Definition: What is employer branding?
Employer branding is a strategy in companies that uses targeted measures to build a strong employer brand, the Employer Brand. When building the employer brand, various marketing concepts are often used to create a positive corporate image in the public eye and present itself as an attractive employer.
The aim of employer branding is
- Improvements in employee recruitment and
- the long-term loyalty of employees to the company,
in order to achieve economic benefits for the company.
A central component of the employer branding strategy is the definition and communication of an employer value proposition. The employer value proposition is the company's unique selling point and should show how the company differs from its competitors (in terms of employees).
In order to determine the employer value proposition, a clear vision of what the company wants to stand for is required. Ideally, existing employees should be involved in the development of the employer value proposition and provide useful feedback on what they particularly value about the company.
Why is employer branding important? And what advantages does it offer?
Importance of Employer Branding
For years, the balance of power has been continuously shifting away from employers and towards employees. Whereas it used to be enough to advertise a vacancy and select the best candidate, recruiters are now confronted with significantly higher demands from employees.
In addition, issues such as digitalization, demographic change and, in particular, globalization are intensifying competition among companies in the battle for the best talent. Standing out from other employers and giving employees and candidates compelling reasons to choose your company is therefore more important today than ever before.
Advantages of employer branding
If you meet these requirements and can position yourself as an attractive employer through employer branding, this can result in numerous advantages for your own organization.
Employee recruitment
The term employer branding is often associated with recruiting measures aimed at attracting more or better employees. Employer branding measures help potential applicants to become aware of the company in the first place and arouse their interest in the company. With clear communication of culture and values, employer branding also has a "filter function" and creates incentives, especially for people who identify with the company as much as possible. Last but not least, a positive employer brand naturally also leads to the best candidates applying for the respective positions.
Employee retention
At the same time, employer branding measures also help to retain employees in the company in the long term and avoid terminations. A pleasant working environment and a clearly communicated and lived corporate culture lead to a stronger identification of employees with the company, a greater emotional bond and, last but not least, a greater willingness to perform.
Economic benefits
Of course, none of these measures are an end in themselves. Instead, successful employer branding leads to long-term economic benefits for the organization. For example, optimized application processes lead to a reduction in bounce rates and consequently in talent acquisition costs. If the company succeeds in attracting the best applicants, this has a direct positive impact on the company's productivity. Last but not least, strong employee retention and low staff turnover result in a reduction in costs, as less effort is required to find and train new staff.
What factors influence the employer brand?
How a company is perceived by employees and potential candidates depends on a variety of factors. Examples include
Corporate identity
The corporate identity is based on various pillars. These include:
- Corporate Identity
- Corporate Philosophy
- Corporate Culture
- Corporate Communication
- Corporate Behaviour
- Corporate Design
Basically, this can be understood as the company's appearance and image. For example, the way communication is delivered to the target groups (e.g., young & bold vs. serious) has an impact, as do the topics addressed in the communication or the channels used for communication.
Attractiveness of the products & services
The products and services offered by the company itself also have an influence on the perception of the employer brand. The American company Apple, for example, with its iPhones and MacBooks, not only stands for technically high-quality, but also modern lifestyle products. This in turn is directly reflected in the perception of the company, which is now perceived as modern and progressive.
Strengths of the company
Of course, specific career factors in the company also play a role. How high are the salaries paid , what career and promotion opportunities does the company offer or what importance is attached to a good work-life balance. However, looking at these factors in isolation is only of limited help. Rather, they should always be considered in relation to the company's environment. A salary comparison between Volkswagen and Mercedes-Benz is much more meaningful than between Google and a newly founded creative agency.
Integrity of the company
The integrity of the company as a whole, as well as that of its employees, is one of the most frequently underestimated, but most important factors. Anyone who regularly communicates their commitment to climate protection, but does not attach any importance to this issue when manufacturing their products, for example, raises doubts about their integrity and damages their image and the trust in their own employer brand.
Tips for successful employer branding
Employer branding should be a holistic approach in which the various measures are integrated into the overall strategy. There are many ways to strengthen your employer brand. The following overview of measures and tips for employer branding is therefore only an example and not exhaustive.
