In speaking with and listening to hundreds of talent practitioners and employer branding colleagues in the field, we are seeing increasing demand from the C-Suite to invest in Employer Branding. This article will summarize some core messaging and metrics to make the case for investment in employer branding aligned with other talent initiatives.
Firstly, what is employer branding? The way Cliquify views employer branding is how employees and alumni experience their life in an organization which is then reflected in how candidates perceive an organization from the outside looking in.
In this article, we will address why the CEO, CHRO, CMO, and CFO should care about and invest in employer branding. A carefully architected employer brand can pay huge dividends in the short and long term for all the above key stakeholders.
Let’s dissect the core messaging approach for each of the key stakeholders when making a case for employer branding investment:
Why should the CEO care?
According to Fortune, the CEOs of Fortune 500 companies view talent shortages as the #1 threat to business. This problem isn’t just temporary. An extensive Korn Ferry report finds that by 2030, the global talent shortages will cost businesses $8.5 trillion in lost revenue. Globalization of talent will not help much either as the birth rates globally have been in a steady decline per the United Nations and the current population is aging rapidly per the NIH.
Bottom line – competition for talent is only going to get tighter overall regardless of the economic cycles and building a sustainable employer brand is becoming a vital strategy to compete for talent and survival of businesses.
Why should the CHRO care?
Architecting an inside-out culture where people want to work, and stay is one of the most important charters for Chief HR/People Officers. Often in organizations large and small with tight HR budgets and resources, it becomes difficult to plan for the long-term (1-3 years out) value of building an employer brand.
Living and dying from quarter to quarter is important but is a recipe for failing to build a long-term value proposition for employees, candidates, and alumni. A strong, genuine employer brand has proven benefits to retain, engage, and attract talent. According to LinkedIn and G2.com, a strong employer brand results in 28% reduced turnover, 50% more qualified applicants, 1-2x faster hires, and 50% less cost per hire. The reason for this from Cliquify’s point of view is that candidate behavior has shifted to that of a consumer. People are seeking genuine content and trust it 3x more compared to paid media/ads.
Your culture and values need to be publicly celebrated by your people, recruiters, and hiring leaders to engage with talent way before they consider applying or “buying” what your organization has to offer. Talent that is engaged with your people and your brand, especially across social media is 8x more likely to consider applying according to data from Cliquify.
Why should the CMO care?
Chief Marketing Officers are increasingly being asked by the CEO to work with the Chief HR Officer and integrate the company brand story with the employer brand. These two areas are intertwined as noted by this LinkedIn blog where Virgin Media quantified the cost of poor candidate experience to $5.4 million.
Virgin Media calculated this based on subscription cancellations by those candidates after completing an interview process. CMOs simply cannot ignore the fact that the recruiting function touches thousands of people and how they perceive the employer brand has a spillover effect on the overall brand and company revenue.
Why should the CFO care?
As noted earlier in the Korn Ferry study, Chief Financial Officers take notice when global talent shortages are projected to result in $8.5 Trillion in lost revenue by 2030. We continue to see headlines of businesses cutting back on services due to talent shortages and this is only the beginning as the world gets older and reduced birth rates.
Automation may help but this will require new operating models, investments, along with new skill sets. There will be continued pressure on the C-Suite to deliver on shareholder commitments with talent availability as a cornerstone.
Why should we all care?
Based on the macro trends described with talent shortages at least through 2030, talent will become the #1 asset on balance sheets as a key driver of growth and how we as a society will experience the quality of life through services and solutions delivered. Organizations that have a solid long-term strategy and an execution plan to engage, attract, and retain talent will have a better chance of beating their competition, winning out in the marketplace, and exceeding customer and shareholder expectations.
Learn more about how Cliquify can help you in this journey or e-mail us at info@cliquify.me