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The Importance of Employer Branding

31/07/2020Karel Adiwardoyo

How do you present your values to potential employees? In recent times, the job market has become very competitive. Employer branding plays a major role in attracting the right talent to work in a company, as well as in retaining current employees. So yes, your employer brand matters! In fact, it has a significant impact on your company.

Employer brand is essentially your company’s reputation to potential employees. It is what you are known for as an employer. Your employer brand is distinct from your consumer brand. Candidates may recognize your consumer products and services, and have no idea what working for your company as an employee is like.

To craft a powerful employer brand, you need to pay attention to your company culture and the message that you are trying to convey to future employees. Not only to show that your company is an enjoyable place to work to attract talents at all, but it needs to potray how the company is unique from others to attract talents that will be engaged and espouse your company’s purpose in the work that they do. What opportunities do you offer as an employer that your competitors do not? What benefits do employees have to gain from working with your company?

When your employer branding is constructed and communicated effectively, your company becomes known as a well-rounded choice of place to work. A surge of job seekers would recognize your company in a positive light. Moreover, it won’t just be about what you tell to the public, people who work in your company will testify to the value of their experience working there.

Why is it important to have a strong employer brand? Statistically, a strong employer brand has been proven to make a significant impact for a company in recruiting people externally and retaining the best talent internally. According to LinkedIn, a strong employer brand can decrease 43% of cost per hire. Additionally, it also increases employee engagement by 130% according to Brandon Hall Report. Below, is the full infographic on the importance of employer branding.

Infographic on the importance of employer branding
Employer branding shows a true expression of your company’s shared values and aspirations, because in times of crisis, a deeply rooted and truly authentic EVP can be a differentiator for companies. Not just to select people externally, but employer branding has an equally important role to play internally. Employer branding helps reinforce a unique sense of culture and identity, which in turn helps to enhance employee commitment and retention.

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