Employer branding: trends and impact for the employer brand

Employer branding allows you to position your company as an attractive employer and set it apart from other competitors on the job market. Nowadays, this is more important than ever, as skilled workers are in short supply, jobs are becoming increasingly easy to find and employees and candidates are weighing up financial aspects against job satisfaction.

Employer branding is a mandatory task in view of labor market trends

Job search has changed drastically in recent years: Companies are more in competition than ever before and employees have different needs and higher expectations of their professional life.  

Which trends play an important role in employer branding?

1. Jobs are easier to find and quicker to leave

Regardless of the industry, social media has made it much easier for job seekers to find the right job or a new one. LinkedIn, Xing, X and the like allow people to discover more job vacancies and interact more easily with potential employers. There are also job portals such as Indeed, Stepstone and others. Digitalization also makes it easier to work remotely and thus overcome the distance hurdles of the past. Companies are therefore not only competing for employees in the local or regional market, but much more nationally or even internationally.  

2. Money is not everything 

Nowadays, most people want to feel connected to their company. They want to do meaningful work that is worth their time and commitment. In addition to standards such as salary, benefits and retirement benefits, corporate culture, team cohesion, personal development opportunities and the overall purpose of the company are decisive factors when choosing an employer. Companies that do not invest here will face difficulties to find and retain employees. For 56% of employees, corporate culture is more important than salary when it comes to job satisfaction.

3. Companies are more publicly visible than ever

Whereas previously only employees and customers were able to gain insights into companies, social media and other online offerings are increasing transparency. Employer branding is also an important differentiating factor in the competition for qualified employees. Companies are communicating with more target groups than ever before - and employees can share insights into the company. Kununu and other employer review portals give employees the opportunity to comment on their employers and everyone can participate. Almost 74% of job seekers use review platforms to find out about an employer before applying.

Ultimately, these three trends are leading companies to put their own employee retention and recruiting processes to the test. With targeted employer branding, companies systematically address these points and create a work environment in which employees feel comfortable and are happy to stay. 

What are the benefits of employer branding?

There are many reasons why you should invest in employer branding. It benefits the employees and therefore the company itself. Identification with the company and motivation within the team increases.

The costs associated with an inadequate employer brand should also be taken into account. A high turnover rate increases the costs of absence and replacement costs for bridging, recruiting and training new employees.

Employer branding is therefore worthwhile - all the more so in times of an increasing shortage of skilled workers.

1. Advantages in recruiting

The stronger the employer brand, the easier it is to find the right employees. The effort for recruiting decreases. 

2. Better employee retention

The core elements of an employer brand, such as the corporate culture, values and communicative appearance, can be an important reason why people join a company. If these aspects are inadequate, it can lead to mistrust, disappointment and staff churn. An effective employer brand therefore reduces fluctuation. 

3. Stronger commitment

A strong employer brand improves employee satisfaction. They are more motivated and committed, which increases performance, productivity and thus the company's profits.

4. Recommendations

The better the employer brand, the more likely it is that current and former employees will recommend the company to acquaintances. The number of applications increases. 

Employer branding: the basics

A good employer brand is more than just paid lunch, table football or free fruit baskets. It is much more about what the company demonstrably represents and how it does so. This is where one mistake is often made: companies focus on individual components of their employer brand. These include social benefits, office space, corporate culture and the like. What is forgotten is that none of this is important if the employer brand as a whole is not trusted.

Creating a strong employer brand therefore means cultivating the qualities that employees are really looking for - beyond salary negotiations, events, processes and so on. If companies can communicate these qualities internally and externally, they have an employer brand that has real fans. The company becomes an “employer of choice”. You can find practical tips on how to achieve this here.

Employer branding: strategy and measures

Before employer branding measures or content are devised and implemented, a close look should be taken at the current situation. What does the company stand for? What is important to it? How is this reflected in the corporate culture? What effect does the current employer brand have? What are competitors doing? What defines the target groups? What employer positioning makes sense? And what measures can be used to build the employer brand sustainably? 

The answers to these questions are the crucial information needed to carry out strategic employer branding in which the employer brand is communicated appropriately.