Goals of Employer Brand. Why is it so important?
Why don’t companies hesitate to invest in their reputation on the job market? Why don’t they put that money into traditional marketing? Because they know very well that this investment will pay off handsomely. It helps the company to improve its position on the labour market and thus increase its competitiveness. In addition, an excellent Employer Brand will always trigger the necessary internal changes to bring external communication in line with internal practice, which has a positive impact on turnover and overall employee satisfaction.
Generally speaking, companies invest in a brand to increase their competitiveness. If a company wants to secure its future, it must be able to continually hire new talented employees. It needs to be able to be selective in order to maintain high quality and skilled employees. At the same time, it needs to protect its employees from competitors and offer them a certain emotional bond with the company. And for both of these basic goals, Employer Brand is a good answer.
For many years now, The War for Talents has been going on in the market. The best employees never have to worry about being unemployed for long. They can be sure that they will always find a new job in any situation. Headhunters are constantly offering them new job opportunities and Employer Brand, along with a friendly company culture, is virtually their only defence against the competition.
High wages and no emotional connection will never bring results to a company, it will only increase costs dramatically. That’s why you need to build a strong emotional bond to make employees proud of the company they work for. And that is why it is necessary to invest in the company’s name so that the company is widely known in the job market.
The war for talent is fierce, because all it takes is a small mistake in setting the company culture, a major change project and a company can quickly lose its key employees. Employer Brand is not a magic bullet, but well set up processes for managing brand in the labour market can help spot potential problems before they really start to hurt the company and HR.
So what are the goals of Employer Brand?
- Better company competitiveness
- Larger pool of potential employees
- More candidates for open positions
- Lower recruitment costs
- Better opportunities for company expansion
- Higher employee satisfaction
- Better retention of key employees
- Better customer relationships
How can a company increase its competitiveness? A company’s reputation in the market attracts creative and talented employees because the company offers them the opportunity to further develop their skills. By employing capable people, it naturally benefits from various innovations and new ways of doing things better. This enables it to bring innovative products to the market and achieve better profit margins than its competitors.
A good Employer Brand can also attract candidates who would otherwise not consider the company at all because they work in a different industry. By doing so, the company can achieve better results because it will have diversity in experience from different fields. By combining different experiences, it can bring innovations to the market that will not be easily copied and thus can gain an additional competitive advantage.
Every manager wants to select the best candidate for an open position, whether internally or externally. However, he needs a sufficient number of candidates to choose from. No one wants to choose a single candidate delivered by Human Resources. He needs comparisons and needs to think about the right mix of people on the team to achieve the desired results. With a good Employer Brand, a company has a chance of having managers to choose from for all positions and the positions will be filled quickly.
Recruitment is probably the most expensive process that the Human Resources Department is responsible for. The investment in advertising, recruitment agencies and other support activities can be staggering. The cost per recruitment is then enormous. A good investment in Employer Brand can quickly pay for itself as spontaneous recruitment increases significantly. Also, various Referral programs work better when employees know they are working for an excellent employer.
Every company is considering expansion, however, if there is a shortage of candidates in the market, expansion plans are risky because the company may not find enough employees to successfully see the expansion through. A good Employer Brand can help because it is easy for many candidates to apply immediately after a company announces an expansion, including information that it will be hiring new employees in select industries and locations.
Employee satisfaction is extremely important today (Chief Happiness Officer) because employees are not afraid to rate the company on various forums and specialized websites. In addition, a happy employee does not tend to look for a new job because they like doing their job and like staying with a team they know well. And if the company has a good reputation in the job market, then his tendency to leave is even lower. If an employee knows that he works for a great employer, it is hard for competitors to convince him to change jobs.
Employee retention is a big topic today, especially for key employees. No company can protect all employees, but it must be able to protect the key ones that it cannot afford to lose for various reasons. Again, reputation works like glue. It doesn’t allow the best employees to run the risk of being disrespected and having to prove how great they are again.
Finally, a very important goal for Employer Brand. Satisfied employees usually have very good relationships with their customers and they love to come back. Alternatively, they are even happy to recommend because they had a good experience with the company. This builds a good opportunity for future growth for the company. And it also has a base on which to build.