An effective employer brand gives quality job seekers a good reason to choose an organization over its competitors, helping it build an expansive talent pool. Discover the many benefits of building an employer brand and how to create a targeted impact.

Why Should Businesses Build an Employer Brand?

At face value, asking candidates what they want and giving it to them seems like the best way to attract and retain talent. However, according to the Harvard Business Review, this approach tends to be a trap. 

Material offerings — such as compensation, office space, schedule flexibility and job perks — are often immediately appreciated but don’t generate long-term value. Their impact is temporary because they must positively correlate with tenure and promotions. Also, competitors can easily imitate them, eliminating any competitive advantage. 

Career growth opportunities, meaningful workloads and social connections with colleagues are better than material perks because they foster a sense of community, belonging and purpose. All these factors are part of an employer’s brand or reputation among employees.

People want their employer’s values, mission and performance expectations to align with theirs. Companies can use this to their advantage, intentionally marketing themselves to positively shape public perception. In this context, employer branding involves developing and promoting the company to attract job seekers and retain top talent. 

Employer Branding’s Impact on Recruitment and Retention

How business leaders present their organization to prospective and current employees can determine hiring success and job satisfaction. 

Decision-makers control their employer brand, which is the principal differentiating factor for attracting high-quality candidates in an oversaturated labor market. If multiple businesses offer the same pay, benefits and hours, then candidates will likely be swayed by work environments and employee experiences.

Work makes up a significant portion of people’s waking hours. If they feel they belong at their workplace and their job is important, they are less inclined to seek work elsewhere. Companies with employees who enjoy what they do and believe in their organization’s mission have a lower turnover risk. An engaged worker is often a happy worker.  

How Building an Employer Brand Benefits Businesses

If done well, employer branding improves talent acquisition by incentivizing quality candidates to apply, making the process faster and more affordable. According to Glassdoor, a strong employer brand can decrease hiring expenses by 50% per hire. Conversely, a negative reputation can increase recruitment costs by up to 10% per hire. 

An employer branding-based marketing approach also grants a competitive advantage. Competitors with the same material offerings won’t be able to outshine strong branding. Like consumer marketing, it sells an idea, promising applicants access to an enjoyable, purpose-driven career path. 

Long-term engagement gains take longer to manifest. However, the people who apply after being swayed by the branding will be more engaged than those who are only in it for the paycheck. The work resonates with them, compelling them to go above and beyond. 

Research shows that employees who establish a work-life balance are twice as loyal, happy and productive in the workplace. They also accomplish more during the workday — helping to save money and preserve customer satisfaction — and are less likely to seek employment elsewhere. 

How to Develop a Strong Employer Brand 

Although no one-size-fits-all strategy exists, there are several general steps every organization should take to build a brand. 

1. Get Familiar With the Organization

Every organization has gaps. Say the careers page boasts fun corporate events but hasn’t been updated since the firm transitioned to telecommuting. Business leaders could address this discrepancy to attract remote candidates. 

Getting in the heads of prospective hires helps leaders understand how they will interpret a company’s culture, mission and work environment. Many job seekers evaluate an employer’s brand before applying. 

2. Develop an Employer Value Proposition 

A value proposition includes offerings, experiences and benefits that firms provide to employees in return for their contributions. Decision-makers should design theirs to reflect their brand and emphasize their unique qualities. This way, a firm is more likely to attract the type of talent they want to hire. 

3. Actively Promote the Employer Brand 

Branding avenues include social media, job descriptions, career pages and word of mouth. The more touchpoints companies cover, the greater their impact. 

Adhering to the “show, don’t tell” technique is generally a good rule of thumb because it demonstrates follow-through. Job seekers may prefer seeing images of a reforestation project or a fun corporate event rather than a vague paragraph describing commitments without evidence to back them up. 

4. Use Data-Based Metrics to Track Progress

Using data to track application rate, offer acceptance rate, time to hire, quality of hire and retention rate can help leaders determine whether their strategies are paying off. It can also help them determine whether the employee experience is consistent and positive across all channels. 

How Business Leaders Can Optimize Strategic Impact

Businesses should ensure consistency across all external and internal touchpoints. A brand is only recognizable when its tone of voice, core mission and visual identity are unified. This improves trustworthiness and prevents new hires from feeling like a bait-and-switch occurred, reducing the turnover rate for top talent. 

Ensuring the organization practices what it preaches is vital. People who buy into the company culture only to have an entirely different experience won’t hesitate to leave when the opportunity arises. Say they were told the workplace embraces inclusion, only to find that access to entry-level roles is equitable while access to management positions is not. 

If workers feel duped, they might leave bad reviews on Indeed or Glassdoor, dissuading others from applying. Contrary to popular belief, not all press is good press. Management can avoid this outcome by identifying and closing gaps. 

With enough effort, employees can become brand advocates. For example, an organization could host a fundraising event for a good cause and encourage employees to post online. Positive content posted or spread by staff is a great marketing strategy for building an effective employer brand because it feels genuine.

Developing and Maintaining an Employer Brand 

A brand is dynamic and changes alongside the labor market. While culture and values may seem more enduring than compensation and job perks, workers’ expectations will still evolve over time. Companies should revisit their strategy occasionally to ensure it is effective. Proactively implementing minor changes is easier than an eventual complete overhaul.