6 Reasons Why Investing in Employer Brand Pays Off For Remote Companies
What if your company starts losing its best talents, your employees gradually become disengaged. No company culture exists anymore. Hiring becomes so difficult that you are losing a significant amount each year. Sounds dreadful right? This imaginary situation can become your reality if you are still ignoring your employer brand.
Are you still not sure if you should invest in Employer Brand or ignore it? Read Below.
What if your company starts losing its best talents, your employees gradually become disengaged. No company culture exists anymore. Hiring becomes so difficult that you are losing a significant amount each year.
Sounds dreadful right? This imaginary situation can become your reality if you are still ignoring your employer brand.
To understand it further let’s move back in time to 2005 when Walmart was facing severe social criticism for the employee perception that it treated its employees poorly regarding wages, benefits, and work-life balance.
On the other hand, with its kickass employer branding, Walmart has now emerged as one of the world’s largest companies with about 2.4 million employees worldwide.
Their #TeamWalmart stories on Instagram recognizing different employees and teams have caught the attention of many potential job seekers.
The annual cost of a poor employer brand cost the U.S. $7.6 million.
Highlighting the importance of strong employer branding Randstad’s latest employer brand research global report, stated that although money has an important role in the hiring process, other factors such as work/life balance, job security, and work environment all play a major part in candidates choosing their next company.
In addition, Research from Bersin indicates that over 40% of companies indicated that employer branding is a “must-have” in their talent acquisition strategies.
What Employer Branding means for remote companies?
Your remote employer brand is how you portray yourself as an employer. It stands for your value proposition, your remote company culture, and your image as perceived by your former, present, and potential remote employees.
It is about how you market your company as a great place to work remotely and how you assure that your remote candidates would be valued as equal to their in-person colleagues.
For example, Hubspot has established its reputation as supportive, inclusive, cohesive, and autonomous. And their branding is paying them off with the advocacy of their enthusiastic employees as an amazing place to work.
Why Investing in Employer Brand Pays Off For Remote Companies?
1Compete in the talent war
The CEO of iHire, Steve Flook commented that “An extremely competitive job market requires employers to make extra efforts to stand out from the competition if they want to recruit and retain top talent.” Your employer brand will do the job for you.
According to a Glassdoor survey, Job seekers are 2x more likely to apply when a job includes employer branded content.
Therefore, if you actively foster and nurture an employer brand to establish your reputation as a great place to work, you will be able to draw the best job seekers from an overwhelming pool of candidates.
2Make hiring effective
Employer branding will help you stand out among your competitors. With a positive brand image, you don’t have to worry about reaching out to people or shuffle through unqualified candidates. As your brand will automatically have you inundated with the right talent.
95% of candidates mention company reputation as a key factor while considering a new job.
Further, your employer brand can make your talent pipeline pretty backed up by moving candidates down the funnel. It not only saves you time but also money.
Your employer brand can have a dramatic effect on turnover. A good employer brand boosts employee experience and morale. It makes your company a place where employees would love to come.
Employer branding helps to land the right talent by attracting people who share the same values along with creating a deep sense of loyalty among the existing employees.
67% of employers believe retention rates would be higher if candidates had a picture of what to expect about working at the company before taking the job.
Your employer branding can help you in this case by giving your potential employees a peep into how working at your organization can look like and what will it bring to them.
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4Affects cost per hire
Being an attractive brand for prospective employees will also give your organization the bargaining power. A good employer brand also helps to reduce the time-to-hire by 1-2 times.
As per a LinkedIn survey, companies with a stronger employer brand than their competitors on average see a 43% decrease in the cost per candidate they hire. Moving on, ignoring your employer branding might cost you over $4,000 in salary premium per employee hired.
A Glassdoor survey states that 45% of employees or job seekers would be willing to take a pay cut to work with an employer with a good reputation.
5Saves you from higher incentives that a poor reputation might cause
If a candidate is deciding between two companies, Your employer branding may help you stand out as the best option.
This is evident in the new report which revealed that one in four British managers would be willing to take a pay cut for a purpose-driven position.
A Harvard business review article suggests that to make up for negative employers’ image, companies must offer a 10% pay increase to attract top job seekers. In addition, companies had to pay $4,723 more per hire in order to convince a candidate.
6Win customer loyalty
A positive employer image can impact whether potential investors and customers want to invest with you and be a part of your organization.
According to Zeno’s 2020 Strength of Purpose Study, 80% of consumers will buy from and recommend companies they trust.
Let’s understand with an example- If a newly formed brand “X” claims that they can provide the same quality of sports shoes as Nike but at a lower price. From which brand would you buy?
Nike right? This is because you trust their brand value.
According to a Glassdoor survey, 63% of consumers refuse to buy products and services from a company they do not trust.
Conversely, 80% of consumers choose to buy from companies they trust and will recommend those companies to others.
84% of job seekers say the reputation of a company as an employer is important (Source). So not investing in your employer brand can be a kiss of death affecting every aspect of your business, from hiring and retention to performance and profitability.
Do you still want to leave your employer brand to chance? The choice is yours.
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