Today’s most powerful employer brands have an edge when it comes to attracting strong talent and creating highly engaged teams. They have a great story. They have strong advocacy. They have fierce loyalty. So why do so few companies take the time to invest building a strong employer brand? Because it requires commitment, resource and behavioral change across the whole organization.
But those who invest the time, money and organizational energy see significant returns. According to LinkedIn, 83% of talent acquisition leaders say that employer brand significantly impacts their ability to hire great talent. And when you approach the process with discipline and structure, building a great employer brand can be easier than you think. The first step is to be clear about your goals, align your organization around them, set baselines and commit to improving them.
To help you in your internal advocacy, are the four most common business benefits of a great employer brand program and some ways to measure their impact.
Attraction: halve your hiring costs, double job applications
Companies with strong employer brands spend less time and money recruiting quality candidates. Implementing an employer brand program can halve your hiring costs and double job applications (Source: LinkedIn). This is because a strong employer brand, communicated effectively to your target talent pool, drives both awareness (I know who you are) and consideration (I want to work for you).
Measuring attraction: Metrics such as career site traffic and number of applications should be readily available and easy to track. And consider a brand perceptions study to track awareness and perceptions of your company vs. the competition amongst your target audience.
Applicant quality: bring in the right talent, reduce your turnover
Employer brand isn’t just about attracting more people; done well, it will bring in the right talent. This is because a strong message about your company’s culture, values and behaviors will attract applicants whose own values are a match. As a result, early turnover in the first 6 months of employment can be reduced by 40%. A well-communicated brand also helps job seekers understand when they would not be a good fit for a company, saving them the trouble of applying – and you the time of sorting through irrelevant applications.
Measuring quality: When it comes to applications, it’s important to measure quality as well as quantity. Track your time to fill metrics and total hiring costs to quantify the impact. But also implement an applicant quality score and review early turnover metrics to demonstrate that hiring decisions are improving.
Engagement and Advocacy: turn your employees into ambassadors, grow your bottom line
Powerful employer brands have an internal as well as an external impact. When your company creates a distinct and authentic environment where employees are challenged, feel that their contributions hold value and are recognized for their efforts, your employees become more engaged in their work.
And when people love their job, they’re happy to talk about it. Half of employees say they post messages, pictures or video in social media about their employer. And with over 50% of job seekers saying current employees are their best way to learn about your company, let those who love their job shout it from the rooftops.
These increased levels of engagement and advocacy lead to a higher quality of service or product, and, ultimately, a better bottom line. A powerful employer brand can increase your stock prices by 36%. (Lippincott via LinkedIn).
Measuring engagement and advocacy: Set a baseline with an employee engagement study, then run it again 6-12 months post-launch of your employer brand story. Give your internal ambassadors simple social media advocacy tools and track the number of interactions.
Lower turnover costs
Companies that stay true to their employer brand and deliver on the expectations during the hiring process experience lower levels of turnover, reducing turnover rate by up to 30%. Employees feel the brand is authentic and can more easily embrace the culture- resulting in higher levels of engagement and job satisfaction.
Measuring turnover: length of service and turnover rates should be easy to track. Work with your Finance department to calculate the cost of turnover – consider direct separation and replacement costs, as well as indirect costs (such as loss of productivity or further turnover).
Creating and activating a strong employer brand requires knowledge, internal alignment, creativity and discipline. We partner with our clients through a five step process, including research, creative development, internal adoption and external marketing.
Our employee engagement and culture experts are specialists in helping organizations understand how to attract, engage and retain talent, creating happy, healthy and successful workplaces.
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