When a company fails to prioritize employer brand, it's doing itself a huge disservice on multiple fronts because job seekers, internal employees, and consumers are paying attention and they do care. Inside of your organization, employees obviously know if they’re satisfied or not, and if they're not getting what they want and need, they’ll look for an employer willing to give it to them. Even if employees aren’t actively looking for a new job, if they happen to be contacted by a recruiter who is sourcing talent, they’ll entertain offers that come their way—and take one from a company that does care about its employer brand.
Outside of your company, a negative employer brand will make great talent look elsewhere. Job seekers research organizations before even applying for a position, and if they don't like what they see, they'll move on to the next. In addition, a negative employer brand can impact your bottom line as consumers and investors alike are interested in doing business with organizations that treat their employees with the dignity and respect they deserve. According to CareerArc, "64% of consumers have stopped purchasing a brand after hearing news of that company’s poor employee treatment.” As a result, companies should care about their employer brand and when they do, they reap the numerous benefits of employer branding.
5 Benefits Of A Strong Employer Brand
A successful employer brand requires effort, but it's essential to the success of your business. The following are benefits of employer branding that all companies should care about.
1. Controlling Your Own Narrative
First and foremost, one of the benefits of employer branding is that it allows you to tell your company story the way you want it to be told. If you're not telling your own story, you can be sure that someone else will fill that void—whether it's current employees complaining about your organization on social media or disgruntled past employees leaving negative reviews on third-party sites. If this happens long enough, your reputation among job seekers can tank and once you lose control of your own narrative, it’s almost impossible to get that horse back into the barn. This means companies need to not only nurture an employer brand that makes workers happy but tell their own success story over and over again to drown out the noise of discontent.
2. Attracting The Best Talent
The best talent can afford to be picky, and they're not willing to entertain offers from companies with a less than stellar employer brand. Nor will they stay at companies not giving them what they want.
And what does talent want?
According to LinkedIn, workers think a good employer brand consists of five characteristics: job security, professional development opportunities, opportunities to work on better teams, shared values, and a positive narrative from past and current employees. These characteristics are so important, in fact, that having three of them is enough to attract 41 percent of workers regardless of the salary being offered. This number jumps to 46 percent if companies have all five of them, also irrespective of pay. In addition, 40 percent of workers admit that they're willing to move to another organization that has most of these qualities, even if they don't get a pay increase when they do.
The Early Talent Sentiment Report
3. Boosting Key Recruitment Metrics
Tackling recruitment in a data brave way is always the best approach because it allows you to understand where you are, and make a plan to get to where you want to go. A strong employer brand can contribute to improving your recruiting metrics in several ways. When candidates are confident that working for your company would be the right choice because of your employer brand, your offer-acceptance rate will get a boost and it will take less time to fill open positions—thus also contributing to a lower cost per hire. In addition, a good employer brand can help to drastically reduce your turnover rate because you’re giving workers what they want and need. Employer branding has a direct impact on the metrics that matter most to recruiters, so creating a strong employer brand can help you hit your TA goals.
4. Standing Out From the Competition
If you don't have the name recognition of larger companies in your industry, recruitment may be challenging. Your brand isn't as well known as the big players, and you don't have the recruitment budgets they do. You can level the playing field, however, by building a strong employer brand. Creating an appealing work environment and selling it on multiple channels allows you to become a talent magnet, even if you're competing with the behemoths of your field.
5. Maintaining Credibility Among Customers
While companies spend a lot of time trying to beat out the competition, most don't realize the impact their employer brand has on what consumers think of them. People notice when there are constant stories about a company mistreating its employees. Customers notice when the organizations they do business with have constant turnover. Consumers are not willing to support companies that don't treat their employees the way they deserve to be treated—and they're showing their support with their wallets by gravitating toward organizations with a known positive employer brand. Additionally, investors are more likely to put their money behind organizations with a favorable employer brand, so it can have a huge impact when seeking funding.
Whether you're concerned about attracting new talent or holding on to the talent you already have, employer branding should be a priority. The benefits of employer branding cannot be understated because they are associated with the health of your company from the inside out.
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