AT A GLANCE

  • A recent study by LinkedIn found that a strong employer reputation is twice as powerful a motivator for candidates to apply for a position than a positive overall company brand
  • The most commonly used ROI metric for employer reputation was the retention rate, followed by employee engagement
  • 39% of companies planned to increase their investment in employer branding initiatives in 2013

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May 01, 2014

Does Your Reputation Make You Stand Out?

In an era of mass customization, consumers no longer want template-based uniform products. They want products and services that exactly match their individual preferences and needs. Similarly in recruiting, more lifestyle conscious candidates are no longer satisfied with a one-size-fits-all approach – they want to work for an employer brand that suits their needs.

Companies are starting to recognize the more discerning attributes of top talent, and responding by developing employer reputations that fit the tastes of their ideal candidate pools.

A recent study by LinkedIn found that a strong employer reputation is twice as powerful a motivator for candidates to apply for a position than a positive overall company brand. This finding presents a clear case for investment into employer branding initiatives along with company branding projects.

Research indicates that companies who invest in their employer reputation enjoy a lower cost per hire and lower employee turnover rates.

Impact of Employer Brand Strength on Cost per Hire

Source: LinkedIn

Another study by the Employer Branding Institute found that 85 percent of employees are attracted to companies that have a reputation for providing career opportunities; and the 2012/2013 Global Research Study by Employer Brand International (EBI) shows that 39 percent of companies planned to increase their investment in employer branding initiatives last year.

Employer Reputation is a Top Talent Trend

In the 2014 Talent Trends report by LinkedIn, 18,000 fully employed professionals in 26 countries were asked what the most important factor was for them when picking a new employer. The majority of respondents, or 56 percent, ranked talent brand as the most important factor in considering a new job.

Talent brand refers to the reputation of the company as a great place to work. In this survey, the reputation of a company among other dimensions was also important to respondents, where 20 percent felt a company’s reputation for great products and services was a deciding factor.

Source: LinkedIn

Importance of Talent Brand by Country

Measuring the ROI of Employer Reputation

According to the study by EBI, the most commonly used ROI metric for employer reputation was the retention rate, followed by employee engagement.

Most Commonly Used Branding ROI Metrics

Source: EBI




"Your talent brand is the highly social, totally public version of your employer brand that incorporates what your talent - past, present and potential - thinks, feels and shares about your company as a place to work. ~LinkedIn

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