Not investing in your employer brand? Recent LinkedIn surveys shed some light into the value your employer brand plays in your talent acquisition strategy. What we found could have profound implications for your recruiting efforts:
1) Investing in your employment brand will save you money: We surveyed 2,250 corporate recruiters in the US to learn more about time to hire, cost per hire metrics and most importantly the impact of a strong employer brand. We have seen that companies that have strong employer brands enjoy significant cost savings with lower cost per hire and employee turnover rates. But by how much? This is where the data gets very interesting.
- The cost per hire is over 2 times lower for companies with strong employer brands.
- Companies with stronger employer brands have 28% lower turnover rates than companies with weaker employer brands.
2) We tend to over-inflate perceived attractiveness of our company: In the same study, we asked recruiters to rate their self-perceived attractiveness of their company as a place to work.* Almost none of the recruiters claimed that their company would score less than a 7.
3) Building a strong employment brand is crucial in order to attract passive candidates: Ongoing LinkedIn research shows that what sparks a passive candidate to consider switching jobs is not the same as what motivates an active candidate to switch jobs: