As talent management continues to be a top rated concern amongst executives and CEOs, it is not surprising that we are seeing CEOs taking a more active role in the employer branding strategy. In fact, according to the recent global survey conducted by our partner Employer Brand International (EBI), we are starting to see more CEOs lead and own the employer branding strategy.
People are a key differentiator
Top talent is today’s competitive differentiator and executives realize one of the most important strategies for growth. With continued engagement challenges and skills shortages, employers need to be focused on critical talent management strategies including employer branding. With 80% of job seekers more likely to apply to a job because of the company employer brand versus the strength of the corporate brand (LinkedIn), executives realize the importance of having the employer branding strategy owned at the executive level.
Customer and Employee Engagement are not separate strategies
We are all cognizant of the positive correlation between employee engagement and customer satisfaction. In fact, this is evidenced in the case of a major Canadian financial institute that measured both employee engagement and customer satisfaction as KPI’s within the first year of implementing key talent management initiatives, including employer branding. In this case, a 5% increase in employee engagement resulted in a 2% increase in customer satisfaction, which in turn drove a 2% increase in profit, or $72 million annually!
Not surprising, due to the strong link between customer and employee engagement we see CEOs leading employer branding strategies as the implementation of the strategy involves several departments including Human Resources, Marketing, Communications and Sales.
Employer branding drives direct results
With continued economic uncertainty, it is critical that organizations focus on those strategies that will have the biggest impact financially — short and long term. Based on research conducted by our partner EBI, within 12-18 months of launching an employer brand platform, organizations have seen:
• As much as a 36% increase in productivity
• 12% increase in customer satisfaction and loyalty scores
• Lower cost per hire by as much as 50%
• Employee turnover reduced by up to 28%
• 5% increase in employee engagement
Research conducted by Information Masters – The Secrets of the Customer Race identified that over time, the 3 biggest determinants of a company’s future success are realized when corporate investments are placed on its culture, its leadership and its people… It is no wonder that CEOs now see employer brand strategy as the strategy to fuel their success.
Sources: http://www.recruiter.com/i/talent-management-most-important-strategy-for-growth/
http://www.employerbrandinternational.com/#!latest-research/c51b