Employer Branding can be simply defined as actions aimed at building a company's brand as an "employer of choice". Every company wants to be one, but only a few manage to do so. So why are so few companies involved in building a strong employer brand?
There are many reasons: the time needed to create the program, its long-term character, the need to change the organizational culture or simply insufficient budget. However, those who decide to invest time, money and energy see measurable benefits. According to LinkedIn, 83% of the leaders in this area believe that a strong employer brand significantly influences the ability to attract the best people.
To dispel doubts, it is worth quoting 5 most frequently mentioned business benefits resulting from conducting Employer Branding activities.
The employee is the company's ambassador
Effective Employer Branding has both external and internal impact. In companies where a challenging working environment is created and employees feel that they are co-creating the organization, the motivation to act increases as well as the tendency to positive opinions and to recommend the company to friends.
Statistics show that more than 50% of job seekers believe that current employees are the best source of information about how things really are and they benefit from this privilege. So, considering that we are only six contacts away from any person in the world (and according to Facebook even less: only 3.5), finding a person who can tell us something more about the employer of dreams is trivial.
Lower costs and more applications
Companies with strong brand names spend less money on recruitment. They also spend less time gaining high-quality employees. Investing in Employer Branding can reduce recruitment costs by half and double the number of applications (source: LinkedIn). This happens when a strong brand effectively communicates with potential candidates providing them with information about who it is and why it is worth working for, which facilitates precise decision-making about the application.
Lower rotation costs
Employers, acting by the values and recommendations they promote during the Employer Branding activities, can reduce the level of rotation in the organization by up to 30%. Employees perceive the brand as authentic and show a higher level of commitment, they also declare higher job satisfaction. A high level of commitment and identification with the company leads to a high quality of services or products and, consequently, to an improvement in financial results. A strong employer's brand may increase stock prices by 36% (according to Lippincott's data).
Candidates adequate to the needs
Employer Branding is not only about attracting more candidates but also about attracting the right people who fully identify with the company's culture and values. The result may be a reduction in staff turnover during the first six months of employment of up to 40%. Well communicated brands save time for candidates by informing them at an early stage about the company's mismatch, and for HR specialists in the process of selection of candidates who will not fit for the organization's needs.
The foreseeable trend
The number of entities, declaring to increase the budget for Employer Branding activities and to have comprehensive programmes in this area, is increasing year by year. Taking into consideration the high competitiveness and forecasts stating that by 2020 the labor supply in Poland will decrease by 0.41%, and only in 2020 - by 0.75% (source: BCG), Employer Branding is not a fast fashion trend, but a pillar of an effective, long-term business strategy.