Establishing high-performing teams requires well-defined company branding. Startups across industries are putting their employer brand ahead in order to comprehend better how they are seen online and how that impression influences recruitment, hiring, and retention. But why is employer branding important and what are the actual proofs of this? Here are some of the most significant statistics you must know. Let’s dive in!
Understanding Employer Branding
Employer branding is how your company identifies itself as an employer. Essentially, it deals with how your company is viewed and promoted to prospective employees – meaning that your current employees are brand ambassadors that can aid your employer branding. You will discover that by involving your existing employees in employer branding, your company will develop more business opportunities.
Social media enables two-way communication between businesses and their target audiences. As a result, social media platforms provide a significant potential for companies to develop good connections with their future employees. Understand the three aspects in which you can utilize statistics for your employer branding.
The most significant result of having a good employer brand is that prospective employees are more likely to consider your company when applying for employment. Top talents are aware of the preparation and they do their research about your company before deciding to send their resumes in.
According to a study by icims, 86% of HR professionals claimed that recruiting is becoming more like marketing. You can read about content marketing strategy for the hiring process here.
To determine where to apply for a job, 86% of employees and job seekers surveyed by Glassdoor look at business evaluations and ratings. The study also suggested that if a business actively maintains its employer brand, 75% of active job searchers are more likely to apply for a position.
68% of Millennials, 54% of Gen-Xers, and 48% of Boomers said they particularly explore an employer’s social media accounts to evaluate the employer’s brand, Careerarch suggested.
When a candidate submits their application, an established employer brand influences how the company handles the interview process and negotiate the offer process. Whether or not a candidate accepts your offer may have something to do with the reputation you have built as a startup.
One study by HR Daily Advisor showed that 50% of candidates said they would not work for a company with a negative image, even if the wage rise was considerable. The same study also revealed that when offered a position with a business with a great corporate reputation, 92% of candidates would consider switching careers.
A good employer branding may lower the cost per hire by up to 50%, according to LinkedIn Business.
On the other hand, a bad reputation or employer branding may cost a company up to 10% extra each hiring, as suggested by HBR.
The effect of your employer branding does not stop when a candidate accepts an offer and finishes the onboarding process. Your reputation extends over into the employment process and tenure. A strong employer branding that is consistent with your business culture is a powerful force for lowering turnover, increasing retention, and keeping employees engaged.
There are many cases where employer branding does not align with candidates’ expectations and is only realized once they are employed. A study by The Muse revealed that almost one-third of job seekers quit within the first 90 days of employment.
Once employed, candidates can actually change their minds about employer branding. This is a case with 7 out of 10 respondents in a survey by LearnHub after seeing their companies’ replies to a review.
When it comes to discussing working conditions at that company, employee voice is three times more credible than the CEO’s, according to Edelman.
Retention can be done effectively with consistent employer branding that shows. Officevibe suggested how companies that actively engage in their employer brand might minimize turnover by up to 28%.
There is no one-size-fits-all method for employer branding, as this varies according to your company culture. Once you have identified the right strategy for your startup, you can get creative and develop relevant content to strengthen your employer branding. If your company is customer-centric and innovative, as startups are expected to be, make sure that message resonates with your target audience.