The Value of a strong Employer Brand

Post by
Phil Strazzulla
August 6, 2015

Similar to a company’s brand, a firm’s employer brand refers to its brand as an employer. The concept of branding has been around for as long as the modern business has existed yet the idea of an employer brand has only been gaining in popularity in recent years, and remains largely confined to esoteric HR circles. While it is largely understood amongst these HR professionals that a good employer brand is key in talent management, acquisition and retention the intrinsic value of an employer brand is still far from understood. Recent research from Linkedin has provided valuable insights in helping to quantify these assumptions.Linkedin performed exhaustive regression analyses on survey data they collected from professionals to reach the conclusions. Overall, they found that companies with good/strong employer brands benefit from a cost per hire that is approximately half that of companies with a poor employer brand. The knowledge of a company’s brand is closely correlated with knowledge of a company’s employer brand. However, the correlation between the impression of a company’s brand and the impression of its employer brand is much weaker. So while your company brand is likely to effect job consideration, your employer brand will have a much deeper impact. In fact, Linkedin estimates that a company’s employer brand will have twice the impact of a company brand.Companies that invest in their employer brand are therefore likely to see amore direct impact on their talent acquisition efforts. An added benefit of a strong employer brand isa lower churn rate. The research suggests a 28% lower turnover rate for companies with strong employer brands.Additionally, a strong employer brand is crucial for attracting millennials, as they are 61% more likely to associate employer brand with job consideration. Research from Elena Hubschmid, in her book Shaping Efficient Employer Branding Strategies To Target Generation Y, shows that the employer brand attributes that millennial are most passionate about are company culture with 82% saying they want a culture that respects employees individuality and (a whooping) 91% saying they want to work for companies with friendly work environments. The research also indicates that millennial candidates also prescribe a much higher value to employer branding done through the company’s own careers page and social media than other generations do.However, the process of recruitment marketing and creating content about factors like company culture and work environment, along with other employer brand qualities like information about job growth or mentorship within the company, can be incredibly hard and very expensive. That’s why NextWave Hire has created a dedicated employer branding platform that simplifies this process and lets you use your own employees as brand ambassadors and increase employee engagement. Email us at to find out more!