5 Reasons Employer Branding is Important
Employer branding is a strategy companies use to retain current and attract ideal future talent. It conveys to current and prospective employees why the employer’s workplace is appealing and unique. The purpose is to make it easier to for the employer to acquire the top talent it wants from the job market. Employer branding has definitely become an important management tool, yet still a practice that eludes most. Why is it so important? Here are 5 reasons why:
1. Shortage of Talent – With emerging economic powers in China, India and Russia coupled with the aging workforce in the US, Europe and Japan, the competition for skilled workers continues to increase. There is also a clear shift in college student’s choices of degrees from technical to non-technical. Companies that appear to be attractive and desirable employers will have a much easier time recruiting the top talent.
2. Doing More with Less – With the recent economic downturn, there is tremendous pressure to cut costs and increase productivity. This has made the need to get the right people into the right jobs even more important. A strong employer brand will result in more successful recruiting and retention of top talent. Effectively communicating the workplace environment, companies are more likely to gain the attention of top talent that fits within its culture, increasing the number of people in the right jobs with the right skills.
3. Growth & Profit - Hiring and retaining top performers is essential for a company to maintain growth and a competitive edge. Employees with the right skills, experience and knowledge in critical positions are strategically important and drive the growth of the company. As developing economies expand, people become a key asset. That said employer branding increases company profits.
4. Reputation – Research on the talent market shows that graduates and professionals want to work for companies that have great reputations. They will often turn to colleagues, associations, friends and family to get their take and approval when making a decision regarding a potential employer. Keep in mind that the consumer/corporate/employer brands are all interlinked. If a company has a bad reputation, it will have an effect on everything else.
5. Power and Strength –An employer of choice has more bargaining power as people will want to work for the company, regardless of salary levels. An employer of choice constantly maintains an image of being the most desirable employer, giving the right reasons and incentives why top performers stay.
How’s your Employer Brand? Next week we’ll explain the 5 step process to building a strong employer brand.
Molly Haefele
Employer branding is a strategy companies use to retain current and attract ideal future talent. It conveys to current and prospective employees why the employer’s workplace is appealing and unique. The purpose is to make it easier to for the employer to acquire the top talent it wants from the job market. Employer branding has definitely become an important management tool, yet still a practice that eludes most. Why is it so important? Here are 5 reasons why:
1. Shortage of Talent – With emerging economic powers in China, India and Russia coupled with the aging workforce in the US, Europe and Japan, the competition for skilled workers continues to increase. There is also a clear shift in college student’s choices of degrees from technical to non-technical. Companies that appear to be attractive and desirable employers will have a much easier time recruiting the top talent.
2. Doing More with Less – With the recent economic downturn, there is tremendous pressure to cut costs and increase productivity. This has made the need to get the right people into the right jobs even more important. A strong employer brand will result in more successful recruiting and retention of top talent. Effectively communicating the workplace environment, companies are more likely to gain the attention of top talent that fits within its culture, increasing the number of people in the right jobs with the right skills.
3. Growth & Profit - Hiring and retaining top performers is essential for a company to maintain growth and a competitive edge. Employees with the right skills, experience and knowledge in critical positions are strategically important and drive the growth of the company. As developing economies expand, people become a key asset. That said employer branding increases company profits.
4. Reputation – Research on the talent market shows that graduates and professionals want to work for companies that have great reputations. They will often turn to colleagues, associations, friends and family to get their take and approval when making a decision regarding a potential employer. Keep in mind that the consumer/corporate/employer brands are all interlinked. If a company has a bad reputation, it will have an effect on everything else.
5. Power and Strength –An employer of choice has more bargaining power as people will want to work for the company, regardless of salary levels. An employer of choice constantly maintains an image of being the most desirable employer, giving the right reasons and incentives why top performers stay.
How’s your Employer Brand? Next week we’ll explain the 5 step process to building a strong employer brand.
Molly Haefele