So Important is Employer Branding - Study: Are Companies Giving Mice?


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In HR circles, it is often emphasized how important employer branding is. But many Company are still skeptical of the benefits that the seemingly ominous employer brand brings them. LinkedIn has now set out to pinpoint the pros and cons.

So Important is Employer Branding - Study: Are Companies Giving Mice? Infografik_Employer_Branding_Arbeitgebermarke1

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Here writes for you: Barbara Wittmann is a member of the management team at LinkedIn Germany, Austria, Switzerland. Profile

ROI of the employer brand

Overview

The LinkedIn business network has asked 1.005 to interview German full-time employees on employer branding for their "One employer brand ROI" study. The survey was conducted in August 2015 by ICM Unlimited.

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Admittedly, the results also surprised me: Almost a third of German employees would refrain from raising their salary if they changed jobs, if the new one Company is a strong employer brand.

Employer branding comes first

Overview

Conversely, 52 percent exclude the move to a weak employer brand, with more 21 percent compensating with a salary premium of at least 10 percent.

As a result, employer branding is the top priority for German personnel when it comes to recruitment: 43 percent is the top priority in their company.

Strong brand, weak brand?

Overview

LinkedIn wanted to know which aspects make a brand attractive to employees and what discourages brands.

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As "strong" or "weak" employer brands, LinkedIn defines the companies for which the top 3 criteria in each area apply:

Strong employer brands offer the following aspects:

Overview

  • 48%: A higher level of job security
  • 36%: More opportunities for career development
  • 33%: More self-responsibility and self-reliance in the work
  • 28%: The chance to work with a good team
  • 23%: An outstanding reputation of the management team

Weak employer brands struggle with the following aspects:

Overview

  • 52%: Companies in which job security is in question
  • 50%: Companies with dysfunctional or poorly performing teams
  • 44%: A management team with bad reputation
  • 37%: Negative comments from (former) employees
  • 34%: Limited opportunities for career development

So Important is Employer Branding - Study: Are Companies Giving Mice? Infografik_Employer_Branding_Arbeitgebermarke2

7 Million Euro additional costs?

Overview

How to offset this in euros and cents, profit and loss. As the LinkedIn study puts it, compensation paid by weak employer brands was calculated based on employee turnover and premium on the new workforce.

The study assumes an annual fluctuation rate of 17 percent and an average value of 43.234 Euro.

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We were billed?

Overview

The formula for this: Compensation = (Σ employee *% fluctuation) * (Ø salary *% TB factor). The source for both details is the Federal Statistical Office. According to Q2 / 2015, there were around 43 millions in Germany.

3,91 millions, so about 17% stated in an IfD Allensbach survey by 2015, this year to change the occupation / employer. According to the Federal Statistical Office, the average salary in Germany in the year 2014 was 3.527 Euro per month / 43.234 Euro per year.

Attention brand defect compensation

Overview

It was also assumed that each of the new employees would claim 10% more salary. This results in an annual compensation of around 10.000 million euros for a company with 7,3 employees.

If, according to the study, only half or one-quarter of new employees can pay compensation for brand deficiency, the company concerned would still incur almost 3,7 or almost 1,8 million euros in additional costs.

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So Important is Employer Branding - Study: Are Companies Giving Mice? Infografik_Employer_Branding_Arbeitgebermarke3

3 Tips for Employer Branding

Overview

One might like to go with these computing skills, which are unfortunately only based on estimates, or not, after all, LinkedIn provides HR professionals a detailed guide to employer branding available.

We have selected 3 tips to help companies pave the way for a strong employer brand:

  1. Include employees: Employees are the most credible ambassadors for a company. With social networks, for example, employees have the opportunity to propose people from their network to vacancies and to share vacancies via Xing, LinkedIn, Twitter and Facebook with their own network.
  2. Use the potential of social media: The social networks of a company should not be managed by the marketing department alone. HR representatives should also be approachable here. Social media are not pure broadcasting channels, dialogue is called for, even from individual to individual.
  3. Show, not just talking: Strong employer brands allow candidates to look behind the scenes, offer multimedia content, create transparency. If a company is able to provide evidence of the company's promises in communication, the foundation is laid for a strong brand.

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  1. Pingback: B2B Communications: What do Xing and LinkedIn have to offer?

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