What are the benefits of employer branding?

We’ve written before about the importance of branding and how consumers are more likely to gravitate towards brand names that they recognise and trust. The same principle is true for employer branding – job seekers want to work for what they believe are great companies.

Your employer brand refers to the perceptions that current and potential employees hold about your organisation. A good employer brand markets your organisation’s values, personality and reputation. It helps your organisation to stand out against competition and to appeal to top talent in the marketplace. It has become an important topic in the world of recruitment and talent acquisition, but what are the benefits?


Lower Cost per hire

One of the major benefits of employer branding is its effect on your ultimate Cost Per Hire (CPH).

A strong employer brand fosters a great work environment, which encourages current employees to refer your organisation to other professionals. Candidates generated through referrals are the 2nd cheapest means of sourcing, and according to LinkedIn’s Global Recruiting Trends (2016), they are beginning to emerge as a long-lasting trend.

LinkedIn Global Recruiting Trends 2016

Candidates generated through referrals are the 2nd cheapest means of sourcing (your careers site being the cheapest)” –Resourcing Insight

On the other side of the coin, Langley James report that a poor employer brand could end up costing a company as much as £3297 per hire, because a pay increase of at least 10% was required to entice the candidate to accept an offer of employment.

Better talent pool

Another immediate benefit of employer branding is an increase in your talent pool from which to fill vacancies.

As you develop and refine your reputation as an excellent place to work, you will attract exceptional talent. These potential candidates develop your talent pipeline, or talent pool, which can also reduce your cost of recruitment (because you won’t need to spend money on advertising). As well as this, talent pools can reduce your…

You might also like:  Why you should add video interviews to your recruitment process

…Time to hire

Talent pools improve the recruitment process because they reduce the time it takes you to fill a vacancy.

Talent acquisition teams can build and maintain your talent pools, screening and qualifying the candidates long before you need them. Then, when a position becomes available, you can quickly select from the best suitable candidates, with minimal disruption to your current employees and day-to-day runnings.

Engaged employees

Your employer brand doesn’t just have an impact on potential candidates, it affects your current employees, too.

One of the biggest benefits of employer branding is employee engagement.

Your employer brand should represent the great working environment, career development, personal growth and constant motivation that your company offers your current employees.

Employees that enjoy their work are more productive and often perform better. The benefits of this are twofold:

  1. Your recognition of their performance improves your employees’ perception of your company, thus inspiring them to perform even better, whilst at the same time increasing the likelihood of them recommending you as an employer
  2. Engaged employees are more likely to have a sense of commitment to your business, meaning you have…

…Lower employee turnover

When employees are passionate about their job and love their place of work, they feel more committed and are more likely to stay with you for years to come.

The benefits of low staff turnover ultimately come down to your bottom line – you will spend less on advertising, recruiting and training new staff.


The benefits of employer branding are all closely linked, and they all play a crucial role in finding, attracting and retaining top talent.

Not only does employer branding positively affect potential candidates and current employees, it also reduces your costs from hiring and training new staff.


Are you working on your employer brand? Let us know in the comment section below or on Twitter: @Xpo_Online


Leave a Comment

Your email address will not be published. Required fields are marked *

[gravityform id="3" title="false" description="false" ajax="true" tabindex="3"]
[gravityform id="3" title="false" description="false" ajax="true" tabindex="20"]