This article offers valuable insights into the latest employer branding statistics, trends, and best practices that can help recruiters, employer branding managers, and HR professionals stay up-to-date with the latest developments and improve their recruitment and retention strategies. Understanding the impact of a strong employer brand and exploring the benefits of investing in employer branding initiatives will help your organisation build a successful employer branding strategy.
Since it is essential to consider problems and offer solutions to combat them, we will discuss employer branding statistics for 2021, 2022, and 2023 to help get an overview of what the last three years have looked like in the field of employer branding.
In this article we will cover:
- Employer branding statistics 2021
- Employer branding statistics 2022
- Employer branding statistics 2023
- How big is the role of branding in the success of a company?
- Employer branding outcomes
Employer branding statistics 2021
As the COVID-19 pandemic continued to affect the job market in 2021, employer branding took on new significance.
Many companies faced unprecedented challenges in recruitment and retention as they had to adapt to new work models, remote work, and shifting employee priorities. In response, employers had to adjust their employer branding strategies to attract and retain top talent in a rapidly changing job market.
Candidates lack insight into an organisation’s culture
According to LinkedIn Talent Solutions, the number one obstacle candidates face during the application process is not knowing what working at an organisation is like.
If candidates don’t know what it’s like to work at an organisation, it can lead to a higher employee turnover rate. Candidates who accept job offers without a clear understanding of the work culture, values, and expectations may quickly become dissatisfied and leave the organisation. This can be costly for organisations in terms of recruitment and training expenses.
Further, it can make it challenging to attract top talent. In today’s job market, candidates have more options than ever before and are increasingly looking for organisations that align with their values and work culture. Without a clear understanding of what it’s like to work at an organisation, candidates may not be attracted to job openings or may be hesitant to apply.
Solution: Leverage social media to showcase your employer brand
With the rise of social media, companies have an unprecedented opportunity to showcase their brand and culture to potential candidates. In 2021, a study by CareerArc found that 68% of Millennials, 54% of Gen-Xers, and 48% of Baby Boomers visited an employer’s social media channels to evaluate the employer’s brand.
This shows that social media has become an integral part of the job search process, and companies must pay attention to their online presence if they want to attract top talent.
A strong employer brand represents the organisation’s reputation and reflects its values, culture, and overall employee experience.
Employees who are proud of their organisation and feel valued by their employer are more likely to share positive messages and experiences with their network. This can help increase brand awareness and improve the organisation’s reputation as an employer. In fact, a report by LinkedIn Talent Solutions states that candidates trust the company’s employees 3x more than the company to provide credible information on what it’s like to work there.
Individuals expect companies to have a robust online presence that aligns with their values and beliefs. Therefore, employers must invest in their social media strategy and create an online presence that accurately represents their brand and culture.
Negative reputation damages your company image
According to Harvard Business Review, a negative reputation can cost a company as much as 10% more per hire.
A negative reputation as an employer can arise due to poor employee experiences, negative media coverage, or a lack of transparency in company practices.
If candidates perceive the company as having a negative reputation, they may be less likely to accept job offers, leading to a longer time-to-hire and higher recruitment costs. Companies with a negative reputation may need help to retain existing employees, leading to higher turnover rates and associated fees.
Moreover, to make up for a negative reputation, companies may need to compensate in other areas by offering higher salaries or better benefits to offset perceived risks or drawbacks.
Solution: Take responsibility by responding to negative reviews
According to G2.com, seven out of ten people have said they had changed their opinion about a brand after seeing the company reply to a review.
Responding to negative reviews, particularly professionally and empathetically, shows that the company values and cares about its employees’ opinions and experiences.
Additionally, potential candidates are likely to research a company before applying. Seeing that the company takes feedback seriously and responds to concerns can make the company more attractive to jobseekers.
Finally, by responding to negative reviews, the company can send a message to employees that it is open to feedback. This encourages them to share their thoughts and opinions, both positive and negative.
Employer branding statistics 2022
After 2021, employer branding continued to evolve and adapt to changing circumstances and job market conditions in 2022. With the increasing competition, developing innovative and engaging strategies to attract and retain top talent became progressively more important.