Use digital channels to attract employees
Numerous digital marketing channels can be used to arouse interest. After all, like customers, potential employees are also people who can be reached through these channels.
An important starting point is often the career section on your own website. This offers a suitable opportunity to provide appealing and informative insights into your own company and corporate culture, for example by allowing the individual departments to introduce themselves.
Social media channels such as Instagram and LinkedIn can be used to address potential applicants. At the same time, they can also be used to communicate the company transparently to the outside world.
Nowadays, review portals like Glassdoor or Kununu are the first point of contact for many prospective candidates to find out about the company. A well-maintained and up-to-date company profile on such platforms is now the minimum requirement as part of the employer branding strategy.
All other marketing approaches - sponsoring, billboard advertising, etc. - can be used not only to bring products and services to the customer, but also to arouse the interest of potential applicants.
Optimization of the application process
Once interest has been aroused, a well-structured application process not only ensures greater efficiency in the recruiting department, but also a positive perception among candidates. This includes, for example, efficient and transparent application options (e-recruiting) and an overall applicant-friendly process (candidate experience).
Company Benefits
Company benefits for employees can be important for employee recruitment as well as satisfaction throughout the entire employee lifecycle and thus long-term loyalty. Long dismissed as a start-up idea, most companies have now recognized the importance of the various benefits for employees.
Whether it's free drinks and snacks at work or table football for a change of pace during or after working hours, company benefits are an easy way to show your appreciation for your employees. With free access to fitness classes or even a dedicated fitness area, you also show that you care about their health. Last but not least, joint team and company evenings are an important part of the company culture and strengthen the cohesion between colleagues.
Company benefits are now standard in many industries. Especially for top performers, they are therefore more of a minimum requirement than the decisive reason to choose an employer.
Workplace oasis of well-being
Anyone who spends a significant part of the day at work attaches great importance to a pleasantly designed and professionally equipped working environment. The health of employees must be taken into account at all times.
Fueled by the Corona crisis, the working environment no longer only includes the company office, but also the home workplace when working in the home office. However, what many companies do not consider is that the same ergonomic requirements apply to the home office workplace as to the office workplace.
Meaningfulness - A job is more than just work
However, much more important than the benefits mentioned above are the factors of daily (collaborative) work. A meaningful job and the opportunity to actively shape the development of the company have become much more important to many employees and often cannot be compensated for by a higher salary. In many companies, traditional hierarchies are therefore increasingly being dissolved and employees can contribute their thoughts and ideas, regardless of their position.
The company's own development opportunities are also playing an increasingly important role in the choice of employer. This includes the opportunity to develop your professional skills. Mentor programs or education budgets for free use can be offered for this purpose.
On the other hand, this naturally also includes opportunities for advancement within the company and the chance to take on more responsibility. For this, it is important to show employees a clear promotion plan and the necessary conditions for it. Last but not least, it also includes appropriately rewarding good performance and thus setting appropriate incentives.
Examples of successful employer branding
More authenticity & transparency
An example of successful employer branding: Techniker Krankenkasse does without extravagance, preferring instead to focus on transparency and showcased employee satisfaction. Through the combination of an employer video and bundled social media power, TK focuses on authentic insights into everyday working life and communicating appreciation for its employees. Transparency and a clear approach to applicants are bearing fruit: It is no coincidence that TK was named one of the "Top National Employers 2018" by Fokus Money.
Unusual paths also lead to the goal
ALDI has had the image of a cheap discounter for decades. Through clever employer branding measures, the company managed to push its outdated brand image into the background at the Cologne Graduate Congress and score points with a new brand. During the congress, graduates and recruiters met in a black box. This enabled ALDI to present itself as an exciting and creative employer beyond superficial prejudices. A creative approach for companies with an entrenched image.
Turning the inside out
Authenticity, humanity and a family atmosphere are particularly important for generations Y and Z. The digital agency Carrot cultivates its family image with a regular annual review. A video review that documents everything that the employees have experienced between successes, failures, spontaneous photo campaigns and private family happiness. The simultaneously authentic and creative insight into the inner workings of the company makes it clear to everyone watching: "This is a pretty cool, human company."
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