Key Stats That Prove the Importance of Employer Branding

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Online reviews can make or break any business in today’s digital world. In this context, employers are keen to understand the perception of their online brand across a different spectrum of talent management – recruiting, hiring, employee advocacy, retention, and many more.

Every organization wants to attract top talent in the competitive market today. In a nutshell, the talent war is on and on to build a high-performing team. 

Hence the need for a well-defined employer brand is no more a luxury. It is necessary and pivotal for organizations to build a reputation as a credible employer to succeed. In addition, the modern workforce expects a seamless employee experience and a great place to work. 

It is no secret that employer branding has gained more prominence.  

In my opinion, a well-defined employer brand encapsulates the following:

  • Build and measure the perception of an online employer brand
  • Enable a seamless and better candidate experience
  • Provide a great place to work

Employer branding pervades 360-degree talent management such as hiring, retention, retention, etc. The company should understand these employer branding statistics and their importance while devising and executing future strategies.

Employer Branding and Talent Management Strategy

It is evident from the below stats that employer brand is essential irrespective of the size of the organizations: startups, SMBs, and enterprises. In addition, employer branding acts as a conduit between the hiring team and employees to fulfill the talent pipeline in the future. 

  • 55% of recruiting leaders worldwide have a proactive employer brand strategy. 
  • 59% of recruiting leaders worldwide are investing more in employer brands. 
  • 86% of those in HR think recruitment is becoming increasingly similar to marketing.  

It’s pivotal that organizations invest in building their employer brands without any further delay. It’s the need of the hour because the talent acquisition function has increasingly transformed into recruitment marketing in recent years. 

Employer Branding and Talent Acquisition/Recruitment/Hiring

The modern workforce inclines towards credible and reputed prospective employers while applying for jobs. The primary goal of having a strong employer brand is to provide a seamless candidate experience throughout an entire talent management spectrum from hiring to off-boarding. 

  • 80% of hiring managers believe that employer branding has a significant impact on hiring great talent. 
  • 72% of recruiting leaders worldwide agreed that employer brand has a significant impact on hiring. 
  •  84% of job seekers agree the reputation of a future employer is a deciding factor when applying for a job.
  • Organizations with a positive employer brand image get twice as many applications, unlike a negative employer brand.
  • 75% of active job seekers are willing to apply for a job if the prospective employer actively manages its employer brand. 

The employer brand is no more a luxury today. It’s necessary in today’s volatility, uncertainty, complexity, and ambiguity (VUCA) world to attract the best candidates. The organization leadership should proactively nurture the employer branding strategies to build their reputation with prospective and current employees. In a nutshell, it starts with the hiring process as a first step.

Employer Branding Online

Employer branding has transformed into online efforts through these touchpoints – social media, websites, and review sites like Glassdoor. In the current scenario, both employers and employees turn to social media and review sites to promote and validate employer branding to a greater extent. The following stats explain the rise of employer branding online:

  • 79% of job seekers will be using social media in their search efforts.
  • 83% of employees and job seekers are likely to research companies’ online reviews and ratings while applying for a job. 
  • The multigenerational workforce (68% of Millennials, 54% of Gen-Xers, and 48% of Boomers) shows interest in visiting the social media channels of the prospective employers to evaluate their brand.

Before joining, potential employees rely on Glassdoor and social media reviews about their potential employers. As you’re aware, online reviews can make or break a business. It applies to an online employer brand as well. The HR leaders should embrace online mediums to build their employer brand at any cost.

Employer Branding and Its ROI

There seems to be a great potential to tap upon your employer brand to achieve the desired return on investment ROI. 

  • Organizations with a poor employer brand image result in a 10% higher salary payout to attract potential employees.
  • Organizations with a positive employer brand can result in a reduction of 50% cost per hire.

In a nutshell:

  • A positive reputation helps companies to reduce the cost per hire.
  • A negative one attracts higher employee salaries. 

Employer Branding and Retention

A strong employer brand in line with its culture is pivotal to meeting the business expectation of essential talent metrics that includes reducing employee turnover, increasing retention, improving employee engagement, and nurturing employee brand advocates. It is easier said than done. 

  • Close to 30% of job aspirants leave their jobs within the three months of starting due to expectations mismatch between employees and the employer brand.
  • 50% of potential candidates agree they are not interested in working for a company with a poor employer brand, even for better pay.
  • 92% of job seekers would consider switching jobs to a company with a good employer brand
  • While seeking the working conditions of a company, the potential job seekers trust the employees say, three times more credible than the CEOs.

Building an employer brand is to imbibe a positive employee experience for both prospective and current employees. The company should devise a future employer branding strategy that benefits both audiences from on-boarding to off-boarding. Be ready to spread your positive reputation across the entire employee lifecycle. 

The bottom line is to take your potential hires through a seamless employer branding journey across the entire employee lifecycle process for a better candidate experience. The company needs to create a memorable and reputable employer brand with potential job seekers and current employees, beyond posting fancy job titles on the emerging platforms and designing a stunning talent community and careers pages.


Dr. Venkatesh Raman is a passionate technology product and digital marketer, and data storyteller.


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Dr. Venkatesh Raman is a passionate technology product and digital marketer, and data storyteller who knows a thing or two about Digital Marketing, Analytics & Data Storytelling. An employer branding enthusiast who enjoys sharing knowledge with a broader audience outside of work.