Burnout
According to the Business Health Institute, there is a 70% higher likelihood of employees experiencing burnout when they feel unsupported by their managers.
Burnout can lead to increased absenteeism, decreased productivity, and reduced job satisfaction, ultimately affecting an organisation’s reputation as an employer.
Further, a high employee turnover rate due to burnout can indicate to potential employees that the organisation does not prioritise employee well-being, which can further damage the employer’s brand.
Solution: According to the CIPD, businesses should take a strategic approach to employee well-being
Employees who feel supported and valued are more likely to be engaged and motivated, increasing job satisfaction and productivity. This can create a positive work environment that attracts top talent and fosters a culture of innovation and growth.
By prioritising employee well-being, organisations can build a strong employer brand, attractive to current and potential employees.
Social media is underutilised in recruitment
In 2022, Content Stadium found that 4% of recruitment specialists did not utilise social media.
This may seem like a small number, but in today’s digital age, where social media platforms are a powerful tool for building and promoting an organisation’s brand and reputation, not having an active presence on social media can be detrimental.
Without social media, recruiters, managers, and HR professionals miss out on opportunities to connect with potential candidates, engage with current employees, and promote their organisation as a great workplace.
Due to this, potential candidates may not be aware of the organisation’s culture, values, and work environment, which can make it difficult to attract top talent.
Moreover, social media platforms allow employees and candidates to share their experiences and opinions about an organisation. If negative comments or reviews go unanswered, it can create a perception that the organisation is unresponsive, thereby weakening the overall employer brand.
Solution: Invest in your social media campaign
In 2022, StandOut CV found that the average UK company spent a quarter of their recruitment budget on social media.
Using social media gives organisations a chance to interact with potential candidates and current employees. By creating engaging content, organisations can communicate their employer’s brand and value proposition, which can help to attract and retain top talent.
Moreover, organisations can foster a positive work environment and boost employee morale by sharing employee stories, recognising achievements, and promoting employee-led initiatives. This can lead to increased job satisfaction, productivity, and employee retention.
From small startups to large corporations, social media has developed into a promising technique for businesses to engage with customers, promote their brand, and increase sales.
For more information on how to make the most out of social media, check out our guide.
Employer branding statistics 2023
The pandemic year of 2021 set the tone for employer branding regarding remote work, employee experience, diversity, equity, inclusion, and corporate social responsibility.
Therefore, these trends remain important considerations for companies when going into 2023.
Workplace accessibility
According to Gitnux, in the UK, around 20% of working-age individuals have a disability, and for 75% of young disabled individuals, physical workplace accessibility poses a significant challenge in securing employment.
This highlights the importance of creating accessible work environments and inclusive hiring practices to ensure equal opportunities for all individuals in the workforce.
Unfortunately, for many young disabled individuals, physical workplace accessibility is a significant barrier that prevents people with disabilities from fully participating in the workforce and contributing to the economy.
Solution: Ensure that the workplace is accessible and inclusive for all employees
Deloitte University found that 76% of millennials are empowered when they believe the organisation fosters an inclusive culture.
A company that promotes diversity, equity, and inclusion (DEI) sends a message to current and potential employees that it values their unique perspectives and experiences and is committed to creating an inclusive workplace culture.
Doing so can improve the company’s employer brand and make it more attractive to jobseekers who are looking for an employer that prioritises DEI.
DEI is critical to a strong employer brand because it promotes an inclusive workplace culture that values and respects diversity and creates a sense of belonging among employees.
Therefore, by promoting DEI, companies can also improve their reputation among customers and other stakeholders.
Filling job roles
Going into 2023, the HRDirector found that 92% of employers have found it difficult to fill job roles in the past year and almost half (46%) are now open to negotiating salaries due to recruitment struggles.
A company may struggle to fill job roles due to a variety of reasons. One of the main factors is a lack of qualified candidates or a mismatch between job requirements and candidate qualifications.
Additionally, a competitive job market, negative employer brand, and lack of flexibility can all contribute to difficulties in attracting top talent. Geographical location can also be a barrier, as jobseekers may be less likely to apply to a company located in an area with a low population density or high cost of living.
Solution: Consider a variety of factors to attract top talent
Re-evaluate job requirements, offer more competitive compensation and benefits packages, and improve your employer brand and reputation among jobseekers.
