A few decades ago, large tech companies implemented some ideas to improve talent acquisition and retention. The ideas such as free catered lunches, game rooms, bean bags, and Friday evening happy hour made companies look attractive.
But today, these perks can no longer guarantee employee engagement and strengthen a company’s talent acquisition or employee retention strategy. If the firm cannot back up these “attractive” aspects with something more substantial, these perks look like shallow lip service rather than meaningful benefits.
And what is this “something”?
A: Employer brand.
In the post-COVID, post-Great Resignation era, employees want to do meaningful work and maintain a work/life balance. They want to be seen, heard, and appreciated as unique individuals. And perhaps most importantly, they want to work for reputed companies with values that align with their own. Only companies with strong employer brands can successfully tick all these boxes and attract the right talent to their ranks.
How a Strong Employer Brand Boosts Talent Acquisition
Firms with strong employer brands make a concerted effort to communicate their purpose and vision to all employees. They invest to improve team cohesion, employee experiences, and workplace motivation. They also implement policies that balance the happiness and health of their people with their profit-earning capacity.
Equally important, strong employer brands continually communicate their employee value proposition (EVP) to employees. For these companies, EVP is much more than a list of perks and benefits. It communicates other things that matter a lot to employees – the company’s vision, brand story, values and culture, quality of work, and team caliber. The EVP also tells them what kind of recognition they can expect, whether they have job security, how the company will invest in their ongoing development, and whether the firm and its leadership genuinely care about their work/life balance.
A strong and well-rounded EVP strengthens the employer brand and enables the organization to attract the best people. Moreover, it can do so at a lower cost than companies with weak employer brands. Organizations with a negative or non-existent employer brand spend 10% more per employee hired. On the other hand, a strong employer brand reduces recruiting costs by as much as 43%. Moreover, companies with successful employer brands attract 50% more qualified applicants and experience 1-2x faster recruitments, thus filling in talent gaps and competing more effectively in their industries.
How a Strong Employer Brand Boosts Talent Retention
A unique, authentic, memorable employer brand reduces the organization’s turnover by 28% or more. A strong EVP ensures that its people remain passionate and engaged at work. These employees fit well into the company’s culture. They also genuinely believe that their workplace is great and that the company aligns with their values and beliefs. All of this affects their loyalty and willingness to stay on for the long term.
Engaged and motivated employees get along with their colleagues and supervisors, which enables the firm to build high-performing teams with talented and compatible personalities. And since loyalty will be high, churn will be low, so the company would be able to save time and money on talent acquisition.
Loyal employees also champion the firm in their social and professional network and via word-of-mouth. These employer stories improve the firm’s value and reputation in the employment market. Its employer brand becomes stronger, which attracts even more talented people and improves employee retention.
How the Talent Acquisition Process Impacts the Employer Brand
Just like the employer’s brand impacts talent acquisition, the talent acquisition process also impacts employer brand. During talent acquisition, the company positions itself in a certain way to candidates and potential employees. It will create and communicate its EVP, which is the value they can expect to get in exchange for their knowledge, experience, and skills.
The attractiveness of the EVP determines what a candidate says about the firm once they step out of its premises after an interview. They will talk about the acquisition process, starting from when they uploaded their resume to the company’s employment portal, to when they received an interview call, and even how they were treated during and after the interview.
Whether their words are positive or negative will depend on their entire experience from start to end. A smooth application process, polite HR staff, systematic scheduling and follow-ups, and respect for the candidate’s time will garner positive words, boost the company’s reputation, and strengthen its employer brand.
But if the firm makes the candidate jump through hoops during the hiring process, they will see a negative impact on their employer brand. For example, many companies make candidates fill out long forms after uploading their resumes to the online portal. This annoys candidates and makes them more likely to criticize the company and change their minds about wanting to work there.
Candidates will also speak negatively if they are made to wait for hours to interview, if the company doesn’t see to their comfort as they wait, or if the company’s staff (HR, receptionists, etc.) are impolite or rude. All these aspects affect candidates’ experiences during the acquisition process, which can influence their perception of the company, which will ultimately boost or weaken the strength of the employer brand.
Conclusion
The talent marketplace is shrinking quickly. As employee motivations and needs change, companies should step up their efforts to build their employer brands. Only then the firms would be able to boost talent acquisition and attract top talent.
If that’s what you have been seeking for your firm then this is the right platform. Give us a call if your talent acquisition strategy needs a boost or if you require support building your employer brand in the hyper-competitive employment battlefield.
