulty introducing a less known company with top talent and spend more time persuading them to join the company. Watch what your online employer reviews say, because a poll from CR Magazine and Cielo Talent showed that almost 50% of workers said they wouldn't work for a company with a bad reputation, even with a big increase in compensation. In addition to a much smaller talent pool, companies with lesser recognition often have to compensate with higher wages as compared to other companies in the market. According to LinkedIn’s Employer Branding statistics, companies with successful employer branding experience a 50% reduction in wages in cost-per-hire, 1-2x faster recruitments and 50% more qualified candidates. The company becomes a talent magnet, and the new hire will be proud to be part of your company.

Employer branding can also greatly cut costs, in relation to the ability to retain their staff. Companies that are successful in their employee branding efforts experience a 28 % reduction in the organization’s turnover annually. Moreover, your happy employees can lead to employee referrals, which statistically lead to faster hires, lower recruitment costs, higher job satisfaction and better performance. It’s a win-win situation! Happy employees are your best assets and your biggest leverage.

As recruiters, we know the best human resource strategies that will ensure the success of the company. While the ROI may not be immediate, boosting your employer brand as part of your human resource strategy will benefit your company in the long run. From talent attraction, reduced costs, higher staff performance, employee satisfaction, retention and so much more, thinking long term about leveraging your company’s reputation in the industry will help your business grow stronger.

At WeLinkTalent, we are experts at refining recruitment strategies to link you with the best talent for your businesses of different scales. Look internally for your best talent. Contact our consultants to find out more. Follow us on LinkedIn!

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