Employer Branding Offers More Benefits Than Just Retention
- posted in: Employment Branding
Employer branding’s claim to fame is often bolstered by new hire retention. Don’t get me wrong, new hire retention can—and should be—bragged about. With turnover costing upwards of 150% of a mid-level employee’s salary, it’s enough reason alone to dive into building an effective employer brand.
However, if you think it ends there, I have a surprise for you. Employer branding offers more benefits than just improved employee retention . So go ahead, have your cake and eat it, too. Here are some of the other benefits of employer branding, which impact more than just recruitment:
When a company effectively and authentically communicates its employer brand, candidates better understand what it’s truly like to work there. This helps those candidates who do not feel they align with the company culture to self-select out, leaving those who are a better fit in the candidate pool. It may sound harsh, but avoiding a bad hire benefits the organization, employees and candidates in the long run.
Increased employee engagement
It’s no secret that engaged employees outperform those who are not engaged. A good employment brand and employee value proposition (EVP) should energize and engage existing employees. Research shows that those employees who fit well within an organization have the very qualities of engagement, including:
- Greater job satisfaction
- Identifying more with their company
- Greater likelihood to remain with their organization
- Increased commitment to their job
- Superior job performance
And finding employees that fit culturally can save an organization big money—it’s estimated that unengaged employees cost the U.S. economy alone $370 billion a year.
Increased quality of referrals
What’s the secret to getting a great referral? Well, it usually requires someone who really understands the organization, the characteristics that make a successful employee and someone who will fit the role. This is exactly why employees often make the best sources for finding great candidates—they understand the organization from the inside out and have their own networks to tap into. And engaged employees are more likely to tap into their own personal network to make a quality referral.
An authentic employer brand should be reinforced through the entire hiring process—all the way from application to interview to offer extension. In fact, workers report that if they are happy with the way they are treated by an employer when applying for a job, they would be more likely to buy its products and services. Woah, do I hear the CFO getting onboard with employment branding? This brings me to another item the CFO should be onboard with.
Those companies with a weaker employer brand recent report cost-per-hire that is almost double that of companies with a strong employer brand. This might remind you of discount store advertising: “Name brands, half the price!,” but it’s true. You get quality candidates without having to spend twice as much.
The benefits just keep coming
The truth is, the benefits of employer branding don’t even stop with this list—there are many others to add, including decreased time-to-fill, increased hiring manager satisfaction, increased new hire performance, improved productivity, reduced hiring manager interview-to-hire ratio, etc. So if you haven’t already started building your authentic employer brand, what are you waiting for? Not sure where to start? Read Unlock your culture. Unlock your employment brand for a few tips.