Importance of Employer Branding in Recruitment

In our experience, when it comes to Employer Branding (EB) there are three groups of companies: 

1.Those that do not understand the importance of employer branding, and therefore don’t prioritize or fund it at all.

2.Those who understand the importance of employer branding but find it challenging to prioritize it and build it into their budget. 

3.Those who understand the significance or importance of employer branding but cannot convince their superiors.

This post is for that third category. Cited herein are several statistics that will help you make a compelling case as to why a more significant employer branding investment is needed. For further assistance, the next step is to contact us for expertise and moral support. We stand ready to be of service. 

This is Why You Need a Bigger
Employer Brand Budget

In a nutshell, these are reasons why you likely need a bigger EB budget. 

• Investing in EB will save your company money
• Investing in EB will increase company profits
• Investing in EB will improve employee retention
• Investing in EB will improve the quality of recruiting

Investing in EB will save
your company money

• Companies actively investing in employer brand can reduce turnover by as much as 28% (officevibe)  
• Companies with positive and strong employer brands get twice as many applications as
  companies with negative brands. They also spend less money on employees. (Betterteam) 
• A strong employer brand can reduce the cost per hire by as much as 50%, and a negative reputation can cost a company as much as 10% more per hire. (Glassdoor) 
• Companies with poor employer branding pay 10% higher salaries. (Smartdreamers) 
• A strong employer brand reduces turnover by 28% and recruitment costs by 50%. (ThriveMyWay) 
• Each vacancy costs the average company $500 a day. (Solutions-Driven) 
• A strong employer brand can reduce the cost per hire by as much as 50% (LinkedIn) 
• A negative reputation can cost a company as much as 10% more per hire (HBR)  
  

INVESTING IN EB WILL INCREASE PROFITS

• Highly inclusive organizations generate 1.4 times more revenue and are 120% more capable of meeting financial targets. (Gem) 

INVESTING IN EB WILL INCREASE
EMPLOYEE RETENTION

• 56% of employees say additional paid time off would make them more loyal to an organization. (Fierce, Inc) 
• 75% of employees would stay longer at an organization that listens to and addresses their concerns. (Ultimate Software)
• 47% of HR leaders cite employee retention and turnover as their top workforce management challenge, followed by recruitment and corporate culture management. (SHRM) 
• 78% of employees said they would remain longer with their employer if they saw a career path within the current organization. (Mercer) 
• Almost 30% of job seekers have left a job within the first 90 days of starting (indicating misalignment between the candidate and the employer brand) (The Muse)  
• 93% of employees say they're more likely to stay at an organization with an empathetic employer. (Businessolver) 

Companies with a strong employer brand have a more engaged workforce with greater retention. Good to know when you consider...

One of the biggest reasons why millennials are leaving their jobs behind is simply because they’re not engaged. They have become the least engaged people in the workforce. Only 29% of millennials are engaged, compared to 33% of baby boomers, 32% of Gen Xers, and 45% of traditionalists. (Gallup) 

INVESTING IN EB WILL INCREASE
QUALITY OF RECRUITING

• Organizations that invest in employer branding are three times more likely to make a quality hire. (Glassdoor)
• Businesses with excellent employer brands receive 50% more qualified applicants. 
  (Finances Online) 
• Organizations that invest in a strong candidate experience improve their quality of new hires by 70%. (Glassdoor)
• 50% of candidates say they wouldn't work for a company with a bad reputation, even for a pay increase (HR Daily Advisor) 
• When deciding on where to apply for a job, 84% of job seekers say the reputation of a company as an employer is important. And 93% say it’s important to be thoughtful and informed about all aspects of a company prior to accepting a job offer. 
• 86% of employees and job seekers research company reviews and ratings to decide on where to apply for a job (Glassdoor) 

Other considerations are the impact of your company's reputation and how it is being perceived by passive candidates. 

REPUTATION MATTERS

• 90% of job seekers say that it's important to work for a company that embraces transparency. (Glassdoor) 
• 92% of people would consider changing jobs if offered a role with a company with an excellent corporate reputation (HR Daily Advisor)   
• 50% of candidates say they wouldn't work for a company with a bad reputation, even for a pay increase (HR Daily Advisor)
• 68% of Millennials, 54% of Gen-Xers, and 48% of Boomers indicated they visit employer's social media properties specifically to evaluate the employer's brand (Careerarc) 

If you need additional support with your employer brand strategies and initiatives, reach out and start a conversation with us today. Click here or tap the contact us button below.