This story originally appeared on Personal Branding Blog
Having a reputable employer brand is a must for an organization’s strategy because it helps companies recruit better candidates, reduce hiring and marketing costs, and improve productivity. Therefore, for organizations that are still in doubt about investing in employer branding, here’s why it’s so important.
1. Help retain employees and recruit new ones
A strong employer brand will make your employees proud that they are a part of the organization. Being a part of the right company culture is very important for most employees. A majority of employees look at the social media channels of employers before applying for a job to have an idea of the brand image. Also, through these channels, they can have an idea of the expectations of the employer and see if they potentially fit into the company culture.
2. Reduces costs
If you have a well-known brand then you don’t need to spend as much on the recruiting costs. Potential candidates will find you and apply to your positions naturally. Instead, you can spend this money on your branding or on product development in order to get ahead of your competitors. In addition, your recruiting efforts decrease because you don’t spend so much time to find candidates, candidates find you themselves. Also, according to statistics candidates are willing to accept a lower pay, if they work in a company with positive reviews and a well-known brand.
3. Your employees become your ambassadors
Current employees become your brand ambassadors and as a result, hires through referrals increase. The more your employees talk positively about you, the more you get good candidates. Also, when your current employees talk about the business, this helps the brand becomes stronger without spending much on marketing because awareness increases by word of mouth. This creates a domino effect. When the brand awareness increases, your sales increase in parallel.
4. Improves employee engagement
Employees who work in strong brands are generally more enthusiastic and motivated. Having motivated employees is great for an employer because they are more productive and more productivity means more growth for a business. When your business grows, your revenues grow as well and this ensures the financial stability of your company. A financially stable company is always more attractive to potential candidates. Moreover, your employees feel more secure in their jobs.