Employer branding is so important: Are companies giving away millions? {Trend! study}

In HR circles, it is often emphasized how important employer branding is. But many Companys are still skeptical about the benefits of the seemingly ominous employerBrand brings. LinkedIn has now set out to precisely quantify the advantages and disadvantages.

ROI of the employer brand

The Businessnetwork LinkedIn had 1.005 German full-time employees surveyed on the subject of employer branding for its study "ROI of an employer brand".

Admittedly, the results also surprised me: Almost a third of German employees would forego a raise in their jobs if the new company is a strong employer brand.

Employer branding comes first

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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.

Accordingly, the employer branding stands for German HR in first place when it comes to recruiting: 43 percent explain this Discipline a top priority in your company.

Strong brand, weak brand?

LinkedIn wanted to know what aspects a brand in the Eyes make workers attractive and what turns them off about brands.

LinkedIn defines companies as "strong" or "weak" employer brands for which the top 3 criteria from the respective area apply:

Strong employer brands offer the following aspects:

• 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:

• 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

7 Million Euro additional costs?

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How do you want to calculate that in euros and cents, profit and loss. The LinkedIn study does it like this: The compensation that weak employer brands have to make was made up of the turnover in the company and the premium on the salary of the new workforce is calculated.

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

We were billed?

The formula for this: Compensation = (Σ Employees * % fluctuation) * (Ø salary * % TB factor). The source for both figures is the Federal Statistical Office. According to this, there were around 2 million people in employment in Germany in Q2015/43.

In an IfD Allensbach survey from 3,91, 17 million, i.e. approx. 2015%, stated that this year the Job/ Wanting to change employers. According to the Federal Statistical Office, the average salary in Germany in 2014 was 3.527 euros per month / 43.234 euros per year.

Attention brand defect compensation

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.

3 Tips for Employer Branding

You may or may not go along with these arithmetic skills, some of which are unfortunately only based on estimated values, after all, LinkedIn provides HR-Professionals have a detailed guide on the subject of 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 suggest people from their network for vacancies and vacancies via Xing, LinkedIn, Twitter and Facebook to share with your 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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