Key Benefits of a Strong Employer Brand
Investing in a great employer brand is not an end in itself, companies don’t just do it for the good of the company. They see it as an opportunity to gain a competitive advantage in the job market if they do Employer Brand right. And they also see it as a necessity to some extent, as the job market is highly competitive for talented candidates. So what are the benefits of an excellent brand that make it worth the considerable investment and risk for companies to not achieve the success they have planned?
A good Employer is not just good for the HR department, often brand building brings great challenges and difficulties, so no one in the team is usually an expert in marketing communications and the whole area requires expertise and a good knowledge of different communication channels and how to use them effectively.
So what are the benefits?
- Attractive to top talent and candidates
- Lower recruitment costs and faster time to fill the position
- Higher employee motivation
- Positive impact on employee retention
- Better company awareness among customers and suppliers
Of course, every organization still has its own list of benefits and goals it wants to achieve. However, these five are the typical ones that the vast majority of companies strive for. Let’s look at them in a little more detail.
Of course, every organization still has its own list of benefits and goals it wants to achieve. However, these five are the typical ones that the vast majority of companies strive for. Let’s look at them in a little more detail.
Attractive to top talent and candidates
Those who are visible naturally attract attention. And it’s important for top candidates to work for a company they can respect. And Employer Brand is a way to make them proud of their employer. A positive image simply pulls and presents well externally.
Also, for every open position, they get multiple resumes and can choose who to offer the chance to build a career together. This is of course good internally as well, because every manager likes to choose people for their team. And for this satisfaction, the manager needs to be able to choose from several candidates the one who fits best.
And this is generally true for all positions that need to be filled. The ability to choose is important because it also allows the company to hold the company culture because the organization is not forced to compromise to a greater extent than necessary.
Lower recruitment costs and faster time to fill positions
Having the chance to fill an open position quickly is extremely important, however, it is also one of the basic measurements in recruitment, it is called time to hire.
An employer with a good reputation will always get more resumes the moment a position opens up. And it will also be cheaper because the company does not have to invest in recruitment agencies, it can often make do on its own without external help, which is a specialist in finding talent available on the job market.
The speed of filling positions is a big competitive advantage because it saves the company a lot of costs. The company doesn’t have to build excess capacity because it knows it will always hire the employees it needs right now.
Higher employee motivation
A good image doesn’t just work externally; it has a big impact internally as well. Who doesn’t want to boast that they work for a really good company. And be proud to be part of a successful team. That’s why every good Employer Brand campaign is focused externally and internally.
And the company can demand higher performance than the competition in return. After all, working for the best also means that the expected work standards are higher because our organization is better.
At the same time, a company doesn’t have to pay the same as the competition, it can afford to be a few percent lower because it compensates for its reputation in the job market. It may not be a big difference, but in many market battles it can be the real competitive advantage.
Positive impact on employee retention
Not just vacancies, but turnover and the risk of key employees leaving can put a company at risk. And a good image leaves badly; a candidate from such a company needs to be properly overpaid to start considering the risk of change. After all, every change in a company is a risk to some extent, because not every change will succeed.
And no one wants to leave a job that is somehow associated with success. Even if the individual doesn’t have much of a stake in it, it can look different for an outside presence, and everyone stands at the center of success.
Better company awareness with customers and suppliers
Finally, a good reputation also works with suppliers and customers. It’s just better to buy from the really good ones. And being their customer is something that can present itself. And as a supplier? After all, it’s an honor to supply such a company. And it can even be a nice discount, because after all, this reference client works for other organizations in the market.
