Which Organization Do You Prefer to Work For?

Employer Branding

 

(Nanci Hogenboom , 2016)

All organizations have an employer brand. It's the way in which organizations differentiate themselves in the labor market, enabling them to attract, recruit, retain and engage the right people. A strong employer brand helps businesses compete for the best talent and establish credibility. It should connect with an organization’s values and must run consistently through its approach to people management.This factsheet looks at why employer brand is important, particularly for recruiting and retaining talent, the organization’s employee value proposition and the steps you can take to develop your employer brand (CIPD). 

(Allianz, 2022) 

The employee value proposition can be expressed as an employer brand – the image presented by an organization as a good employer. An employer brand was defined by Walker (2007: 44) as ‘a set of attributes and qualities – often intangible – that make an organization distinctive, promise a particular kind of employment experience and appeal to people who will thrive and perform their best in its culture’. Employer branding is the creation of a brand image of the organization for prospective employees.

The employee value proposition can be expressed as an employer brand – the image presented by an organization as a good employer. To create an employer brand:

• Analyses what the best candidates need and want.
• Establish how far the core values of the organization support the creation of an attractive brand.
• Define the features of the brand on the basis of an examination and review of each of the areas that affect the perceptions of people about the organization as ‘a great place to work’.
• Benchmark the approaches of other organizations.
• Be honest and realistic.

(Armstrong and Taylor, 2014).

Artopex (2020)

Why organizations need an employer branding strategy.

As per the strategy defined by (Jay), There are many ways that an effective employer branding strategy can benefit your organization. Here are some of the core reasons why every business needs an employer branding strategy today .

Reducing turnover rates and improve retention.

The stronger your employer branding strategy, the more likely your existing employees will want to continue working for you, and the easier it will be to attract and retain top talent.

In a survey by Glassdoor, 69% of employees believe it’s either very or extremely important that their employer has a brand they’re proud to support. Meanwhile, other surveys have found that 86% of people would not apply to, or continue to work for, a business with a bad reputation.

Increasing the number of qualified applicants

A compelling employer brand can also help improve your talent acquisition efforts without the need for additional spending. Once you know your unique company essence and the ideal candidate you wish to attract, you can take steps to ensure your values, policies, culture, work environment, compensation and benefits reflect this, and increase the number of qualified applicants for all of your open positions.

Glassdoor has found that 86% of job seekers read company reviews before applying for a job, while 95% of candidates state that the reputation of an organization as an employer plays a critical factor in deciding whether to apply for a job or not.

Saving money

A strong employer branding strategy can also help to save you money in the hiring process. It can lead to a decreased time to fill and time to hire, resulting in up to a 50% reduction in your cost per hire.

The more attractive your employer brand is to candidates and employees, the less likely you are to have to increase spend on salaries to lure top talent from your competitors. That doesn’t mean that you can offer rock-bottom compensation rates. However, it does signify that candidates will be incentivized to work for you for many other reasons besides the salary and benefits you offer.

Faster business growth

An organization’s greatest asset is its people. If you have a strong employer brand and good reputation, you’re more likely to be able to hire top talent, leading to faster business growth. Research by LinkedIn has found that companies on their network with a strong Talent Brand Index (TBI) grew 20% faster than those with a weaker talent brand.

Attracting more diverse talent

When an organization has a clear employer branding strategy, they are able to showcase their values, vision, and corporate and social responsibility on their website, social media channels, and in their marketing campaigns. This helps them attract more diverse talent and build a more diverse workplace.

More loyal customers

If a candidate has a poor experience during the recruitment and selection process, there’s a strong chance they may stop purchasing that organization’s products and services. Plus, a survey by Career Arc found that 64% of consumers have ceased to shop with a brand after hearing the company treats employees poorly. 

(AIHR )

Conclusion

Employer branding is the process of defining and maintaining the reputation and image of the organization in the labor market as an employer. Employer branding activities are aimed at strategically forming an attractive appearance as an employer of the organization for potentially suitable employees. This concept has become relevant thanks to the fact. 

Considering the constant market need for attracting the best employees, that employer branding becomes a relevant issue of strategic human resources management. By developing employer branding, companies are more likely to gain access to leading professionals, increase the level of involvement of employees and, as a result, increase the competitiveness and profitability of the business.

List of References

AIHR Employer branding strategy [image]. Available from https://www.aihr.com/blog/employer-branding-strategy/#How [Accessed on 06 April 2024]

Armstrong, M. and Taylor, S. (2014) Armstrong’s handbook of human resource management practice. 13th ed. KoganPage.

Artopex (2020) This is not just an office video [video]. Available from https://youtu.be/a1hEY3Ii70I [Accessed on 05 April 2024]

CIPD. Talent management. The Chartered Institute of Personnel and Development [online] Available from https://www.cipd.org/uk/knowledge/factsheets/talent-factsheet/#Characteristicstalentmanagement [accessed 04 April 2024].

Jay, S. How To Develop an Employer Branding Strategy in 14 Steps. AIHR [online] Available from https://www.aihr.com/blog/employer-branding-strategy/ [accessed 06 April 2024].

Nanci Hogenboom (2016) Working at adidas Group Amsterdam [video]. Available from https://youtu.be/RNEzrtNk4QE [Accessed on 05 April 2024]

Walker, P (2007) Develop an effective employer brand, People Management, 18 October, pp 44–45