10 Reasons Why Employer Branding is Important

WRITTEN BY: Karim Ansari

Companies all around the world are constantly developing their employer brands in order to remain competitive and acquire the best talent in the market. Conceptualized by Simon Barrow, 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 around the world agree that employer brand has a significant impact on hiring, and even more so has a significant impact on your business’s success.

For organizations that aren’t quite sure why they need employer branding; we’ve put together the 10 reasons why employer branding is so important 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, a company with a stronger employer brand than its competitors on average see a 43% decrease in the cost per candidate they hire.

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

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

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 premium per employee hired.

Additionally, if your company has, say, 10,000 employees. You could see as much as $7.6 million in additional wages. Now nobody wants that to happen!

Sure salary is important to candidates, but it’s not the most important factor. CareerBuilder reports that 67% of candidates would essentially accept lower pay if the company they were interested in had very 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, want to spend more money than they 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, especially 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 it’s highly important that you 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. If you want to learn even more about employer branding, check out our latest eBook: The 12 Essentials of Employer Branding.

Below is the full infographic, in all its glory:


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