The Many Benefits of Employment Branding
I have found that the primary reason why corporate recruiting managers under appreciate and under utilize a corporate branding strategy is because they have done a poor job in making the business case for investing in their firm's employment brand. You can't make a compelling business case unless you first know the possible benefits of the branding strategy. Over the years, I've advised dozens of firms on building a compelling employment brand (including a Fortune #1 Best Place to Work winner) and, as a result, I've identified the many benefits that a successful employment-branding program can provide. When demonstrated, these benefits can help sway even the most cynical nonbelievers:
- A Long-Term Impact. Once you have successfully built your employment brand, you can expect the positive impacts on recruiting to continue for at least five years baring any major PR issues surrounding your company.
- An Increased Volume of Unsolicited Candidates. You will significantly increase the number of applicants that your firm receives each year. In some cases, applications will increase by 500%.
- Higher Quality Candidates. Not only will you get more applicants, but the quality of your candidates will improve dramatically to the point where you will start getting applications from individuals who never would have considered your firm in the past. A great employment brand that highlights your firm's focus on innovation is necessary in order to attract game-changers, managers, and innovators who demand it!
- Higher Offer-Acceptance Rates. As your employment image becomes better known and more powerful, your offer acceptance rates will improve dramatically.
- Increased Employee Referrals. The percentage of hires from employee referrals will increase as a result of your employees' increased pride and knowledge about what makes their firm superior to others. Increasing the number of referrals has added benefits in that it increases employee ownership in the recruiting process, while simultaneously reducing recruiters' workloads.
- Improved Employee-Retention Rates. A compelling employment brand increases retention rates among your current employees because they will better know why working at your firm is a superior opportunity. In addition, their pride in your firm will grow as colleagues and friends routinely ask them, "Do those things really happen at your firm?" Unfortunately, the positive impact will be somewhat tempered by the fact that more firms will target your employees because of your strong employment image.
- Increased Employee Motivation. Employee motivation will be easier to maintain because of your employees' increased pride in the firm and the better management practices that are required to maintain an employer-of-choice status.
- Improved College Recruiting. Because college students are highly brand conscious, employment branding is especially effective for intern recruiting and college hiring.
- A Stronger Corporate Culture. Because one of the goals of employment branding is to develop a consistent message about what it's like to work at your firm, employment branding can help strengthen your corporate culture. This consistent message can reinforce corporate values and guide behaviors while a consensus develops across the enterprise among managers and employees with regards to what it means to be a part of the organization.
- Decreased Corporate Negatives. Effective branding programs identify and counter negative comments about your firm. This effort can decrease both the number and the severity of the negative comments that appear in the media and online.
- Ammunition for Employees and Managers. Most employment-branding efforts include elements that gather and centralize information on your firm's best practices and its compelling stories. As a result of this effort, it is much easier to provide every employee with an arsenal of information and stories they can share with colleagues in the media about what makes working for the organization the best possible opportunity.
- Increased Manager Satisfaction. The resulting higher quality of candidates and higher offer-acceptance rate means that hiring managers will have to devote less time to interviews, and they will be more satisfied with the recruiting function.
- Increased Media Exposure. As a result of winning awards, being placed on "best places to work" lists, and having managers give presentations at industry events, the amount of media exposure that your firm will receive will increase dramatically. Having the media brag about your firm's excellent people-management practices adds a level of external credibility that no recruitment ad can provide. As a result of this initial exposure, the number of times that reporters and benchmarking individuals will call your firm for future stories will also increase.
- A Competitive Advantage. Because employment branding efforts include extensive metrics and side-by-side comparisons with talent competitors, you ensure that your talent-management approaches are differentiated and continually superior. This superiority over competitors not only impresses senior managers, but it also improves your chances of winning over candidates who also apply for positions at your competitors.
- Increased Shareholder Value. The Russell Investment Group has demonstrated that being listed on Fortune's Best Places to Work list and the resulting improved employer image can positively impact a firm's stock price. Google, for example, has noted in its SEC filing the important role that recruiting and retention play in its continued business growth.
- Support for the Product Brand. An employment brand can support the corporate brand and your related product brands because many consumers mentally make the link between attracting quality employees and producing a quality product.
Additional Branding Benefits
Some additional benefits of an employment-branding program might include:
- Increased knowledge and competitive intelligence, as more employees from top competitors join your organization.
- The increased focus on excellence in people-management programs brought about by the branding effort will result in the continuous improvement of those practices.
- Getting talked about in the press reinforces the stories you have already spread to your employees.
- The increased notoriety might also have a positive side effect on the business by making it easier to attract strategic partners who are willing to link with your firm.
- Employment branding works not just for large corporations but also for smaller firms and for government agencies as well.
- A great employment brand makes it easier to attract top recruiters and branding experts.
- The high impact and ROI of the employment-branding program will help build HR's image as a bottom-line contributor.
If you are part of recruiting management at an organization that has been facing continuous talent shortages, it's time to get out of that rut and focus your resources on the areas that can have the highest business impact. Almost universally, that means shifting your recruiting talent, time, and budget towards the programs that will have the most impact, starting with employment branding (other high-impact programs include employer referrals, professional event recruiting, prioritizing jobs, bringing back key former employees (boomerangs), and making your corporate careers page compelling). Yes, I know it's hard to find the time to step back from fighting fires but, at some point, you have to realize that you can't just talk about being strategic. You have to act strategically by investing in the only long-term recruiting strategy that's available.