Similar to the way a corporate brand works (which offers a value proposition to customers, defining a certain offer on the market), a employer brand includes the perception of your company as an employer, as well as describing the promise or value proposition presented to employees in exchange for their experience, talent and skills.
Employer branding can be defined simply as the way you "market" your company to candidates. You can do this by presenting the differentiation and original character of your organization and then amplifying them so that you can position yourself as a top place to work.
A brand like this defines the essence of the company, what it is unique in or stands for, aligning these aspirations with the people you are trying to attract. It communicates that your organization is a good employer and a great place to work, which increases recruitment results and the engagement and retention of your current employees.
When developed effectively, the employer branding provokes recognition and interest around the company, and this buzz will attract motivated candidates and contribute to more committed employees. People will pass on their positive experience to other candidates, clients, customers and stakeholders - broadening your brand's horizons even further.
What is the Employer Value Proposition (EVP)?
An organization's value proposition encompasses its mission, values and culture and offers employees a reason to work for it. It's what the company can offer as an employer in exchange for all the skills and experience its employees bring.
An organization benefits from an EVP that is thought out and communicated frequently to potential and current employees. A strong EVP can attract and retain the best people, help prioritize goals and agendas (especially in HR planning), help leverage the commitment of a dispassionate team and reduce hiring costs. Above all, it contributes to a favorable and robust brand.
The messages you use to convey your employer brand and value proposition shouldn't just be a list of the advantages and benefits you offer, but they are an undeniable part of your story. An EVP is considered an employee-centered approach because it is a proposition that has been discovered, defined and tested using your own team. Before drawing up your employer brand proposition, the benefits of your organization should be well established and defined with your current employees.
What is the value of a employer brand strong?
Not investing in your brand is "costly". Directly, in factors such as recruitment costs per employee, your HR budget and overall results.
Organizations with positive brands can get up to twice as many applications as organizations with connotations considered negative. Considering that HR managers are finding it harder to hire the talent they need due to skills gaps and other factors, this is a huge difference in the efficiency of a recruiter or talent manager.
A study by CR Magazine and Cielo Talent showed that almost 50% of employees said they wouldn't work for a company with a bad reputation, even with a big pay rise. All this carries weight: with a negative or non-existent brand, organizations are likely to spend 10% more per employee hired. That means working harder and longer just to get quality employees to join the organization.
But when top candidates want to work for you, it has the opposite effect. Not only do recruitment costs fall, but the gain can be considerable - around 43%. In other words, when your brand is strong, recruiters experience less friction in presenting your organization. Your company becomes a talent magnet and your reputation soars.