5 reasons business leaders can no longer hide from employer branding
21 April 2022

5 reasons business leaders can no longer hide from employer branding


Barry Chignell

Barry Chignell

Barry Chignell worked in Ciphr's marketing team from 2012-2020.


Recruitment and retention


Improved sales and productivity, reduced turnover and recruitment costs and happy engaged employees all contribute to a compelling case for an investment, of both time and money, in employer branding. However, many business leaders are still not seeing it as a priority.

Here are 5 undeniable benefits that can be enjoyed by implementing an employer branding strategy and investing in the most important thing, employees.

1. Quality of hire improves

quality-of-hireThe talent that all businesses should be searching for, the best talent, will have their pick of the large number of brands vying for their attention. 75% of these prospective candidates will consider employer branding before applying for a position at a company.

In order to stand out and get the attention of potential applicants, whether active or passive, there needs to be something a bit ‘special’ on offer from an employer.

80% of talent leaders agree that employer brand has a significant impact on their ability to hire great talent”

LinkedIn Global Recruiting Trends 2017

Companies that can demonstrate and showcase a company culture of engagement, collaboration, trust, respect and fun will obviously be a more attractive proposition than those that can’t. It’s as simple as that.

Company websites and social media have made it easy to illustrate genuine employer branding, as long as it exists in the first place.

Brands that get employer branding right and promote it as part of their talent attraction strategy benefit from a higher quality of hire who are aligned with the business values and goals. By using employer branding in this way further perpetuates the company culture and the benefits it brings to a business.

2. Sales increase

increased-salesWhether B2B or B2C people like to do business with brands that have a reputation for caring about and engaging with their employees.

If staff enjoy working for a business and have a passion about the product or service it offers, then they’ll refer friends and family. 92% of people trust referrals from people they know. This potent marketing channel is a bi-product of a strong and valued employer branding strategy.

One side effect of poor employer branding has on recruiting is the damage it can do to an applicant’s perception of a business.

In 2014, Virgin Media conducted a “Rejected Candidate Survey” of the applicants it had previously turned down for a job. The survey revealed that 18% of them were customers, and roughly 6% of them switched to a Virgin competitor as result of a poor recruitment experience.

3. Employee advocacy flourishes

employee-advocacyHappy employees will spread the word about what a wonderful place a brand is to work to their friends and contacts. Social media, forums and group messaging apps allow opinion to reach hundreds, if not thousands, of potential customers and applicants in minutes.
Conversely, unhappy employees will often share their horror stories and woes about an employer online too.

With 52% of consumers trusting content created by a brand’s employee, advocacy proves to be an extremely effective medium by which a business’ sales (not to mention talent attraction) can benefit greatly.
For this to happen, however, employer branding and company culture needs to warrant its employees time and effort.

“It should go without saying, if the person who works at your company is 100 percent proud of the brand and you give them the tools to do a good job and they are treated well, they’re going to be happy”

– Richard Branson

4. Turnover costs reduce

happy-employeeThe cost of replacing a member of staff is estimated to be equivalent to 6-9 months of that employee’s salary. With this in mind it should be a priority for businesses to ensure that their staff remain happy under their employ for as long as possible.

To retain employees they need to be content in their role, feel engaged, and be given the recognition they deserve for their efforts.
Without this level of engagement they’ll easily be tempted away to a competitor who can demonstrate a strong culture and employer brand.

Recruitment costs are also reduced when a solid employer brand is present.
Using social media to illustrate a great environment, sharing employee quotes which advocate the culture and implementing referral programs to attract trusted and suitable applicants will all help to reduce the costs associated with traditional recruitment methods.

In a study of over 1000 respondents it was revealed that:

  • If the reputation of the brand is poor, then a pay increase of at least 10% was needed in order to entice a new employer. This translates to approximately £3,297 per hire.
  • The study also revealed that that in order to compensate for a poor reputation, a company with over 10,000 employees or more could be spending £5.3million in additional wages.
  • According to the study, job applicants soared by up to 500% when a company showcased aspects of their working environment on social media.

Source: Langley James

5. Productivity increases

improved-productivityProductivity can be positively affected in a variety of ways. From the office space that employees work in on a daily basis to the ability to listen to music while at their desk.
An employer brand and culture that understands the ways in which an individual can thrive and succeed in their role is an attractive proposition to talent and one which will prosper as a result of the improved productivity.

Happy employees that interact and collaborate with their colleagues will perform at a more optimal level that those that feel isolated and left alone to get on with things.

“In one of the largest global workplace surveys of its kind, 83% of respondents said adopting flexible working had resulted in improvements in productivity.”

– People Management

A brand that’s flexible in their approach to where and when employees work, as well as an understanding of the importance of a healthy work/private life balance will reap the benefits of greater productivity.