General Knowledge Hiring Tips Industries

6 Reasons Why Employer Branding Is Important in Recruitment

Every employer wants to hire the best possible candidates to work for their company. In order to achieve that goal, they must possess a good reputation that can attract top talents to submit their job applications during the recruitment process.

A company’s reputation may come in different forms such as leadership, background, services, products, achievements, and more. Job seekers these days tend to focus on these factors when considering applying for a job in a company. This reputation is known as employer branding, which serves as an important aspect that can influence potential job seekers.


What is employer branding?

Employer branding is your company’s reputation and identity in the eyes of job seekers and employees. In other words, it is how you market your company as a good employer and a great place to work.

6 reasons why employer branding is important

On top of the above explanation about employer branding, it plays an important role in shaping the company’s reputation in the long run. Below are 6 reasons supported by some statistical reports by Glassdoor on why you need to focus on building a reputable brand:

1. Attract top candidates

The majority of job seekers today are looking to work for a company that they want to be identified with. An employer that is known for its good values and distinguished working culture could win over excellent candidates to be a part of the business.

Many of them look at the employers’ online platforms such as social media and websites before applying for a job to see how the company’s brand is portrayed. If your company knows how to position and brand itself well, any job seekers out there can easily get an idea of the company’s culture.

Interview Photo by yanalya

2. Help retain existing employees

Not only does the employer brand impact the job seekers, but it also influences the retention rate of the current employees in the company.

Your company will always need talented staff to drive the business and the best way to maintain this energy is to shower them with good impressions, salary, benefits, packages, great opportunities and more. This will increase employee productivity and lower turnover rate, which will also attract excellent candidates to fill in any vacant roles.

3. Cut down recruitment and marketing costs

Recruitment cost is the time and money a company has to spend when looking to hire new employees. This involves advertising, media postings, working with recruitment agencies, and more.

With a solid employer brand, a company does not have to invest much in the aforementioned costs. Instead of having to find the candidates yourself, the candidates will discover you by knowing that your company is known for its good reputation.

You can use the money on building your employer brand to the next level. A stronger branding can lower down the cost per hire by 50% while a company with a bad reputation could face 10% more cost per hire.

4. Increase positive employee reviews

Did you know that 86% of employees and job seekers rely on company reviews and ratings before submitting their applications to the company?

If your company already has an employee-focused organisation, your existing employees will undoubtedly find you as a great employer. They will talk positively about the company and leave good reviews and recommendations on employee review websites. This will also directly drive in more good candidates and make the business stronger.

5. Demonstrate your brand value

Once a company puts a great effort into building and maintaining its brand value, more people will positively recognise what the company carries. Skilled individuals who are looking to hone their profession prefer to work with employers who hold onto their vision, mission and working culture.

75% of job seekers are likely to apply to a company that actively showcases its brand as a good employer. 

6. Help grow your business

It’s vital to strategise on how you want your company to be viewed in the industry to get more talented and skilled professionals to run the business. A good employer brand will automatically ‘buy’ these individuals for you.

Apart from the remuneration, benefits and packages, it is important that the company’s environment can impress the potential candidates that you want to hire.

50% of candidates would prefer working for a lower salary with a company that has a good reputation in the industry.

Now that you’ve learned the importance of employer branding, it’s time to craft the strategy to develop your company as a favourable employer by employees and job seekers. Reach out to our recruitment advisors if you need more tips on establishing your own employer branding!