Why Employer Branding matters, now, more than ever?
It is no secret that the challenges to attract and retain talent are only going to get harder in the coming years. Almost all research on the topic highlights that the dynamics in the talent market has shifted - away from organisations and towards the employee.
Attrition is at an all-time high across industries and geographies. According to a 2020 Randstad research, 1 in 5 employees are always looking to change their jobs. If this is extrapolated, nearly 20 percent of every organisation is job-hunting right now.
How does one stop or mitigate the impact of this exodus?
There are multiple reasons why an employee may look out for new opportunities or even join a new organisation. However, there is one aspect that encompasses all of the reasons, and is probably the most effective in reducing the overall numbers - Employer branding.
LinkedIn’s 2020 research shows that a strong employer brand reduces employee turnover by 28% and cost per hire by 50%. The same research also found that companies with a strong employer brand see 50% more qualified applicants per job posting and take 1–2x faster to hire.
If the “Great Resignation” of 2021 is an indicator of the next few years. Organisations must be prepared. Those that invest in building and managing their employer brand are more likely to reduce the impact of this employee turnover.
What is employer branding?
It all starts with an Employee Value Proposition (EVP). This is the unique set of benefits that an employee receives in return for the skills, capabilities, and experience they bring to a company. It covers the key reasons that people are proud and motivated to work at your organisation.
An employer brand is the sum total of how this value is perceived by different stakeholders - employees, prospects, recruiters, partners etc.
A strong employer brand can:
Change the perception of the organisation.
Retain current employees.
Increase employee engagement.
Attract top talent.
Attract right talent.
Increase offer acceptance rate.
Increase employee referrals.
Improve overall brand perception.
There may be different ways that an organisation may choose to build their employer brand, but it always starts by articulating a clear and believable EVP.
Why 2022 is different?
If all the reports on recruitment are to be believed there is going to be a continuation of the 'Great Resignation' and employees are going to demand more 'humanness' from their employers.
In their 2022 Future of Work report, KornFerry defines this as the power shift "from organisations to people. From profit to mutual prosperity. From me to we."
What this means is that organisations need to focus on more than just monetary benefits and lip service to employees on policies. They will need to look beyond financial goals and focus on the 'collective good'. They will be held accountable for the promises they make on larger programs on sustainability, diversity and inclusion.
Employees are also demanding more customised and personal experiences in the way they work and manage their goals. Along with productivity organisations must strive for employee well-being and health.
To be successful, organisations will need to re-evaluate their EVPs and build a lot of 'compassion' and 'empathy' in to it.
This year in many ways is a year of re-invention and embracing the changes that the pandemic has forced on employees and organisations alike!
How can you get started?
An employer branding exercise can seem daunting with many brand touch points and programs in play, it is difficult to figure out where to start. In many ways, it can also be like a change-management program, which is never easy to execute.
From our experience, the simplest way to get started, is to select your most simplest and easiest to transform process or program, one that you have complete control over. Be it, a rewards program, or a recruitment process, or a social media plan. When you are done with this, you can consider a more detailed, and elaborate overhaul.
Demonstrating early success to yourself and the organisation will help build more confidence as you take on the larger and longer-term change.
Get in Touch
At Rato Communications, we offer employer branding services that are targeted at mitigating short-term problem statements, as well as addressing longer-term goals and objectives. Get in touch with us today to see how we can help!