What is the definition of employer branding?

Employer branding is the strategy that influences how current employees and the rest of the workforce view a company’s brand. While branding generally targets consumers, employer branding specifically targets a company’s current and potential employees. It is a communication approach aimed at retaining high-performing employees and attracting top talent. Also read all about the employee journey here

Table of contents of this article

What does Employer Branding mean?

Employer branding stands for everything you do to position the organization as an attractive employer. It involves managing and influencing your reputation as an employer with job seekers, employees and key stakeholders. The employer brand is the organization’s reputation as an employer. Simply put; it is what job seekers and employees really think of you. It’s what they tell their friends and family in their spare time

The Reality of Employer Branding

Getting to know potential employers today is as easy as finding the hippest lunch spot. In this current reality, employers must take a proactive approach to attract and retain top talent. With a well-thought-out employer branding strategy, any company can influence the perceptions of job seekers and employees

Why influence the employer brand?

As we indicated, the employer brand is not something you actually own. Your reputation as an employer exists in the minds of candidates and employees, and is shaped by their thoughts and impressions. You have an employer brand, whether you actively manage it or not. Candidates and employees have an opinion of you, and if you don’t try to influence it, you are at the mercy of that opinion.    

Employer branding in the candidate journey

Think of your company’s overall recruitment and retention efforts as a series of individual interactions. Each contact moment leaves an impression with candidates and employees that determines the employer brand and your ability to hire and retain good people. Without proper management, each of these contact moments can become a “deal breaker,” costing candidates and employees. Also read our article on the candidate journey

The history of employer branding

Although the concept has been around for decades, employer branding did not receive widespread attention until the mid-1990s. When the first online job boards were launched, employees had access to millions of job openings overnight. The workforce became more flexible than ever before, and the days of employees sticking with one company for long periods of time were over. Smart employers adapted to this shift – some faster than others – and began taking proactive steps to attract and retain top talent

Advantages of employer branding

Many companies don’t realize the power of employer branding, but the benefits are significant. We would like to cover some of the benefits with some numbers

• • Company reputation
    75% of candidates consider a company’s reputation an important consideration when looking for new career opportunities. Virtually every candidate — whether actively or passively searching — will weigh the company’s reputation before applying.

• • Company culture
    77% of job seekers want to learn more about the culture and values before applying for open positions. Employer branding efforts can be a great way to communicate these characteristics.

• • Employer perception
    69% of candidates reject an offer from a company with a poor employer brand even if they were unemployed. Fear of unemployment is not enough to overcome a negative employer brand.

• • Savings
    Companies with a poor employer brand must offer at least 10 percent more to attract top talent. Do you pay that 10 percent premium to your employees?

• • Recruiting talent
    41% of passive candidates would accept a new position without a pay raise if the company had a good employer brand. A positive employer brand is all it takes to overcome the stigma that attaches to a lateral move for nearly half of the workforce.

• • Talent magnet
    A whopping 23% of the 18- to 34-year-old workforce would accept a pay cut for a chance to work at a company with a good employer image.

• • Employee recommendations
    Employee recommendations are often the best source of good job applicants. The Employer Net Promoter Score (eNPS) comes out at 55 in the Netherlands. Despite this, some 20% of employees do not recommend their own organization at all.

• • Diversity
    86% of candidates consider a company’s commitment to initiatives around diversity and inclusiveness when applying for a position. An open work environment is critical to attracting high-performing professionals from different walks of life.

These statistics show that employer branding affects every facet of the employer-employee relationship. Although employer branding is usually associated with recruitment, it also affects employee engagement, retention and even profitability

How do you build an employer brand?

At the base, you will determine the ways in which your team’s personality can best be expressed. Follow these four steps;

1. 1. Define your unique value proposition
      People need to know what your company stands for before they apply for an open position and want to work for the organization. Therefore, it is essential to establish a clear unique value proposition. In this proposition, you explain how your products or services improve the lives of the people who invest in them. What are the specific needs and pain points of your customers that you address? What do you do differently than the competition

      Write down your mission, vision, values and culture. If you can articulate all of these components of strategy, the candidate will be better able to determine if your goals align with theirs and decide if they are a fit for your organization

      This way, you will connect with capable candidates who share your vision and are eager to be a part of your unique culture

1. 1. Take an Employer Brand Audit
      You can’t influence your employer brand if you don’t know what people think of you

      First, examine everything you say to candidates and employees that could influence their perception of the company. This ranges from job descriptions, career pages, social media profiles, acceptance and rejection letters, onboarding or preboarding materials, internal communications to performance reviews. If it exists, analyze it

      Next, it’s time to get feedback from candidates and employees. Ask questions that provide meaningful information. How would they describe the company to a friend? Why did they choose to apply? Why did they accept or decline the offer? Why do they stay with the company year after year? Why do they leave the company

      As soon as the employer brand audit is completed, you can identify and correct the gaps that exist between how the company presents itself and how it is perceived by candidates and employees

1. 1. Employee value proposition

      An employee value proposition includes all the benefits and rewards employees receive when they join a company. It answers two key questions:
      – What the individual employee or candidate should expect from the company
      – What the company expects from the individual employee or candidate

      See this proposition as the guide for your employer branding

1. 1. Implement the Employer Branding Strategy
      At this point, you’re ready to take the message to the masses. But which channels are most important? There are numerous channels you can use to promote the employer brand. We list three
      – Job descriptions
      Job descriptions are often the first interaction job seekers have with the company, so make sure they reflect the desired employer brand. 

      – Career page
      Your career page is the anchor of the employer branding material, making it one of the most important touch points with potential candidates. Appealing photos or videos, employee experiences, core values and much more can convince candidates that you are the right employer, so spend time on this.  

      – Online reviews
      Nowadays, almost every job seeker reads reviews about employers before applying. While you can’t control anonymous reviews, you can respond to them, and that can have a serious impact on perception. According to a study by Glassdoor, 7 in 10 people changed their opinion of a company after seeing it respond well to a negative review. We recommend paying close attention to what people are saying about you and not being too afraid to respond. Also consider today’s opportunities with E-learning and Gamification models.

Whatever direction you take, make sure your employer branding strategy emphasizes the aspects of the company that set you apart and that you present the information in an accessible and engaging way. ENBOQ will be happy to help you make your story a unique experience