Employer branding research summary. Branding is a crucial factor in your business’ success. Your business’ brand will affect your conversion rates, customer feedback, and the employees you can hire.
After all, just as employers can be picky about who they hire, so too are job seekers cognisant of the quality of an employer. Knowing that, this article will dive into the importance of employer branding through the latest insights on the topic:
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A good employer brand results in a 50% reduction in the cost per hire.
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75% of candidates research a company’s reputation before applying.
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86% of job seekers research a company’s reviews and ratings when deciding where to apply.
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92% of people would consider changing jobs to a company with an excellent reputation, even with no salary increase.
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Candidates trust a company’s employees 3x times more than the company itself.
For further analysis, we broke down the data in the following ways:
Sourcing Candidates | Recruiting Leader’s Opinions | Impact on Hiring Process | Impact on Business Success
Job seeker’s opinions on employer branding
Job seekers have strong opinions on employer branding, with many avoiding jobs with bad reputations or being willing to change positions based on branding alone. To find out more, we’ve gathered some of the latest insights:
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84% of job seekers say the reputation of an employer’s company is important.
More specifically, 86% of employees also agree that a company’s reputation for DEI (diversity, equity, and inclusion) is an essential factor when choosing a job.
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Job seekers are 3x more likely to trust current employees over CEOs.
While 79% of CEOs believe their employees trust the company, the fact is that only 65% of employees actually do.
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50% of candidates wouldn’t work for a company with a bad reputation, even for a pay increase.
Reputation means more to job seekers than you might think, as many value it just as much, if not more, than pay. For instance, 92% of workers would also consider changing jobs to a company with an excellent reputation, even with no salary increase.
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80% of Glassdoor users say that seeing a company respond to reviews improves their perception of the company.
In turn, 75% of users say they’re more likely to apply to a job opening when they’ve seen the company respond to reviews and make regular updates.
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68% of Millennials look at employer social media to evaluate brand
Meanwhile, 54% of Gen Xers do the same, showing that employee branding is even more important to younger generations when compared to older ones.
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Women are over 28% more likely to refuse to join a company with a bad reputation.
Women are especially harsh when it comes to avoiding companies with lousy branding, as 86% of women would refuse to work for a company with a bad reputation. Comparably, only 67% of men refuse.
Employer branding’s impact on sourcing candidates
Finding the best talent you can is an essential task for any business. However, businesses can have extremely different outcomes depending on the quality of their brand. Here are some interesting facts about the impact of employer branding on sourcing candidates:
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Employers with a strong brand receive 50% more qualified talent leads.
Not only are employers with strong brands more likely to find talent, but they’re also more likely to retain that talent as well. On average, employers with a strong brand experience a 28% reduction in turnover.
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75% of active job seekers are likely to apply for a job if the employer actively manages their brand.
It’s not enough to set up a positive employer brand and hope for the best, as employees want to see regular and consistent management of the employer’s brand over time.
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86% of job seekers will not work for a company with a bad social standing.
This includes having a bad reputation with anyone from former employees to the general public, as both harm branding.
Recruiting leader opinions on employer branding
Recruiters are always looking for the best ways to hire the most qualified candidates, which is why they’re so aware of how employer branding affects the recruitment process. To learn more about what recruiters think of employer branding, here are some key facts:
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72% of recruiting leaders say an employer brand significantly impacts hiring.
Recruiters are aware of how much an employer’s brand affects the opinions and behaviors of job seekers, as they see how much more difficult it is to recruit candidates for jobs with bad brands.
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86% of HR professionals say recruitment is becoming more like marketing.
According to most HR professionals, recruiting has become like a marketing position. This is because many recruiters have to sell a company’s brand to potential job candidates and convince them the company is worth working at.
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55% of recruiting leaders have a proactive employer brand strategy.
Over half of recruiters now focus on honing in on an employer’s brand when recruiting, so they can bring positive dialogue forward and control the discussion surrounding a company.
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59% of recruiting leaders are investing more in employer brands.
This is true globally, as over half of all recruiting leaders have realized employer brand is essential to a successful recruitment strategy.
Employer branding’s impact on the hiring process
Employer branding also affects the hiring process, as those with a good brand often find hiring and retaining candidates quicker and easier. Here are the facts:
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Good employer branding reduces the time to hire by up to 2x.
On average, good branding reduces the time to hire by between 1-2 times. This can mean the difference between a hiring process taking two weeks instead of over a month.
