Why is employer branding so important?

‘50% of candidates say they wouldn’t work for a company with a bad reputation – even with a pay increase,’
According to Randstad’s Employer Brand Research survey 2021.

Reputation is everything; In business, it seriously matters, and never more so, in the competitive area of attracting and retaining top talent. This is especially true with the arrival of social media; with every employee sharing their likes, dislikes and personal experiences in the workplace, your brand’s reputation is subject to scrutiny every day. Plus, companies can genuinely compete on few things anymore, especially in industries such as financial services where the products are so similar.

Your ability to attract and retain exceptional people through a positive Employer Brand can help you gain a competitive edge.

‘At least 80% of workforce leaders agree that a strong employer brand significantly impacts their ability to hire a great workforce.’
In fact, according to their research, ‘Companies with a strong employer brand have a 1-2x faster time to hire.’

Creating a Killer Employer Brand
The essential elements in developing a great employer brand is two-fold:

• Internally, create a positive company culture in which your employees can engage and align, resulting in staff retention and happy employees willing to promote your company as a great place to work.

• Externally, be transparent and honest: Define your messaging and communicate your company values to a wider audience. Consistently delivering your message to customers and potential candidates reinforces your authenticity as an employer that truly values people.

Defining and communicating company values effectively while engaging employees has become a real deal-breaker for the modern business. It’s not simply marketing jargon. The value of your employer brand is tangible: It can be assessed, measured and delivers results.

So, what’s holding companies back?

The biggest issue is that when companies look for an ideal candidate they don’t ask the key question: Are we an ideal company to work for? As a result, there are two main reasons businesses struggle to attract and retain top talent,

1. They do not have a clear vision of their company culture.

Without clarity, ‘Only 19% of employees perceive a strong alignment between what their employer says about itself and their experience working there.’

Without aligned values, employees do not feel a strong connection or loyalty to their employer. As a result, they are unlikely to recommend the company as a great place to work and even worse, they aren’t likely to stay with the company for long. If your competitors are doing a better job communicating their attractiveness, then loyalty falls by the wayside, and job-switching becomes commonplace.

2. They have not effectively communicated their values, identity or purpose.

Randstad’s research suggests that at least 52% of potential candidates first seek out the company’s website and social media to learn more about an employer.

If you don’t have clearly defined core brand messaging: mission, vision, purpose and strategy outlined and written down for all to see, it’s going to be a challenge to attract the right people to fit your company. Potential candidates do not know what it’s like to work at an organisation, and therefore are unable to align their personal values with your company culture. This is the biggest obstacle in the recruitment process for great companies wanting to attract exceptional people.

The Employee Experience.

The concept of the Employee Experience (EX) is gaining momentum. We are all familiar with the idea of Customer Experience (CX), but not all employers are aware of the direct impact a positive EX can have on customer loyalty rates and CX. According to a report from The Aberdeen Group,

‘Companies that actively engage employees have customer loyalty rates 233% higher than those that don’t.’

This huge number alone should suggest the importance of getting the Employee Experience right the first time. But how? What can you do to establish a clear Employer Brand and improve your EX? The past year’s turmoil has impacted all businesses across East Anglia, some positively, others not so. Either way, all companies will have seen a shift in what they expect from their employees and vice versa. This shift has highlighted the widening gaps between what employees want and what they think employers offer that needs to be bridged. The task now is to identify these gaps and understand how best to motivate, engage, and retain your employees while developing strategies to attract exceptional talent. The latest 2021 research highlights the most important drivers for candidates choosing a potential employer.

• 65% want a better work-life balance
• 64% require an attractive salary and benefits
• 61% want job security
• 58% look for good on the job training
• 55% desire a pleasant working atmosphere.

And yet, there is a significant gap in what UK employees seek and what employers are perceived to offer.

Bridging the Gap.

For example, work-life balance and career progression are sought after drivers for employees, BUT they aren’t top attributes for UK employers. Equally, employees perceive salary and benefits as one of the lowest-rated drivers by their employers, yet the opposite is true: Employees rate it highly. This disconnect will ultimately lead to companies with unhappy people, unhappy customers, and eventually, their reputation will begin to suffer. Employers must understand what their employees want. Paying attention to the shifting tide is crucial if you want to build long-term, mutually beneficial relationships with your people.

Your Return on Investment.

Developing ways of gathering feedback, encouraging employees to speak up and providing opportunities to share ideas and insights is the best way to establish a strong Employer Brand. From the boardroom to the frontline, engaging everyone in the process will significantly increase your chances of gaining buy-in and support for new initiatives.

The results?
You’ll establish your organisation as an enviable brand to work for, and the greatest part of it is that you’ll have an army of people who advocate these facts on your behalf. Your employees will not only love working for you, but they will be your most valuable asset in terms of competitiveness and attracting like-minded talent to the table. According to a recent LinkedIn survey, 72% of recruiting professionals worldwide strongly believe that employer branding has a powerful impact on hiring and an even more profound influence on their business’s success.