The 5 Main Reasons Employer Branding Matters (And What CEOs Say)

May 21, 2019

There are a lot of articles out there that talk about employer branding – how to manage it, what not to do about it, and tips for improving it. Heck, many of those articles are right here on our blog!

But is there enough information out there that talks about not just how employer branding works, but actually WHY employer branding matters?

Knowing why employer branding matters is something that every growing company and HR team needs to know, because how else will the necessary time and resources be made available for it? In today’s tough hiring market, an organization’s employer brand is just as important as its company brand and must be managed that way. Here’s why:

Employer branding helps companies…

1. Recruit larger numbers of higher-quality candidates

“To win in the marketplace you must first win in the workplace.”  ~Doug Conant, CEO of Campbell’s Soup

Imagine that instead of, say, 85% of the resumes you receive being from unqualified or inexperienced candidates, what if you could revel in 50% of your job candidates being qualified? Or more? Nice thought, right? Creating a strong, positive employer brand can help your company attract a larger percentage of those high-performing A-players because you’ll present yourself as an attractive and interesting place to work to the right people.

2. Lower cost-per-hire

Hiring team members is expensive, especially when you have important requirements in the job description. Advertising the job, paying the people involved in the interviewing process, paying recruiters, and on-boarding all cost time and money. A visible, appealing employer brand assists in active and passive candidates being more interested in your company. If you have a higher number of candidates, you are able to fill positions faster, which costs your company less. Over the course of dozens of hires, this can add up to big money.

3. Improve the likelihood of converting top candidates into new hires

“Employer branding is what makes your company a great place to work. It’s what makes people want to come work for you.” ~-Vladimir Gendleman, Founder and CEO of Printwand

People want to work in a place where they will be comfortable, where they are appreciated, and where there are ample opportunities for their own career development. Job applicants will look for evidence that you’re company is this type of organization by what your employer branding looks like, which includes your online presence, career page, social media, reviews from current and previous employers and overall identity as an employer. If they are weighing 2 or more similar offers, a strong employer brand might be what tips the scales. 

4. Achieve better employee engagement

Always treat your employees exactly as you want them to treat your best customers.” ~Stephen R. Covey, author

Employees want to feel like they contribute and make a difference to their company goals. They also want to fit into their work environment. By showcasing an authentic and transparent employer brand, job candidates who go on to become employees have a deeper awareness about the company than if the employer brand was weak. Knowing this information helps them figure out sooner if they will be a fit, and a good fit helps them stay motivated and engaged.

5. Experience less employee turnover

“People leave when they don’t feel appreciated. That’s why we’ve made recognition a really high value. Our business is people-capability first; then you satisfy customers; then you make money.” –  David Novak, CEO of YUM! Brands

An employer brand that showcases how it is currently to work at your company helps you attract the candidates that SHOULD be working at your company in the future. By creating a solid and authentic employer brand, you can more effectively communicate how your company is different from others and why a job applicant would consider themselves fortunate to build a career with you.

One last thing to know: CEOs recognize and place high value on a strong employer brand, too.

CEO of AVIS, F. Robert Salerno, states that:

It’s impossible to win the hearts and minds of people unless you clearly establish goals and values and reward people if they act in a way that leads to the fulfillment of those objectives. It quickly became clear to me that if you want to make sure your customers are treated well, you have to make sure you treat your employees well and recognize their efforts.”

Sophie Miles, CEO of quotesadvisor.com, comments:

“Employees who perform their duties in a company with a good reputation, where they feel proud to work, surely want to stay for a longer time and develop a career plan and development within it, which translate into a lower turnover rate of personnel.”

By cultivating an employer brand that showcases your company’s positive attributes, opportunities, and authentic company culture, you’ll be much more able to attract, hire, and retain highly talented employees to your organization. A strong employer brand is the not-so-secret weapon that can change the game for any growing company in this competitive hiring climate.

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Linda Le Phan
Senior Content Marketing Manager at kununu.

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