Where people once looked for job adverts in printed newspapers, today’s jobseekers use the internet and social media to find work. These platforms give a broad overview of potential employers and, not least, an insight into what it is like to work for a company – all before you have even filled in an application. With this digital transformation, a strong employer brand has become essential for almost every business that wants to stand out as an attractive employer.
Put simply, a company’s employer brand is the reputation it has as an employer. Employer branding is therefore the set of activities an organisation carries out to communicate what makes it an attractive place to work. In other words, employer branding is not the marketing of the services the business delivers, but the marketing of the company itself. Everything from internal aspects such as the working environment, pay levels and opportunities for advancement to the company’s overall culture and values can affect the impression the outside world has of the business. How this kind of employer marketing is done in practice varies, but a common feature is the use of websites and social media to raise the company’s profile and give the outside world an insight into its goals and ambitions. Whatever methods you use, every leader should have a conscious relationship with their employer brand and take steps to strengthen it. A strong employer brand can give the company a real advantage in recruitment.
A company’s employer brand is the very identity of the business. It is its universal reputation, and it goes a long way towards determining whether the company is seen as an attractive employer or as a workplace best avoided.
According to a leadership survey from 2017, strengthening the employer brand is one of the most effective ways for a company to stand out in the market. Yet this kind of profile-building is among the things leaders spend the least money on. Instead, the recruitment budget goes on traditional methods such as advertising and various digital recruitment tools. Although these methods are useful, leaders risk losing ground to other companies in the same segment if the business does not deliberately strengthen its reputation. Particularly critical is the reputation the company has among potential employees and among its current staff.
Companies with a passive attitude to their brand risk missing out on the most attractive top talent. Few people want to work for a company they have never heard of. Looking at the list of dream employers among Norwegian graduates, companies such as DNB, Equinor and Aker Solutions sit at the top. These businesses are attractive not only because they are large and well known, but also because they have managed to create a positive public image of themselves. What the companies on the list have in common is that they come across as innovative and open to change. At the same time, they give the impression of having good working environments and of giving employees the opportunity to climb into leadership positions. This shows the benefits of employer branding in practice. Companies that have deliberately strengthened their reputation and stand out as a good place to work do not need to fight for top talent. Instead, the best candidates are naturally drawn to them.
A strong employer brand also makes it easier to retain the company’s key employees. If employees get the impression that other companies have a better working environment, more interesting projects or more exciting tasks, they may soon feel like leaving and trying their luck elsewhere. If, on the other hand, you can match or surpass the competitor’s good reputation, it becomes easier to dispel employees’ belief that the grass is greener on the other side. Employer branding can also help make current employees more satisfied with their workplace. Building a company’s reputation is, after all, synonymous with showing the outside world that the business is pleased with its employees and their efforts. Presenting yourself as a company with solid financial growth, positive values and strong social cohesion can be read as a public thank-you to the employees who have actually been crucial to that success. In this way, employer branding can be understood as public recognition of the company’s employees, which in turn can strengthen their sense of belonging and loyalty to the business.
Whether or not you actively work on it, every business has a brand. If, as a leader, you do not recognise this and take strategic steps to strengthen the company’s reputation, you will not be able to influence how the outside world perceives the company either. This leaves the company in a weaker position than competitors who make an effort to market their business, vision and values.