While home-working was introduced due to the pandemic, it is far from becoming a thing of the past. In fact, CyberCrew found that the percentage of UK employees who expressed disapproval of the home-working environments was only 6.4%!
This suggests that employers are recognising the need to be flexible and competitive in their compensation and benefits packages to attract top talent.
Negotiating salaries can be a valuable tool for employers to incentivise potential candidates to accept job offers, and also help to retain current employees by offering competitive compensation packages.
A study conducted by TotalJobs showed that beyond a higher salary, over a quarter (26%) of workers reported that a better work-life balance would encourage them to stay in their role.
This suggests that while salary negotiation and flexible working can be an effective strategy, employers should also consider other factors that contribute to a strong employer brand. This includes a positive work culture, opportunities for growth and development, and a commitment to diversity, equity, and inclusion.
How big is the role of branding in the success of a company?
Employer branding has a significant role to play when it comes to a company’s success, for both customers as well as potential job seekers.
For customers
While branding helps drive sales and revenue, it also helps to establish a company’s reputation and credibility. Glassdoor found that a strong employer brand can reduce the cost per hire by as much as 50%. Building trust with your consumers increases the likelihood of repeat business and positive word-of-mouth referrals.
Moreover, Deloitte Digital states that a strong brand can create a sense of emotional connection with customers, making them more likely to choose your brand over others, even if similar products or services are available.
With so many products and services offered, it can be difficult for companies to stand out and attract clients.
A strong brand can contribute to the development of a distinctive identity and value proposition, making it simpler for customers to understand what differentiates your business from its rivals.
For job-seekers
Potential job seekers are looking for more than just a job; they want to work for a company with a strong reputation and positive culture. A study by Gallup showed that companies that prioritise employee well-being tend to have higher revenues, as well as improved customer satisfaction and employee engagement.
A strong employer brand can help make a business the employer of choice in a particular sector. It can spark the interest and excitement of potential job seekers, making them more inclined to apply for open vacancies.
In addition to helping active candidates, LinkedIn states that a strong employer brand can also attract passive candidates – those who aren’t actively searching for work but would be interested in a career opportunity with a desired business if the opportunity arose.
Moreover, according to Jobsoid, having a strong employer brand can help you reduce turnover rates by 28% through attracting and retaining employees who fit the company’s culture and values well.
Employee retention rates are higher for organisations with engaged and committed staff members, which lowers the expense of hiring and onboarding new workers.
Employer branding outcomes
If you’re still wary about deciding whether or not to invest in a successful employer branding strategy, these employer branding outcomes will help you understand why doing so is critical.
Improved recruitment and retention
When you have a business, you want to attract and retain top talent. Organisations with a strong employer brand are more likely to obtain high-calibre job applications and have lower turnover rates.
This is because potential employees are more likely to apply for a job with an organisation that has a positive reputation, and current employees are more likely to remain with a company that values them and fosters a positive work environment.
Increased employee engagement
When employees feel proud to work for an organisation and believe in its mission and values, they are more inclined to be driven and dedicated.
This can result in higher levels of creativity, improved customer service, and enhanced productivity.
Improved employer-employee relationships
Employees like to feel respected and appreciated by their organisation. You can ensure this by recognising their work and offering a favourable work environment.
This leads to greater levels of job satisfaction, improved communication, and a more supportive and collaborative work environment.
Increased diversity, equity and inclusion
When you value diversity and aim to create an inclusive workplace culture, it can attract a broader range of job applicants.
This leads to a more creative and innovative workforce, as well as a better understanding of diverse customer needs and preferences.
Enhanced reputation and credibility
By treating your employees well, your brand is seen as more trustworthy and socially responsible, leading to increased customer loyalty and overall business success.
We hope that these statistics have shown you how crucial employer branding can be to the success of a company. It is a basic tool for attracting and retaining top talent in a competitive market. Investing time and effort into developing good social media campaigns, taking responsibility and action when it comes to negative feedback, and prioritising employee well-being are elements that will help your brand. Moreover, ensuring accessibility and offering flexibility in the workplace are factors that will certainly help your employer branding efforts and improve your company culture.
