The Importance of Employer Branding

Your company has a reputation in the workforce and with your employees, whether you created it or not. Unfortunately, many companies focus so hard on their consumer-facing brand that they spend little to no time developing and maintaining their employer brand.  

Employer branding is a strategy to obtain, retain, and motivate your employees. So often, we think of employer brand as a recruitment tool only. However, according to Exploring the Relationship between Employer Branding and Employee Retention, employer branding is a vital tool in "retaining, motivating, and engaging the employees for attaining increased productivity." 

Today, we will discuss the signs of a strong employer brand and how your employer brand impacts your employee retention and recruitment.  

What are the signs of a strong employer brand?

The key to a strong employer brand is ensuring that your company meets the expectations of your employees and that you advertise what makes your company different from competitors, all while highlighting the benefits your employees receive in exchange for their skills and experience.  

According to LinkedIn, the top five qualities of a strong employer brand are:

  • Job security
  • Professional development opportunities
  • Company culture
  • Organizational values
  • Reputation among current and past employees  

They also noted that 41% of prospective employees are willing to take a position without a pay increase for a company with three or more of the top five qualities of a good employer brand. That number jumps to 46% for brands that showcase all five top qualities. The employer's reputation is even more important for prospective job seekers under 35. It has been shown that this age group is willing to take up to a 5% pay cut to work for a company with a great brand.  

Research by Hireology confirms the benefits of a strong employer brand. They noted that 84% of job seekers are willing to take jobs without a raise in pay if they offer benefits like a great culture, growth opportunities, flexibility, and other non-monetary benefits.

Beyond job security, development opportunities, culture, values, and reputation, studies show that low turnover is one of the greatest internal indicators of a strong employer brand.   

Employer Branding's impact on retention

Employer brand plays a large role in retention. According to LinkedIn, companies that spend less time investing in their employer brand lose an estimated $5,000 per year per employee. It is estimated that turnover can be reduced by at least 28% by simply managing your employer brand.  

One of the most important benefits of your employer brand is the pride it instills in your employees. Everyone wants to feel satisfied in their jobs and their company. When you can't speak excitedly about your position and company, it increases the feeling that your skills could be better utilized at another organization. Pride is key to building company loyalty.  

Employer brand can improve morale by increasing knowledge of the benefits offered to your employees. A strong employer brand highlights the benefits that might otherwise be taken for granted, which can improve morale and help to educate your employees into becoming brand ambassadors. 

A strong employer brand can reduce turnover within the first 90 days. As much as 32% of employee turnover in the first 90 days of employment is due to an imperfect match in company culture. The purpose of your employer brand is to accurately disseminate what it is like to work for your company, the perks you offer, and what makes you stand out from your competitors. When your brand is utilized properly within the candidate journey, this tool will set and manage expectations about life at your company, ensuring that you hire people that fit well within the company culture, and reducing this major piece of the turnover puzzle.  

It is not just enough to create an employer brand; you must live up to the promises of that brand. This identity must be reinforced and communicated externally and internally to be truly effective.  

Employer Branding's impact on recruitment

Employer brand is pivotal to successful recruitment. To land the top talent in your industry, you must ensure that your reputation is positive. According to Glassdoor, 86% of job seekers research companies, watching for negative reviews and ratings before deciding to apply for a position.  

A strong brand will help you develop your pipeline, lowering hiring costs. A company with a strong employer brand spends far less than companies with a poorly managed brand or bad reputation. It is estimated that companies with poorly managed brands will spend up to two times the cost per hire of a well-managed brand. The sign of a good brand is employee referrals, which have been shown to have the best ROI of any hiring channel.  

Your employer brand must highlight the benefits you offer your employees in a way that stands out from your competitors. When battling for top talent, it is not uncommon for these candidates to decide between multiple offers; your brand is often the piece that pushes one offer above another. When developing your brand, focus on all aspects of your Employer Value Proposition (EVP). Your EVP is a document that outlines your company's mission, values, and culture, basically, all that your company has to offer in exchange for the skills and experience your staff brings to the table. 


Employer Branding is crucial to attracting and retaining top talent. People want to work for a company with a good reputation and one that treats its employees well. A positive working environment and a healthy company culture are major sources of motivation. Your company has a reputation in the workforce and with your employees, whether you created it or not. Now is the time to take control of your brand to improve recruitment and retention. 

LzRecruit helps you build your brand and engage with your employees and prospects, positively impacting your company's productivity. For more information on the LzRecruit Network, contact us at 800-755-0623.



Debra Watkins covers recruitment and digital marketing for Lionzone. A Nashville native, after graduating from the University of Kentucky, Debra utilized her research and writing skills in the museum and heritage tourism fields, rising to director of two institutions before returning to Nashville in 2020 to join Lionzone.  




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