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78% of candidates say their experience indicates how the company values its employees.
Candidates are less likely to apply for or accept jobs when they feel they’ll be treated poorly in the workplace, and this stat shows that candidates believe you’ll treat your employees the same way you treat them.
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69% of candidates would reject an offer from a company with a poor employer brand.
Candidates being unwilling to accept job offers, even when presented with them, can be a considerable issue that prolongs the hiring process further.
Employer branding and business success
Employer branding ultimately plays a crucial role in a business’s success, especially on the employment front. To understand just how important branding is for success, we’ve gathered some essential statistics:
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A good employer brand reduces turnover by 28%.
In the context of employees, that can equate to between 1 in 4 or 1 in 3 fewer employees leaving their positions. Less turnover also reduces hiring costs, which is always a positive for companies.
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96% of companies believe employer brand can affect revenue.
And they’re often correct, as businesses with consistent brand presentation have 33% higher revenue on average.
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44% of companies monitor the impact of employer branding
This includes measuring things like the cost to hire, employee referral rates, and other methods businesses can use to gauge the success of their brand.
Employer branding FAQ
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How do you measure employer branding?
You can use several quantitative and qualitative measurements to measure employer branding. Through most of these examples, you can infer the quality of employer branding through positive or negative outcomes.
Quantitative metrics include:
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Retention rates. Employers with a good brand have 28% higher retention rates. That’s because a good brand incentivizes employees to stick around.
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Application rates. Applicants are more likely to avoid jobs with poor reviews and a bad reputation, so the number of applications you receive can indicate the quality of your branding.
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Employee satisfaction surveys. You can gain valuable insight into the quality of your brand by asking employees about it directly.
On the qualitative side:
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Employee reviews. Employees are 3x more likely to trust employees than your company’s CEO, so monitor what people say about working for you.
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Perception Surveys. Conduct surveys with potential candidates to gauge how they perceive your company as an employer.
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Ask Recruiters. Engage with recruiters who can explain how talented candidates react to your brand.
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What are trends in employer branding?
The top trends for employer brands in 2023 are diversity, inclusion, and sustainability. For example, 86% of employees agree that a company’s reputation for DEI (diversity, equity, and inclusion) is an essential factor when choosing a job.
This is especially true for younger generations like Gen Z and Millennials, who are more likely to care about a company’s brand when searching for a position.
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What is the impact of a strong employer brand?
A strong employer brand reduces turnover, decreases hiring time, and increases revenue. Strong branding makes it much easier for employers to hire and retain employees, with an average reduced turnover rate of 28% and a time to hire that’s 1x to 2x shorter.
Further, all of this leads to companies having higher revenue. Between reduced hiring costs and increased customer trust, businesses with consistent branding see an average 33% increase in revenue.
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What companies have the strongest employer brand?
Google has some of the strongest employer branding in the world. The company receives over 3 million resumes per year, of which only an average of 7,000 new employees are chosen. Google is also well known for its extravagant offices, which offer top-notch work environments.
Other companies with strong employer brands include:
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Starbucks
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Cisco
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Hubspot
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Shopify
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The Home Depot
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Netflix
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Salesforce
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Is employer branding marketing or HR?
Employer marketing is not only marketing or HR. Instead, maintaining an employer’s brand requires effort and communication between Marketing, HR, and the company’s CEO to be successful.
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What is the difference between an employer brand and a corporate brand?
The difference between an employer brand and a corporate brand is who the brand is being marketed to. While a corporate brand is marketed to all of the general public, an employer brand focuses specifically on how your business appeals to talent.
Ultimately, the goal of your employer brand is to attract and maintain more talent.
Conclusion
Employer branding is crucial to business success, allowing you to hire more qualified candidates and retain them for longer.
Businesses with good employer branding have their turnover rates reduced by 28% and have a hiring process that’s 1x-2x shorter. The financial benefits of these statistics cannot be overstated, as companies with better employer brands have 33% higher revenue.
As an employer, it’s vital that you communicate with your HR and marketing departments to foster as positive of an employer brand as you can create. Plus, be sure to monitor current trends, as you should constantly be updating your brand with the times.
References
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Forbes – Dissonance Disaster: When Employer Brand And Talent Brand Don’t Align
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LinkedIn – Why Investing in Your Employer Brand Matters Now More than Ever
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4 Corner – How to Elevate Your Employer Brand to Recruit Top Candidates
Author
Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.
