An organization’s reputation does more than just influence the target market to do business with the company. Many employees or job seekers wouldn’t consider applying or continuing to work for a company with a bad reputation. Both current and former employees can be some of the best brand ambassadors. Therefore, an employer’s brand plays an important role in recruiting and retaining employees, especially in a competitive job market.
This page will outline what employer branding is and why it’s important to an organization.
What Is Employer Branding?
An employer’s brand refers to the reputation an organization holds among its workforce. It’s what employees consider when they decide to apply or continue working for an organization. This unique brand exists whether it’s managed by the employer or not, so actively monitoring and managing it both internally and externally is critically important. The next sections will go into more detail on the different elements an organization can leverage when managing its brand.
Mission Statement
A mission statement is a statement made by an organization that outlines its core beliefs and principles. Simply put, the statement tells employees what the organization stands for, serving as a pledge for the company to live up to those standards. A strong employer brand speaks to the organization’s mission statement by transforming its outlined values and principles into an impactful message.
A mission statement answers the questions of what the organization does, how these actions are accomplished and why the organization does them. It is both an internal- and external-facing statement that should always be visible in the workplace, on digital platforms (e.g., websites and social media channels) and within marketing materials.
Values
Core values are an important part of any organization. Values answer the questions of why the job matters and what the organization stands for. They play a vital role in the hiring process, as the best candidates are those who embody the same values as the organization. Strong, authentic values can benefit an organization by attracting those candidates to apply. In addition, values can help keep employees feeling motivated and engaged, which, in turn, may increase performance and productivity levels.
Some common company values include:
- Accountability
- Customer service
- Innovation
- Integrity
- Respect
- Trust
Values should be demonstrated in daily operations and communications, both internally and externally. Employees who respect and believe in an organization’s values are able to better understand their roles and how they can achieve and contribute to business goals.
Employer Value Proposition (EVP)
Another core element of a strong employer brand an EVP. An EVP is a set of benefits employees receive in return for the unique set of skills and experiences they bring to the company. A strong EVP can give employees a powerful incentive to work for an organization. Additionally, it can aid in attracting and retaining top talent, reducing hiring costs and reengaging the workforce.
When establishing an EVP, an organization should consider what factors influence a person’s decision to accept a job offer or not, such as:
- On-the-job perks
- Employee benefits
- Company values
- Company culture
- Career development opportunities
- Job security capabilities
An EVP is developed and tested with existing employees. It is not only unique, but relevant and compelling. Employees want to work for an organization that values their skills, capabilities and experiences, and a strong EVP accomplishes that.
Why Is Employer Branding Important?
In a competitive recruitment market, employer branding can be leveraged to promote an organization’s culture and values. It allows an employer to reinforce that their organization is a great place to work, which is critical to securing and retaining the strongest candidates. LinkedIn research found that a strong employer brand reduces employee turnover by 28% and cost per hire by 50%. This means that organizations with negative or nonexistent brands may end up paying more for both recruiting and retaining employees.
