In this digitally connected, fast-paced world, it is a challenge for companies to remain competitive and relevant, not only to their consumers but also to their employees.
So what exactly is Employer Branding?
Every company has a brand image associated with its products and services. This defines its value proposition to the consumers and is referred to as product branding.
Similarly, the employee value proposition that a company creates for its current and future employees, is termed as employer branding. In other words, the image of the company; as a positive employer or a negative employer, from the aspect of the current employees and the overall talent pool, is what employer branding is all about.
So why is Employer Branding important?
As per a recent study was done by LinkedIn, 75% of candidates research the company’s reputation and employer brand before applying for an advertised post.
Almost 69% of candidates would prefer not applying or not accepting an offer from a company, which has a negative employer branding.
With social media becoming all-pervasive, negative feedback from current employees or past employees can lead to a ripple effect, causing hurdles in talent acquisition. For any business to thrive and achieve its strategies, attracting and retaining a talented workforce is a critical feature.
The above referred LinkedIn survey also noted that almost 83 % of employers felt that the employer brand plays a significant role in their ability to hire talent.
Companies with good employer branding have qualified and satisfied employees thus leading to high levels of employee engagement.
Components of Employer Branding
Everything that a company does to amplify the message towards creating a positive workplace; employee engagement strategies, salary perks, on-site benefits, work-life balance, career advancement facilities, growth opportunities, management ethos, employee recognition, team efforts; together contribute to the overall employer branding.
Just like product branding, here too the company needs to identify how it wants to be projected in the recruitment marketplace. The correct image and brand attract the right talent. And satisfied employees, are of course the greatest advertisers to spread and enhance employer branding. User feedbacks, company reviews and social media handles/ profiles of employees go about a long way in positioning employer branding.
How does employer branding impact your business
A strong employer brand helps a company to attract quality talent and an increased number of applicants in their recruitment drives. It also leads to a reduction in recruitment costs and maintaining an edge over competitors. A recent poll by Cielo Talent showed that almost 50% of workers don’t want to work with companies with a bad reputation, even with increased compensation. With careful investment in employer branding, companies can choose from a vast and interesting talent pool that can be trained and retained, leading to savings in recruitment costs.
To identify and formulate your employer branding strategy today to improve your business prospects.