Could employer branding have a positive effect on your company’s revenue?

Hester Gras

When making plans to (re)design your employer brand and defining your KPIs, you automatically create a vision on what the outcome should be. As said before, the outcome of employer branding will mostly affect brand awareness in general and the recruitment process. So, now let’s put it into numbers.  In our fourth installment about employer branding, we’ll discuss the outcome, because when executed properly the employer brand will lead to more revenue.

Ranking results of employer branding
Research shows employers experience the most results of their efforts in the following ten topics:

  1. Increased brand awareness (40%)
  2. Higher quality of applicants (36%)
  3. More reactions on vacancies (32%)
  4. Bigger talent pool (22%)
  5. Increased employee satisfaction (22%)
  6. More followers on social media (20%)
  7. Increased employee engagement (18%)
  8. Shorter period between job opening and fulfillment (17%)
  9. More open applications (17%)
  10. Decreased recruitment costs (17%)

How employee satisfaction and engagement lead to increasing revenue
As you can see, internal communications definitely profits from Employer Branding. In an earlier installment, KPIs for Employer Branding, we already discussed why increasing employee satisfaction and employee engagement should be on your agenda. Now, let’s explain how these two holy grails lead to increased revenue.

Engaged and motivated employees will increase your reach
Together, employees often have a greater reach and influence than the brands they work for. Enabling hundreds and thousands of employees to share your story will increase brand awareness.

Engaged and motivated employees will defend your company
Many organizations are fearful that their employees will destroy their reputations by sharing the company story on social media. But the fact is, we are always connected and this increasing connectivity is not going to reverse course. Moreover, the numbers show that employers shouldn’t be too afraid!

Nearly 6 in 10 employees defend their employer to family and friends or in a more public venue – such as on a website, blog, or in a newspaper. *Employees are even more active in organizations that experienced a top-tier change, indicating that they are rising up to support organizations in time of need.

(Reference: Weber Shandwick & KRC Research (2014). Employees rising: Seizing the opportunity in employee activism.)

Engaged and motivated employees generate more sales
When employees are encouraged to use social media, they are more likely to encourage others to buy your company’s products or services. In fact, even a modest increase in advocacy can result in significant growth: a 12% increase in brand advocacy typically generates a 2x increase in revenue growth.

These are only 3 of the 15 reasons that we discovered over the past couple of years for why you should pursue employee engagement. Keen on finding out more? Don’t hesitate to download the whitepaper “15 Facts that Prove Employee Advocacy is Powerful”. In our next installment, we talk about the employer branding roadmap.

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