Your company has a reputation among the workforce and your employees, whether you’ve put work into crafting it or not. Establishing an employer brand that you and your staff are proud of should be a priority for every company, big or small, because it will set you apart from your competitors.
What is Employer Branding?
Your employer brand is essentially how your company is perceived by others, including your current employees. A lot of this comes down to how you’re marketing your company, but it must be reinforced internally to be effective. According to Glassdoor research, 86% of job seekers research company reviews and ratings to decide whether or not they will apply for a job, so if you’ve got a multitude of disgruntled employee reviews, the majority of prospective applicants will pass on your open role.
That’s why it’s important to fine-tune your employer brand and dedicate time and resources to making sure you’re creating a reputation that will attract new employees. Here are the five key benefits of creating a strong employer brand.
1. Attract Top Talent
When job seekers begin their search, they may key in to their search engine, “top companies to work for 2020” or “best companies hiring near me”. We’ll state the obvious: people want to work for a company with a good reputation that treats employees well, so put some serious effort into making sure you are a great company to work for, and spreading the word to the workforce.
LinkedIn research shows that companies can attract 41% of full-time US workers without any pay increase if they have at least three of five of the following qualities encompassing a positive employer brand: job security, more professional development opportunities, the opportunity to work on a better team, an organization with the same values as you and an organization that is talked about positively by present or past employees. And 40% of workers would be willing to move without a pay increase if an organization had most of the qualities of a positive employer brand. The investment you make early on into developing your employer brand will allow you to secure top talent at no additional cost.
Among encouraging employee reviews on websites like Glassdoor and showcasing testimonials on your career site, you can also participate in a Best Places To Work Program. There’s plenty of benefits to joining this program, as well as any that are specific to your industry.
2. Decrease Time and Cost per Hire
With a strong employer brand, your talent pipeline will likely be pretty backed up, which is great news for your hiring manager and your bottom line. With an influx of talent, you’ll be able to vet candidates early, even if you don’t have an open role to fill. That means as soon as a role opens up, you’ll have a surplus of qualified candidates to begin interviewing, rather than starting the process from attracting new applicants. And when it comes time to make an offer, if a candidate is deciding between more than one company, you’ll have a leg up on the competition because of your impeccable brand.
Additionally, companies with good reputations likely have a great work environment, and current employees will refer new candidates to your open positions. Employee referrals have the highest ROI, according to CareerBuilder, and HR technologist says employee referrals come in 55% faster than those sourced from career sites.
3. Boost Employee Morale
Because your employer brand is based on how well you treat your employees and how your employees interact with your customers, a wonderful employee experience will of course boost employee morale.
There’s pride that comes from working for a great company, but there’s also a lot of weight in employees knowing that they are seriously taken care of by their employer. Developing employee career paths, investing in continued training and support, and offering competitive compensation and benefits are all great ways to make sure your employee brand is encouraging morale, and will in turn result in your employees serving your customers better.
4. Raise Retention
Just as your employer brand has a huge impact on employee morale, your retention rates are greatly dependent on your reputation as well. Make your company a place where employees love to come, and you’ll see a dramatic improvement in turnover.
It all comes full-circle, as low turnover is a great sign of a strong employer brand. And perhaps the most tangible benefit to low turnover is an increase in your bottom line — LinkedIn research shows that companies that fail to invest in their reputation lose an average of $5,000 per employee. That adds up quickly with a national turnover rate of 22% — of which many industries are well above — so making the investment in your employer brand is well worth it in the long run.
5. Build Credibility with Customers
Your employer brand can greatly affect your business because top talent will serve your customers better. Having the best team in place makes a difference in customer satisfaction, so if you’re not able to attract quality employees, you can expect a subpar customer experience.
If you can guarantee that every customer will have a positive experience, regardless of which employee is serving them, you’ll build trust among your customer base. According to Zeno’s 2020 Strength of Purpose Study, 80% of consumers will buy from and recommend companies they trust. Building your company’s credibility with customers depends most heavily on your employees, so make sure your company is supporting your most important asset.
Hireology works hard to help you establish and execute on your employee brand. If you’re interested in seeing how Hireology can transform your hiring process from attracting to onboarding new hires, schedule a demo here. And if you’d like some more tips on how to up your employer brand, read our Employment Brand Playbook.