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How important is employer branding?

By Becky Subscribe to RSS | March 23rd 2012 | Views:

Without a doubt, employer branding is a vital management tool that all organisations should be utilising in one way or another. There are many reasons that help highlight how important employer branding is for organisations:

Lack of skilled labour: with the growing influence of China, Russia, India and Brazil in the world economy, and further still the ageing populations in the U.S, European Union and Japan, the demand for skilled workers is likely to increase. Furthermore, the dramatic shift in students changing their courses from technical degrees to non-technical is particularly worrying. This is where the importance of employer branding is highlighted as organisations that are attractive employers will find it very easy to recruit the top talent in an increasingly competitive market.

Making the most of your resources: as a result of the economic recession, organisations are increasingly under pressure to increase efficiency through cutting costs, this makes it absolutely essential to recruit the right people for the right jobs. One of the benefits of employer branding is that it allows organisations to conduct more successful recruitment and retain the best employees. Additionally, through effective communications with regards to the work environment, organisations are more likely to attract talent that blends in with its corporate culture, thus increases the likelihood that the recruited talent will have the right skills in the correct positions.

Growth & Profitability: recruiting and keeping the top talent is vital for organisations in order to grow and remain competitive. Employees who have the right expertise, experience and ability, in relation to the core departments of the business help to drive growth and therefore are strategically important. Furthermore, when developed economies work towards increasing their presence in the tertiary sector, employees become the main asset of the business. Therefore, employer branding helps to increase your profits.

Being a popular company: leading research in the talent market illustrates that potential recruits such as graduates want to work for the organisations that have the best reputations. Therefore, potential recruits often seek advice from family members, friends or colleagues when looking to decide on which companies they wish to consider. As a result, the consumer/corporate/employer brands are linked; so if an organisation is seen as an unpopular employer, this will have a dramatic impact on the rest of the corporate ecosystem.

Corporate Power: organisations that have more influence in their market will be able to attract more employees, even those that have rare or most in demand skills. An attractive employer can help to illustrate to their employees that there are no desired jobs outside of the organisation, through maintaining their corporate image as the most desirable employer, thus ensuring that they retain the best talent.

Becky - About Author:
Jason writes about a wide range of marketing and brand development issues with a specific focus on employer brand.

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