Great employer branding is for more than just attracting winning candidates. Here are four benefits of an exceptional employer brand that can transform your business.
J. Paul Getty once said, “The employer generally gets the employees he deserves.“ This simple quote conveys the most important thing you need to know about employer branding: creating and promoting your brand effectively will attract great, like-minded employees who want to build their career at your organization.
However, the benefits of stellar employer branding go far beyond simply bringing on excellent employees. Here are four benefits of crafting an employer brand worth working for.
1. Reduced Employee Acquisition Cost
Hiring a new employee is not cheap. In addition to the time and opportunity costs you’ll incur from interviewing, onboarding, and training, there’s also the often overlooked cost of advertising for the open position. In fact, studies by recruiting software researcher Software Advice have shown that a business spends, on average, $173 on advertising for every new hire.
A well-honed employer brand, such as EAT24’s, increases the likelihood that current employees will refer qualified candidates to positions. Applicants who are referred to the company by current employees cost far less to bring on board than those acquired through paid efforts (hence why savvy companies offer paid employee referral programs). If your employer brand keeps current employees consistently engaged, you can expect to drastically reduce your cost-per-hire (CPH) over time.
2. Customer Retention
A single customer at Starbucks is worth about $25 per week; this creates an impressive customer lifetime value for a coffee shop. Strong employer branding will also attract new customers who have their own lifetime value. But did you know that a poor employer brand can also lead to lost customer applicants? In fact, one in every five candidates will leave the application process and never again buy from or engage with the company.
So how are applicants perceiving your employer brand? If you’re not treating candidates well, you’re going to lose them as customers, too. Also, don’t forget that these individuals are likely to tell others about their experience. A bad perception of an employer brand from a single job applicant can negatively affect your entire reputation.
3. Increased Workforce Productivity
Even if you attract exceptional employees through your culture and branding, there’s no guarantee that once they’re in the thick of the job, they’ll work to their full potential. Just think back to your earlier days sitting in a cubicle. When you were stressed out, you undoubtedly got less done, right?
Thankfully, building a strong brand that’s focused on keeping employees happy can prevent a lack of productivity. Studies find that productivity increases 12 percent when workers are happy. Bill Gates said it best: “The competition to hire the best will increase. Companies that give extra flexibility to their employees will have the edge.”
4. Increased Revenue
Imagine you spend a few years frequenting a certain store only to find out that they treat their employees terribly. If you were suddenly to find out that the organization took steps that negatively affected their workers all in the name of turning a larger profit, would it affect how you perceived the company? Of course it would.
This is why great employer branding can also increase revenue. You only need to look at the quick downturn Walmart has seen over the years. Between 2006 and 2013, the company saw increased revenue ranging from $20 billion to $30 billion. But in 2013, the retailer started receiving negative publicity around how they treat employees, and sales greatly decreased.
In fact, they’ve shown yearly revenue increases of under $10 billion ever since. So keep in mind: building a strong brand that keeps employees happy will also keep consumers happy.
Let Your Employer Brand Evolve
If you had the most advanced computer back in 2002, how would that device treat you today? Like everything else, your employer branding must evolve to stay relevant. This is why implementing measures that track workplace changes and perceptions will help keep your brand strong. Such measures often include exit interviews and employee satisfaction surveys.