The talent market has never been more competitive. For companies, having a strong employer brand is more than just a marketing asset. It is a strategic advantage. HR leaders who invest in employer branding enhance their company’s reputation and drive tangible business outcomes. In this article, we explore the top five benefits of a strong employer brand and why it should be a priority for organisations looking to attract, engage, and retain top talent.
5 benefits of a strong employer brand
1. Attracts top talent efficiently
A compelling employer brand helps position your organisation as an employer of choice. Candidates gravitate toward companies with strong reputations, positive workplace cultures, and clear career growth opportunities in a competitive job market. LinkedIn says organisations with a strong employer brand receive 50% more qualified applicants. This leads to:
- Faster hiring cycles: Job seekers actively seek out companies with strong employer brands, reducing the time required to fill vacancies.
- Reduced recruitment costs: Lower dependence on recruitment agencies and paid advertisements as candidates approach the company organically.
- Increased access to high-calibre candidates: Top performers prefer to work for reputable organisations, increasing the overall quality of the talent pool.
- Greater diversity in applications: Strong employer brands appeal to a broader range of candidates, fostering inclusivity and diversity. Diverse teams have been found to outperform their competitors by 35%.
2. Reduces recruitment costs
One of the key benefits of employer branding is cost efficiency. Companies with deep-rooted employer brands spend less on paid recruitment advertising and external agencies. When your brand speaks for itself, candidates proactively seek opportunities at your company, reducing reliance on expensive talent acquisition strategies. Investing in employer branding results in the following:
- Lower cost-per-hire: According to LinkedIn, companies with strong employer brands reduced their cost-per-hire by 50%.
- Improved return on investment (ROI) in recruitment marketing: Resources spent on employer branding provide long-term value rather than short-term hiring fixes.
- Greater reliance on organic talent attraction: Employee referrals and social proof from current employees enhance recruitment efforts.
- Enhanced employer reputation in the industry: A strong employer brand can lead to increased recognition and credibility within the talent market.
3. Boosts employee engagement and retention
A strong employer brand not only attracts talent but also keeps employees engaged. When employees resonate with their company’s mission, values, and culture, they are more likely to stay long-term. According to Universum Global’s research, organisations with strong employer brands experience up to 28% lower turnover rates. Benefits of good employer branding in this context include:
- Higher job satisfaction: Employees feel more aligned with company values, leading to increased motivation and productivity.
- Stronger workplace culture: A clearly defined employer brand fosters a positive and inclusive work environment.
- Enhanced employee advocacy: Engaged employees become brand ambassadors, promoting the company externally.
- Reduced turnover rates: A well-structured employer brand reduces attrition, saving costs associated with employee replacement and training. A study by Glassdoor found that 69% of employees believe that it is either very or extremely important that their employer is a brand they are proud to support.
4. Enhances customer and stakeholder rust
Employer branding extends beyond recruitment; it influences business reputation. Customers, investors, and stakeholders tend to trust companies that are known for treating employees well. A survey by CareerArc found that 64% of customers have stopped shopping with a brand after hearing that they treat their employees unfairly. A positive employer brand can lead to:
- Stronger brand credibility in the market: A company recognised for ethical practices and employee well-being gains consumer trust.
- Increased customer loyalty: Consumers prefer to engage with businesses that treat their employees well, leading to higher retention rates.
- Greater investor confidence: Investors view companies with strong employer brands as more sustainable and well-managed, increasing investment potential.
- Stronger partnerships and collaborations: Other businesses and industry leaders are likelier to collaborate with companies with a positive brand image.
5. Drives business performance
A well-established employer brand correlates with higher business performance. Engaged employees drive innovation, productivity, and customer satisfaction. Companies that invest in employer branding outperform competitors in key business metrics such as revenue growth, operational efficiency, and overall market position. The benefits of employer brand in business include:
- Improved employee productivity: Motivated employees contribute more effectively to organisational goals.
- Increased profitability: A strong employer brand leads to reduced hiring costs and higher workforce efficiency, boosting overall financial performance.
- Stronger competitive advantage: Companies with strong employer brands attract better talent, making them more resilient in the market.
- Greater adaptability to market changes: Organisations with a strong employer brand foster a loyal workforce, improving organisational agility and innovation.
Creating a positive employer brand is not just about getting top candidates; it’s about keeping them, driving business performance, enhancing customer trust, boosting employee engagement and more.
How to build a compelling employer brand
1. Conduct an audit on your existing employer brand:
Before rethinking your employer brand, it is best to assess how your organisation is currently perceived by employees, potential candidates and the wider world. To do this audit, you can conduct surveys with current and potential candidates, analyse recruitment metrics, and evaluate employer review sites like Glassdoor to identify gaps between your desired brand perception and reality.
2. Define your company values and culture:
The key to a strong employer brand is making sure that it is based on clear values and an authentic workplace culture. Working with all the employees in the organisation and not just leadership will help to communicate core values that reflect the company’s mission, purpose and vision.
3. Build your employer brand based on your employer’s Employer Value Proposition (EVP):
An organisation’s EVP should define what makes the company a good workplace. The EVP should highlight aspects that matter to candidates and employees, like career development, work-life balance, benefits, and company culture while aligning them with business goals.
4. Engage C-suite and employees:
A powerful employer brand is most effective when it is supported by every employee in the organisation, including leadership. Employees should be encouraged to act as advocates for the brand in the office, outside of it and through thought leadership opportunities.
5. Showcase your company values and vision:
Demonstrate your organisation’s employer brand with a multi-touchpoint approach through storytelling, social media, career pages and recruitment efforts. You can also use employee testimonials, behind-the-scenes content, and company achievements to reinforce the employer brand you’ve refined and strengthen your values.
Final Thoughts
For HR leaders, employer branding should not just be a trend; it is imperative for the business. The benefits of a strong employer brand impact every aspect of an organisation, from talent acquisition to employee retention and overall business success.
Explore our case study with Certified Top Employer Zahid Group to discover a real-life example of an organisation prioritising its employer brand to get measurable results and get inspired to start building a powerful employer brand.
The globally recognised Top Employers Certification Programme, along with our data-led insights, enables over 2,400 organisations across the world to advance their talent attraction, development, engagement and retention strategies. Are you ready to become an employer of choice? Start your Top Employers journey.