When you craft a strong employer brand, you’re building a solid foundation for the future. We go through 10 reasons why every organization needs a well-defined employer brand. From attracting high-quality candidates, hiring them, and retaining talented people – defining your employer brand is compulsory for competing in today’s business environment.
Written by Brooke White, Sr. Employer Brand Specialist
10 Reasons Why You Need an Employer Brand
When done properly, employer branding will establish your reputation as an employer by telling your unique story, creating an authentic brand people can trust.
Like clients, customers, or partners, candidates also need to understand what a company stands for before interacting with them. But a good employer brand doesn’t just attract more candidates, you reap other benefits as well.
1. SPARK INTEREST FROM THE RIGHT CANDIDATES
Paired with your value proposition, your employer brand should dictate the type of candidates you’re looking for. When you’re upfront with applicants about the qualities and characteristics it takes to be successful with your organization it filters out those who don’t fit the profile early in the recruitment process.
2. COMPETE FOR “TOP” TALENT
Great people know they’re great, and it gives them bargaining power. Truly great talent can afford to pick and choose prospective employers - and they know what they want. Articulate your brand effectively and you too can be amongst those competing for their talent.
3. REDUCE RECRUITMENT COSTS
According to a recent LinkedIn study, companies with strong employer brands, compared to competitors see a 43% decrease in the cost per candidate they hire.
When you have a strong employer brand the candidates come to you. You can reduce your spending on advertising, job slots and marketing campaigns by creating word-of-mouth awareness for your organization.
4. CUT TIME TO HIRE THROUGH PIPELINE BUILDING
It takes much less time to fill a vacancy if people want to work for you. With more qualified candidate applications, your recruitment team can shift from a transactional mindset to a more consultative approach, building pipelines instead of managing requisitions.
In addition to more recruitment capacity, your employees will be more inclined to refer candidates from their personal networks.
5. COMPENSATE FOR LACK OF COMPENSATION
A recent CareerBuilder study claimed that 67% of candidates would entertain an offer with lower pay if the company had a better reputation than their current one. Salary is a key consideration for candidates when seeking a new opportunity – but, it’s not the only thing. If you have a strong employer brand that resonates with candidates, you can attract them over competitors even if you can’t offer the same cash incentive.
6. REDUCE TURNOVER
Turnover is typically a result of unmet expectations. Either a person leaves because the experience isn’t what they expected, or they’re let go because they weren’t what the employer expected.
Strong, well-defined employer brands set these expectations. When you’re clear about what you’re after and what you have to offer, there’s a greater opportunity to hire the right people and retain them.
7. IMPROVE EMPLOYEE ENGAGEMENT
When employees are happy and engaged, they’re eager to put in the extra effort. Companies with a strong employer brand have more engaged employees who are proud of where they work, they feel valued for their contributions and push to improve their performance.
8. PROMOTE BRAND AMBASSADORS (FREE PR)
Job seekers rank current employees as the highest, most trusted source of information about a company. When employees love where they work, they tell people - It’s free marketing that ends up being more effective than the more conventional alternatives.
9. PROVIDES ORGANIZATIONAL DIRECTION
When your employer brand is well-defined, it tells employees and leaders in the organization what you’re working towards collectively.
This serves as a guide for how management should lead, how new programs should be executed, and what priorities should be focused on. Once defined, all people-related business activities and strategies should be inspired by and align with the employer brand.
10. IMPROVES BUSINESS
A strong employer brand has benefits outside of talent acquisition and retention. When your people are happy and engaged, it results in improved business metrics. From the absenteeism rate to inventory shrinkage, quality defects, and overall productivity – a strong employer brand drives improvement across the organization.
It’s easy to see why building an employer brand isn’t just preferable – it’s necessary. At Adverto, we specialize in helping businesses define their employer brands to better compete in the talent market.
With experience working alongside organizations of diverse sizes, we’ve perfected a process for truly understanding who you are, what you have to offer and how we can best communicate that to the right candidates.
Send us an email and we’ll help you get started!