There are some things for which people are willing to shell out a good deal of money. For example, no one wants a 75 percent discount on gall bladder surgery — and few may jump at a Buy One Get One Free offer for laser eye surgery. That’s because we tend to place a premium on things we value, such as our health.
Similarly, the majority of U.S. candidates place a premium on working for companies with a good brand – and are ready to sacrifice part of their compensation for it. Nearly 3 in 4 (68 percent) candidates say they will accept less than their lowest target salary for a company with a favorable brand.
This was just one of the eye-opening statistics presented by Rosemary Haefner, global vice president of human resources at CareerBuilder, at the Fall 2013 ERE Recruiting Conference & Expo last month.
She went on to report that it will cost companies a 21 percent increase in compensation to lure candidates who feel a company’s brand is unattractive, compared to an 11 percent premium for candidates who feel a brand is attractive.
Top Talent Is Out There – and Looking
Did you know that 74 percent of full-time workers are either open to hearing about or are looking for new opportunities? That number may be higher than what you anticipated, but it’s at least partly due to the increasingly blurred lines between active and passive candidates.
Haefner explained that today a job search never really ends because most people are constantly plugged in and looking for their next big break. Sixty-nine percent say searching for a new opportunity is part of their regular routine.
So, what does that have to do with you? A lot, actually. Consider the fact that 9 in 10 candidates say employment brand plays a role in their decision of whether or not to apply at a specific company or not, proving that employment branding is a need-to-have, not a nice-to-have, as some may think.
Thirty-nine percent of employers plan to increase their investment in employment branding initiatives in 2013.
Haefner mentioned that 18 percent of CEOs are involved in employment branding, while 46 percent say their CEOs support their employment branding strategy. (That is, if they have an employment branding strategy in the first place.)
Strategies for Employment Branding
Here are a few tips Haefner offered up to build or improve your employment brand.
- Why should someone work for you? Make sure there’s a satisfactory response if a candidate were to ask your CEO (or, for our purposes, a hiring manager or really anyone else affiliated with the company’s hiring process): “Why should I work for YOU?” In other words, find out what distinguishes your company from competitors.
- Craft a simple, yet powerful, message. If it’s too long-winded, it may give the impression that you don’t really know what you’re talking about.
- Be authentic. Is your message aligned with what your employees are saying about you? Don’t try to be something you’re not.
- Use data to measure the ROI of employment branding. Some metrics that companies use include retention rate (38 percent), employee engagement (33 percent), quality of hire (29 percent), cost per hire (27 percent), and number of applicants (26 percent).
You may also be interested to read: “Why Employer Branding Videos are Now a “Must Have”- And 8 Tips To Do It Well.”