Statistically Proven Employer Branding Success
“I’d never join a club that would allow someone like me to be a member.” ~Woody Allen~
An employer’s brand is the company’s identity. It’s what the company uses to attract and recruit talent. One question that has to be asked: is that brand attracting the right employee?
Consider the following.
Cost per hire
Employer brand has a significant impact on hiring, but also the company’s success as a business.
Companies with stronger employer brands, compared to competitors on average see a 43% decrease in the cost per candidate they hire. That’s according to LinkedIn. Why? Rather than spending all of the company’s money on advertising and marketing campaigns, companies will reap the rewards of the natural talent attraction traits of an attractive employer brand.
Less dollars spent
Without a functional and successful employer brand, companies could risk paying nearly $5,000 in salary premiums per hired employees. If the company employs 10,000 workers or more, the cost could be as high as $7.6 million in additional wages.
Money is no option
Workers, especially millennials and Generation Z workers put a lot of effort and research into a company they’re considering working for. In fact, CareerBuilder reports 67% of candidates would accept lower pay if they read positive reviews of the company online.
This translates into the need for companies to have a well established employer brand online.
Social media prevalent and allows prospective employees to get a realistic preview of the company through informal channels such as comments left in chat rooms, discussion forums by employees, customers, vendors, suppliers or anyone who might have an interaction/experience with the company.
Don’t forget, the employer brand also lives on the company webpage, in ads, and in the representatives the company sends to career fairs or any public events.
The Right Talent
According to Undercover Recruiter, 88% of millennials say company culture is important to them. In fact, 78% will look at the company’s reputation before applying for an open position.
Employer brand control
As alluded to earlier, the control of the employer brand is shared. This is just the nature of the beast. The employer shares it with the employee as those individuals are essentially the ones sharing the company’s story.
Below is an except from an article by John Whitaker, Vice President of Talent Acquisition and DentalOne Partners Inc. and an HR Exchange Network contributor.
Your culture is defined for you, not by you.
So when the topic of "culture change" comes about, your recruiting team becomes the nexus for information gathering. You can claim and define any culture you want, but the people who make up the company are establishing a culture with or without a definition. This is where we, as the talent gatekeepers of the company, can earn our keep in multiple ways:
1. Candidate Intel - Do you ever ask your job candidates about the reputation of your company? I know it's common place to ask a job-seeker "tell me what you know about Acme International," but changing that question a little bit can provide some amazing information about how your company is perceived outside the walls. "From your perspective, what do you know (or think) about the culture here at Acme International?" The answer may be contrary to the truth, in which case you've opened up a great conversation thread - "That's interesting, tell me how you came to that opinion?" Remember rule #1 - these aren't just candidates, they are current (or potential) customers, so perception is their reality.
2. Recruiter Intel - Even if you don't utilize external recruiting assistance, it's never a bad idea to keep an open communication with a few trusted sources on the outside. Believe me, THEY definitely have an opinion to share about how candidates view your company. They can also give you an idea of how you are faring vs. the competition. If you're like me you get pummeled with solicitation calls from firms wanting a shot at your business, make it a standard question - "What is our reputation in the candidate community?" It's a win either way; if they don't know, the call is over. And if they do know, it's valuable information.
3. New Hire Intel - The people you have brought into your company over the last 6-12 months are the new ambassadors for your company. What has their experience been to date? How is the company different/the same as what they believed it would be? Culture isn't static, as your company grows (or retracts) the culture changes as well. Another benefit to the practice of reconnecting with new hires? They realize the employee experience is as important to you as the candidate experience.
4. Former Employee Intel - You know who has plenty of feedback? The people who departed your organization. Keep your eyes on this demographic, whether it's via Glassdoor or actually direct contact. Valuable information is there for the taking if you look for it; maybe not always in the kindest language, go getcha some tough love and you'll be better for it. And on more than one occasion, the departed employee realizes that maybe the grass wasn't greener after all - every company has challenges, not just yours.
Regardless of industry competition, there is a serious demand for the best employees available. A strong employer brand leads to 50% more qualified applicants. Statistically speaking, employer branding is proven to help businesses attract talent. It is not only a step-by-step process, but one that requires companies to address the psychology of employer branding. Read more here.