The ROI of employer branding

Effective employer branding has very obvious financial advantages for anycompany. It decreases the costs in the whole competency supply chain – the process of attracting, recruiting, developing and retaining employees. At the same time, the return on investment on human capital will improve as a result of a more motivated and dedicated workforce. The benefits are obvious, but need to be marketed to the top management group. You simply have to ‘brand’ employer branding by using the right language and the right measures as the CEO and CFO are using. To find and measure ROI on employer branding is extremely difficult, but some of the more obvious advantages of strategic employer branding are listed below.

Access to talent
In order to meet its business goals, your company needs the right kind of resources. And the most important resource for the majority of companies today is human capital. Strategic employer branding will give your company access to the necessary talent in the long run.

Cost savings in recruitment
An effective employer brand functions like a filter that attracts candidates who are genuinely interested in working for your company. At the same time, candidates who don’t fit in look for jobs at companies that suit them better. Therefore, efficient employer branding reduces recruitment costs as the company will receive more relevant job applications. Moreover, you will ensure both a higher quality and faster recruitment process.

Improved retention of key employees
Effective employer branding means that those who are recruited to the organisation already have a good idea of what it is like to work there. They make an informed choice when they start working for your company. This decreases the risk of a high employee turnover or the risk of employees believing that the ‘grass is greener’ at another company. At the same time they will be good and important ambassadors that through social networks will help to create a good employer brand.

Employees as headhunters
Employees who appreciate their employer will attract other competent people to the company. They will become good and important ambassadors that through social networks will help to create a good employer brand. Your employees simply become a group of dedicated headhunters. As your employees can give direct and correct information about the workplace, it is very probable that the individuals they encourage to apply for a job will also fit into the corporate culture.

Improved productivity
Employer branding ensures correct and consistent communication about the workplace. Consequently, the risk of falling short of employees’ expectations decreases, which is a very common cause of low motivation and high employee turnover. Also, people who are motivated are generally more productive and eager
to do a great job. Hence, a long-term focus on employer branding will most certainly improve the bottom line.

Make use of key measures
To generate extra funding for employer branding you have to be able to show the expected results, such as:
• Shorter recruitment cycles
• Reduced recruitment costs
• Improved performance indicators
• Improved productivity and quality
• Reduced employee turnover among key personnel