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5 Critical Reasons to Invest in Employer Branding

Updated: Dec 25, 2021

Perception is everything, particularly as it relates to attracting and retaining top talent in your industry. But what exactly allows for a company to amp up its recruitment efforts like this? Quite simply, it all boils down to employer image, or how prospective employees perceive your company.

Interested in learning about the importance of employer branding to ultimately generate savings, boost worker efficiency, and increase your company’s profitability? Today, we’re going to share with you the 5 top reasons you should consider investing in an effective employer branding strategy for your company!

What is employer branding?

Generally, the concept of branding describes the most identifiable qualities of a particular company, and this also happens to include the market’s perception of it. Similar to corporate branding, employer branding is specifically concerned with how your business is perceived as an employer. Essentially, it describes a company’s reputation as an employer, an image that is crucial in attracting, retaining, and engaging competitive talent.

Why is it important?

While employer branding may not appear to have a direct effect on your company’s sales, profitability, or growth, your company’s reputation as an employer has a huge bearing on the kind of talent it’ll be able to recruit. This is why 96% of companies believe that employer brand and reputation can positively or negatively impact revenue, however, only 44% monitor that impact.

Employer branding is key in marketing your company to employees to position the business as a desirable place to work. With effective employer branding strategies in place, your company can quickly reel in and retain the kind of talent it takes to allow your business to grow exponentially.



Sometimes, it means more to employees than salary

Although there are many different factors to consider when accepting a position, 67% of employees are more interested in a company with a positive reputation than another that offers higher pay. If your company is hiring hundreds, maybe thousands of employees, investing in good employer branding strategies can result in significant savings.

You’ll spend less on advertising

In addition to salary savings, word of a good reputation spreads like wildfire. With investments in the right places, your company will ultimately spend less money on advertising job openings. In fact, a company with a strong employer brand sees, on average, a 43% decrease in cost-per-hire. With a great reputation, your company will automatically be considered a top place to work, and any job listings would see organic traffic without external marketing efforts.

Naturally, you’ll attract more qualified candidates

With the importance of employer branding to so many candidates, it makes sense that it would open up your company’s hiring pool to attract applicants with a broader range of skills, experiences, and talent. Again, with a natural interest in your company because it’s a great place to work, your recruitment will grow much more competitive.

Employees will be more engaged

Candidates seeking a reputable employer and company culture are bound to be more engaged with their teams and day-to-day work. Of course, a strong employer image improves the public perception of your company, but it also has the potential to foster enthusiasm and pride internally.

Employees not only being engaged but passionate about their work is a fundamental part of growth for any company. Motivation leads to greater effort, progress, and growth on a larger scale.

It’s most profitable

Growth can seem like a nebulous term, but it can describe anything from recruitment to reach to revenue, and employer branding has a great influence on each one of these things. Studies show that, as it concerns profitability, fantastic employer branding could lead to as much as a 3.5% revenue growth and 2.5% profit margin increase. With all of the other savings that employer branding grants, it makes the most sense financially to invest in your company’s reputation.

Great employer image clearly has a ripple effect on various parts of a company, as a solid reputation has the potential to reel in top talent, save money, and increase profit margins. And at the end of the day, investing in employer branding doesn’t even have to cost your company a cent.



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