Employer branding refers to the image of your company, both externally and internally. It is a combination of your reputation, values, and perception of your companies’ culture.
A companies’ brand can be relevant in almost any workplace situation. Whether you’re talking to a current customer, potential customer, or interviewing a prospective employee, the perception of your company is going to impact those conversations.
The impact can be positive or negative, depending on how much you value your brand and image. Deciding to make employer branding a priority for your company early is a critical investment that will pay off down the line.
Help to attract top talent. What makes your company a great place to work, why should someone at the top of their profession choose to work for you? Top candidates are only on the market for 10 days before being hired. The power is in their hands, and in order to be a position to sell them on your company, you must have a clear identity. This identity will help you craft an authentic message about why your company is a place worth working.
A poor image is also costing you more than you think. A study conducted by the Harvard Business Review concluded that a bad reputation costs a company 10% more per hire, on average. Not investing in employer branding is causing you to miss out on top candidates, and costing you more for the people you do hire.
Positively affect your companies’ image. How do you want your company to be perceived externally? How do you want it to be experienced internally? These are the type of questions you need to ask and answer, to begin the process of affecting your image.
A good place to start is by reconfirming your mission statement and company values. People want to work in an environment where they feel that they are making an impact. According to a Mercer talent trends study, thriving employees are 3x more likely to work for a company with a strong sense of purpose.
This adjusting of your image will also influence your customers. According to a survey conducted by Customer Thermometer, over 65% of 1,000 people surveyed agreed that they’ve felt an emotional connection to a brand. These types of customers are considered “fully connected customers,” and on average, are 50% more valuable than highly satisfied customers.
Experience a distinctive increase in productivity and retention. Now that you have attracted the top talent, and given them a sense a purpose, you will see a tangible improvement in your organization’s performance.
The organizational commitment theory poses that employees who identify with the organization will become emotionally attached, and will endeavor to accomplish the companies’ strategic objectives. When your team is bought into the work that they are doing, they will work at peak levels of productivity to fulfill the high-level goals of the organization.
Research conducted by The American Institute of Stress concluded that when a person feels a lack of loyalty to their organization, they are 50% more likely to voluntarily turnover. On average, the typical cost of turnover is around 20% of an employee’s annual salary.
There is no way around it. A negative employer brand directly affects your bottom-line. Invest in your image, and you will begin to see an immediate positive impact.