Employer Branding is too often perceived as a nice-to-have function that makes people feel good, but doesn’t really drive business results.
Many executives think of it simple as a cost-centre, not a revenue-driving department. As such, they are reluctant to invest company resources.
The questions remains, “how do I convince my company that employer branding makes sense on a financial level?”.
The answer is surprisingly simple, tackle all of these perceptions head on, and the naysayers won’t stand a chance. We’ve crunched the numbers, and here is some conclusive proof that employer branding can save your company tens, or even hundreds, of thousands of pounds a year.
Employer Branding Lowers Cost Per Hire
According to LinkedIn’s most recent research companies with strong employer brands see a 43% decrease in cost per hire.
The most recent study into cost per hire across conducted by Bersin & Associates over 100 companies found that UK talent acquisition cost stands at £5,311 per hire.
Some ROI Calculations On Your Employer Brand
|10 Hires per year||50 Hires per year||200 Hires per year|
|No Employer Brand||Cost per hire||£5,311.00||£5,311.00||£5,311.00|
|Strong Employer Brand||Cost per hire||£3,027.27||£3,027.27||£3,027.27|
|ROI Calculation||Annual Savings||£22,837.30||£114,186.50||£456,746.00|
Despite the clear economic argument for investing in employer brand, CEOs aren’t always convinced. So outside of the financials here are other benefits to mention:
- More offers accepted
- Increased employee retention
- Reduced time to hire
- Increased number of referrals
- Increased direct applications volume
- Increased candidate quality
Building a strong employer brand doesn’t happen overnight. And it’s fair to say that your CPH may increase to start with but it will reduce over time and affect all areas of your talent acquisition strategy from response rates to referrals.
It also has an affect on the quality of talent you’re able to reach with a recent CEB report highlighting that employers that invest in employer brand report a 54% increase in the quality of their candidate pool.
Is it time for you to tell your employer brand story?
Book a free TalentRocket demo today and get a risk free 30 day trial. Instantly reach thousands of talented people, add photos, videos, answer candidate questions and build a talent pool of future hires.