Skip to content

Stats That Make a Watertight Case for Your Employer Brand Project

4 min read.





Employer Branding, Employee Value Proposition

To convince senior leadership to buy-in to your Employer Brand project, do not go naked into the debating chamber. Arm yourselves with useful stats and counter arguments that will help get you over the line...

As you make the case to senior management to embark upon your Employer Brand project you may be challenged on its ultimate value to the organization and particularly the ROI. Here’s how you can push back with stats and strong arguments against some of the more commonplace objections.

Lack of tangible ROI

Some managers may argue that investing in an employer brand strategy does not provide direct, measurable returns on investment, making it difficult to justify the allocation of resources.

But, while return on investment for employer branding may not be immediately quantifiable, research consistently shows that a strong employer brand positively impacts recruitment, employee engagement, retention, and overall business performance.

According to LinkedIn, organizations with strong employer branding efforts enjoy a 43% decrease in cost per hire and companies with a strong EVP see a 22% increase in profitability. Also, according to CareerArc, 64% of shoppers have stopped buying from brands with poor employer reputations. And, crucially, employers who prioritize their employee value proposition (EVP) have a 250% higher total shareholder return than those who don't. (LinkedIn)

Too much focus on short-term results

Managers who prioritize short-term outcomes might resist employer branding, as it is a long-term strategy that requires sustained effort and patience to yield significant results.

While it does require a long-term commitment, it does not mean it lacks short-term benefits. By creating a positive employer brand, organizations can attract higher-quality candidates, reduce time to fill vacancies, and improve the overall candidate experience.

A well-crafted employer brand can also boost employee morale and engagement and reduce the time to fill a position by up to 50%. (LinkedIn).

The money

Financial constraints can lead managers to question the allocation of funds towards employer branding initiatives, especially when they perceive more immediate needs or projects that require financial resources.

Allocating a budget to employer branding is an investment in the organization's long-term success. By strategically leveraging available resources, such as social media platforms, employee testimonials, and targeted content creation, organizations can build an employer brand without incurring significant costs.

The cost of not investing in employer branding can be much higher, including lost opportunities, high churn rate, and difficulty in talent acquisition.

Companies that invest in their Employee Value Proposition see a 50% increase in the quality of their hires. (LinkedIn) And also, it doesn’t need to be expensive anyway.

Lack of relevance

Managers who do not fully understand the impact of an employer brand strategy may question its relevance to their specific sector, assuming it is more suitable for consumer-oriented companies rather than their own.

Regardless of industry, attracting and retaining talent is a critical concern for all organizations. Employer branding goes beyond external perceptions and marketing; it focuses on building a strong internal culture, fostering employee loyalty, and creating a differentiated employer value proposition.

A compelling employer brand can help organizations stand out in the market, attract top talent, and gain a competitive edge, irrespective of the industry they operate in. No longer a concessionary item, employer branding is now considered a major priority by 86 percent of organizations according to Universum.

Internal focus

Some managers will argue that the organization should primarily focus on its core business functions rather than investing resources in employer branding, which they perceive as more externally oriented.

Neglecting your employer brand, however, can have adverse effects on the organization's ability to attract and retain talent. A strong employer brand can have a positive ripple effect, impacting customer perception, employee engagement, and overall business performance. Before applying for a job, 91 per cent of job seekers use some sort of research tool to learn more about an employer’s brand (Seenit), while 83% of candidates say that a negative employer brand can change their mind about a role or company they once liked, according to LinkedIn.

 Skepticism about employee retention

Managers who believe that employee turnover is inevitable may question the value of an employer brand strategy in retaining talent, viewing it as an unnecessary investment to address a natural phenomenon.

Employer branding plays a crucial role in retaining top talent. Research consistently shows that employees are more likely to stay with organizations that align with their values, provide meaningful work, and offer a positive work environment. By creating an attractive employer brand, organizations can reduce turnover, retain valuable employees, and save significant costs associated with recruitment and onboarding. LinkedIn research says companies with a strong employer brand have 28% lower turnover rates. And of course, losing employees is expensive - the average exit costs 33% of their annual salary.

Too much marketing

Concerns may arise about an employer brand strategy being overly focused on marketing and image-building, with managers believing that it diverts attention from core operational aspects of the business.

Employer branding extends beyond marketing. It encompasses the entire employee experience, including recruitment, onboarding, career development, and employee engagement. A comprehensive employer branding strategy ensures that the organization's internal culture aligns with its external brand promise, creating an authentic and consistent experience for employees and candidates alike. Some 69 percent of candidates are more likely to apply to a company if the employer brand is actively managed (Seenit)

Controling perception

Counter-intuitively, managers who feel they have limited control over how the organization is perceived by potential candidates may doubt the effectiveness of an employer brand strategy, assuming it cannot significantly influence external perceptions.

While organizations may not have complete control over external perceptions, a well-executed employer branding strategy allows organizations to shape their desired image and attract candidates who align with their values and culture.

By effectively communicating their employer brand through various channels, organizations can influence external perceptions and attract the right talent. The evidence is clear - 80% of job seekers research a company's employer brand before deciding to apply for a job. (TalentLyft); 71% of people who apply for jobs say they’ve looked at review sites before, and 58% say a bad review has stopped them from applying for a role (Seenit). Some 80% of job seekers won’t apply to a one-star rated company (Career Arc).

Internal alignment

Resistance to employer branding may stem from managers perceiving a lack of alignment between the brand promise communicated externally and the reality of the organization's internal culture and practices. They may question the authenticity of the brand message.

Employer branding provides an opportunity to bridge the gap between the desired culture and the current reality. By identifying areas of improvement and aligning internal practices with the desired brand image, organizations can create a more authentic and compelling employer brand, fostering employee trust, improved employee satisfaction, and overall organizational culture. Employees with a strong connection to their company's mission and values are 69% more likely to stay with their employer for at least two years, according to LinkedIn.



Share this post