10 Reasons Why Employer Branding is Important

WRITTEN BY: Karim Ansari

Companies worldwide are constantly developing their employer brands to remain competitive and acquire the best talent in the market. Conceptualized by Simon Barrow, the employer brand has evolved from what many believed to be just a marketing buzzword to an essential element of an organization’s strategy.

Now, 72% of recruiting leaders globally agree that employer brand significantly impacts hiring and, even more so, on your business’s success.

For organizations that aren’t quite sure why they need employer branding; we’ve put together the 10 reasons employer branding is vital for your business. For the infographic we’ve created, keep scrolling to the end. But for the key takeaways, keep reading!

Decrease in cost per hire

According to LinkedIn, on average, a company with a stronger employer brand than its competitors sees a 43% decrease in the cost per candidate they hire.

Why? By investing in your employer brand, you don’t have to spend all your hard-earned profit on advertising and marketing campaigns, creating awareness for your business.

Instead, with a consistently looked-after employer brand, you will reap the rewards of a strong employer brand’s natural talent attraction traits.

Reputation carries more weight than money

Moving on, if you were to disregard developing your employer brand, you risk paying over $4,000 in salary premiums per employee hired.

Additionally, if your company has 10,000 employees, you could see as much as $7.6 million in additional wages. Nobody wants that to happen.

Salary is important to candidates but is not the most crucial factor. CareerBuilder reports that 67% of candidates would accept lower pay if the company they were interested in had positive reviews online. Think of the money you could save.

As the stats show, we’d advise you not to ignore your employer brand. No company, from the big leaders to small start-ups, wants to spend more money than it should, right? Right.

Attracting and retaining the right talent

A staggering 78% of people will look into a company’s reputation as an employer before applying for a job, and 88% of millennials believe that being part of the right company culture is very important.

So, having a strong employer brand that potential candidates can access at any time, primarily online, allows them to see their potential fit to your company. It works both ways; it’s essentially the matchmaking stage for you and potential candidates.

That’s why you must build out your employer brand on social media platforms like Facebook, Twitter, Instagram, and LinkedIn as an access point for candidates to get a look into your company, as 79% of job seekers are likely to use social media in their hunt for their next job.

It’s in the stats

The last stat we’ll leave you with is this: A strong employer brand leads to 50% more qualified applicants. Employer branding becomes even more important in highly competitive sectors where niche skill sets are in serious demand.

So you’re wasting far less time shuffling through unqualified candidates and getting the candidates that fit your criteria.

There you have it. Employer branding is statistically proven to make a night and day difference to your business’s talent attraction efforts.

We implore you to start taking employer branding seriously now, not later. We have developed the Employer Brand Index to give you a scientific way to measure and improve your reputation as an employer.

Below is the full infographic in all its glory:



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