3 ways to measure ROI in Employer Branding

Attracting and retaining top talent has emerged as a critical objective for organizations in the current, fiercely competitive labour market. In fact, nearly 80% of the World’s Most Attractive Employers state that Employer Branding is a top priority for 2023.

Employer branding initiatives are a growing area of investment for businesses to succeed to talent attraction and retention. However, with it being extremely crucial for companies to do this, it is also important to understand how businesses can assess the ROI of their Employer Branding initiatives. In this post, we examine the value of measuring ROI for Employer Branding and practical ways to measure its influence, as well as the benefits a strong Employer Brand has on your Return on Investment.

The Importance of Employer Branding and ROI

Strategic Decision-Making:

Analyzing the return on investment from Employer Branding offers useful information. Organizations can determine which strategies are most successful in attracting and retaining talent by quantifying the effects of various branding activities. They are able to make data-driven decisions to enhance their employer brand and manage resources effectively.

For example, is your cost-per-hire high? What causes this, and how can it be lowered? Do you have an extremely high turnover rate? Knowing the quantifiable numbers behind these measurements can point to what areas of business need attention.

Financial Justification:

Senior leadership buy-in and financial support for Employer Branding initiatives depend on the ability to demonstrate a favourable return on investment. Leaders are more willing to allot enough funds to sustain continuing efforts when they can clearly see the advantages of investing in workplace branding.

Competitive Advantage:

A strong Employer Brand gives businesses an edge over rivals in the talent market. Companies may evaluate their Employer Branding activities in relation to industry benchmarks by measuring ROI. Speaking of competitive advantage, did you know that Boston Consulting Group found that companies with a strong and measurable employer brand can see upwards of 3.5x increase in revenue, and up to a 2x increase in profitability?

While there are many benefits to measuring ROI in your Employer Brand, it is also important to understand how to measure ROI.

Ways to Measure the ROI of Employer Branding

Employee surveys:

Asking your staff for input on a regular basis will help you understand how Employer Branding initiatives are doing. Employee engagement, loyalty, and opinions of the company as an employer can all be covered in surveys. Organizations may monitor shifts in employee opinion and link them to particular employer branding initiatives by comparing survey results over time.

Retention and Turnover:

Having a high staff turnover rate may be quite costly. In fact, a recent study shows that the average employer in the US spends approximately $5,000 USD per new hire. If you have a high turnover, it's easy to see how backfilling roles can easily become unaffordable. Employer Branding's effect on retention rates should be measured to assist businesses to determine how effective their tactics are. Companies can assess their influence on staff retention and related cost savings by comparing turnover rates before and after implementing Employer Branding initiatives.

Quality of Applicants:

The quality of job applicants is also important to gauge the ROI of Employer Branding. To measure the effectiveness of their employer brand in attracting top talent, companies can monitor the quantity of eligible applications, the pace of hiring, and the proportion of offers that are accepted. Feedback from applicants who declined offers can also be a significant source of information on the success of company branding initiatives.

Companies trying to recruit and retain top talent in today's job market must measure the ROI of Employer Branding. This must be done to find areas that require improvement, and capitalize on quantifiable measurements for long term reporting, decision making, and assessment of activities. Organizations may learn a lot about how their Employer Branding activities are doing by using techniques like employee surveys, retention rates tracking, and candidate quality evaluation. According to the data, building a strong employer brand pays off significantly, making it an essential tactic for businesses dedicated to long-term success in talent attraction and retention. Need help assessing the ROI associated to your Employer Brand? Contact us today to learn about our resources and courses that highlight real-life case studies of the benefits and impacts of ROI and Employer Branding!