Employer Branding – Why is it so important?

In today’s competitive job market, making sure your employer branding is spot on is crucial. This is because attracting top talent now requires more than just offering good salaries and benefits.

In this blog, we’ll be exploring what employer branding is specifically as well as measuring the impact it has on several areas. These include: 

What is employer branding?

Employer branding is all about how a company is perceived as a place to work.

It’s the reputation an organisation builds among its employees and potential hires. This includes everything from the company’s values and culture to the work environment and opportunities for growth. 

A strong employer brand helps a company stand out, making it easier to attract the right people and giving potential employees a clear picture of what they can expect if they join the team.

In simpler terms, employer branding is how people, both inside and outside the company, view the organisation as an employer. 

It plays a big role in keeping employees engaged and loyal while also making the company more appealing to job seekers. When a company’s brand reflects its actual employee experience, it can create a more authentic and compelling image, leading to better recruitment, retention, and overall productivity.

1.

How does a good/bad employer brand impact talent attraction?

A strong employer brand positively impacts talent attraction by making a company more appealing to prospective candidates. When an organization is known for its positive culture, career development opportunities, and employee satisfaction, it naturally attracts top talent.

Candidates are more likely to apply and feel excited about the possibility of joining a company that aligns with their values and offers a supportive work environment. This can lead to an increase in high-quality applicants, helping the company stand out in a competitive job market.

On the other hand, a poor employer brand can have the opposite effect.

75% to 86% of job seekers research a company's employer brand before applying for a job
Around  of job seekers research a company’s employer brand before applying for a job. If a company is perceived to have a toxic work environment, poor management, or a lack of opportunities for growth, it will struggle to attract the right talent. Negative reviews from current or former employees, lack of engagement, and a tarnished reputation can deter qualified candidates from applying, ultimately limiting the company’s ability to bring in top-tier talent.

2.

What does good a good employer brand look like?

A strong employer brand is one that authentically represents what it’s like to work for a company, making it a desirable place for top talent.

Companies with a good employer branding usually prioritise growth, flexibility, and work-life balance, creating a positive environment where employees feel valued. This results in higher job satisfaction, a lower employee turnover and according to LinkedIn, a 43% decrease in hiring costs.

Organisations that invest in their brand often have positive reviews on platforms like Glassdoor and a strong social media presence. They also utilise employee advocacy to the best of their ability, often sharing internal progression stories or celebrating internal achievements.

Strong Employer Brands See an Average 43% Decrease in Cost Per Hire

3.

What does bad employer branding look like?

 

Bad employer branding often becomes evident through negative reviews on platforms like Glassdoor, where employees share their dissatisfaction with poor management, lack of career growth, or toxic workplace culture. 

These negative reflections can severely harm a company’s reputation and discourage top talent from applying. When potential candidates read consistent negative feedback, it tarnishes the company’s image, making recruitment significantly harder.

The financial impact is clear: companies with a poor employer brand pay at least 10% more per hire because they struggle to attract quality candidates and must invest more in recruitment efforts.

This not only increases hiring costs but also perpetuates a cycle of turnover and disengaged employees, further weakening the employer brand and making recovery difficult.

4.

How does an employer's brand impact employee retention?

Employer branding plays a crucial role in employee retention by fostering a positive work environment and strong company culture, which encourages employees to stay long-term. When a company invests in its brand, it signals to employees that their well-being, growth, and values are prioritized. 
 
This builds trust and loyalty, reducing turnover.
50% of employees would not work for a company with a bad reputation.
A poor employer brand, on the other hand, can drive talent away. In fact, 50% of employees would not work for a company with a bad reputation, even if offered more pay. A strong employer brand helps retain talent by creating an environment where employees feel valued, respected, and aligned with the company’s mission, reducing the likelihood of them seeking opportunities elsewhere.

5.

How do I improve my employer branding?

Create a strong employee value proposition

An employee value proposition encapsulates what makes your company a great place to work, focusing on aspects like work culture, career growth, rewards, and recognition that set your organization apart from competitors.

When creating yours, think about all the fantastic points that sets your company apart from others. Avoid generic promises like “we value teamwork.” Instead, highlight specific perks, like your commitment to work-life balance through flexible work schedules, or how you invest in employee wellness programs. 

An organisation with a well thought out EVP can cut annual employee turnover by almost 70%, so start thinking carefully about what you can actually offer employees beyond what they could get anywhere else.

Make sure your employee value proposition is communicated consistently across your career site, job ads, and social media.

Turn employees into brand advocates

As a candidate, you’re likely looking for proof that the job you’re applying for is a good company/culture fit. Turning employees into brand advocates enhances your employer brand by showcasing authentic, positive experiences, which builds trust and attracts top talent.

Foster an environment where employees feel proud to share their experiences. This could mean creating employee advocacy programs where team members voluntarily share their daily work life on LinkedIn or participate in company blog posts.

You could also implement initiatives like “Employee Spotlight” to regularly highlight team members on social channels. This not only showcases your culture but also increases engagement with external talent.

Also, don’t forget to ask existing employees to share their experiences on websites like Glassdoor to counteract any negative reviews you may have!

Respond transparently to negative reviews

Ignoring bad reviews on platforms like Glassdoor can be detrimental. Instead, tackle negative feedback head-on by addressing concerns directly and transparently. This shows you care about improving and value employee feedback.

Always offer solutions to address the issues, such as outlining steps you are taking to improve management or workplace culture. Candidates appreciate this transparency and are more likely to trust a company that is willing to learn from mistakes.

Integrate employer branding into your recruitment process

Train your recruiters and hiring managers to embody your brand values during the hiring and onboarding process

Use interviews to showcase your company’s culture, by having candidates meet a cross-section of the team or take virtual office tours. 

This creates a more personalized candidate experience, giving applicants a clear vision of what it’s like to work at your company.

Showcase growth opportunities & career progression

Career-driven individuals are always seeking growth opportunities, so if you want to attract top talent, you must offer clear paths for progression.

A great way to strengthen your employer brand is by showcasing real employee success stories. 

Highlight internal promotions, participation in training programs, mentorship, or leadership initiatives. 

Sharing these stories on LinkedIn, YouTube, or internal platforms demonstrates your commitment to development and reassures your current employees that growth is a priority.

6.

Why is employer branding so important?

Employer branding is essential because it plays a key role in shaping how your company is perceived by both potential candidates and existing employees.

It influences recruitment, retention, and overall company culture, making it a strategic priority for long-term success.

What are the advantages of a good employer brand?

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