Everyone’s talking about The Great Resignation, an economic trend where a record number of people have left their jobs during the pandemic. Throughout 2021, almost 48 million American workers left their jobs, the highest number on record. According to the U.S. Bureau of Labor Statistics (BLS), job openings outnumbered hires by about 4.5 million in July 2022. While it’s true that by April 2022, job openings had fallen to narrow the wide gap between vacancies and available workers, openings still vastly outnumber available workers.
To make matters worse, the phenomenon extends beyond the U.S. All these facts show that The Great Resignation is a global problem – one that’s not yet ready to slow down.
So how can employers attract and retain more workers?
Equally important, how can companies build a reputation as great workplaces?
One way: build a strong employer brand.
Your employer brand determines how the market views you as an employer. A strong brand lives in the minds of your people and determines whether they will drive your business forward or put the brakes on its success.
Here’s what you need to know about employer branding.
What does Employer Branding Look Like?
Your corporate brand gives your business its identity. It visually represents the company’s personality and communicates what it stands for. The right logo, colors, marketing materials, and even social media pages can capture people’s attention and boost the organization’s recognition and credibility. Your brand also determines whether people give you their precious trust and loyalty or turn towards your competitors.
But along with your corporate brand, your employer brand is also a vital part of your business, and you should make an effort to build and optimize it.
A company’s brand is determined by its market perception, employee satisfaction levels, engagement in the workplace, company retention rate, and reviews of former employees on social media platforms.
Your employer brand complements your corporate brand. Where the latter communicates your organization’s business identity and clearly shows its promise or value proposition to customers, the former does something similar – but with current and potential employees.
The Incalculable Value of A Strong Employer Brand
Your employer brand is a manifestation of your organization’s attractiveness and worth as an employer. It states your employer value proposition (EVP) – your promise to employees in exchange for their talents, skills, and experience. A strong and clear employer brand shows that your organization is a great place to work, which gives current employees a powerful reason to work for you and future employees to seek work with you.
An employer brand can determine how the employment market perceives you and what your employees think about you.
Are you in demand as an employer?
Do talented people clamor to work for you?
Are you bucking the trend of The Great Resignation or are you contributing to it?
The strength of your employer’s brand can determine all these answers.
A strong employer brand can affect everything from your ability to attract and retain talent to improving the company’s corporate culture, elevating employee motivation levels, and reducing recruitment costs.
People want to work for companies known for their employer branding. These firms effectively show the value employers get from aligning themselves with the business. As a result, they can attract talented individuals and boost their recruitment efforts. More importantly, they get employees who want to contribute to its goals and are willing to align their aspirations with the firm.
Your employer’s brand can also make or break your reputation. A few years ago, a study found that almost 50% of workers are unlikely to accept an offer from a company with a bad reputation. If you don’t want to be part of this “bad” cohort, you need to develop your employer’s brand.
A great employer brand also has a financial impact. It can reduce turnover by 28% and decrease cost-per-hire by 50%. You can also get 50% more qualified applicants and speed up your time-to-hire by 1-2X. All of this can reduce your hiring, turnover, and training costs, which can eventually translate into huge savings and a stronger bottom line.
The PwC survey found that job fulfillment is one of the key factors contributing to The Great Resignation. Employees are more likely to feel fulfilled and motivated if they work for a strong employer brand. They will go above and beyond their job descriptions, enthusiastically contribute their talents to the company, and believe that their work matters. And for all these reasons, they will be less likely to leave.
Conclusion
Your employer brand determines how people see your company, and whether they want to join or stay. Organizations with memorable employer brands are talent magnets with a reputation for excellence. In contrast, companies with weak employer brands experience high employee turnover, unsustainable hiring and retention costs, and a lot of negative chatter on social media.
What kind of company would you like to be in?
Ergode empowers e-commerce companies to develop strong employer brands and employer value propositions that are most likely to attract talented people and encourage them to stay. Is this something you are looking for as well? Contact us, and we will help you build an employer brand that humanizes your company and enhances its reputation as a great place to work.
