Employer Branding Explained: Everything You Need to Know

Looking to attract and keep great talent? Your reputation as a workplace shapes who joins and stays with your team. Let’s explore how employer branding can help you build an organization people want to be part of.

We will try to answer the following questions through this article:

• What is Employer Branding and what are the benefits of a Strong Employer Brand?
• What are some examples of effective employer branding 
• What are the top strategies to build a strong employer brand?

What is Employer Branding?

Employer branding is the process of defining and promoting your company’s reputation as a desirable place to work. It involves showcasing your values, work culture, career growth opportunities, and overall employee experience. A strong employer brand helps you attract top talent, retain existing employees, and establish your organization as a leading workplace in your industry.

Key Goals and benefits of Employer Branding

1. Talent Attraction: A robust employer brand serves as a powerful magnet for top talent. It effectively conveys your company’s values and culture, drawing in candidates who resonate with your vision and are more likely to excel in your environment. In fact, according to Glassdoor, about 75% of job seekers evaluate an employer’s brand before applying for a position.¹

2. Cost-Effective Recruiting: Companies with robust employer brands typically see reduced hiring costs. They often receive more unsolicited applications and have higher referral rates, lowering advertising expenses and recruiter fees. LinkedIn reports that a strong employer brand can cut hiring costs by up to 50%.²

3. Enhanced Retention: When employees feel connected to your brand, they’re more likely to stay. A strong employer brand fosters loyalty, reducing turnover rates and the associated costs of constantly hiring and training new staff. LinkedIn research indicates that a strong employer brand can reduce employee turnover by 28%.²

4. Competitive Differentiation: In tight labor markets, a distinctive employer brand sets you apart. It gives potential hires a compelling reason to choose your company over competitors, especially when job offers are similar.

5. Performance Improvement: Employees who believe in their company’s brand tend to be more engaged. This increased engagement often translates into higher productivity, better customer service, and improved overall business performance.

Discover how Employer Branding can revolutionize your hiring process. Read our article, “Hiring in 2024: Why Employer Branding is Your Most Valuable Asset”

Here are some real-world examples of effective Employer Branding:

1. Microsoft’s Diversity and Inclusion Initiatives: Microsoft fosters a diverse workplace through programs supporting underrepresented groups, including Employee Resource Groups (ERGs) and initiatives for hiring neurodiverse and disabled talent. Microsoft’s commitment to diversity and inclusion has been recognized by various organizations, including the Human Rights Campaign (HRC).

2. McKinsey & Company’s Alumni Program: Their program engages over 34,000 former employees, turning them into brand ambassadors and potential “boomerang hires.” The program provides alumni with opportunities to connect with current employees, participate in events, and access resources.

3. Google’s Culture of Innovation and Well-being: The company’s focus on fostering creativity, offering competitive benefits, and promoting career development has made it a highly sought-after destination for top talent. Google’s emphasis on work-life balance, inclusive environment, and transparent communication further strengthens its employer brand.

To discover how global companies are effectively harnessing Alumni Programs for strategic employer branding, explore our comprehensive article: The 7 Best Corporate Alumni Networks You Need To Know.

Strategies To build your own Strong Employer Brand

Here are some top employer branding strategies you can use to create a positive and compelling employer brand that sets you apart in the competitive job market.

1. Conduct an Employer Brand Audit
2. Define Your Identity and Target Audience
3. Craft a Compelling Employer Value Proposition (EVP)
4. Set Clear, Measurable Goals
5. Secure Leadership Buy-In and Create a Rollout Plan
6. Maintain Consistent Messaging
7. Prioritize Employee Experience
8. Invest in Employee Development
9. Promote Diversity, Equity, and Inclusion (DE&I)
10. Align Policies with Values and Implement Feedback Mechanisms
11. Leverage Employee Advocacy
12. Create Engaging Content and Utilize Digital Tools
13. Develop a Strong Online Presence
14. Utilize Social Media to Share Work Culture
15. Leverage Employee Testimonials
16. Curate a Great Candidate Experience
17. Measure and Analyze Progress
18. Be Agile and Adaptable

To understand these strategies in depth, please read our article, How To Improve Employer Branding: Top Strategies For 2024.

Creating a strong employer brand is crucial for your organization’s success. It shapes your workplace culture, enhances employee satisfaction, and fosters a sense of belonging. Effective branding builds loyalty and trust, leading to lower turnover and higher morale. Ultimately, a robust employer brand enriches the employee experience and supports long-term stability, nurturing an engaged workforce that drives organizational success in today’s evolving landscape. 

To learn how to leverage alumni networks to craft a compelling employer brand. Read our article: How to Use Alumni Networks to Build a Strong Employer Brand

References:

1. Glassdoor. (April 5, 2021). The Most Important Employer Branding Statistics to Know. Glassdoor for Employers. 
2. Employer Brand Statistics – LinkedIn Business (April 5, 2021). Small to Mid-sized Business Edition; For Hiring Managers, HR Professionals, and Recruiters; The Ultimate List of Employer Brand Statistics.