Employer Branding return on investment (ROI) can seem like a very nebulous and hard to measure concept. However, we all know that without a clear business case, it's not wise to spend resources on any activity. And, we see time and again the business leaders who are able to link their efforts to changes in the P&L get more freedom and control within the organization.So, it's pretty important to master this concept.Here are the mistakes I see people make with their employer branding ROI analysis:
- They focus on metrics that don't matter, like the number of views a video got
- They focus on metrics simply because they have access to them, like the number of likes on a social post
- They don't tie their efforts back to candidate behavior
- They don't tie they efforts back to dollars and cents, which is the key to proving any business case
Here's what TA/HR/EB leaders need to do to prove the ROI of their employer branding efforts:
- Define a problem you're trying to solve (more engineering candidates, lower time to fill, less recruiting fees, etc). It's worth nothing that employer branding ROI can actually come from many different sources.
- Define a hypothesis around what could solve this problem (if we have a landing page on our careers site dedicated to engineers, we'll get more quality candidates as they'll know why our company is a great place to work)
- Measure your results (before the landing page, we spent $10k/mo on 2 recruiters to drive candidate interest that resulted in outreach to 500 candidates, 100 phone screens, 50 interviews, and 7 hires. After the landing page, we still spent $10k on two recruiters who reached out to 500 candidates, but they converted 150 into phone screens, 80 into interviews, and we made 11 hires).
- Turn your results into dollars and cents (our previous cost/hire for engineers was $10k/7 = $1,428, now it's $10k/11 = $909. So, we're saving $519/hire, and making 100 hires this year, so that's a total of $52k. The landing page cost us $5k, so we saved a total of $47k this year).
Here's another way to look at employer branding ROI, specifically for the case where you enhance your careers site:
If you're ready to start driving returns from your employer branding efforts, let's chat.