Just how important is employer branding? The transparency that social media has brought to employer branding has prompted the need for a strong brand advocacy.

Richard Mosley, author of The Employer Brand supported this “the most important change [in employer branding] has been a shift from promoting employer brands through recruitment advertising campaigns to a more diverse flow of authentic, employee generated content through social media.”

Websites such as Glassdoor are contributing to the shift in power, with companies needing to sell themselves to candidates as opposed to candidates having to sell themselves to the company. We also know that due to growing competition in acquiring talent, people now have a far greater choice over where they work. This means employer advocacy is more important than ever before.

Recent research into the importance of employer branding has finally put some hard figures to the issue, supporting that a poor employer brand can be detrimental to your company and it will cost you.

The study comprised of over 1000 nationally representative respondents, all of which are full time professionals. The top three concerns that would deter a potential candidate from taking a role within a company included a lack of job security, dysfunctional teams and poor leadership. Almost half of the respondents said that they would rule out working for a company all together if they displayed any of these traits.

The three traits that potential employees look for when applying for roles are employer stability, opportunities for career growth and the chance to work within a good team. These traits are considered as important to potential employees and demonstrate a good reputation.

The research revealed if the reputation of the brand is poor, that a pay increase of at least 10% was needed in order to entice a new employer. This translates to approximately £3,297 per hire.

The study also revealed that that in order to compensate for a poor reputation, a company with over 10,000 employees or more could be spending £5.3million in additional wages.

According to the study, job applicants soared by up to 500% when a company showcased aspects of their working environment on social media.

“The crucial first step is to understand why you’re struggling to hire,” said Mosley. “Some organisations help employers determine levels of awareness among the talent groups they are seeking to hire, what these people currently associate with the employer and how this aligns with what they’re looking for.

“Once this is clear, it makes it a lot easier to define a more compelling employer value proposition, focus your communication efforts and ensure you deliver on your promises.”

Read our tips for creating a strong employer brand.

If you are looking for someone to help you to improve your employer branding then please contact us on 0207 788 6600 and our expert consultants will help you find the right HR professional for the role.