Why top brands spend a fortune on employer branding

Simon Barrow and Tim Ambler first described Employer Branding in 1996 in the Journal of Brand Management as, “The package of functional, economical and psychological benefits provided by employment, and identified by the employing company”. We can interpret it as simply the ‘identity’ of an employer - what makes it stand out amidst competitors. A strong employer brand attracts top talent, reduces recruitment costs, improves employee engagement, and offers an undeniable competitive advantage to a company. 

Changing Dynamics of the Talent Market

Job seekers today judge employers with the same scrutiny as customers evaluate brands. They look for careers, not just jobs. This means employers that market their jobs as valuable, rewarding, and flexible come out on top.

According to a 2018 survey by Randstad US, 86% of job seekers said they wouldn’t apply or work for a company with a bad employer reputation. 65% said they would leave an employer being negatively portrayed in the public or social media.

Employers ought to focus not just on external, but also internal employer branding i.e., offering a solid employee value proposition (EVP). The EVP refers to the experience of employees at an organization, which includes rewards and growth prospects offered to attract and retain them. In essence, the employee value proposition gives employees a compelling reason to work with an organization. Top brands place an equal emphasis on presenting an attractive face to the world and their internal employer branding to recruit and retain top talent. If you’re struggling with these areas, engage expert recruitment agencies like Randstad to boost your employer branding and to communicate a strong employee value proposition to potential and current employees.

Top Brands Spend Big on Internal Employer Branding

The employer brand lives in the minds and hearts of former, current, and potential employees. Without a positive employer brand, hiring and retaining top talent is next to impossible, and immensely expensive. To get talented leadership on board, a company have to convince them that it is the best place to work.

Much like other branding, creating a strong employer brand is all about forging a connection with good storytelling. If organizations want to be perceived a certain way in the marketplace, they must use specific messaging to attract the right prospects. More importantly, they must leverage happy employees to become brand advocates, which is especially crucial in the age of social media. This is why top brands spend a fortune on employer branding , using various channels to communicate that their organization is a great employer and to spark buzz around the company.

Google, perhaps the most popular employer brand, has aced the art of attracting talent through multiple branding campaigns and cultivating an enviable work culture. It receives millions of high-quality applicants each year, of which just 0.2% make the cut. A look at their Careers page and one can see how the company makes painstaking effort to directly speak to every candidate. Starbucks uses social media to recruit new talent, investing bug bucks in displaying its commitment to diversity.

When the best talent wants to work for your organization, your recruitment costs plummet. Your organization becomes a magnet for talent, and your reputation in the job market soars.

Disclaimer: The views, suggestions and opinions expressed here are the sole responsibility of the experts. No Forbes India journalist was involved in the writing and production of this article.